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Why I Am OK With $530

OP staulkor

31st December 2009, 03:19 AM   |  #1  
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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
31st December 2009, 05:16 AM   |  #2  
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Lightbulb
Agree with you on this. My current plan is dirt cheep for unlimited data and no 2 year contract, so I'll shell out the $530 if that's all official after the 5th!
31st December 2009, 06:43 AM   |  #3  
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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.
31st December 2009, 07:33 AM   |  #4  
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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.
31st December 2009, 07:53 AM   |  #5  
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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!
31st December 2009, 11:09 AM   |  #6  
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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.
31st December 2009, 01:50 PM   |  #7  
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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
31st December 2009, 02:48 PM   |  #8  
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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.
1st January 2010, 03:42 AM   |  #9  
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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.
1st January 2010, 04:01 AM   |  #10  
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Quote:
Originally Posted by lordmaxx

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.

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