Don't, under any circumstance, buy an unlocked iPhone 4
Come on, Apple. Come onnnnnn, Apple.
Long praised for its ingenuity, more recently slammed for its arrogance, the world’s hottest tech company is at it again.
In the wake of its ongoing iPhone 4 “Antennagate” debacle that prompted some to wonder if Canadian legislators would ever let the faulty device into our country, Apple announced this week that the iPhone 4 would indeed be coming. Even unlocked if you want.
What’s unlocked, you ask? It’s where consumers can purchase the phone directly from its manufacturer (Apple) instead of having to go through one of its Canadian providers (Bell, Telus, Rogers, etc.)
Sounds pretty good, right? Eliminate the middle man. But does it still sound so enticing when the price of the phone – without the subsidized cost wireless carriers offer because of your long-term commitment to their service – is more than a 1987 Honda Accord?
Yes, Apple said it will sell its unlocked iPhone 4 in Canada starting Friday for the staggering cost of $659 for its 16-gigabyte model and $779 for its 32-gigabyte model, prices so apparently absurd they preface one important question: who the hell will actually buy one of these things?
Let’s break down the numbers here, just to see if Apple is totally void of reality or they’re onto something that should have Canada’s wireless providers steaming.
If you were to buy an unlocked iPhone 4 this Friday (let’s say it’s the $659 16-gigabyte model to be safe), chances are you’re doing it to avoid two things: a lengthy, expensive contract with a wireless carrier and a pricy data plan, which providers like Rogers will force you to sign in exchange for covering somewhere near $500 of the cost of your iPhone.
In the long term, is this worth it?
Using a three-year plan, the norm contract for devices such as the iPhone, you’re likely to pay about $50 per month for unlimited nights and weekends, unlimited text messaging, 200 daytime minutes and 500 megabytes of data. Add to this a $199 price tag for the phone* and you’re looking at about $1,999 before tax for 36 months of iPhone 4 use.
(*As an example, data used is from Rogers. Also, while Canadian carriers have not yet set their subsidized phone price, $199 is the general consensus on what they will charge for the iPhone 4 with a three-year plan.)
If you were to, instead, buy an unlocked phone and pick out a cheaper, no-frills plan from a carrier of your choice, how would that play out? Using Rogers again, a similar plan by the minutes offers unlimited nights and weekends, unlimited text messaging and 200 daytime minutes for $35 per month. Add to that a $659 cost for the handset itself and you’re looking at about $1,919 before tax for 36 months of iPhone 4 use.
So, if you’re scoring at home, you’ll pay about $80 less over three years if you buy an unlocked iPhone, but that will be one without any data coverage from your provider. For just over $2 more per month, by my calculation, you can get the iPhone 4 with 500 megabytes of data, which is more or less unlimited for the lion’s share of users.
Under other scenarios, consumers would buy an unlocked iPhone 4 to use a) with a pay-as-you go plan or b) just as a cool, Wi-Fi-enabled device – like a computer.
But the obvious retorts slam those circumstances just as well. Many Canadian pay-as-you-go plans charge about 40 cents per minute, meaning your monthly cost for comparable minutes as listed above would soar upwards of $80. And, if you just want to use the iPhone as a Wi-Fi-enabled tablet, why wouldn’t you just get an iPad, which is cheaper ($549 with free shipping from the Apple store), bigger and better for computer-like use?
The moral of the story: 99 times out of 100, Apple’s unlocked iPhone 4 price is too high to make sense for Canadian users. And now we have the breakdown on why.
By Jason Buckland, MSN Money
Posted by: The Weazel | Jul 30, 2021 6:49:00 AM
Terrible article with very little foresight. The author should consider future competition in the market and the possibility that prices for plans may go down. If you have the unlocked phone you can switch providers for cheaper plans without the consequences for breaking contracts. For instance, I believe Shaw is entering the fray come 2011.
Go ahead though. Lock into a high rate plan and make sure your phone is tagged for roaming when you leave.
Posted by: JJ | Jul 30, 2021 12:31:26 PM
Nice to hear all the valuable comments. Unlocked phone is common in HK etc for years and consumers have their competitive choices. In North America we are controlled by big phone companies. Unlocked phone should be a standard and hope the New Blackberry etc will make the cost more reasonable.
Would like to buy the iphone 4 since I like the itouch very . But the monthly data plan $ etc for a family of 3 wireless phones would be the 3rd - 5th cost after housing, car etc.
When travelling to US you can pick up a T-Mobile $100 for 1000 minute or Net 30 $30 for 300 minutes. In HK you can also buy a phone for $40 for 1000 minutes.
As a consumerwe will need to work together to push the cost down but we are in a free capital system that works forbig company!!!
Posted by: Dave | Jul 30, 2021 6:16:27 PM
I currently pay $10/month on PAYG. If I was to transfer to a contract, the cheapest (with voice, data, voicemail and caller id) would be a whopping $60/month! So buying an unlocked iphone would save $600/year. I mostly am within wifi range, and only need to use 3g data a handful of times a year (which just costs $3 per day on PAYG). If you are a light user like me, you can save a lot of money by buying the iphone unlocked.
Posted by: Tian | Jul 31, 2021 6:42:31 AM
But I just want it.
Posted by: Tian | Jul 31, 2021 6:43:29 AM
But I just want it.
Posted by: Andy | Jul 31, 2021 12:46:26 PM
The apple store is able to renew your contract with your current provider or activate you on the network of your choice.
So you get your discount based on renewal or activation and you gain an unlocked phone.
It's a no-brainer for the no brained people waiting in line for hours!
Posted by: GooberNugget | Aug 1, 2021 1:12:34 PM
I love my Iphone, the most I've travelled so far is the US, and Telus has a US roaming package which is $20 for voice calls and $10 for data for 30 days. so I paid $30 for two weeks worth of data and voice calls. it was still cheaper than their roaming rates or Pay as you go.
Posted by: adam | Aug 1, 2021 3:13:34 PM
Look at the source of the article. Microsoft is Apple's biggest competitor and the article is featured on MSN's homepage. I'm not accusing the article of being overly biased, but of course Microsoft would caution a person against buying a competitors product. It's just smart business.
Posted by: Rick S | Aug 3, 2021 1:11:14 AM
Am I ever glad I don't understand most of this stuff !!
I just have a cell phone that works great but Bell charges me to much I think. lol.
The rest of that stuff looks like a big pain in the butt to me.
When I want music I listen to the radio or shove in a disc. Cheaper because people leave their discs in my truck.
Sorry guys but at this age I think it's all a waste of hard earned money.
Posted by: Wrong | Aug 3, 2021 8:48:16 PM
>The issue with the cell providers and these contracts really is the fact that you don't have options. >Up until now, you could only get an iphone if you locked in for 3 years
Incorrect Rogers website has been selling 3G and 3GS on their website without a contract for a long time.
Posted by: Mimi | Aug 4, 2021 5:37:10 AM
Quote from Wong : ”Rogers website has been selling 3G and 3GS on their website without a contract for a long time.”
Yes, Rogers, Bell and Telus (BIg 3) are selling iPhone without contract for full price, but their iPhones are still LOCKED. It means u still can't take your phone to other wireless carriers or use it in oversea, unless you jailbreak your phone. The *Factory Unlocked iPhone* only available in apple store. So what's the point to pay $659 for an iPhone 4 but it is locked from a wireless carrier like Big 3? I rather go to Apple store to get a *Factory Unlocked * one.
PS: I asked the Big 3 about their full price iPhone 4. Basically they give me the same answer: Pay full price the phone still Lock. This is the reason why I brought my unlocked iPhone 4 from apple store.
Posted by: Dave | Aug 4, 2021 3:24:32 PM
Actually, it appears that you can't even use the iphone 4 on PAYG. I just got this from @RogersRob on twitter: "It seems that an existing PAYG account cannot be used with an unlocked iPhone 4." So it does seem a bit pointless paying full price if you end up having to get a contract anyway!
Posted by: eceplayground | Aug 4, 2021 4:13:21 PM
Whats the point of this article?
Are you blind, or did you see how many people bought the iPhone 4 unlocked on launch day? Its worth it if you can plan ahead
Posted by: Xavier Hernandez | Aug 5, 2021 6:15:38 PM
@Jason Buckland: you failed to consider that fact that an unlocked iPhone can be used internationally without restrictions, by buying an inexpensive prepaid SIM card from a local provider. You cannot do that with a locked subsidized phone regardless of what the discount is. Also, unlike in other countries where cell providers (whether by choice or by law) will unlock your phone after the contract is fulfilled, Canadian providers do not unlock phones (with the exception of Wind) after the contract has ended. So at the end of the contract, you are still stuck with a locked phone that can't go anywhere.
Posted by: Gekko | Aug 5, 2021 11:33:32 PM
This article seems to have been written by a bloody chutiya.
Posted by: Ahrurhfg | Aug 6, 2021 12:26:48 PM
The article's author is a little clueless when using the $35 talk & text plan in his example. If you bought an Iphone and got that plan you would not be able to use any "data". You need a "data" plan too. DUH. (Regardless that's still keep it the more expensive option in his example, but not by $80, by at least $600!)
Posted by: Wow | Aug 7, 2021 12:16:39 AM
I can't believe that Jason Buckland still has a job. He writes but really doesn't have a clue about the real world!
Posted by: LK | Aug 10, 2021 7:22:16 PM
Except... I travel too much and am based in too many places (outside of the US) to buy an iphone with a plan. It's much easier to slip in a sim, bought inexpensively wherever i am.
The main place I live does not offer iphones with a plan. In fact, many of the phones we import which are linked to certain carriers (with service packages) still cost roughly the same price of an unlocked phone. I say, if you can afford it, why not? There is so much more freedom.
Posted by: Herman | Jan 24, 2022 5:41:45 PM
I bought an unlocked Sony-Ericsson phone (the waterproof one) that's a slick slim candybar with browser and 3MPixel camera and video for when I travel. It's light, small, and can get email, texts, etc. I used it in Europe with a French SIM. I keep my iPhone for "home", and got it cheap. The Sony phone is rugged, indestructable, and tough. I can take it to Asia/Africa, and not worry about the humidity, dust, etc. I wouldn't take the iPhone into such environs (I'm a photographer and IT guy - and also have other toys to carry).
I actually found that (in Europe in particular) it is actually better (and virtually free) to use WiFi phoning on your mobile device. There is WiFi almost everywhere (more accessible than phone booths used to be), and your hotel always has it. Most remote areas wouldn't have cell coverage anyways, so you couldn't make mobile calls there anyway. I downloaded a WiFi phone app "iCall", turned off roaming/data-roaming, and enjoyed calling pretty much at my convenience. I saved my $25 Orange Cellular SiM for things like a call from the top of the Eifel Tower, etc.
Would I buy the iPhone 4? For use at home - on a plan - sure. If I'm travelling for business, and need all the features abroad, then I'll buy an unlocked unit - factory direct. Otherwise, no.
In Asia I get the SIM. In India it is a couple of dollars for a SIM which can be bought at any corner shop. Way cheaper than any "roaming plans".
Posted by: UK Tomm | Feb 15, 2022 5:29:43 AM
If you buy a unlocked iphone 4 then get a 02 simplicity for £5 a month ( unlimited internet and so many tetxs and call) Sorted ;D