Samsung’s new Galaxy S7 handsets will be in stores this week, and from what we’ve seen so far, it is certainly worth a look. But it will likely have many people asking, should you buy it outright or pay it off on a phone plan?
As we’ve discovered in similar examinations with the latest iPhone models, there are pros and cons to both options. The higher outright price of new premium devices makes it impossible for the carriers to offer the phone with $0 handset repayments, but there still tends to be a sweet spot for phone plan pricing.
Alternatively, you can can buy the phone outright and choose any monthly phone plan you like, but is this actually cheaper than a phone plan when you compare both options over 24 months?
Phone plans with Unlimited Calls/SMS and at least 5GB Data
Monthly Plans with Unlimited Calls/SMS and 5GB Data
then add Galaxy S7 RRP ($1148.95)
The verdict: no, not really
As you can see above, the cheapest option at the launch of the Galaxy S7 will be the $70 Vodafone plan on a 24 month contract. Otherwise, the total price for the Galaxy S7 is about the same regardless of whether you buy it on a plan or buy it outright and choose a comparable monthly plan -- starting from just over $2000 over two years.
It’s interesting to see that though the telcos still suggest that you will only pay $5 per month for the handset, or $120 over the contract term, the total cost of the phone is obviously built into the price of the plan.
The big difference is in the total inclusions offered by each plan. The cheap monthly plans offer unlimited calls and SMS in Australia and a generous whack of data, but you will miss out on features like:
- bonus data offers,
- data rollover features,
- international calling and roaming benefits.
Over time this comparison will change and eventually it will swing in favour of the outright purchase. The $1148.95 handset cost quoted above is the full RRP found on the Samsung Australia website, but the street price of the phone will invariably be cheaper soon.