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The Real Cost of an iPhone

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It’s not as easy as just looking at the Apple website to find out the price of an iPhone. Because the cost to buy an iPhone is dependent on many factors, you also need to consider the cost for monthly service which can vary depending on your plan. It takes some maths to figure out the cost of an iPhone.

The Price of the New iPhones

The phone is the most important and cost-effective factor in an iPhone’s price. Prices will vary depending on the model and storage requirements. A new iPhone can be yours starting at $49 for a basic iPhone 8 or $1,449 for the iPhone 11 Pro Max, depending on which model you choose.

The cost of an Apple iPhone 2 in April 2020 is as follows:

Almost everyone will pay full price for an iPhone these days (more details in the next section). So don’t expect any major discounts. You have the option to either pay upfront or in monthly instalments.

The 7 Most Popular iPhones in 2022

When you buy a new iPhone, the major phone companies offer a monthly instalment plan. You will pay a monthly fee if you purchase an iPhone from a major phone company. However, this plan has fewer upfront costs. You can also buy your phone in instalments and not be tied to a company. Learn more about Apple’s iPhone Upgrading Program.

iPhones used to cost less, sometimes as low as $199 for the most recent model. This was because the phone companies covered part of the phone’s cost to get you to use their service. But that is no longer the case. The major phone companies have eliminated subsidies in recent years that allowed customers to sign two-year contracts for significantly lower prices on their iPhones. The subsidy system is unlikely to return so you can expect to pay full-price for your iPhone.

However, major carriers like AT&T, Sprint and T-Mobile will often offer discounts on the new iPhone models if you trade your older model iPhone.

Prepaid and regional carriers often have lower prices

If you purchase the iPhone through one of the smaller regional carriers, which offer it in certain parts of the U.S., you can pay less than the original sticker price of $50. Although they don’t always offer the latest models and have limited monthly plans, these carriers can be a cost-saving option.

Monthly Voice and Data Plans

When calculating the cost of an iPhone, you should consider the monthly cost for voice and data services provided by the company that you choose.

Monthly iPhone plans usually include charges for data, calling, texting and other services. For the most popular services, expect to pay around $100 per month with major carriers.

Prepaid plans are generally half the price of major carriers. However, data connections can be slower or have slower speeds depending on how much you use. These companies will charge you between $50 and $60 for data, calling, and texting.

Other costs

It’s not worth spending hundreds of dollars on a new iPhone only to then throw it in your pants pocket or purse without a case. As soon as your iPhone arrives, make sure to attach a case. Protective cases can be as low as $40 to $100.

The iPhone comes with Apple’s standard warranty. However, you might want to add protection with an AppleCare+ extended program available directly from Apple. AppleCare’s cost will vary depending on the model of your iPhone. For two years of coverage, expect to pay $100-$200. AppleCare+ is available if you purchase your iPhone through Apple’s monthly iPhone Upgrade Program.

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