Am I missing something about smartphones these days?

So I’ve had an AT&T pcs/cell/smartphone for 20 years now. I accept the fact They don’t last all that long and that I am fairly hard on them. So for as long as I can remember every 2-3 years they have had an upgrade option, sign up for a new 2 year contract and get the previous model phone for free, or the newest model for a small charge (4 bucks or so) a month.

But just now I logged in and checked upgrades available. For agreeing to a new 30 month contract, they are offering me a ~$500 retail phone for $20 a month for those 30 months.

Is that really the way phones are working these days, or am I just stupid?

That’s certainly the way Verizon is doing it now. We got our son his first cell phone a few months ago and we picked the cheapest smartphone they carried. It’s a ~$8 per month payment for the phone. Previously the phone was essentially “free” (IIRC there was a nominal charge for the phone, like $50 for a $500 phone) if you signed a 24 month contract. But no more.

Save your money up and go to Amazon or someplace and buy an unlocked phone of your choice (unlocked = not married to a particular carrier). If you’re dead set on paying it off, put it on a credit card. I got phones from the carrier and waited until I was “entitled” to an upgrade for years before I figured out how the cow ate the cabbage. Got my current BlackBerry Classic from Amazon for free (with Amazon rewards points, as I have an Amazon Visa rewards card). Don’t become indentured to your carrier for the privilege of paying off your next phone.

I don’t think I’ve paid more than a $100 for any smart phone in the past decade.

And my current phone has a big screen, 1080p, and it even has fingerprint recognition.

My phone can do anything these $500 phones can do.

I really don’t understand why people pay so much for phones.

Also, the unlimited data and service for both my son’s phone and mine cost $91 a month.

I don’t get why people spend upwards of $800 on a smartphone or lock themselves into a carrier, either. I bought an unlocked BLU phone from Amazon. The $60 model. Yes, it has an ad, but it appears as a tiny notification card when you wake it from standby. I activated a Simple Mobile plan for $50 a month with talk, text, and truly unlimited 4G LTE data. Plus unlimited international calling. And by unlimited, my plan gives me 1,950 GB per month. That’s $5 less than Straight Talk with just 12 GB a month. I love the phone. I can watch YouTube all day long. I can use streaming TV apps and listen to all the music I want. Apps download in seconds. Can’t get that from a big carrier, but I get to use T-Mobile’s network for a fraction of their cost.

It used to be the carrier would give you a free phone in exchange for locking you into a contract. That model died. Now you don’t really have the contract, but you have to pay full price for the phone; the only break you get is that they essentially finance it for you buy letting you pay $20-$30 a month over two years or so.

Personally, I see no reason to pay $600, $800, or even $1000 for the latest & greatest model when one generation old is still a pretty good device & is still supported in terms of system updates & is considerably less expensive.

The market changed a bit, yes, but if you look around a bit you can save some coin. I got the unlocked ad-free Moto G4 from Amazon last year, about $150, am still happy with it.

And there are plenty of ala carte service plans available.

People pay so much for phones because it’s worth it to them. But you already knew that.

I buy used smartphones from friends and family who just have to upgrade. Craigslist and refurbs can also work. I find buying a generation or two behind the curve to work well.

Some do. Some don’t know there’s another option. But you already knew that.

No, it really can’t. It may well do all the things you care about. But people care about different things. The difference between an iPhone and a $100 phone isn’t like the difference between a lamp you buy at Target and a Tiffany lamp. It’s much more like the difference between a low-end laptop and a high-end one.

Among the many differences is the security offered by iPhones. They are the only mobile device considered reasonably secure by security researchers. That is a big part of the reason that many doctors, lawyers, and businesspeople switched to them.

Which is a bit like having your computer (desktop or laptop) provided “free” by your ISP.

yes, for the most part. with the “old way,” you were literally throwing away money if you didn’t upgrade as soon as you were eligible, since your monthly bill didn’t decrease once the phone was “paid off” (end of contract.) now they de-couple the cost of the phone from the cost of the service and list it as a separate line item, which then drops off of your bill when it’s paid for. or you can pay for the phone 100% up-front or buy out the remainder at any time.

honestly I stick with Verizon because in my experience they simply have the best, most consistent coverage. My experiences with the “GSM” carriers (AT&T and T-Mobile) has been really spotty, and a phone on those carriers would be nearly useless at work.

I buy used phones and swap SIM cards, and only when they break.

This $500-1000 thing for phones is absurd. Hell, I wouldn’t even pony up more than $500 for an iPad. My last laptop was under that too. Now I realize I don’t have high end needs and others do, but… a grand for a ****ing phone?! Over my dead body.

Great, another “Why doesn’t everyone have the same priorities I do” thread on the Dope. Let’s just wait for some people who like sports, nice restaurants, or new cars to come along to make the topic complete.

wolfman, your question is a very reasonable one. As some others have mentioned, your question isn’t about some people wanting to pay more for phones because that’s how they like to spend their money. It is about cell phone companies generally moving away from the “we will subsidize your phone but lock you into a contract so we can recoup our money and more” model, to “you bring a phone or buy it from us full price and we will offer you a service plan that is very likely cheaper than what you used to pay” model.

What’s the downside to this Simple Mobile plan. I gotta admit, I’m not seeing one. Why doesn’t EVERYBODY do this?

There are carriers which use Verizon’s LTE network, too, and you can bring your own phone to them. But I respect your decision to stay with Verizon. I agree you should use whichever gives you the best coverage.

I don’t know. Maybe lack of awareness. They don’t seem to do a lot of advertising. And I keep wondering, what’s the catch? When are they going to cut their users down to 28 or 22 Gb? Still, I don’t have any complaints. I mostly get around 20 Mbps download speeds, but at times it goes down to 6 Mbps. That’s still fast enough to watch streaming video at DVD quality without any buffering.

And some people aren’t heavy data users and don’t need more than a couple of GB a month, so they just pay for what they need.

Also, as I noted, they use T-Mobile’s network. Coverage on there can be spotty for some.

From a technical perspective, the primary difference is lower prioritization. If the network is congested, your data connection will have a lower priority than those of the “main” carrier, so you will get slower faster and longer.

If you’re in an area that doesn’t get congested, or you don’t care that much about data slowness because you just occasionally surf web pages or play Candy Crush or whatever, it might be worth it.

If the person buying a lamp requires only some simple illumination then it is exactly like that. In terms of core functions then the cheap phone can do everything that the expensive phone does. We can always find slight variations in minor functions but then you can’t even plug normal headphones directly into the high end apple phones so it cuts both ways.

For the average user any additional features or performance bumps in a $1000 iphoneX are probably not relevant. The $100 phone will carry out the 95% of functions most people need 95% as well as the high end phone. The same is true of the laptop as well. Unless you have specialist graphics or gaming requirements you can get by perfectly well spending only a fraction of the $2000 of a high end device.

But people like shiny, pretty, new things and are impressed by lists of features that they will never actually use.