Is It Worth Going for a Smartphone Contract? Unveiling the Pros and Cons!
Cost-effective mobile phone deal with smartphone: worth the investment or overpriced?
Share | Like | Comment | Email | Print | Link
Struggling to decide: Should I opt for a smartphone contract, or is it better to keep them separate? Here's a straightforward guide to help you make an informed decision. Remember, it's all about the math!
Many advertisements boast about smartphone contract bundles as irresistible deals. But hold on! Before diving in, calculate whether you'd be financially smarter with a standalone plan and buying the phone at the best market price.
Financial advisors like "Finanztip" suggest a simple rule of thumb: Effective monthly contract costs without a phone should be less than nine euros for the contract to be worth considering. This benchmark is based on generic all-network flat-rate plans, which usually cost between five and nine euros per month with data volumes suitable for most users. From light usage with 1 GB to heavy usage with 35 GB, there's an option for everyone. "Finanztip" advises against exceeding this price for a contract that includes a phone.
Crunching the Numbers in 3 Steps:
- Work out the average monthly cost of the bundle deal by:
- Multiply the monthly base fee by 24 (the minimum contract term in months),
- Add any additional costs like one-time payments, setup fees, or shipping,
- Deduct any discounts like a signup bonus, and
- Divide the sum by 24. Comparison portals like "Check24.de", "Teltarif.de", or "Verivox.de" often present the average monthly price directly.
- Find the cheapest available market price for the smartphone via price comparison sites such as "Geizhals.de", "Günstiger.de", or "Idealo.de". Then, divide the phone's price (including shipping) by 24.
- Subtract the calculated smartphone value (from step 1) from the average monthly price (from step 2).
Breaking Down the Cost Without a Phone:
The result from step 3 is the effective monthly price of the contract without a phone. Compare it against "Finanztip's" recommendations:
- If the result exceeds nine euros, it's generally better to buy separately.
- A result between five and nine euros is fair.
- A result under five euros is a great deal.
- A result of zero euros or less means the plan is, effectively, free.
- A negative result means the phone is cheaper over the contract period compared to buying it separately, but this is rare.
Don't Forget the Fine Print:
If you opt for a bargain bundle deal, remember to cancel your contract after the two-year minimum term, and switch to a more affordable provider to avoid unnecessary costs. Happy calculating!
Sources: ntv.de, awi/dpa
- Smartphones
- Consumer Tips
- Deals
- Consumer Advice
- Mobile Networks
- When considering a smartphone contract, remember the advice from "Finanztip," which suggests that the effective monthly cost without a phone should not exceed nine euros for it to be worth considering.
- If you're calculating the value of a smartphone contract, don't forget to account for personal-finance factors such as setup fees, shipping costs, and any additional charges that might affect your overall budget.
- When comparing standalone smartphone purchases against contract deals, don't overlook the importance of technology and gadgets in your decision-making process. Consider both the initial cost and the ongoing costs associated with owning these devices, as well as the latest offerings in the technology market.
