How much does an iPhone really cost?

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Apple releases a new iPhone every year, but this past year was the first time in the US that the phone was available on three of the four major carriers at launch. If you live in an area where no one carrier is obviously better than the other and your contract is up, you’re left to choose which is the right choice. A big part of answering that question is first determining how much an iPhone costs on each carrier.

We will take a look at how much it costs to have a phone on a new contract with Verizon, Sprint, AT&T, and then the cost of an unlocked iPhone on T-Mobile. For reference, we’ll be looking at the least expensive plans that support the iPhone for each carrier, using Geek.com’s local prices (New York City).

Verizon Wireless

When the iPhone first came to Verizon Wireless, the celebration went on for days. Even Stephen Colbert dedicated a segment of his show to how excited he was that he would not be forced to use AT&T any longer. The release on Verizon marked the first time the carriers were going to have to compete in pricing for the iPhone, and since then both AT&T and Verizon have dedicated a significant chunk of their marketing budgets to letting everyone know that their iPhone is the best iPhone. Still, when it comes down to it, most people just want the option that hurts their wallets the least.

Verizon Wireless carries the iPhone 5 in three sizes, 16GB, 32GB, and 64GB. In order to use the iPhone on a new contract with Verizon you need at least a 2GB Share Everything plan, but you always have unlimited talk and text. You can choose between getting an Apple Care+ plan from Apple to protect your phone, a choice of monthly protection and plans from Verizon’s insurance partner Asurion, or both if you really want to make sure your phone is covered by everything. You can also add on detailed billing for a monthly fee, and when you have picked out everything you want there’s a one time activation fee. What does that all add up to?

Cheapest on Verizon
iPhone 5 16GB – $199
2GB Share Everything Plan – $60 per month for 24 months ($1,440)
Activation fee – $35
Tax in NYC – 8.875%
Total cost – $1,822.57

Most expensive on Verizon
iPhone 5 64GB – $399
10GB Share Everything Plan – $100 per month for 24 months ($2,400)
Apple Care+ – $99
Total Equipment Coverage from Asurion – $10 per month for 24 months ($240)
Detailed Billing – $2 per month for 24 months ($48)
Activation Fee – $35
Tax in NYC – 8.875%
Total Cost – $3,468.76

Sprint

Unlike Verizon Wireless, when Sprint took on the iOS mantle they took on several variants of the hardware. They didn’t just carry the iPhone 4S, they also carried the iPhone 4 and sold it at a substantial discount. Sprint spent a lot of money up front to get Apple in their retail location, and the gamble paid off for Sprint big time. Their network not has a significant number of iPhone users, and as the only major US carrier offering unlimited 3G and 4G on their contracts still, there’s a lot of reason to consider Sprint.

Sprint’s plans are always unlimited data, but not always unlimited minutes. You have to have one of their Everything plans in order to use an iPhone, though. You can add on a monthly insurance plan and Apple care if you want them, and if you order from their website the activation fees are waved. If you’re in the store, it’s up to the employee whether or not the fee is waved. At the end of that two years, how much does and iPhone cost from Sprint?

Cheapest on Sprint
iPhone 5 16GB – $199
Everything data with 450 minutes – $80 per month for 24 months ($1,920)
Tax in NYC – 8.875%
Total cost if ordered online – $2,307.06

Most expensive on Sprint
iPhone 5 64GB – $399
Apple Care+ – $99
Everything Unlimited – $110 per month for 24 months ($2,640)
Sprint Insurance – $11 per month for 24 months ($264)
Activation fee – $36
Tax in NYC – 8.875%
Total cost – $3,743.12

AT&T

As the very first carrier of the iPhone, and now one of the leaders in delivering HSPA+ and LTE to the iPhone 5, it makes sense that their network would be mostly Apple users. Since they have had the phone longer then most, AT&T’s plans have chanced more times than any other surrounding the phone. While they don’t offer unlimited data, AT&T’s new tiers for big data plans will fit anyone’s family or business needs. As a single user, however, they stack up pretty neatly with everyone else.

AT&T’s account setup is a little different from the others. You choose your minutes and your data separately, instead of choosing from a series of pre-assembled plans. Once you have chose the minutes and data options that best suit you, there’s an option to add insurance and Apple Care+. Once you’ve paid your activation fee, the phone is either shipped out to you or handed off in the store.

Cheapest on AT&T
iPhone 5 16GB – $199
Nation plan with 450 minutes and 300MB of data – $60 per month for 24 months ($1,440)
Activation Fee – $36
Tax in NYC – 8.875%
Total cost – $1823.66

Most Expensive on AT&T
iPhone 5 64GB – $399
Apple Care+ – $99
Nation Unlimited with 5GB data plan – $120 per month for 24 months ($2,880)
AT&T Mobile Protection – $10 per month for 24 months ($240)
Detailed billing – $2 per month for 24 months ($48)
Activation fee – $36
Tax in NYC – 8.875%
Total cost – $4,030.55

Unlocked on T-Mobile

With their new UNCarrier plans, you can either buy an iPhone 5 from T-Mobile or you can but them from Apple directly. If you buy them from T-Mobile, there’s a good chance you’ll be able to get the iPhone 5 for $99 up front. The rest of the cost of the phone is paid over a 24 month period, just like any other subsidized plans. If you buy the phone outright, however, you’re not bound to any contracts and can either leave or purchase additional service without the risk of any penalties.

T-Mobile offers Unlimited Talk, Text, and Data plans that you can add a device to. Their plans allow for single account, family plans, or business lines depending on what you need. T-Mobile offers these plans in a variety of price points, based on the needs of the user. There’s also handset protection options if you have purchased the phone outright from T-Mobile, which you wouldn’t be able to use in this situation. You would, however, still have Apple Care+.

Cheapest on T-Mobile
iPhone 5 16GB – $99 up front and $20 per month for 24 months ($579)
1500 Talk or Text with 30MB of data – $30 per month for 24 months ($720)
SIM card activation kit – $10
Tax in NYC – 8.875%
Total cost – $1,425.17

Most Expensive on T-Mobile
iPhone 5 64GB – $849
Apple Care+ – $99
Unlimited Talk, Text, and Data – $70 per month for 24 months ($1,680)
SIM card activation kit – $10
Tax in NYC – 8.875%
Total cost – $2,872.12

Which iPhone is for you?

If you’ve got the money up front to pay for an unlocked phone, or if you already have an unlocked phone from a previous carrier, it’s pretty hard to argue with T-Mobile’s pricing. Even so, each carrier offers a pretty strong positive and negative. AT&T is significantly more expensive for what you get, but their plans are also the most flexible. Verizon and Sprint seem to offer compelling options for both most expensive and least expensive options, but you’re tied to that price for two years.

There aren’t many areas where all four of these carriers are equal in the level of service they offer, which is another point to consider in making your decision. As a starting point, you can see which are the least expensive, and then decide which price point you are willing to pay based on the quality of service they offer.