In all honesty, I wasn’t originally planning to upgrade my iPhone 6 Plus to the latest version that Apple announced this past week. But, the cell companies decided to do something they haven’t done in a few years and subsidize the purchase price of the new iPhone 7 and iPhone 7 Plus! Several carriers began advertising limited time iPhone 7 special offers with Sprint and T-Mobile offering “free” iPhone 7 upgrades with the trade-in of an approved device.
But I’m certainly not content with an iPhone 7 since I’ve become accustomed to the larger size of the iPhone 7 Plus so I had to do some more analysis to figure out the cost to upgrade to the larger version. I’m currently on a T-Mobile plan paying $60/mo for 3GB of data with an iPhone 6 Plus that I paid cash for up-front almost two-years ago. Here’s what I did to get a free iPhone 7 Plus and make a profit on the deal:
1) The first thing I did was decide to switch to Sprint in order to take advantage of their special pricing for moving to their service. I was able to more than triple my data limit AND reduce my bill by $20/mo. This promotional pricing is valid through March 2018 so that results in a savings of $320 over the two-years I will own this device and maintain my Sprint service.
2) Next, I chose the iPhone 7 Plus 32GB on the 24-month installment plan for $32.09/mo (that’s interest-free), but the current promotion offers a monthly credit of $27.09/mo with an eligible trade-in. That brings the cost of the new iPhone down to $5 per month x 24 months = $120. Now I’m not one to buy anything without getting cashback, so I started my transaction with Sprint at Ebates and took advantage of earning an extra $37.50 in cashback for starting new service with Sprint. Sign up for Ebates using the links here and you’ll get a $10 bonus after your first qualifying purchase!
3) Now, since I am having to give Sprint my current phone as a trade-in, I need to take into account the value of my current handset since I am giving up the ability to sell it and put toward my purchase of a new device. Currently, Gazelle is offering $136 for my iPhone 6 Plus 64GB.
So, let’s recap:
Cost of new iPhone 7 Plus 32GB from Sprint: $120
Plus, value of trade-in: $136
Plus, activation fee: $30
Total “cost” of new iPhone: $286
Minus, Ebates cashback: $37.50
Minus, Sprint plan savings: $320
Equals, total cost of upgrading to iPhone 7 Plus: $-71.50
That’s right! Thanks to Sprint offering the new iPhone 7 Plus for $120 and the savings in their plans over my current T-Mobile plan, I am able to get a FREE iPhone 7 Plus AND make a profit of $71.50 over the course of the tw0-year agreement. It’s because of this that I decided to go ahead and upgrade my device instead of waiting another year to see what the iPhone 7S brings.
*Update* – MainStreetShares is offering $45 in cashback for signing up for a new Sprint plan! That’s $7.50 more than Ebates! That brings the total profit on the iPhone upgrade to $79!