Free iPhone Promotions: Is it Really Free?

If you’re in the market for a new iPhone, you may have seen advertisements from Verizon, T-Mobile, and AT&T claiming that you can get the iPhone 15 Pro for free. However, as The Times’s lead consumer technology writer, Brian X. Chen, discovered, there’s no such thing as a free iPhone. These promotions can actually lead you to spend more money in the long run by requiring you to sign up for expensive wireless plans with unnecessary features.

To test these promotions, Chen plugged in numbers and submitted a three-year-old iPhone 12 as a hypothetical trade-in. He found that Verizon’s free iPhone deal would cost about $3,240 over 36 months, AT&T’s deal would cost about $2,675 over 36 months, and T-Mobile’s promotion would cost about $2,400 over two years to redeem the phone credit. These costs were significantly more than buying a new iPhone with a cheaper plan.

Verizon

Verizon’s free iPhone 15 Pro promotion requires you to trade in your iPhone 12, and sign up for their Unlimited Ultimate plan to be eligible. This plan costs $90 per month, and offers 60 gigabytes of mobile hotspotting, which allows you to share a phone’s cellular data connection with a computer. This feature may be useful for some people, but most will not need it. Only 4 percent of mobile users consume more than 50 gigabytes of cellular data a month, according to a report by the technology conglomerate Cisco.

If you choose to trade in your iPhone 12 and select one of Verizon’s cheaper plans, such as the $65-a-month Unlimited Welcome plan, Verizon will offer you $415 in bill credits over 36 months. The total cost of buying and using an iPhone 15 Pro on the cheaper plan for three years would be $2,925.

With Verizon’s free iPhone promotion, you would spend $315 more over three years for a plan with fancy perks than if you traded in your old phone and picked a cheaper Verizon plan. It’s important to consider whether the additional perks of the Unlimited Ultimate plan are worth the extra cost for your individual needs.

Here’s a summary of the requirements and costs for Verizon’s free iPhone 15 Pro promotion:

If you choose a cheaper Verizon plan, the cost breakdown is as follows:

AT&T

AT&T is currently offering a promotion where customers can receive up to $1,000 off the iPhone 15 Pro with an eligible trade-in. However, only the most recent and expensive smartphones, such as last year’s iPhone 14 Pro, qualify for the full $1,000 credit. Older phones receive less credit.

To receive the promotional credit of $700, customers must choose one of AT&T’s eligible data plans, which start at $65 per month. This discount is spread out over 36 months of bill payments, bringing the cost of the iPhone 15 Pro to $8.30 per month for three years. Including one-time fees, the total cost of buying an iPhone 15 Pro and using it on AT&T’s network with an eligible plan over three years comes out to $2,675.

Customers who trade in their older iPhone 12 and select one of AT&T’s cheaper plans, such as the $50 Value Plus plan, will receive a $200 credit towards the purchase of the iPhone 15 Pro. This reduces the price of the iPhone 15 Pro to $800. Over the course of 36 months on the cheaper plan, the total cost would be $2,635.

The main difference between the $50 plan and the $65 plan is that the latter offers three gigabytes of mobile hotspotting. Keep in mind that this promotion does not offer a free iPhone from AT&T. Instead, customers will pay approximately $40 extra over three years for a plan with a mobile hotspot feature.

Overall, if you have a newer and more expensive smartphone to trade-in, the promotional offer from AT&T can be a great way to save money on a new iPhone 15 Pro. However, if you have an older phone and do not require the mobile hotspot feature, it may be more cost-effective to select one of AT&T’s cheaper plans.

T-Mobile

T-Mobile is offering a promotion where you can get the iPhone 15 Pro for “free” by trading in your older phone and signing up for its Go5G Next plan at $100 a month. However, this “free” iPhone comes in the form of bill credits spread out over 24 months, so you pay about $2,400 over two years.

If you sign up for the cheaper Essentials plan at $60 a month, T-Mobile will offer $200 for the iPhone 12. After buying the iPhone 15 Pro for $800, the total cost over two years would be $2,240.

While the Go5G Next plan includes unlimited high-speed data and subscriptions to Netflix and Apple TV+, the cheaper Essentials plan includes 50 gigabytes of high-speed data, which is more than enough for most users.

It can be challenging to determine whether the more expensive plan offers additional value, so it’s important to consider your personal needs and usage habits before making a decision.

Conclusion

In conclusion, while the idea of getting a “free” iPhone may seem enticing, it is important to consider the long-term costs and potential consequences. Promotions often have expiration dates and can lead to increased wireless service rates, resulting in spending more money in the long run. However, there are ways to reduce the cost of a new phone, such as selling your old phone through trade-in programs like Gazelle, Best Buy, Amazon, and Swappa. These sites often offer higher quotes for used phones than phone carriers.

To further reduce costs, it is recommended to shop around for the best offers and select a wireless plan that fits your budget and needs. By doing so, you can save money on a new phone and avoid burning extra cash on a wireless package that you won’t use. For example, selling an old iPhone 12 for $312 through Gazelle and using that cash towards buying an iPhone 15 directly from Apple can significantly reduce the cost of the new phone.

Overall, it is important to be aware of the true costs of promotions and to make informed decisions when purchasing a new phone. By taking advantage of trade-in programs and shopping around for the best offers, you can save money and avoid falling into the trap of “free” promotions that can end up costing you more in the long run.