Gadgetory

hey guys this is Austin so yesterday in an event in New York City the CEO of t-mobile got up on stage and proclaim the death of contracts on paper it sounds pretty good you can pay pretty much any phone you want including the HTC One the galaxy s4 even the iPhone 5 offer only $100 most of the time your bill should be quite a bit less and on top of that since you're not bound by a contract you can leave t-mobile at any time and switch to whoever you like however let's actually take a closer look to see if this is any good for starters what a lot of people don't realize is that phones are much more expensive than they think they are so here in the United States if I wanted to go buy a brand new iPhone 5 from a carrier right now it would cost me $200 however if I wanted to buy one directly from Apple without any kind of contract it would run me 650 dollars this is called a subsidy in return for giving you a $450 discount on your brand-new phone the carrier will then ask you to sign a contract whether it's 1 year 2 year 3 years depending on where you live in the world as it is right now contracts do make some sense as if you're going to be staying with a network for a couple years anyway you might as well get the discount on your phone but of course a carrier isn't just going to give you a massive discount on your phone and then call it even to make their money back they then make the price of the subsidies into the price you pay every single month so whether it's 10 15 or 20 dollars more you never see it but the prices were higher than they otherwise should be that's where t-mobile comes in since there are no contracts to sign you can feel free to leave whenever you want and because there are no subsidies built into the price that means it's typically going to be cheaper than other options as well if you're bringing your own phone to t-mobile then it makes a lot of sense for example if you have a nexus 4 all you got to do is toss a t-mobile SIM card in there and then you're paying $70 a month for unlimited everything however if you're buying a phone from t-mobile then you lose a lot of this advantage so let's say I want to go buy a galaxy s4 so get into the store I pay $100 up front and I get the phone however you're also going to have to pay $20 a month for the next two years to pay off the rest of the phone now the math works out that this is actually slightly cheaper than just buying the phone outright however you are basically tied to a contract of a different kind you're still free to leave t-mobile but you're still gonna have to pay off your t-mobile phone hopefully you guys found this helpful and understanding exactly what all this crazy stuff is about so I know it's complicated but in general I think these new t-mobile plans are step forward for everybody now if you're bringing your own phone to the network they make a lot of sense if you're buying a phone from t-mobile they're not really that much cheaper than anything else however I am glad to say the t-mobile is charging you exactly for what you're buying as opposed to just saying oh here's a 200 ollar phone now you gotta go pay $100 a month for the next two years I'm curious to know what do you guys think about these new t-mobile plans pretty much the only thing holding me back from switching is the fact that t-mobile really isn't all that got around here whereas a Verizon is much much better but I know the t-mobile is a lot better in many places so definitely be sure to let me know what you guys think in the comments below if you guys are interested in more feel free to check out my hands-on of the brand new Samsung Galaxy s4 if you enjoyed definitely be sure to leave this video a thumbs up and if you're interested in more videos like this be sure to subscribe anyway guys I will catch you next time