Contract or no contract?

[DSK123]

I am planning to get the GSIII from AT&T later this month. We have a family plan, and just easier to stick with AT&T as no major issues with them. I am moving from iPhone (3gs), and like many people here, I am looking forward to more freedom with the GSIII.

One obvious difference from getting an iPhone (at least previously) is that AT&T offers no contract for $549 vs 2 year contract for $199. As I have had my current phone for 3 years, most likely I'll stick with the GSIII for at least 2 years. I don't need to have the latest/greatest phone, but moving to 4G service (faster downloads) will be key to me.

Is here any reason to get a non-contract phone? Or, should I just stick to the 2 year contract and stay locked into AT&T for that much longer?

The other option could be Best Buy's plan where you can get up to 50% back if you trade in after less then a year. However, I tend to avoid these service plans where possible.

 

[icwhatudidthere]

If you don't see yourself wanting to leave AT&T within the contract and don't think you'll switch devices in that time, I see no reason not to sign a contract and save $350. Besides even if you do feel like switching devices within that time frame, the no-contract option will always be there at that time.

Apart from that, is it your first time using Android? That would be the major deciding factor for me but you do get a 30 day return policy (though sometimes that can mess up upgrade elegibility).

Edited to add: I'm not sure what their current policy is, especially with Android phones, but it used to be the case that buying a non-contract phone allowed you to get it unlocked. Of course now your iPhone should be able to be unlocked as well.

 

[Zulu Warrior]

I just got my S3 yesterday, and I had debated this question a bit as well. I agree with the above post in that if you don't see yourself leaving ATT anytime soon, just get the subsidized phone. I know that some people like the freedom of having an unlocked phone, and honestly it is a cool idea. For me though, saving the money was much more practical. I just got the phone for $200, and have a $100 rebate coming in, making the phone really only cost me $100. On my group plan, I only have to shell out $40 a month for service, so it will only cost me $480 a year in service. The way I looked at it, I now get a phone and a year of service for the price of just the phone if I got it unlocked. Seems like too much savings to pass up just for having the ability to leave ATT.

All that said, everyone's situation is unique. So if you really want it unlocked, that may be worth the cost to you.

 

[mfriedman79]

I went with the 2yr contract renewal. I rationalized it this way.

No-commitment pricing is $549+TAX and no discount on bill because it wasn't subsidized.
2yr renewal is $200+TAX and activation (not sure if no commitment had that fee). if I decide to cancel early the penalty is $325 minus $10 for every month into the contract. So at most the phone would be $525+Acivation+TAX on $200. Considering I have no plans to change AT&T for at least 6 months it will come out cheaper to just renew.

 

[DSK123]

I just got my S3 yesterday, and I had debated this question a bit as well. I agree with the above post in that if you don't see yourself leaving ATT anytime soon, just get the subsidized phone. I know that some people like the freedom of having an unlocked phone, and honestly it is a cool idea. For me though, saving the money was much more practical. I just got the phone for $200, and have a $100 rebate coming in, making the phone really only cost me $100.
.

Where does the $100 rebate come from? Did you get this at AT&T?

 

[Zulu Warrior]

Where does the $100 rebate come from? Did you get this at AT&T?

I did get it through AT&T, however that doesn't mean the rebate will neccessarily work for everyone. Using my company's Small Business Representative, we were able to get a $50.00 rebate on the phone. I think that is pretty much universal. The other $50.00 was a little more tricky though, and I'm not really sure how he got it for us. Once again it was the small business rep, and I think it had something to do with the fact that I was upgrading from a dumb phone to a smart phone. As I said though, these discounts aren't too widespread as I had to go through Small Business Rep to get them.