© 2010 mikimoro

Google Nexus One – Why Buying Outright is a Good Idea

< (I’ve been waiting for this for a long time!)

I was over at the Yahoo Tech blogs this morning reading this great article about the brand spanking new Google Nexus One from Ben Patterson, The Gadget Hound, and started weighing the options presented for buying the phone.

We’re interested in investing in an iPhone-comparable piece of equipment on T-Mobile (finally!), so we’ve been doing our research.  While reading the article, I saw a lot of protest about the price tag Google slapped on the device if you opt to purchase it outright (Unlocked) — $529 — instead of with a service ($179 on T-Mobile).  Yes, $529 is steep, but keep reading.

We did the math and with T-Mobile, we discovered you SAVE money by purchasing the phone outright, especially if you are an existing customer.

Here is the breakdown:

————————————
Option 1 (New customer):
————————————

- Phone for T-Mobile:  $179

- T-Mobile 2-year service contract through Google:  $79.99 a month * 24 months = $1919  (500 mins/month, Unlimited nights and weekends and T-Mobile to T-Mobile. Unlimited text/MMS/IM, and web.)

- Total for 2 years including phone and NEW service:  $2098

————————————————-
Option 2 (Existing Customer Upgrade):
————————————————-

- Phone for T-Mobile:  They quoted me $379 as an existing customer to upgrade.   (Note that I am not under contract at this time and due for a good handset upgrade, so this is likely a GOOD price for an upgrade.)

- T-Mobile 2-year service contract through Google:  $79.99 a month * 24 months = $1919  (500 mins/month, Unlimited nights and weekends and T-Mobile to T-Mobile. Unlimited text/MMS/IM, and web.)

- Total cost for upgrade and service for 2 years under contract:  $2298

———————————————————————————-
Option 3 (Keeping current service and buying phone straight out):
———————————————————————————-

- Buying phone straight out:  $529

- Even More PLUS plan which is exactly as Google’s offered plan above, except with NO CONTRACT:  $59.99 a month * 24 months = $1439

- Total for 2 years including phone and service:  $1968

(Note these additional benefits to buying outright:  Unlocked phone with which you can travel internationally and use any service you wish, as long as the phone accepts your SIM card.)

—————-
Conclusion:
—————-

For 2 years of service with T-Mobile and a Google Nexus One, it will cost you:

Option 1:  As a new customer with a 2-year contract,  $2098
Option 2:  As an existing customer with a 2-year contract, $2298
Option 3:  As a new or existing customer with no contract and an unlocked phone, $1968

With a savings of $130 and $330 compared to the other options, why would anyone who is financially able consider anything other than purchasing this phone outright?  It just makes sense.

Get yours here:  http://google.com/phone

One Trackback

  1. By So, Nexus One or not? | Incessant Expressions on January 7, 2010 at 2:00 am

    [...] very interested in the total cost of ownership over two years. Then I came across the following price breakdown for current T-Mobile customers as well as new customers. I took this and compared it to Ben [...]

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