Those Promotions Promising a ‘Free’ iPhone? It Isn’t Free.

There’s no such factor as a free iPhone.

But telephone carriers would love you to imagine in any other case. Over the previous couple of weeks, AT&T, Verizon and T-Mobile have blitzed their web sites, billboards and shops with advertisements proclaiming that you may “get the iPhone 15 Pro, on us.”

To get this $1,000 iPhone for $0, the carriers say, all it’s important to do is commerce in an older telephone and join a wi-fi plan. In actuality, the telephone freebie promotions can lure smartphone homeowners into spending extra in the long term by requiring them to subscribe to extra exorbitant service plans bundled with superfluous options, akin to massive high-speed knowledge packages and subscriptions to streaming providers.

I spent a number of days plugging numbers into the carriers’ web sites and chatting with retailer representatives to get some practical out-the-door numbers. To check the promotions, I submitted a three-year-old iPhone 12 as a hypothetical trade-in. (On common, individuals improve to a brand new telephone each three years.)

Here have been the prices of getting the brand new iPhone 15 Pro via the promotions, excluding taxes:

• Verizon’s free iPhone deal would value about $3,240 over the 36 months required to redeem the promotion, roughly $300 greater than shopping for the brand new iPhone with a less expensive Verizon plan in the identical interval.

• AT&T’s deal would value a buyer about $2,675 over the 36 months required to redeem the promotion, somewhat bit greater than doing a trade-in for the brand new telephone and deciding on a less expensive AT&T plan.

• T-Mobile’s promotion would value $2,400 over two years to redeem the telephone credit score, about $160 greater than shopping for the brand new iPhone with a less expensive T-Mobile plan.

“People who think they’re getting free phones from the carrier are in for a surprise,” stated Toni Toikka, the chief govt of Alekstra, a consulting agency that helps companies cut back their cellphone payments.

Verizon stated that prospects may select which plan was finest for them, and that the promotions have been supposed for individuals in search of the very best community expertise. T-Mobile stated that offers weren’t nearly free telephones and it strove to offer the very best worth with its premium plans that embody perks like Netflix streaming and the flexibleness to improve steadily. AT&T declined to remark.

If you need to save a buck, it’s all the time a good suggestion to commerce in your outdated telephone for credit score to shave down the price of a brand new one. Just be cautious of any promotion providing a freebie.

Let’s dive deeper into the iPhone giveaway promotions marketed by Verizon, AT&T and T-Mobile. Then I’ll share some higher methods to save cash with trade-ins.

Verizon

Verizon’s necessities to get a free iPhone 15 Pro are probably the most aggressive. Trading in an iPhone 12 can earn you $1,000 within the type of invoice credit unfold out over 36 months. To be eligible, I had to decide on a $90-a-month wi-fi service plan known as Unlimited Ultimate. The whole value over the three years could be $3,240.

In distinction, if I traded within the iPhone 12 and picked one among Verizon’s cheaper plans, just like the $65-a-month Unlimited Welcome, a fundamental mobile plan with limitless knowledge, Verizon would supply $415 for the three-year-old iPhone. The whole to purchase and use an iPhone 15 Pro on the cheaper plan for 3 years could be $2,925.

The foremost advantage of Verizon’s pricier Unlimited Ultimate plan is that it provides 60 gigabytes of cell hotspotting, which lets you share a telephone’s mobile knowledge reference to a pc. Some individuals might want this characteristic, however most is not going to want it — solely 4 p.c of cell customers devour greater than 50 gigabytes of mobile knowledge a month, in line with a report by the know-how conglomerate Cisco.

So with Verizon’s free iPhone promotion, you’ll spend $315 extra over three years for a plan with fancy perks than for those who traded in your outdated telephone and picked a less expensive Verizon plan.

AT&T

AT&T is providing as much as $1,000 off the iPhone 15 Pro with an eligible trade-in. Only the latest and costliest smartphones, like final 12 months’s iPhone 14 Pro, are eligible for the complete $1,000 in credit score. Older telephones get much less.

AT&T supplied a promotional credit score of $700 for the three-year-old iPhone 12 within the type of reductions unfold out over 36 months of invoice funds. That introduced the price of the iPhone 15 Pro to $8.30 a month unfold out over three years.

To get the promotion, I additionally had to decide on one among AT&T’s eligible knowledge plans, which begin at $65 a month. All instructed, together with one-time charges, the price of shopping for an iPhone 15 Pro and utilizing it on AT&T’s community with an eligible plan over three years got here out to $2,675.

In distinction, if I traded within the iPhone 12 and picked one among AT&T’s cheaper plans, just like the $50 Value Plus plan, AT&T would supply $200 in credit score for the older telephone, which shaves the value of the iPhone 15 Pro right down to $800. Over the course of 36 months on the cheaper plan, the whole could be $2,635.

The foremost distinction between the $50 plan and the $65 plan is that the latter provides three gigabytes of cell hotspotting.

This means you aren’t getting a free iPhone from AT&T via this promotion. Instead, you’ll pay roughly $40 additional over three years for a plan with a cell scorching spot characteristic.

T-Mobile

T-Mobile is providing to make the iPhone 15 Pro free when you commerce in your older telephone and join its Go5G Next plan, at $100 a month. The free iPhone comes within the type of invoice credit unfold out over 24 months. Over two years, you pay about $2,400.

But for those who join the cheaper Essentials plan at $60 a month, which isn’t a part of the promotion, T-Mobile will supply $200 for the iPhone 12. After you purchase the iPhone 15 Pro for $800, the whole value over two years could be $2,240.

T-Mobile’s cheaper Essentials plan consists of 50 gigabytes of high-speed knowledge, which is greater than sufficient. The Go5G Next plan consists of limitless high-speed knowledge and subscriptions to Netflix and Apple TV+.

Once once more, you aren’t actually getting a free iPhone, however are paying roughly $160 extra over two years for additional knowledge and streaming providers.

“Consumers may find it challenging to determine whether the more expensive plan offers additional value,” Mr. Toikka stated.

Bottom Line

Promotions are momentary, so as soon as the phrases expire, the wi-fi service charges will most likely shoot up — and you may find yourself spending extra with out noticing.

But don’t let these promotions discourage you. It’s nonetheless a terrific concept to promote your outdated telephone to avoid wasting bucks on a brand new one, and there are a plethora of trade-in packages on-line.

Sites like Gazelle, Best Buy, Amazon and Swappa supply money or retailer credit score to your outdated telephone, and their quotes for used telephones are often larger than the telephone carriers’. To cut back prices of your telephone, store round for the very best supply and choose a wi-fi plan that fits your price range and desires.

I lately bought my spouse’s iPhone 12 via Gazelle for $312 in money, which she used towards shopping for an iPhone 15 instantly from Apple. That shaved the value of the brand new telephone right down to about $500, and he or she caught with a budget household plan that she has used for years together with her siblings.

That’s a far cry from free. But it beats burning additional money on a elaborate wi-fi package deal she gained’t use.