Why I Am OK With $530

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staulkor

Senior Member
Jan 12, 2007
259
32
Phoenix, AZ, USA
After reading all the stories, lots of comments on blogs and forums, I have had enough of the BS about how $530 is over priced and way too much and blah blah blah. You guys want the latest and greatest but aren't willing to pay any more than $5 for it.

Every single phone worth money for years has had an unsubsidized price of at least $550 with a few exceptions of course (G1 is only $400, but it is a generation old hardware). An iPhone 3GS 32gb retails for $699 straight up. The HTC HD2 is $899 on Amazon. Good phones aren't cheap as I am sure a lot of you know. So in this respect, $530 is actually a pretty good deal; especially when you compare it to the HD2 which has the same processor and similar hardware. You are getting a next-gen phone with the best screen to ever be on a phone, double the ram of most high end phones, and double the resolution of most high end phones. You expected the best of the best to be cheap? Pfft...

Also, my current T-Mobile plan is superior to what is going to be offered. It will be cheaper and easier in the long run to just buy the phone straight up.

What I am seeing from people is they see $530 and freak the hell out because they have the $180 to compare it against. Sure, there is a big difference there, but you are locked in to a contract for 2 years. $80 * 24 months + $180 = $2100 over 2 years! AND you only have 500 minutes. If you bought the phone straight up and went with Even More Plus for $80/mo, you get unlimited everything. $80 * 24 months + $530 = $2450. Yes, this is more expensive, HOWEVER, how many times will you go over your 500 minutes in the next 2 years? If this is not a problem for you, by all means, go right ahead and get the contract deal since it suits you. But for me, and I suspect most people, 500 minutes is not enough. For the additional $350 over 2 years, or $14.58 and change every month, it is worth having those unlimited minutes.

Does anybody else agree with me on this? All of my phone junkies I talk to agree that $530 is reasonable. Sure, we all would love a less expensive phone, but lets get real here...

Oh, and if this "leak" turns out to be false, than what an awesome waste of time and all of this is moot! LOL
 
people are trippin over $530 for a phone like this? I paid $550 for my unlocked fuze last year, $800 for unbranded touch pro 2 in April, unlocked motorola droid(milestone) is $800! Al least this phone has some kind of US 3G support, unlike most unbranded phones that come state side. I think I'm a get it day 1, and then get the Bravo when it come out later this year if Sense UI cant be import on the Nexus.
 

uansari1

Senior Member
Jul 27, 2008
3,545
92
Karachi
I agree with you guys wholeheartedly. To be honest though, I think it's most telling to compare plans in an apples to apples manner. I'm a dork with a background in finance, so yes, I created a spreadsheet to calculate all the costs incrementally to see where changes in costs were coming from in my comparison.

After running through the numbers and calculating total costs over a 24 month term, for the 500 minute EM and EM+ plans, with the respective phone costs, the total cost over 24 months if I bought the phone unlocked would be $1970. If I purchased it on contract for $180, the total I'd spend over 24 months would be $2100.

There's NO WAY that you'll spend more over the long term with the EM+ plan UNLESS you're eligible for a corporate discount on the EM plan (which I happily am). With my discount, the total for the EM plan comes to $1811, but that doesn't apply to everyone.

The problem here is that most people are spoiled by the subsidized prices of phones. What they're not realizing is that they're paying for that subsidy in the form of more expensive plans...and then some, as my illustration above clearly proves. If T-mobile allows us to finance unsubsidized phones for 20 months on EM+ plans, then this works out to be more manageable for consumers. Either way, though... people need to consider total cost of ownership (TCO)... not just monthly cost and initial cash outlay for the device.
 

staulkor

Senior Member
Jan 12, 2007
259
32
Phoenix, AZ, USA
Exactly! Thanks for doing that. People just don't look for future savings and would rather have instant gratification. They are excited by a cheap up front cost and monthly service fee be damned!
 
Dec 11, 2009
7
0
I totally agree with you. it is by far the best phone in terms of specifications and price compared to its competitors (iphone 3gs, HD2).
Thanks for explaining this to people.
 

rlplking

Member
Jul 28, 2009
13
0
Baltimore md
T-Mo Unlimited Voice/Web/Text $79.99/mo x 24 months = $1,920
Phone: $530.00
====
Total: $2,450.00
IPhone Plan
AT&T Unlimited Voice/Web/Text $149.99/mo for 24 months = $3,600
Phone: $200.00
====
Total: $3,800.00

-No contract for the T-Mobile plan
-No texts? AT&T without any text message plan still comes to $3,320
 

jubeh

Senior Member
Mar 15, 2009
1,264
20
I was hoping for unlocked-only availability. It would keep certain... um... people... from buying the phone and then flooding the forums with questions, tacky themes, etc.
 

lordmaxx

Member
Nov 20, 2008
28
1
Dont really care about the price. It's actually not too bad, but if they only offer a 3g for Tmobile version here in the states then why bother selling it from google? Now...if they offer a few versions that can do 3g on several of the networks, or the final device gives us 3g on AT&T and Tmobile (and perhaps they do a verizon version too!)...that would be an awesome sale.
 

uansari1

Senior Member
Jul 27, 2008
3,545
92
Karachi
Dont really care about the price. It's actually not too bad, but if they only offer a 3g for Tmobile version here in the states then why bother selling it from google? Now...if they offer a few versions that can do 3g on several of the networks, or the final device gives us 3g on AT&T and Tmobile (and perhaps they do a verizon version too!)...that would be an awesome sale.

I imagine that Google will be releasing high-end phones for all carriers this year. I think they started with T-mobile for a variety of possible reasons. It's not beyond the realm of possibility that they felt that T-mo should get preference because they were the first carrier to carry the Android torch to market. I also wouldn't be surprised if Google had planned this all along and that T-mobile was promised to get the first "Google phone". Obviously this is all conjecture, but it makes sense from a business perspective.
 

andythefan

Senior Member
Sep 16, 2009
231
8
Houston
I imagine that Google will be releasing high-end phones for all carriers this year. I think they started with T-mobile for a variety of possible reasons. It's not beyond the realm of possibility that they felt that T-mo should get preference because they were the first carrier to carry the Android torch to market. I also wouldn't be surprised if Google had planned this all along and that T-mobile was promised to get the first "Google phone". Obviously this is all conjecture, but it makes sense from a business perspective.

But the problem with getting the first of anything is it will be ancient by the time other carriers receive their Android devices :(
 

uansari1

Senior Member
Jul 27, 2008
3,545
92
Karachi
Not necessarily. Given the specs of this phone, I can't see it becoming obsolete as quickly as the G1 did. I could be wrong, but how soon would you think a phone would come out with over 1ghz processor and over 512 ram and rom?
 

andythefan

Senior Member
Sep 16, 2009
231
8
Houston
Not necessarily. Given the specs of this phone, I can't see it becoming obsolete as quickly as the G1 did. I could be wrong, but how soon would you think a phone would come out with over 1ghz processor and over 512 ram and rom?

Aren't there already two other snapdragon devices out? What about the rumors of another iphone being released later this year?

I think the g1 may have been just as big when it came out. Times change, so does technology. The N1 may seem like the hottest new device, but it's the Nexus ONE just as the Dream was the Gee ONE. Look at where we are now. With at least half a dozen android capable devices out in about a year and 50+ rumored by 2012.
 

uansari1

Senior Member
Jul 27, 2008
3,545
92
Karachi
Aren't there already two other snapdragon devices out? What about the rumors of another iphone being released later this year?

I think the g1 may have been just as big when it came out. Times change, so does technology. The N1 may seem like the hottest new device, but it's the Nexus ONE just as the Dream was the Gee ONE. Look at where we are now. With at least half a dozen android capable devices out in about a year and 50+ rumored by 2012.

Your points are well taken. No one's saying that this is THE ultimate phone of all time. It's simply the greatest Android phone to be released yet, and based on its specs, it seems to be a very significant advance forward in hardware as compared to other devices, aside from Droid.
 

andythefan

Senior Member
Sep 16, 2009
231
8
Houston
Your points are well taken. No one's saying that this is THE ultimate phone of all time. It's simply the greatest Android phone to be released yet, and based on its specs, it seems to be a very significant advance forward in hardware as compared to other devices, aside from Droid.

Before the Droid all the Android devices were mostly similar (form factor, screen resolution/size, cpu, etc). This is just like the Droid. It was supposed to be the greatest Android device until the next phone showed up a few months later. How do we know a device with similar or better specs won't show up soon? HTC's leaked roadmap has a lot of impressive devices scheduled for this year.

The marketplace is only going to fragment even more :( Developers aren't happy coding for all these different devices.
 

Digitaldreamer7

Senior Member
Apr 6, 2009
122
9
Tulsa
IDK if you all are missing the point or if maybe im just redirecting it but here goes

This does not fit into how google normally does things. Correct me if im wrong but the formula usually goes

Take good service/software and make it better + dirt cheap or free+data mining = profit$$

If they aren't subsidizing any of the cost, why should we let them have our data?
 

illutionz

Member
Jan 3, 2010
17
0
people are trippin over $530 for a phone like this? I paid $550 for my unlocked fuze last year, $800 for unbranded touch pro 2 in April, unlocked motorola droid(milestone) is $800! Al least this phone has some kind of US 3G support, unlike most unbranded phones that come state side. I think I'm a get it day 1, and then get the Bravo when it come out later this year if Sense UI cant be import on the Nexus.

I am fully agree with your statement that at least this phone has some sort of US 3G support which many unlocked phones lacked or manufacturers are too slow to release the US 3G version (read: Nokia N95 NAM edition).

I think this angry attitude is a manifestation of our credit-driven lifestyle. Many people don't realize that paying cheaper price for a phone alongside mandatory 2 years contract (and ETFs if we decided to cancel) is more expensive. Even if they do, the fact that they can OWN the product NOW (regardless whether you can afford the whole price or not) is what makes it desirable in this part of the world.

Regarding the fact that it doesn't support AT&T 3G bands, well suck it up because iPhone didn't support T-Mobile 3G either and I'm sure there are many Tmob subscribers are interested to get that capabilities too. Until US cleared up these 3G band fragmentation (which probably won't happen), we are at the mercy of these manufacturers to step up their game and put in Quad Band UMTS as opposed to cherry picking 3 UMTS bands to be put into their phones.
 

karnovaran

Senior Member
Jul 27, 2009
598
71
PDX
I agree with you guys wholeheartedly. To be honest though, I think it's most telling to compare plans in an apples to apples manner. I'm a dork with a background in finance, so yes, I created a spreadsheet to calculate all the costs incrementally to see where changes in costs were coming from in my comparison.

After running through the numbers and calculating total costs over a 24 month term, for the 500 minute EM and EM+ plans, with the respective phone costs, the total cost over 24 months if I bought the phone unlocked would be $1970. If I purchased it on contract for $180, the total I'd spend over 24 months would be $2100.

There's NO WAY that you'll spend more over the long term with the EM+ plan UNLESS you're eligible for a corporate discount on the EM plan (which I happily am). With my discount, the total for the EM plan comes to $1811, but that doesn't apply to everyone.

The problem here is that most people are spoiled by the subsidized prices of phones. What they're not realizing is that they're paying for that subsidy in the form of more expensive plans...and then some, as my illustration above clearly proves. If T-mobile allows us to finance unsubsidized phones for 20 months on EM+ plans, then this works out to be more manageable for consumers. Either way, though... people need to consider total cost of ownership (TCO)... not just monthly cost and initial cash outlay for the device.
Expanding on this and assuming no discounts...

Option A) Buy the phone for $180 subsidized and the 500-minute plan for $80/mo, signing a contract to pay $2100 total over 24 mos.

Option B) Buy the phone for $530 unsubsidized and unlocked and choose the comparable 500-minute plus unlimited text/data Even More Plus plan for $60/mo for a total cost of $1970 over 24 mos with no contract.

So over two years of the phone and contract, you save $130 by going with option B.

But will you really last two years? Let's see what happens if you want to change phones after one year, which is entirely possible given the rate at which mobile technology is moving.

Option A) Early reports indicate a $350 early termination fee imposed by T-Mobile during the first 120 days, but no details have been learned about the fee past that window. Let's assume it reduces linearly to zero over the remaining life of the contract, meaning your fee for leaving early would be $210 at the one year mark. This puts you at $1350 to get out free and clear from the phone and contract.

Option B) You have no ETF, so you'll have paid $1250 at the end of one year.

So, even after just a year you still spend $100 less buying unsubsidized. Further, your phone will already be unlocked and unbranded, ready for quick sale on E-bay.

Pretty simple choice for me. Less money & easy to move on = no-brainer.