Buying an iPhone 8 with Telstra - Plan vs BYO

Skramit on 13/08/2018 - 13:29
Last edited 13/08/2018 - 13:48

Doing some sums at the moment for an iPhone 8 for my wife.

I can get an iPhone 8 on a plan with 10GB for $98/mo. Telstra say "$79 plan, $19 phone".

I thought this sounded expensive. So I compared this to buying a phone outright from Apple (And potentially from ebay, but lets use Apple pricing for this comparison).

I can get an BYO with 20GB for $49 plus an iPhone 8 handset for $1079 which is $45/mo over 2 years. That's $94/mo!

Now can anyone possibly explain why Telstra are pricing their mobiles bundled on a plan as MORE EXPENSIVE than buying outright with BYO? This never used to be the case when I last bought an iPhone 6S. iPhones on a plan for 2 years always used to have a nice little subsidy from Telstra of a hundred or so dollars over buying outright.

Is this new? Why are Telstra doing this? The marketing 'geneii' at Telstra can't be so stupid to think people won't notice this price difference, making it cheaper (and double the data, and half the contract term) to go BYO?

I jumped on Telstra Chat and asked the sales guy am I missing something? What's bundled in with the mobile plan that makes it worthwhile paying $4/mo more for half the data and double the contract. He suggested I would be better buying outright….lol

Is Telstra subtly trying to get out of the bundling handset market? I thought this was their bread and butter money maker in the mobile segment.

Bizarre!

Mobile Apple Mobile Phone Telstra

Comments

  • CyberMurning on 13/08/2018 - 13:33
    +2

    "Bizarre!"
    who? telstra? i feel it is more bizarre to find someone is considering to pay $90-ish per month, for 24 months for a phone? TWENTY FRIKKING FOUR MONTHS… apologies for the language

    • Skramit on 13/08/2018 - 13:36

      Unfortunately iPhone 8's aint free. The handset cost has to factor in somewhere.

  • John on 13/08/2018 - 13:48

    I can get an iPhone 8 on a plan with 10GB for $98/mo. Telstra say "$69 plan, $19 phone".

    Check your math.. $69 + $19 is $88. Plus I verified myself its $88 per month for 64GB iPhone 8 with 10GB data.

    • Skramit on 13/08/2018 - 13:49

      Sorry was a typo. It's 79 + 19

      • John on 13/08/2018 - 13:50

        Yep you're right and I looked incorrectly at the Lease. It is $98 for Buy

        That's a good flaw you spot there. Seems like they just want to suck money off people who haven't done enough research like you

        • Skramit on 13/08/2018 - 13:51

          Is there some hidden logic here besides just applying a "lazy tax" for everyone who doesnt bother to do a basic comparison?

          I can't believe Telstra would knowingly push people away from 24 month plans towards 12 month BYO plans with an outright phone. Seems really odd.

        • John on 13/08/2018 - 13:56

          @Skramit: But hang on.. I just realised you are using $45/mo on the basis of buying outright. In reality.. you are not paying $45/mo, you are paying $1079 outright (even if it equates the same).

          If you buy off monthly plan from Telstra you obviously pay more because they have to carry the cost outright to Apple while giving you the benefit of paying it off monthly. Same like most things you pay in installments (insurance, council rate, etc), you are generally (and almost always) pay more if you choose to pay in installments.

        • Skramit on 13/08/2018 - 14:01

          @John:

          Well $1079 iPhone 8 is still $45/mo over 2 years which is the direct comparison to their mobile on a plan. I understand theres the upfront outlay and that does make a difference to some folks.

          If you buy off monthly plan from Telstra you obviously pay more because they have to carry the cost outright to Apple while giving you the benefit of paying it off monthly.

          The last few times I've bought iPhones from Telstra on a plan (6S, 6, 5, 4 etc…), the 24 month plan always included a small subsidy for the handset, so over 24 months it was always cheaper (in total) to go on a plan. It was how Telstra (and most other carriers) attracted customers vs. buying outright from apple. This is the first time I've seen where it's more expensive to go on a plan (in total) from Telstra.

        • John on 13/08/2018 - 14:11

          @Skramit: Fair point. Not sure then.. :)

        • jjjaar on 13/08/2018 - 19:36
          +1

          @Skramit: FYI can get iPhone 8 for $1046 at officeworks or $1047 at good guys. If you can get vouchers at 5%-10% off for these retailers, you can save a little bit off the RRP.

        • Skramit on 14/08/2018 - 10:21

          @jjjaar:

          Thanks!

  • SuperC on 13/08/2018 - 14:21

    I recently got the BYO plan 20gb for $39 a month. So if you add that to your calculation and it may be even cheaper to buy outright.

    • Skramit on 13/08/2018 - 14:24
      +1

      Yeah I saw this deal a few days ago but I'm an existing Telstra customer, not a port-in.

      • SuperC on 13/08/2018 - 14:25
        +3

        I was existing but off contract, just went to the online chat and asked for a better deal, and that it what they offered,

        • Skramit on 13/08/2018 - 14:26
          +1

          Ah good to know, thanks!

          $39 + $45 = $84/mo over 2 years. Not bad!

  • EFC94 on 13/08/2018 - 14:45
    +3

    I'd say it's aimed at people who want the latest and greatest without needing to spend a huge chunk up front, kinda like AfterPay. For the sake of $1 a week most people can't be bothered either.

    • Skramit on 13/08/2018 - 15:04

      It just seems so sloppy. Telstra have never done this before to my knowledge, granted I haven't looked at their plans for a while.

      Go Dons.

  • Quantumcat on 13/08/2018 - 15:20
    +1

    As far as I have been able to tell over the last few years or so it is always more expensive to be on a plan. They make the plan proportion more expensive and the phone payment less expensive to trick people into thinking the phone is less expensive than buying outright. But if you compare to a byo plan with the same inclusions the phone ends up being more expensive than buying outright.

    • Skramit on 13/08/2018 - 15:23

      Oh really? Last time I got a 6S (so 2 years ago) the plan was cheaper. And before that - probably an iphone 5 - it was cheaper than outright.

      • Quantumcat on 13/08/2018 - 15:30

        Did you calculate it compared to a byo plan with the same inclusions or based on the phone payments?

        • Skramit on 13/08/2018 - 15:34

          Calculated on the total monthly costs. I can't remember what fud they said the MRO was as part of their plan but I remember buying outright meant an extra $100 or so compared to the plan.

  • pernunz on 13/08/2018 - 15:38
    +1

    Option A:$94/month per month for 24 months (10GB) - Total cost over 24 months: $2,256
    Option B: $1079 + $49 in month 1, then $49/month for the next 23 months (20GB) - Total cost over 24 months: $2,255

    You're paying a premium (in terms of less data) for Telstra covering the upfront cost of the phone.

    • Skramit on 13/08/2018 - 15:49

      Option A is $98/mo = $2352

  • jjjaar on 13/08/2018 - 16:13
    +3

    Now can anyone possibly explain why Telstra are pricing their mobiles bundled on a plan as MORE EXPENSIVE than buying outright with BYO?

    Because previously (a couple of years back) they were cheaper and now many consumers believe they still are, so Telstra (and other mobile providers) profit off this ignorance.

  • original15 on 13/08/2018 - 23:21

    Wait it out a while longer..surely the 8 will drop a little when new iPhones come out?

  • Iamnotcheap on 14/08/2018 - 07:23

    Usually always pays to buy outright and then BYO your plans around the market in 12 month intervals. Also gives you the flex to sell your handset (although you can do that on plan anyway, but will still be in contract for the remainder term). Sums have been already provided, so won’t repeat. I usually buy outright and flip for the latest and greatest and then just shop better plans with the telco (or within the same Telco).

    I am currently with Telstra for the $49 plan and get it for $39 after haggling and then have multi plan discounts applied. I save approx $250 per number a year as a result of BYO/outright purchase. Actually double as me and the missus are doing the same thing (both iPhone X).

    Only issue is - do you have the budget to forego $1000 upfront - if you don’t or like rainy day funds, then contracted phone will always be more benefit.

  • gelatiman77 on 14/08/2018 - 09:45
    +1

    I just did this couple of weeks ago.

    Broke my old iPhone so had to buy new one. Went to JB HI FI and got iPhone 8 for $979. For some reason the RED model is cheaper. (Doesnt bother me cos i have it covered with the lifeproof case).
    Carried over my existing BYO plan of $40 p/m for 9 gb data with telstra, and im happy as larry.

    $979 upfront + $40 each month for say 2 years, $960
    = $1939
    (Im out of locked in contract. Can leave anytime)

    JB may even be able to give a slighly better price if you ask

    • Skramit on 14/08/2018 - 10:20

      Ah good to know!

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