All the carriers offering sweet upgrades and trade-in deals to get you an iPhone 13 or two this year, it is hard not to wonder which deal is the best. This would be the deal that is the most affordable but still gets you the iPhone that you want. The confusing terms and industry jargon make it difficult for customers to compare offers or understand what they are signing up for.
Carriers may be keen to sign up new customers to increase their bottom line, but you must also look after your own interests. Is it better to choose a lower-cost unlimited plan with a 36-month commitment, or to get instant trade-in credit to pay less sales tax upfront? Do you prefer instant trade-in credit or bill credits? Sometimes it is difficult to fully understand the details of a contract once you have signed it. To save you time, I looked at these contracts closely and made some calculations back-of the napkin to figure out the details.
In this instance, I was trying to determine which deal provides the greatest overall value over the long-term. What are the upfront and long-term costs of getting the latest iPhone as cheaply as possible? This exercise was done to simulate a customer who is new to New York City and shopping for a single line of phone. She wants to trade her iPhone 11 to get an iPhone 13 or 13 Pro.
These numbers are not definitive. They only show how the deals work. These carrier offers are very time-sensitive, and could be changed by the time that you read this. Your credit history, local tax rate, number of lines needed, and any discounts you may be eligible for (e.g. military/veteran) all influence the details of your carrier plan. My numbers are a very basic representation of the universe. Please take my numbers with a grain.
After comparing similar offers from AT&T and T-Mobile / Sprint / Verizon, Apple.com, I have a few tips to help you find the best deal.
Here are my top takeaways
Take a look at the plans and not the free phone
The majority of trade-in credits are so large that they cover the cost for an iPhone 13 or iPhone 13 Pro. This assumes your trade-in device has been in good condition for at least two years. When you are looking at these deals, don't let the lure of a free iPhone fool you. Instead, you should focus on the cost of your plan after 24 to 36 month.
Contract Length Matters Most
The length of the contract is the most important factor in determining which deal is the best value. AT&T's unlimited plan is the cheapest ($65/month), but after 36 months, which is the minimum length of service you must have to receive the best deal, it ends up costing $2445.30. Because most of the plans offered by AT&T are 24 months long, I calculated the AT&T plan at 24 month to compare apples with apples. The $65-per-month plan was the most affordable after 24 months at $1,630.20. It is also less expensive than the special promotion between Apple & Sprint ($1,713.60). This includes an additional $500 discount when you sign up to the $85 Magenta or Sprint Max plan. It is worth looking at the total cost of the plan over the term of the contract before signing on the line. This is where your majority of your money will be spent.
Instant Trade-in Credits
Apple's instant trade-in credit program is available to anyone who can afford the full amount of your phone and lives near an Apple store. Instant trade-in credits are great because you can get the actual value of your phone right away. This is in contrast to the online trade-in process, where you have to mail your device to an evaluation party before it will be credited to you monthly bills.
Trade-ins and trade-offs
My hypothetical trade-in credit of $800 to $1,000 for the iPhone 11 effectively reduces my monthly device payments by $0. However, as I am required to continue my device payment plan under any trade-in offer I cannot terminate my plan before 24 months. I could lose my trade-in value and be subject to a late termination penalty if I did. If I paid upfront, and preferably with instant trade-in credit, I could select a plan that best reflects my data usage.
Hidden Fees
Some carriers might ask you to make a down payment, or activate fee. They may also offer different lengths of contracts depending on your credit history. Although you won't have to pay for the iPhone directly once your trade-in credit kicks into effect, you will still need to pay the sales tax and there is no bill credit that can be used to reimburse this cost.
Overall winner: Verizon
Verizon had the lowest overall cost of all carriers' payment plans with its 24-month payments, even though it does not have the cheapest 5G plan nor the longest agreement. These totals don't include the $500 gift card Verizon offers to customers who change providers. The iPhone 13 costs $2,077.36 and the iPhone 13 Pro $2,086.36. AT&T's 36-month contract is the most expensive. It will cost you more and your iPhone 13 will be out of date after three years. You may also want to terminate your contract early.
iPhone 13 AT&T/Sprint Verizon Apple.com iPhone.com TMobile/Sprint Apple.com Apple.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone.com iPhone. You must stay with Verizon for at least 12 months. You must use Apple Card or Citizens One in order to pay for the phone in 24 installments. Get 3% back on full price ($23.97). $500 Magenta Max Discount in the form 24 bill credits ($16.67); application required; trade-in with Apple
