The iPhone 5 Really Costs You $1800

Illustration for article titled The iPhone 5 Really Costs You $1800

Though you may think the iPhone 5 only costs $200, you're forgetting about the contract that's tied to it. Yep, that fatty two-year, soul-selling new contract you get when you buy a new iPhone. That's the real cost of the iPhone 5 and it can get quite expensive.

And to be completely fair, $1800 is actually a low-end estimate. That just so happens to include the cheapest plan on AT&T, which gives you no free text messages and a laughable amount of data. If we're being honest, you're going to need a lot more. Anywhere from $200 more if you're on AT&T to a couple thousand dollars more if you're on Verizon. Over the lifetime of the iPhone 5's contract, you'll spend anywhere from $1800 to $4800. That's a good chunk of change.

Marketing firm Avalaunch put together all the data and made the snazzy infographic below. It's a pretty solid estimate of how much the iPhone 5 will cost you over two years (to be fair, most smartphones cost around this price too).

Illustration for article titled The iPhone 5 Really Costs You $1800

[Avalaunch via Mashable]

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Seeing all the comments here claiming that you have to pay for data anyway really proves at least one stereotype about Americans... but I digress.

You know, guys... at least on this side of the Atlantic, you can get a SIM-only contract, without a phone. These contracts also run for WAY less than a contract with a phone, as you would expect. Then the point is, if you buy a phone on your own, say from Apple, and get a SIM-only contract with all the commodities you need (calls, SMS, data), this will end up being CHEAPER than buying your phone from your telco with a contract.

It seems like this concept is way too difficult for some people to understand. Maybe in the end this is just a guilt-diversion strategy... you can just keep claiming you bought an iPhone for $200 when in fact, you didn't, because your contract is running on an inflated monthly fee to make sure you shell out A LOT more for that phone.

Then again, Americans are known for loving credit, for spending money they do not have... getting a phone on a contract is basically just another form of credit. Open your eyes.