Apple iPhone 6 Goes On Sale: Pricing Details - InformationWeek

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Mobile // Mobile Devices
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9/11/2014
03:25 PM
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Apple iPhone 6 Goes On Sale: Pricing Details

Carriers and retailers have laid out their plans to sell you Apple's new iPhones.

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Apple will start accepting orders for the iPhone 6 and iPhone 6 Plus beginning at midnight. The phones won't reach Apple Stores until Friday, September 19. Apple's carrier partners will also offer the smartphones in their stores. Apple advertises the iPhone 6 starting at $199 and the 6 Plus starting at $299. Those price points are for the 16-GB model and require two-year contracts.

A few years ago, every operator would have charged the same price. That's no longer the case. The options for buying the iPhone are varied and range from $0 to $949 depending on which you choose.

First, let's look at the "real" prices of Apple's iPhones. The full retail price of the 16 GB iPhone 6 is $649. The price jumps to $749 and $849 for the 64 GB and 128 GB models, respectively. The full retail price of the 16 GB iPhone 6 Plus is $749. Apple is charging a $100 premium for the larger display and slightly better camera of the 6 Plus. The price jumps to $849 and $949 for the 64 GB and 128 GB models, respectively. (If you find yourself gasping for breath, go ahead and take a moment to compose yourself).

Thanks to T-Mobile's UNCarrier moves, all the large wireless companies offer several ways to purchase devices:

  1. Consumers can choose to pay the full retail price for the phone (above), but should expect to pay a bit less on their monthly phone bill.
  2. Consumers can choose to make a downpayment on the device and then finance its cost over 24 months.
  3. Consumers can pay Apple's advertised price as long as they are willing to sign a new two-year contract. The on-contract prices are the same across the board. The iPhone 6 costs $199, $299, and $399; and the iPhone 6 Plus costs $299, $399, and $499 when purchased with a two-year commitment. These are the traditional plans that Americans have used to purchase phones for a decade or more.

[And how do the new iPhones measure up? Read Apple's New iPhones Vs. Rivals]

Here is how all the finance prices break down from the nation's top four carriers.

AT&T
The Apple iPhone 6 and iPhone 6 Plus will be available for $0 down on AT&T Next. Next is what AT&T calls its installment plans. AT&T offers two Next plans, which have no activation, upgrade, or financing fees. With Next 12, you're eligible for a $0 upgrade after 12 months and with Next 18 the same is true after 18 months. If you choose to trade in and upgrade your smartphone after 12 or 18 installments, no further installments will be billed for your original phone. Start over with a new plan. Or, keep your current smartphone, and after 20 or 24 monthly payments, your smartphone is paid for in full.

For the 16 GB iPhone 6, AT&T is asking for $0 down followed monthly payments of $32.50 for Next 12, or $27.09 for Next 18. Those prices change to $37.50 and $31.25 for the 64 GB model and $42.50 and $35.42 for the 128 GB model. For the 16-GB iPhone 6 Plus, AT&T is asking for $0 down followed monthly payments of $37.50 for Next 12, or $31.25 for Next 18. Those prices change to $42.50 and $35.42 for the 64 GB model and $47.50 and $39.59 for the 128 GB model.

These payments are made in addition to the monthly service costs.

Sprint
Sprint announced a new way to buy the iPhone this week in a promotion called iPhone for Life. Think of it as a lease. Sprint's iPhone 6 leasing program lets consumers buy the iPhone 6 for $0 down followed by 24 monthly payments of $20 (16 GB version). The 64 GB model costs $25 per month and the 128 GB model costs $30 per month. Want the bigger iPhone? Expect to pay a bit more. Sprint is selling the iPhone 6 Plus for $0 down followed by 24 monthly payments

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Eric is a freelance writer for InformationWeek specializing in mobile technologies. View Full Bio

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Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/21/2014 | 6:39:47 PM
Re: Luxury Upgrade Discussion
It's all about managing expectations.  The cellphone industry has done a great job of building their models to not last -- and convincing us that we shouldn't expect them to.

The auto industry, however, is not quite the same.  Certainly, "they don't build them like they used to," but there is still a residual expectation of cars lasting for quite a while.  Plus, they rather have to because they're such big-ticket items.  A big difference between a $200-800 phone and a $20,000-80,000 car.
paul020
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paul020,
User Rank: Apprentice
9/17/2014 | 10:16:32 AM
Luxury Upgrade Discussion
I don't understand why all the discussion of the upgrades on the iPhone. Consider what consumers do with cars and SUVs - I don't think most dealerships will even stock the low end models, and consumers gladly purchase the leather seats, sunroofs, expensive satelite radio, wifi, multiple infotainment screens - all important extras for driving the kids to the soccer game or picking up groceries.
tjgkg
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tjgkg,
User Rank: Ninja
9/16/2014 | 9:24:05 AM
Re: RAM difference
The Apple devices are nice but way too expensive-in my opinion only of course. Yes there are lots of folks using Mac Books - I see them in Starbucks every day! No doubt the devices are nice, well made, but they are expensive. But as long as there is market demand, they will sell. You are right about the lack of Android penetration in the market. Surprising considering how Chrome and Android are excellent systems and there are a lot of Galaxy and Notes out there.
tjgkg
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tjgkg,
User Rank: Ninja
9/16/2014 | 9:20:42 AM
Re: RAM difference
Viewing that kind of data certainly takes a lot of bandwidth and processing power. That must tax the iPhone pretty hard. I think the new ones have a quad processor as does my iPad Air. Still, there is a performance issue at times.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/15/2014 | 10:30:28 PM
Re: RAM difference
Apple charges that much for its devices because there are enough people out there who will pay it -- period.

Besides, Apple's mobile devices have compatibility/integration capabilities with its laptops and desktops.  Ditto for Microsoft and its Windows-based mobile devices.  Google does not have enough market penetration with its Chromebooks to make an Android phone worthwhile for those seeking real integration.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/15/2014 | 10:26:15 PM
Re: RAM difference
They're already used for viewing such big data as medical imaging.  The apps may lack size and/or sophistication, but there are still plenty of data out there that can be accessed and used on iPhones and iPads.
tjgkg
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tjgkg,
User Rank: Ninja
9/15/2014 | 9:47:30 AM
Re: RAM difference
Interesting. Of course if you had an Android, you could buy a micro sd card with your desired amount of space. Because of that flexibility, you could get a bigger card if necessary or stay as is. Same thing with a battery. You have that kind of flexibility away from Apple. I am still trying to figure out what value the Apple price premium brings.
tjgkg
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tjgkg,
User Rank: Ninja
9/15/2014 | 9:42:49 AM
Re: RAM difference
The apps on a smartphone are not as large as those on a laptop. I can view spreadsheets and docs on a smartphone but i am not sure i could create a sophisticated pivot table or major database. So i am not sure how all that storage space will be used for big data. I will say that on my S4 i do have a number of videos and lots of songs that i can access on my commute and i use a 64g micro sd card. And i still have 25g of space left. Apple is just doing this to keep up with Android on the storage front.
tjgkg
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tjgkg,
User Rank: Ninja
9/15/2014 | 9:35:47 AM
Really?
Apple is really pushing the envelope with these prices. I cannot see paying that much money for these phones when you can get the same, if not better features on other premium smartphones on Android.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/14/2014 | 8:00:30 AM
Re: RAM difference
@Thomas: Personally, I find the numbers bafflingly huge for a smartphone.  I don't even use 128 GB on my primary workstation!

And I find myself wondering: Who would want or need this much?  On the one hand, it's easy to suggest that Apple is going for the market of hipsters who download five zillion songs and podcasts and apps.

But on the other hand, this suggests that Apple is even more fervently going after the highly-regulated (and thereby less cloud-friendly) mega-big data enterprises.  Healthcare, life sciences, manufacturing, financial services, etc..

Certainly, as laptops become desktop replacements, and mobile devices become laptop replacements, the market is becoming all about storage and screen size (and in the case of the latter, Apple is certainly accommodating with its iPhone 6 "Plus" model, in addition to word that the next iPad will have a double digit-inch screen to better compete with the Surface Pro).
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