There is no such thing as a free iPhone.
But telephone operators would like you to believe otherwise. Over the past few weeks, AT&T, Verizon, and T-Mobile have flooded their websites, billboards, and stores with ads proclaiming that you can “get the iPhone 15 Pro, on us.”
to get this $1,000 iPhone for $0All you have to do, carriers say, is upgrade from an old phone and sign up for a wireless plan. In reality, free phone promotions can entice smartphone owners to spend more in the long term by requiring them to sign up for more exorbitant service plans with extraneous features, such as large high-speed data bundles and subscriptions to mobile services. streaming.
I spent several days entering numbers into carriers’ websites and chatting with store representatives to get realistic numbers. To test the promotions, I sent in a three-year-old iPhone 12 as a hypothetical trade-in. (On average, people upgrade to a new phone every three years.)
These are the costs of obtaining the new iPhone 15 Pro through promotions, without taxes:
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Verizon’s free iPhone offer would cost approx. $3,240 over the 36 months required to redeem the promotion, about $300 more than purchasing the new iPhone on a cheaper Verizon plan in the same period.
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The AT&T deal would cost a customer approximately $2,675 for the 36 months required to redeem the promotion, a little more than trading in the new phone and selecting a cheaper AT&T plan.
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T-Mobile promotion would cost $2,400 more than two years to redeem phone credit, about $160 more than buying the new iPhone with a cheaper T-Mobile plan.
“People who think the carrier is offering them free phones are in for a surprise,” said Toni Toikka, chief executive of Alekstra, a consulting firm that helps businesses reduce their cell phone bills.
Verizon said customers could choose which plan was best for them and that the promotions were aimed at people looking for the best network experience. T-Mobile said the deals weren’t just about free phones and strived to offer the best value with its premium plans that include perks like Netflix streaming and the flexibility to upgrade frequently. AT&T declined to comment.
If you’re looking to save money, it’s always a good idea to trade in your old phone for credit to reduce the cost of a new one. Just be wary of any promotion that offers a freebie.
Let’s dive into the iPhone giveaway promotions announced by Verizon, AT&T, and T-Mobile. Then, I’ll share some better ways to save money with exchanges.
Verizon
Verizon’s requirements to get a free iPhone 15 Pro are the most aggressive. Trading in an iPhone 12 can net you $1,000 in bill credits spread over 36 months. To be eligible, I had to choose a $90 a month wireless service plan called Unlimited Ultimate. The total cost over three years would be $3,240.
By contrast, if you were to upgrade from the iPhone 12 and choose one of Verizon’s cheaper plans, like the $65-a-month Unlimited Welcome, a basic cellular plan with unlimited data, Verizon would offer $415 for the three-year-old iPhone. The total to buy and use an iPhone 15 Pro on the cheapest plan for three years would be $2,925.
The main benefit of Verizon’s more expensive Unlimited Ultimate plan is that it offers 60 gigabytes of mobile hotspot, which allows you to share a phone’s mobile data connection with a computer. Some people may want this feature, but most won’t need it: only 4 percent of mobile users consume more than 50 gigabytes of mobile data per monthaccording to a report from technology conglomerate Cisco.
So with Verizon’s free iPhone promotion, you’d spend $315 more over three years for a plan with fancy benefits than if you traded in your old phone and chose a cheaper Verizon plan.
AT&T
AT&T is offering up to $1,000 off the iPhone 15 Pro with an eligible trade-in. Only the latest and most expensive smartphones, like last year’s iPhone 14 Pro, are eligible to receive the full $1,000 credit. Older phones get less.
AT&T provided a $700 promotional credit for the three-year iPhone 12 in the form of discounts spread over 36 months of bill payments. That raised the cost of the iPhone 15 Pro to $8.30 per month spread over three years.
To get the promotion, I also had to choose one of AT&T’s eligible data plans, which start at $65 a month. In total, including one-time fees, the cost of purchasing an iPhone 15 Pro and using it on AT&T’s network with an eligible plan for three years came to $2,675.
By contrast, if you were to upgrade from the iPhone 12 and choose one of AT&T’s cheaper plans, like the $50 Value Plus plan, AT&T would offer a $200 credit for the older phone, bringing the price of the iPhone 15 Pro down to $800. . Over the course of 36 months with the cheapest plan, the total would be $2,635.
The main difference between the $50 plan and the $65 plan is that the latter offers three gigabytes of mobile hotspot.
This means you won’t get a free iPhone from AT&T through this promotion. Instead, you’d pay about $40 extra over three years for a plan with a mobile hotspot feature.
T Mobile
T-Mobile is offering to make the iPhone 15 Pro free once you upgrade from your old phone and sign up for its Go5G Next plan, for $100 a month. The free iPhone comes in the form of bill credits spread over 24 months. Over two years, you pay about $2,400.
But if you sign up for the cheaper Essentials plan at $60 a month, which is not part of the promotion, T-Mobile will offer $200 for the iPhone 12. After purchasing the iPhone 15 Pro for $800, the total cost in two years would be $2,240.
T-Mobile’s cheapest Essentials plan includes 50 gigabytes of high-speed data, which is more than enough. The Go5G Next plan includes unlimited high-speed data and subscriptions to Netflix and Apple TV+.
Again, you don’t actually get a free iPhone, but instead pay about $160 more over two years for additional data and streaming services.
“Consumers may find it difficult to determine whether the more expensive plan offers additional value,” Toikka said.
Bottom line
The promotions are temporary, so once the terms expire, your wireless service rates will likely skyrocket and you could end up spending more without realizing it.
But don’t let these promotions discourage you. It’s still a great idea to sell your old phone to save some money on a new one, and there are plenty of trade-in programs online.
Sites like GazelleBest Buy, Amazon and exchange They offer cash or store credit for your old phone, and their quotes for used phones are usually higher than those of phone carriers. To reduce your phone costs, shop around for the best deal and choose a wireless plan that fits your budget and needs.
I recently sold my wife’s iPhone 12 through Gazelle for $312 cash, which she used to purchase an iPhone 15 directly from Apple. That reduced the price of the new phone to about $500, and she was left with the affordable family plan she has used for years with her siblings.
That is far from free. But it’s better than spending extra money on a fancy wireless package she won’t use.
