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T-Mobile announces zero down "sale" on all phones for the summer

Posted: , by Michael H.

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T-Mobile announces zero down
T-Mobile is announcing what it calls an "Unprecedented Deal" for this summer which offers zero down for all of the phones on the network. The carrier is even dropping the price of one of the most popular devices; but when you look closer, the deal isn't exactly as amazing as T-Mobile would have you believe.

The solid part of the deal is that over the course of a 24-month Equipment Installment Program (EIP), you can save a bit on certain devices, like the HTC One, which will cost $600 over the EIP rather than $649. Of course, you may already see where the not so great part of this "sale" is happening. While T-Mobile won't be collecting any up front payments for devices, the monthly EIP will be higher, which offsets the value of the deal

For example, the iPhone 5 sells for $145.99 down with 24 monthly payments of $21; but with the new promotion, the iPhone 5 will be zero down and $27 per month for 24 months, meaning you'll end up paying just $1.99 less than if there had been the up front payment. The press release below has a breakdown of the monthly costs of the most popular devices on the network.

As we said, some devices will get you more of a discount over the length of the EIP, but most savings won't be more than about $50. The zero down deal will begin tomorrow, July 27th, through your local T-Mobile retailer, and online. 

Press Release

25 Comments
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posted on 26 Jul 2013, 10:23 2

1. papss (unregistered)


At least they Re not making you pay more over the duration like the others and their deals...still lousy service though.

posted on 26 Jul 2013, 10:26 2

3. PapaSmurf (Posts: 8843; Member since: 14 May 2012)


I don't think you read the article at all. If you got an iPhone 5 16GB, instead of paying $145 + $21x24, you pay $0 + $27x24... Your monthly installments are higher, but barely come out cheaper in the course of 24 months.

posted on 26 Jul 2013, 11:33 3

6. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


Dude, dont forget to factor in time-value of money. Assuming a risk free rate of interest of 4% the payments are actually 145+21((1-1.04^(-24))/.04)=465.19 VS 0+27((1-1.04^(-24))/.04)=411.67 A net savings of $54 because you are not paying up front.

posted on 26 Jul 2013, 11:56

9. k1ng617 (Posts: 264; Member since: 13 Oct 2009)


leaving it in the bank will net you less than 1% so that's not really a fair calculation.

posted on 26 Jul 2013, 14:16

17. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


My money market account earns ~16%. 4 is more than fair.

posted on 26 Jul 2013, 12:03 3

11. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


lol ..... nice!! btw, Michael H's head just exploded when it saw your formula :)

posted on 26 Jul 2013, 14:24

18. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


Lol its a simple present value of an annuity formula. Its called "a angle n". (1-v^n)/i where I is interest, n is # of periods and v is i^-1. Multiply a angle n by the payment and that's the present value of the payments. Actuarial math 101

posted on 26 Jul 2013, 14:39 1

19. Bernoulli (Posts: 1505; Member since: 01 Sep 2012)


Lol I could have used your help in engineering economics class

posted on 26 Jul 2013, 10:24 1

2. PapaSmurf (Posts: 8843; Member since: 14 May 2012)


I got excited when I read the title, but when I read you only save $1.99 in the long run, I stopped reading and started laughing. Only T-Mobile.

posted on 26 Jul 2013, 15:14 1

21. Shatter (Posts: 2031; Member since: 29 May 2013)


if it was att or verizon you would end up paying more in the long run.

posted on 26 Jul 2013, 10:42

4. -box- (Posts: 3866; Member since: 04 Jan 2012)


Hmm, if there's any savings on sales tax there could be more savings realized

posted on 26 Jul 2013, 11:55

8. k1ng617 (Posts: 264; Member since: 13 Oct 2009)


No, you are still charged tax on the full price of the phone. I did that last year with the Note 2.

posted on 26 Jul 2013, 11:28

5. davenycept (Posts: 175; Member since: 03 Jul 2012)


Am I the only one that sees tmo is killing me with these shenanigans? I just want to get a phone... I don't mind paying 239for a 2 year agreement but all this extra stuff is just an annoyance... does anyone else feel this way?

posted on 26 Jul 2013, 11:48

7. promise7 (Posts: 474; Member since: 03 Jul 2013)


I kind of agree, some ppl don't mind staying on a 2yr agreement for paying a susidized price. I thought t-mobile should have kept the option of paying a subsidized price and signing into a 2yr agreement, but also adding in their new no contract, pay full price of the phone plan. It would give users more options.

posted on 26 Jul 2013, 15:57

23. lolrus (Posts: 29; Member since: 18 May 2013)


You can still get a T-Mobile subsidized 2 year contract phone at a third party retailer.

Staples and Best Buy are two that I know of that carry the "classic" plans.

posted on 26 Jul 2013, 18:03

25. aray1014 (Posts: 1; Member since: 26 Jul 2013)


or sams club or walmart and target!!!

posted on 26 Jul 2013, 12:07 2

12. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


Nope but, the average consumer has sh¡t for brains and can't see the final cost.

posted on 26 Jul 2013, 12:00 1

10. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


Still a rip-off!! I swear the average consumer is so dense that they'll walk right into T-Mobile and swear this is a great deal!

posted on 26 Jul 2013, 14:42 1

20. Bernoulli (Posts: 1505; Member since: 01 Sep 2012)


Because it is a great deal? Over the lapse of two years you'd beat inflation, assuming Obama doesn't do something stupid and it stays at 3.4%, if it increases then it means more savings

posted on 26 Jul 2013, 15:16

22. Shatter (Posts: 2031; Member since: 29 May 2013)


Or buy a nexus 4 unlocked for $350 and save $300.

posted on 26 Jul 2013, 17:19

24. bigbmc26 (Posts: 41; Member since: 10 May 2012)


A Lumia 925 for $480 isn't anywhere near a rip off. You actually save $50 with this deal. Don't see the issue on certain phones. Apple is always a rip off!

posted on 26 Jul 2013, 12:18 1

13. xtroid2k (Posts: 436; Member since: 11 Jan 2010)


People complain regardless. If you have money to pu down awesome. If not, this is an awesome deal. You may not save that much money but the value of being able to walk into a store and come out with a phone of your choice with no immediate financial hold up has value in it self. I mean Americans have had credit since the 1930s and have accepted that sometimes you pay more for the privalage of instant gratification with out funds.

posted on 26 Jul 2013, 12:32

14. grapeseed87 (Posts: 123; Member since: 13 Mar 2013)


Its like if you dont have money, dont worry! You can still get the device you want but then will also have to pay eventually.

I think its a good deal on T-mobile's part, as the provider of phone them not taking anything upfront shows trust and flexibility.

posted on 26 Jul 2013, 12:39 1

15. salic (Posts: 24; Member since: 23 Dec 2011)


Why would a non contract carrier discount devices below their cost when you could leave the next day with your phone? The idea of $0 down appeals to a lot of people who find it much easier to cough up an extra $6/month than $150 up front.

posted on 26 Jul 2013, 12:59

16. MartyK (Posts: 725; Member since: 11 Apr 2012)


It's a great begining, any saving is better then No saving( even .50 saving)..not to mention your bill go down vs what other carries is doing at the present moment.

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