iPhone on the cheap: three easy steps
So, you’ve decided to get an iPhone. Fantastic! If you’re like most iPhone users, you’ll be very happy with your purchase. You’ll be checking email from anywhere, sending picture messages, and confirming random facts on Wikipedia in a matter of minutes. It’s a brilliant device, and all will be well and good…until you receive your first AT&T bill, and your iPhone Honeymoon will come to an abrupt end.
The iPhone is the best mobile device around, but it comes at a price. I’m not referring to the cost of the handset, which shouldn’t even be an important initial purchase consideration (more on that later) but the fact that the monthly bill is so steep.
The “retail” monthly price on the lowest-cost individual iPhone plan is $70 per month, which is a 450 minute plan ($40) with data access ($30) and no messaging options. The lowest-cost option for two iPhones on a family plan is $120/month: 550 minutes, data, and no messaging. And none of these totals include taxes and fees, which could add an additional 10-15% to your final bill. These amounts could be at a significantly higher cost than your current cell phone plan and may come as quite a shock.
How can the iPhone fit in your budget? There are some discounts available, and strategy is definitely a key. Here are three easy ways that you can save money on an iPhone.
Purchase a refurbished iPhone from AT&T’s online store.
Earlier, I mentioned that initial handset cost isn’t as important as the ongoing monthly cost of the iPhone. However, using this step can immediately save you $50 off the cost of the iPhone, and you still get the same warranty and benefits as you would receive with a new iPhone purchase.
Here is a link to view the AT&T online store inventory of refurbished iPhones (look for Apple iPhone 3G (Refurb). As of this writing, the current refurbished iPhone pricing model is $50 off the MSRP, which makes the regular 8GB iPhone 3G a steal at only $49. AT&T’s inventory changes often and you may find various varieties of the iPhone 3GS in this area as well. (If you don’t see the phone you’re looking for in the refurb section, it’s not available, but check again in a few days.)
This is where the initial cost consideration is important: you are going to be using this exact phone for two years or more. If the extra storage, speedier processor and video capture capabilities of the iPhone 3GS are important to you, by all means, invest the extra $100 to upgrade to the better model. It’s been Apple’s practice to release new iPhones in June, so you may want to keep that in mind if you are considering the iPhone in any of the spring months.
Does it matter where you purchase your iPhone? My recommendation is to check AT&T’s refurb store first, and if the phone you want isn’t available as a refurb, buy it straight from the Apple Store, either at the physical store or online. Too many headaches can result from purchasing an iPhone anywhere else.
Research discounts available from your employer, union, or trade group.
AT&T offers significant group discounts to various corporations, unions, and trade groups across the country. Monthly service discounts can range from 10-25% or more for monthly service. AT&T calls these discounts “FAN Discounts” – FAN stands for Foundation Account Number. More details about the FAN discount and how to find out if you’re eligible can be found at HowardForums.
How much can you save with a FAN discount? As an example, my current
FAN discount is at 22%. I have a 700 minute family plan across four lines of iPhone service. My FAN discount applies to my main voice line as well as all our iPhone data plans. By having the FAN discount on my account, I save $41.80 every month on my bill, or $501.60 every year. Another example: a 22% discount on the lowest tier of individual service would amount to $15.40, or $184.80 every year. That’s an extraordinary savings that can more than pay for the iPhone itself.
If you find that you need to submit paperwork to AT&T to verify your FAN discount eligibility, be sure to keep on them to get that discount added to your account. The process may take 90 days or more if you are not persistent; every additional month AT&T takes to “process your paperwork” is money out of your pocket. Find the right number to call and keep calling to check. If the discount is not applied within 30 days, gather proof of employment/membership paperwork and visit an AT&T Wireless company stor. Ask to speak to a manager to have the discount applied.
Join family members on a FamilyTalk plan, and choose the right plan for you.
If you have other family or friends on AT&T, whether they use iPhones or not, consider joining them on a FamilyTalk plan. The savings by sharing one account can be amazing, especially when combined with a FAN discount. You’ll save $20 or more by moving two iPhone lines from an individual to a family plan. Each month, each family member can login and pay their portion of the bill with a credit card or checking account. (Of course, this scenario will work for some better than others.) Analyze the amount of minutes you use in a typical month beforehand so there are no overage surprises later.
Another benefit of joining others on a family plan is that you can share the $30 “unlimited messaging” option across all your lines. Even though the unlimited messaging option is usually not eligible for the FAN discount, it’s still a great value if you might use more than 200 text/multimedia messages a month.
Also, be sure to consider AT&T’s “perks” for its subscribers when choosing your rate plan, whether or not you are on a family plan. All AT&T plans have the “Rollover” feature, where unused minutes are banked for future months, which could affect the amount of minutes you may need if your usage is not consistent from month to month. Of note: you can always adjust your plan with AT&T without contract extensions, but if you downgrade your plan, you may lose a significant chunk of saved rollover minutes.
AT&T’s “A-List” calling circle feature, available on all but the lowest-cost voice plans, may also reduce the minutes you need in a month if you call the same out-of-network numbers often. Individuals can make and receive calls from up to 5 numbers outside of the AT&T network, and family plans can share up to 10 total numbers across all lines.
Even though the iPhone is definitely an expensive proposition, these tips will help you to save money over the life of your contract. If this post has been helpful to you, and you’re interested in signing up for new AT&T service, drop me a line and I can help you to save an additional $25 with AT&T’s referral program!