Do provider "rebates" on smart phones provide real value?

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calmaniac
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Do provider "rebates" on smart phones provide real value?

Post by calmaniac »

Looking to buy a new high end smart phone and wanted to get the group's thoughts on this topic.

The last time I looked into this, Verizon, my carrier at the time, simply prorated the cost of the new phone over a 24 month period and added it to my monthly bill. Rather than deal with that hassle, I simply bought an unlocked phone with cash. No great savings, but not locked into a contract. Additionally, I've also seen mention that any savings one might realize are often not realized because the provider requires you to upgrade to a more expensive cell phone plan as part of the deal.

I've not done an exhaustive analysis, but figured some Boglehead may have done so or can point to good resources. I searched the forum and did not find much on this. Thanks!
"Pretired", working 20 h/wk. AA 75/25: 30% TSM, 19% value (VFVA/AVUV), 18% Int'l LC, 8% emerging, 25% GFund/VBTLX. Military pension ≈60% of expenses. Pension+SS@age 70 ≈100% of expenses.
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arcticpineapplecorp.
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Re: Do provider "rebates" on smart phones provide real value?

Post by arcticpineapplecorp. »

what can a new high end smart phone do other than take better photos?

i'm using my mom's 3 year old LG smartphone she gave me (her boyfriend bought her a new one last year) and pay $10 a month (total) for unlimited text/calls and 1gb of data (which i don't come close to using because I'm mostly on wifi). That sounds like a good value to me. I really don't understand people paying $1000 for a smartphone unless you're going to shoot a movie on it or something. But to each his/her own i suppose.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
MathWizard
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Re: Do provider "rebates" on smart phones provide real value?

Post by MathWizard »

I don't think they do.

They may provide a savings due to bulk purchasing,but you have to buy the models that they want you to on their schedule.

We prefer to buy our own phones. I hate the idea of pay by the month on products that I can just buy. Only one phone has quit working before it was made obsolete. CDMA, 2G, 3G . I wonder when LTE/4G will become obsolete.
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calmaniac
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Re: Do provider "rebates" on smart phones provide real value?

Post by calmaniac »

arcticpineapplecorp. wrote: Wed Sep 15, 2021 6:19 pm what can a new high end smart phone do other than take better photos?

i'm using my mom's 3 year old LG smartphone she gave me (her boyfriend bought her a new one last year) and pay $10 a month (total) for unlimited text/calls and 1gb of data (which i don't come close to using because I'm mostly on wifi). That sounds like a good value to me. I really don't understand people paying $1000 for a smartphone unless you're going to shoot a movie on it or something. But to each his/her own i suppose.
I'd be grateful if you could keep to the original topic and not start the usual Boglehead rant about "how my 5 year old phone works just as well..." Please feel free to start another thread on your own topic.

I can frugal with the best of you, but try to make thoughtful decisions about spending based on what will bring me and my family happiness.

Bottom line: I want a better camera and I can afford it.
"Pretired", working 20 h/wk. AA 75/25: 30% TSM, 19% value (VFVA/AVUV), 18% Int'l LC, 8% emerging, 25% GFund/VBTLX. Military pension ≈60% of expenses. Pension+SS@age 70 ≈100% of expenses.
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arcticpineapplecorp.
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Re: Do provider "rebates" on smart phones provide real value?

Post by arcticpineapplecorp. »

calmaniac wrote: Wed Sep 15, 2021 6:29 pm
arcticpineapplecorp. wrote: Wed Sep 15, 2021 6:19 pm what can a new high end smart phone do other than take better photos?

i'm using my mom's 3 year old LG smartphone she gave me (her boyfriend bought her a new one last year) and pay $10 a month (total) for unlimited text/calls and 1gb of data (which i don't come close to using because I'm mostly on wifi). That sounds like a good value to me. I really don't understand people paying $1000 for a smartphone unless you're going to shoot a movie on it or something. But to each his/her own i suppose.
I'd be grateful if you could keep to the original topic and not start the usual Boglehead rant about "how my 5 year old phone works just as well..." Please feel free to start another thread on your own topic.

I can frugal with the best of you, but try to make thoughtful decisions about spending based on what will bring me and my family happiness.

Bottom line: I want a better camera and I can afford it.
if the issue is wanting a good camera, would a standalone camera be even better than a camera in a phone?

if true, you could splurge on a high quality camera and save on the smartphone that does basically the same things as every other smart phone.

by the way, it's easy to be able to afford to buy almost anything if you only have to pay 1/24th of the item each month for 2 years.

there's an entire business model now that's called buy now pay later:
https://www.google.com/search?client=fi ... +pay+later
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
strafe
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Re: Do provider "rebates" on smart phones provide real value?

Post by strafe »

calmaniac wrote: Wed Sep 15, 2021 6:02 pm Looking to buy a new high end smart phone and wanted to get the group's thoughts on this topic.

The last time I looked into this, Verizon, my carrier at the time, simply prorated the cost of the new phone over a 24 month period and added it to my monthly bill. Rather than deal with that hassle, I simply bought an unlocked phone with cash. No great savings, but not locked into a contract. Additionally, I've also seen mention that any savings one might realize are often not realized because the provider requires you to upgrade to a more expensive cell phone plan as part of the deal.

I've not done an exhaustive analysis, but figured some Boglehead may have done so or can point to good resources. I searched the forum and did not find much on this. Thanks!

It depends. These promos can add value though there are trade offs.

For example AT&T is offering the new iPhone 13 for “free” with a trade in. The cost of the phone is amortized over a couple years and there is a corresponding monthly bill credit to offset that charge. These are golden handcuffs. If you switch to another carrier the remaining balance on the installment loan becomes due. The promo requires you to subscribe to a certain type of voice/data plan that may be more expensive than what you otherwise need.
nalor511
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Re: Do provider "rebates" on smart phones provide real value?

Post by nalor511 »

If you have TMobile this year they started offering free phones with any trade in that works, and some of them have decent cameras
canderson
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Re: Do provider "rebates" on smart phones provide real value?

Post by canderson »

So AT&T absolutely screwed me two years ago in a trade in program for my iPhone XS. They claimed it was broken and wouldn’t turn on. I had photos proving otherwise and they’re 3rd party vendor told me to sue them for the proper value.

All carriers (and Apple too) use a 3rd party for these and I don’t trust them as far as I can throw a F-150. Read forums and you’ll see thousands of similar stories to mine. It’s not a one-off.

I will buy outright and sell mine through swappa or trade in in-person to Apple (most likely). I’ll never do a mail trade-in again.
HereToLearn
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Re: Do provider "rebates" on smart phones provide real value?

Post by HereToLearn »

Verizon gave me $700 when I traded in my three and a half year old iPhone X this summer. The balance of the price of the new 12 did have to be paid over 24 months, but I didn't mind since I was saving $700. I do not know if there will be any promo offered during the Black Friday holiday shopping period, but worth checking then.

My phone was in pristine condition but the Verizon rep said it would not have mattered as long as it could be turned on. Entire transaction handled via phone with return boxes mailed to me along with new phone. Could not have been easier.
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unclescrooge
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Re: Do provider "rebates" on smart phones provide real value?

Post by unclescrooge »

arcticpineapplecorp. wrote: Wed Sep 15, 2021 8:14 pm
calmaniac wrote: Wed Sep 15, 2021 6:29 pm
arcticpineapplecorp. wrote: Wed Sep 15, 2021 6:19 pm what can a new high end smart phone do other than take better photos?

i'm using my mom's 3 year old LG smartphone she gave me (her boyfriend bought her a new one last year) and pay $10 a month (total) for unlimited text/calls and 1gb of data (which i don't come close to using because I'm mostly on wifi). That sounds like a good value to me. I really don't understand people paying $1000 for a smartphone unless you're going to shoot a movie on it or something. But to each his/her own i suppose.
I'd be grateful if you could keep to the original topic and not start the usual Boglehead rant about "how my 5 year old phone works just as well..." Please feel free to start another thread on your own topic.

I can frugal with the best of you, but try to make thoughtful decisions about spending based on what will bring me and my family happiness.

Bottom line: I want a better camera and I can afford it.
if the issue is wanting a good camera, would a standalone camera be even better than a camera in a phone?

if true, you could splurge on a high quality camera and save on the smartphone that does basically the same things as every other smart phone.
No, because your camera would stay on your shelf and not be in your pocket when you needed it.
Few people walk around 24/7 with a camera hanging off their neck.
jfave33
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Re: Do provider "rebates" on smart phones provide real value?

Post by jfave33 »

Depends really. What phone are you thinking of?

I wouldn't start an expensive plan just to get a discount. Normally you end up paying a lot more from the main carriers. Although if you already have a cheaper family plan for example then getting the phone deals is worth it.

Otherwise you are better off with some of the alternatives

Visible offers some good rebates on phone purchases and usually you only have to stick with them 3 months max.

Metro by tmobile, cricket wireless, xfinity mobile, googlefi etc all have decent plans for certain people and also do phone discounts.
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climber2020
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Re: Do provider "rebates" on smart phones provide real value?

Post by climber2020 »

For me, the "rebates" end up costing more in the long run, so I buy my full price unlocked phones straight from Apple.

The problem is the requirement many carriers have to sign up for an unlimited data plan. The plan I have now provides 2 GB per month, which I've never come close to using up, and is much cheaper in price that what I would have to pay for a new plan, even taking into account the discounted phone.
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Re: Do provider "rebates" on smart phones provide real value?

Post by climber2020 »

arcticpineapplecorp. wrote: Wed Sep 15, 2021 8:14 pm if the issue is wanting a good camera, would a standalone camera be even better than a camera in a phone?

if true, you could splurge on a high quality camera and save on the smartphone that does basically the same things as every other smart phone.
I would have agreed with this a few years ago, but not now. Compared to any other camera with the exception of the Ricoh GR, there’s nothing else I’ve seen that is compact enough to comfortably fit in your pocket that has the shooting envelope of a modern high-end phone. My RX100 has gone up for sale because in almost any situation I prefer my iPhone.

I still have plenty of use for my larger full frame Sony, but that won’t fit in my pocket and I rarely carry it around unless I’m on vacation.
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calmaniac
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Re: Do provider "rebates" on smart phones provide real value?

Post by calmaniac »

Thanks to all for your thoughtful responses!

• My choice of phones: iPhone 13 Pro (Work/home all Apple since 1989, I'm happy with the integration of Mac & iPhone and don't see utility in moving)

• Why not use money to buy a nice camera? The best camera in the world is not worth much if it's not in my pocket. Phone is always there.

• Rebates. Although I'm sure one can get a good rebate deal in some cases, it sounds like the simplest and most dependable option is to buy an unlocked phone with cash and pick the most cost-effective plan.

Maniacally yours
"Pretired", working 20 h/wk. AA 75/25: 30% TSM, 19% value (VFVA/AVUV), 18% Int'l LC, 8% emerging, 25% GFund/VBTLX. Military pension ≈60% of expenses. Pension+SS@age 70 ≈100% of expenses.
Doctor Rhythm
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Re: Do provider "rebates" on smart phones provide real value?

Post by Doctor Rhythm »

Haven’t read through all the replies, so might be duplicative. I’d look into offers tied to pre-paid plans over the mainline postpaid offers. In 2019, we got iPhone 11s shortly after their introduction at something like $250 off per phone/line after all the numbers were crunched when we switched to Visible (not to mention a cheaper plan). Several other MVNOs were offering competitive deals as well. When I bought my parents their first (older model) iPhones, there was a similar $100-200 savings with a six-month commitment to a MVNO.
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Re: Do provider "rebates" on smart phones provide real value?

Post by Normchad »

calmaniac wrote: Thu Sep 16, 2021 1:55 pm Thanks to all for your thoughtful responses!

• My choice of phones: iPhone 13 Pro (Work/home all Apple since 1989, I'm happy with the integration of Mac & iPhone and don't see utility in moving)

• Why not use money to buy a nice camera? The best camera in the world is not worth much if it's not in my pocket. Phone is always there.

• Rebates. Although I'm sure one can get a good rebate deal in some cases, it sounds like the simplest and most dependable option is to buy an unlocked phone with cash and pick the most cost-effective plan.

Maniacally yours
I like your approach, and I will be doing similar. Probably ordering new phones first thing tomorrow morning.

I’ve been with AT&T forever. Recent,y, I’ve been trying out US Mobile as a possible replacement. And so far, so good. I can get. 12GB data/month for $25.
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Ketawa
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Re: Do provider "rebates" on smart phones provide real value?

Post by Ketawa »

Sometimes, they can. Google Fi seems to regularly run promos for Pixel phones that are limited to Google Fi subscribers. The offers on the high-end Pixel phones used to be very good, but less so in the last couple years. There have also been good offers for the mid-range "#a" models over the last couple years.
Hypersion
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Re: Do provider "rebates" on smart phones provide real value?

Post by Hypersion »

I got the b1g1 free with verizon. Other providers in my area coverage sucks and I have having bad lucky with the used phones I was buying on swappa.
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Re: Do provider "rebates" on smart phones provide real value?

Post by Callisto »

For iPhones, if you want something recent, I think the deals from cell providers are worthwhile because they seem to have unreasonably high prices on the secondary market, and higher repair costs out of warranty. On ebay today, iPhone 12s in good condition are actively selling for 100-150 off full retail. Contrast that with last generation Samsung phones that can be had for half price off full retail.
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Re: Do provider "rebates" on smart phones provide real value?

Post by Dottie57 »

unclescrooge wrote: Thu Sep 16, 2021 2:18 am
arcticpineapplecorp. wrote: Wed Sep 15, 2021 8:14 pm
calmaniac wrote: Wed Sep 15, 2021 6:29 pm
arcticpineapplecorp. wrote: Wed Sep 15, 2021 6:19 pm what can a new high end smart phone do other than take better photos?

i'm using my mom's 3 year old LG smartphone she gave me (her boyfriend bought her a new one last year) and pay $10 a month (total) for unlimited text/calls and 1gb of data (which i don't come close to using because I'm mostly on wifi). That sounds like a good value to me. I really don't understand people paying $1000 for a smartphone unless you're going to shoot a movie on it or something. But to each his/her own i suppose.
I'd be grateful if you could keep to the original topic and not start the usual Boglehead rant about "how my 5 year old phone works just as well..." Please feel free to start another thread on your own topic.

I can frugal with the best of you, but try to make thoughtful decisions about spending based on what will bring me and my family happiness.

Bottom line: I want a better camera and I can afford it.
if the issue is wanting a good camera, would a standalone camera be even better than a camera in a phone?

if true, you could splurge on a high quality camera and save on the smartphone that does basically the same things as every other smart phone.
No, because your camera would stay on your shelf and not be in your pocket when you needed it.
Few people walk around 24/7 with a camera hanging off their neck.
I have numerous photos which I really like - because my phone was with me.
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dziuniek
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Re: Do provider "rebates" on smart phones provide real value?

Post by dziuniek »

arcticpineapplecorp. wrote: Wed Sep 15, 2021 8:14 pm
calmaniac wrote: Wed Sep 15, 2021 6:29 pm
arcticpineapplecorp. wrote: Wed Sep 15, 2021 6:19 pm what can a new high end smart phone do other than take better photos?

i'm using my mom's 3 year old LG smartphone she gave me (her boyfriend bought her a new one last year) and pay $10 a month (total) for unlimited text/calls and 1gb of data (which i don't come close to using because I'm mostly on wifi). That sounds like a good value to me. I really don't understand people paying $1000 for a smartphone unless you're going to shoot a movie on it or something. But to each his/her own i suppose.
I'd be grateful if you could keep to the original topic and not start the usual Boglehead rant about "how my 5 year old phone works just as well..." Please feel free to start another thread on your own topic.

I can frugal with the best of you, but try to make thoughtful decisions about spending based on what will bring me and my family happiness.

Bottom line: I want a better camera and I can afford it.
if the issue is wanting a good camera, would a standalone camera be even better than a camera in a phone?

if true, you could splurge on a high quality camera and save on the smartphone that does basically the same things as every other smart phone.

by the way, it's easy to be able to afford to buy almost anything if you only have to pay 1/24th of the item each month for 2 years.

there's an entire business model now that's called buy now pay later:
https://www.google.com/search?client=fi ... +pay+later
Because a new one is X% faster than the old one. Time is money.
Get rich or die tryin'
single2019
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Re: Do provider "rebates" on smart phones provide real value?

Post by single2019 »

calmaniac wrote: Wed Sep 15, 2021 6:02 pm Looking to buy a new high end smart phone and wanted to get the group's thoughts on this topic.

The last time I looked into this, Verizon, my carrier at the time, simply prorated the cost of the new phone over a 24 month period and added it to my monthly bill. Rather than deal with that hassle, I simply bought an unlocked phone with cash. No great savings, but not locked into a contract. Additionally, I've also seen mention that any savings one might realize are often not realized because the provider requires you to upgrade to a more expensive cell phone plan as part of the deal.

I've not done an exhaustive analysis, but figured some Boglehead may have done so or can point to good resources. I searched the forum and did not find much on this. Thanks!
For years I purchased my iphone(s) directly from Apple. The carrier deals since iPhone12 are in favor of the consumer.
mchampse
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Re: Do provider "rebates" on smart phones provide real value?

Post by mchampse »

There’s no free lunch. The big 3 carriers have artificially high monthly costs that in part subsidize their rebates on phones. I’d look to buy the phone outright and look for a prepaid or MVNO plan where they don’t subsidize phones.
nepats
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Re: Do provider "rebates" on smart phones provide real value?

Post by nepats »

There are some great deals for trade ins on iPhone 13 on major carriers. They all require you to be in “unlimited” plans and stay locked in for 24-40 months with them to get the monthly trade in credits. Best option would be on shared account with multiple lines(5+) to bring the cost of unlimited plans to $35-45/month and upgrade via carrier offers every 2 years for almost free upgrades!

If not look into Apple Upgrade program where you can upgrade every year if you upgrade frequently. Some people think of it as “monthly leasing” the phone for a year!
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