I have been currently eyeing the new iphone, the 6s to be exact. The 64GB retails in Canada for about $1029 unlocked and without a contract, without taxes its around $1165. I am currently on a $20 plan that gives basically unlimited everything except data (I didn't want data). Now, with a contract, I would be looking at $75 plans because the iphone is only available on select plans. That means that I would be getting the phone for about $700 up front with taxes. 1165-700 = 465 that I would be saving. But its a $55 jump on the phone plan. If you calculate it further, you will see that I would be paying a lot more for the phone if I went with this other plan. My opinion is that to save more, buy the phone unlocked, that way you have the freedom to move around carriers, you're not stuck on a contract and you won't be owing anything to the phone. Now, iphone are a pretty drastic example of a phone because they are normall very pricey, but then again you could be saving hundreds by just paying outright for it. But then again, how many of us have that kind of money to part with at once? If it goes in increments we never notice that much. What would you say?
Buying a unlock phone is usually the best option if you don't plan on staying on one network for too long. Though, paying that much for a phone that will have a updated version within a year or two is something most won't do. You can easily get a android or windows phone with better specs and the same apps in their marketplace. So it just all comes down to if people prefer the Apple brand.
I think either option is good as long as you know it is right for you. The difference probably won't seem like much in the long run anyway, especially for the iPhone buying market where they already know they are shelling out a lot. If you don't need to move carriers that much then a contract is just fine and the few extra you'll spend for an unlocked one shouldn't be much of a difference either.
How long do you plan to keep the phone? That could factor into the decision, as well as knowing that iPhones have a very good resale value, and I would imagine the unlocked versions would sell for even higher prices. If you have the money, and want the phone, and know that you will be looking to switch carriers, I'd go with the unlocked version. If you're happy staying with one company for the length of your contract, that decreases the need or desire for an unlocked phone, so you could save some money right there.
Buy it unlocked. It's going to be cheaper in the long run but it has some quirks though but the benefits outweigh the issues. Besides, iPhones are very short lived, in a way that a newer model comes out almost every 2 years so having a phone unlocked won't really tie you in any contract that might encompass your upgrade if you're planning one. I also agree with the Diane when it comes to resale, it's typically higher compared to those that are locked in.
I think you should buy the unlocked one because a plan will lock you in for 1 or 2 years, so you will be wasting more money paying for a higher priced plan. Or better yet, you can try looking for online deals that sell 2nd hand unlocked iPhones so that you could save more money.
From what I've read, you're almost always going to save money and come out ahead in the long run if you pay for your phone in full up front vs. financing it through your carrier. Often times you can find non-carrier-specific models of your phone for less than what you would pay full price for that phone from one of the carriers. Something else to consider though is often when you buy a phone from a carrier, it's branded with their logo - which not only makes your phone less attractive to buyers down the road should you try to sell it, but why would you want a Sprint logo on your phone if you later switched to Verizon or T-Mobile, for example? Unlocked phones typically don't have any carrier logos on them at all. You do need to make sure the unlocked phone you are considering buying will work in your area though. I came across this issue when I was considering buying an unlocked Galaxy Note 3 a few years ago, some unlocked models were selling suspiciously less than most others, so I figured there was a catch, and there was - they wouldn't work properly in the US. T-Mobile's offer is also something a bit unique to consider, since they will roll the cost of the phone into your monthly phone plan, but it's interest free. So in some ways it's actually a better deal than putting the phone on a credit card and paying interest on it, when you can essentially get an interest free payment plan from T-Mobile on it.
