The True Cost of a Subsidized iPhone 6

Ed Bott:

Those contract prices include a $450 subsidy by the carriers, who are not in the business of giving money away. And they make sure they recover that subsidy. In some cases, they end up charging you hundreds of dollars more than you would lay out if you simply bought it outright.

After you add that device to your shopping cart, you then have to select a monthly plan and agree to pay the price of that plan for two years.

And guess what? For the three carriers that dominate the U.S. mobile market, the monthly prices for contract plans are significantly higher than those you will pay if you buy the phone outright or finance the full retail price.

The FTC ought to step in and force the carriers to clearly tell you the true price you’ll pay for your phone over the course of your two-year contract. And kudos to T-Mobile for being the only U.S. carrier with honest pricing.

Friday, 19 September 2014