Consumers who are counting down the hours until Apple releases its new iPhone on Friday may want to pause before they get in line.For fans, it’s not a question of whether to buy—Apple (US:AAPL)pre-sold an estimated 2 million iPhone 5s in the first day of availability, and the current wait estimate for new orders on Apple’s site is three to four weeks.For fans, it’s not a question of whether to buy—orders for each successive Apple iPhone have topped analyst expectations, and insiders say the iPhone 5 announcement expected Wednesday will be no different.But the iPhone market has changed substantially in the year since the 4S came on the scene, which means consumers who want one may need to make a thorough assessment of their current plan and carrier before preordering. “Last time around, the big news was Sprint got the iPhone, and that widened the possibilities, but it was still pretty much the same phone, same networks, roughly similar pricing everywhere,” says Eddie Hold, a vice president for market research firm NPD Group.
This year, there are more nuances: For one thing, two prepaid carriers, Cricket and Virgin Mobile, now offer the iPhone. Cricket will get the iPhone 5 on Sept. 28; Virgin Mobile has not yet announced a U.S. release date. Virgin Mobile did not immediately respond to requests for comment.Also, cellular data networks have grown faster in some markets, leading to more variation in speeds. And two of the biggest carriers, AT&T and Verizon, introduced family shared-data plans that could make owning any smartphone cheaper for some users, and pricier for others.“The stakes keep getting bigger,” says Kirk Parsons, senior director of wireless services for J.D. Power and Associates. “This lays it on the customer to be educated about all the components of their plan and coverage.”Here are five factors to evaluate before placing your pre-order:Phone costCarriers are sticking with the starting price of $199 for a new-model 16GB iPhone 5 with a new two-year contract. But Verizon also offered consumers who still have its unlimited data plan the choice of keeping it and paying the full retail price of $649 for a new 16GB iPhone 5. (Getting the $199 price requires moving to a metered data plan.) Prepaid carriers charge more for the phone itself—Cricket has the 16GB 4S for $500, and Virgin Mobile charges $650— and experts expect pricing for the iPhone 5 will be the same. But the often-cheaper voice, data and text plans can help consumers pay off the price difference in less than a year, Parsons says.Network speed
Consumers who are counting down the hours until Apple releases its new iPhone on Friday may want to pause before they get in line.
For fans, it’s not a question of whether to buy—Apple (US:AAPL)pre-sold an estimated 2 million iPhone 5s in the first day of availability, and the current wait estimate for new orders on Apple’s site is three to four weeks.
For fans, it’s not a question of whether to buy—orders for each successive Apple iPhone have topped analyst expectations, and insiders say the iPhone 5 announcement expected Wednesday will be no different.
But the iPhone market has changed substantially in the year since the 4S came on the scene, which means consumers who want one may need to make a thorough assessment of their current plan and carrier before preordering. “Last time around, the big news was Sprint got the iPhone, and that widened the possibilities, but it was still pretty much the same phone, same networks, roughly similar pricing everywhere,” says Eddie Hold, a vice president for market research firm NPD Group.
This year, there are more nuances: For one thing, two prepaid carriers, Cricket and Virgin Mobile, now offer the iPhone. Cricket will get the iPhone 5 on Sept. 28; Virgin Mobile has not yet announced a U.S. release date. Virgin Mobile did not immediately respond to requests for comment.
Also, cellular data networks have grown faster in some markets, leading to more variation in speeds. And two of the biggest carriers, AT&T and Verizon, introduced family shared-data plans that could make owning any smartphone cheaper for some users, and pricier for others.
“The stakes keep getting bigger,” says Kirk Parsons, senior director of wireless services for J.D. Power and Associates. “This lays it on the customer to be educated about all the components of their plan and coverage.”
Here are five factors to evaluate before placing your pre-order:
Phone cost
Carriers are sticking with the starting price of $199 for a new-model 16GB iPhone 5 with a new two-year contract. But Verizon also offered consumers who still have its unlimited data plan the choice of keeping it and paying the full retail price of $649 for a new 16GB iPhone 5. (Getting the $199 price requires moving to a metered data plan.) Prepaid carriers charge more for the phone itself—Cricket has the 16GB 4S for $500, and Virgin Mobile charges $650— and experts expect pricing for the iPhone 5 will be the same. But the often-cheaper voice, data and text plans can help consumers pay off the price difference in less than a year, Parsons says.
Network speed
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