Why does the XS Max still require a big down payment T-Mobile?

Discussion in 'Smart Phones and Devices' started by Zorachus, May 20, 2019.

  1. Zorachus

    Zorachus [H]ardForum Junkie

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    Just for fun, when on the T-Mobile website, logged into my account, it said I have an upgrade available, and I was just window shopping, and noticed only the iPhone XS Max requires a deposit down, but every other high end flagship phone does not.

    - Samsung Galaxy S10 Plus = $0 down ( The entire flagship Samsung line was no deposit )
    - Samsung Galaxy Note 9 = $0 down
    - OnePlus 7 Pro = $0 down ( Both the 6T and 7 Pro $0 down )
    - Pixel 3 XL = $0 down ( all four Pixel 3 phones zero down )
    - LG G8 = $0 down
    - iPhone XS Max = $349 down
    - iPhone XS = $249 down
    - iPhone XR = $149 down
    - iPhone 8 Plus = $50 down

    Was just curious why the iPhone's required a deposit, and none of the Android's do? I currently have the Pixel 3 XL, and very happy, not looking for an upgrade, was just paying my bill, and was seeing what's out there.
     
  2. T4rd

    T4rd PM an Admin to Pick Your Title

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    Who knows.. probably because they can and haven't cared enough to revamp their pricing structure. Or maybe because Apple actually charges them more just to stock them instead of letting them pay when they're actually sold. Are most of the other carriers about the same?
     
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  3. CHANG3D

    CHANG3D [H]ardness Supreme

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    Because people will spent money to buy iPhones?!?
     
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  4. exlink

    exlink [H]ardness Supreme

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    If I had to take a wild guess, I'm going to say that a large portion of the demographic who buy iPhones can't realistically afford them and default on the loan. T-Mobile has probably done some internal analysis and underwriting to determine that they need to charge a large down payment on it to cover themselves.
     
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  5. Zorachus

    Zorachus [H]ardForum Junkie

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    I'm just curious I can get any high-end flagship Android phone like the $1,000+ Samsung Galaxy S10 Plus 256GB phone with $0 deposit. Or brand new LG G8 and Pixel 3 XL 128GB no money down.

    But any Apple phone, even the cheaper Apple phones for $699 T-Mobile requires deposit.

    So any flagship Android phone no deposit no down payment needed, but every iPhone even the cheap old ones require a deposit. Weird



    Just for fun, I put the 1TB most expensive Galaxy S10 Plus ( $1499 ) in the cart on T-Mobile website, and it shows $0 down. And then I put the cheapest version of the iPhone XS Max ( $1099 ), the 64GB version, and it states need $349 deposit.

    It's not a high price or credit thing, it's an Apple vs. Android issue with T-Mobile. Why does T-Mobile require a deposit on the cheaper $699 iPhone 8 Plus, but does not require any money down on the more expensive $1,000+ S10 Plus or Note 9.
     
    Last edited: May 21, 2019
  6. T4rd

    T4rd PM an Admin to Pick Your Title

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    exlink probably got it with his guess; iPhones make up the majority of sales, and thus the majority of defaulted credit lines. So they probably need to have some kind of paywall in place to weed most of those out.
     
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  7. AltTabbins

    AltTabbins [H]ard as it Gets

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    Profit margins and price setting. Apple has the lowest profit margin of all the phone makers and Apple enforces a policy that says you can’t advertise selling an Apple product for below a set price. Apple products stay at release MSRP pretty much their entire lifespan where other phones drop quickly, sometimes half the price a few months after release. If someone ditched out on their payments, Verizon is out a lot more than any android phone. I asked our Verizon business rep about how the Pixel 3a was selling and he just laughed. He said over 80% of phones sold in that store are iPhones.
     
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  8. Zorachus

    Zorachus [H]ardForum Junkie

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    Interesting.

    Oh well I'm happy on my Pixel 3 XL I bought direct from Google last year. Really no phone out currently interests me. Probably wait for the Pixel 4 XL in October, if not that then holding onto my 3 XL till next year.
     
  9. Trimlock

    Trimlock [H]ardForum Junkie

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    It also has to deal with the resellers and ensuring the stock of the phones are staying with intended purchasers versus scalping. The iPhone is/was the most scalped phone especially on release and the carriers/Apple wants to prevent that. Having a decent down payment adds a layer of uncertainty where it makes it a bit more difficult for people to resell at ludicrous prices.
     
  10. Zorachus

    Zorachus [H]ardForum Junkie

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    I stopped getting my phones through the carrier for a while now. We're about 18+ months now, without buying our phones through T-Mobile, we pay in full upfront, when we bought our Pixel 2 XL and 3 XL. Rooted and ROM'd these phone are screaming fast and butter smooth, with the best updates for any Android phone direct from Google.

    Not sure I am ready for a downgrade going back to an iPhone, unless iOS is completely revamped, I'm just not into the Fischer Price OS, that feels stuck from a decade ago. No wonder iPhone's are most popular with high school kids and grandparents, that crowd doesn't care
     
  11. ryan_975

    ryan_975 [H]ardForum Junkie

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    Not seeing that on AT&T.
    upload_2019-5-22_14-28-55.png

    I'd have to go with the others and guess that TMobile has a lot of problem with iPhones getting stolen or customers defaulting on their credit lines and are losing a lot of money.
     
  12. Zorachus

    Zorachus [H]ardForum Junkie

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    Just for fun I went to ATT and Verizon websites, entered my info, and it stated $0 down for a brand new iPhone XS Max. Can walk out the door not needing to put a deposit down.

    So this a T-Mobile only thing it seems
     
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  13. AltTabbins

    AltTabbins [H]ard as it Gets

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    They did the same with me way back when the OG nexus 6 was new. They wanted $200 down on a $400 phone. I wanted to go Android back then but ended up going next door and getting an iphone 5s instead for nothing down and like $14 a month.
     
  14. Trimlock

    Trimlock [H]ardForum Junkie

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    I can't speak for the XS release but every new iPhone release prior to that required a down payment if you were financing the phone. ATT even tried telling us we couldn't get the new phone without financing (wtf!??!).

    I switched off of ATT shortly after the X released.
     
  15. vegeta535

    vegeta535 2[H]4U

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    iPhones are a accessory more then anything to a lot of people. They buy it to try and fit in even if they can't afford it. People are not as crazy over Android phones. Also they could require a down payment when you have bad credit.
     
    Last edited: May 23, 2019
  16. ryan_975

    ryan_975 [H]ardForum Junkie

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    I have never had to pay a down payment. I've bought a 6 Plus, 6S, 6S Plus, two 7 Plus (BOGO), and two 8 (another BOGO) all on release and all financed through AT&T Next.
     
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  17. bpizzle1

    bpizzle1 2[H]4U

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    This is honestly the reason that my next iphone will be directly through Apple on their upgrade program. I have an 800+ credit score...I should not have to pay a large down payment at t-mobile when I could go to literally any other company and not have one.
     
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  18. exlink

    exlink [H]ardness Supreme

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    I spoke to a customer service rep when I opened my account at T-Mobile a couple years ago and they waved down payments for me once they saw I had great credit. Not like it mattered anyway since I bought the phones outright. :ROFLMAO:
     
  19. YeuEmMaiMai

    YeuEmMaiMai [H]ardForum Junkie

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    the simple answer is T-Mobile has to collect the cost of the subsidized hardware and they do that up front with a lot of phones...
     
  20. ryan_975

    ryan_975 [H]ardForum Junkie

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    Who subsidizes hardware anymore?
     
  21. Zorachus

    Zorachus [H]ardForum Junkie

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    Uh every U.S. phone carrier in the country. 99% of people that buy new smartphones all get them on payment plans. If that stopped, and people needed to fork out $1,000+ cash right on the spot at Verizon, you'd see smartphone sales come to a screeching halt, and tank like a rock in the ocean.

    I also bought my Pixel 3 XL paid all at once upfront from Google, but trust me, almost everyone gets their phone on a payment plan through the carrier or through Apple
     
  22. ryan_975

    ryan_975 [H]ardForum Junkie

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    Paying $42/mo for 24 months for a $1000 phone is not subsidization. Paying $250 and signing a two-year plan contract for a $1000 is.
     
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  23. T4rd

    T4rd PM an Admin to Pick Your Title

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    Yeah, there's definitely a difference between financing and subsidizing. You could argue that since you were paying for the phone in full either way with how carrier much phone plans were back then, but I think it's better now with financing them so at least you're not paying the same for your plan whether or not your contract is up (essentially still paying for your phone indefinitely whether you upgrade or not).
     
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  24. CHANG3D

    CHANG3D [H]ardness Supreme

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    Go to a bank and ask for a $1000 loan zero interest for 24 months. See how far that gets you.

    Or $30000 loan at a bank for 60 months 0% interest when you buy a new car... But I digress.

    Just saying there are ways to get loans subsidized for 0% interests.
     
  25. auntjemima

    auntjemima [H]ardness Supreme

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    The iPhone is a premium phone, unlike the rest of those peasant options
     
    Last edited: May 25, 2019
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  26. Aurelius

    Aurelius 2[H]4U

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    It's not surprising that the Samsung phones are zero down, because Samsung tends to discount its flagships at the drop of a hat -- it's always funny how the Galaxy S and Note lines tend to go from premium pricing to steep sales within weeks.
     
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  27. Trimlock

    Trimlock [H]ardForum Junkie

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    hah! so true, just about every Android phone loses value shortly after release.
     
  28. Usual_suspect

    Usual_suspect Limp Gawd

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    Yeah, Android devices tend to lose their value a lot quicker than Apple. Personally I believe it has to do with overall popularity. When you see actors/actresses/musicians etc. it makes people believe those are the "in" brand.

    When I showed my kids the OnePlus Pro 7 they immediately thought it was the new XS Max, when I told them no their next guess was the Samsung S10+. My co-workers had the same responses.

    When I asked my daughter if she'd use this phone over her iPhone X she said "No, it's not an Apple or Samsung, I never heard of a OnePlus, plus the phone doesn't match my Airpods."

    It only showed me people identify by major brands, and a lot of them look at their phone more as an accessory than a utility, and will pay the extra regardless of functional differences.
     
    Last edited: May 26, 2019
  29. bpizzle1

    bpizzle1 2[H]4U

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    For me, the IPhone X has been my first iPhone. Up until that point, I'd owned a string of assorted Android flagship and "flagship killers." Basically everyone in my family is on Apple, so after making the switch, I don't think I can go back. It's just too convenient to be able to facetime with my parents, share albums, etc. With the new baby, those types of functions have been used extensively. Not that we couldn't do the same things if I was on Android, but it definitely wouldn't be as convenient. Most of my family isn't the most tech savvy sort, so not having to make them download separate apps and explain their function has made things a lot easier for me.

    Otherwise, I'd probably be down at the store fondling the new Oneplus. That thing looks super sexy.
     
  30. marshac

    marshac 2[H]4U

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    I believe that TMo now offers 36mo payment plans, so my guess is that the Samsung phones are pushed into this repayment plan while the iPhones remain in a 24mo cycle therefore requiring a down payment to keep the monthly payment amount reasonable.
     
  31. Usual_suspect

    Usual_suspect Limp Gawd

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    In your case I agree it's best to stick with what works for you and the family. Oh and congratulations on the new baby.

    The OnePlus 7 Pro is an outstanding phone. When I first got it to replace my iPhone X I thought my girlfriend would have my heading a pike since she had the iPhone 8 Plus and I had the family sharing plan setup to keep tabs on all the kids locations. Instead she immediately fell in love with it, but one of her concerns was Facetime, so I showed her Google Duo, she then demanded one for herself. Sadly when I got her one, that very day she had won a large sum of money gambling and decided to pay the phones off (leased them through TMobile), and I now regret getting the carrier model instead of buying from OnePlus directly.

    Good news is I can now call TMobile and have them unlock the bootloader, so now the only hurdle is finding an international ROM so I can get updates direct from OnePlus instead of waiting on TMobile. Although, from what I've read TMobile is good about updating OnePlus phones namely the 6T got consistent and close to manufacturer release updates.
     
    Last edited: May 27, 2019
  32. marshac

    marshac 2[H]4U

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    30mo repayment plan man on your ATT quote. Not two years like TMo is quoting.

    upload_2019-5-26_22-56-40.jpeg
     
  33. ryan_975

    ryan_975 [H]ardForum Junkie

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    Is this better then?


    upload_2019-5-27_8-58-48.png