December 12, 2011

Australian Galaxy Nexus and Contract Pains!

Australian Galaxy Nexus and Contract Pains!

You might be unaware but I have been keeping an eye on the Galaxy Nexus ever since the rumours started about 12 months ago, the time when it was actually known as the Nexus Prime. I am particularly drawn to this phone due to the stock, untouched Android Ice-cream Sandwich operating system and the HD Screen. The phone is scheduled to hit Australian shelves in the next few weeks and the networks have already outed the pricing plans and some are extremely attractive.

The Dilemma

My situation is I still have about 10 months left on a Vodafone $69 Cap with my current iPhone 4. This means I have to pay out $690 to cancel my contract (Maybe a bit less if I ask nicely), so the question is how to get the Galaxy Nexus in the most cost effective way?

There are two options if you are in a similar scenario.

Option A) Purchase the handset outright for $799, switch SIMs and sell the iPhone 4.

Option B) Purchase the handset on a plan, continue the old plan and sell the iPhone 4.

I don’t like being locked in for twenty four months as I always end up in a situation like this, but I need at least the $59 Cap and 2GB downloads per month. Based on this the contract option for me is a 12 Month Vodafone Cap at $59 + $20 (Handset) for a total of $79 a month. This equals to $888 over the 12 months, only $89 more than buying it outright but you get the credit/downloads.

So we established that the best value is to purchase the Galaxy Nexus on a 12 month contract because you pay nearly the same amount as buying it outright and you get credit/downloads, but what about the iPhone 4? Well on eBay iPhone 4 offers are around $400-$500 for a 32GB (Worse case the phone sells for $300), so I could sell the phone and just have two sim cards/plans for 12 months.

This means that technically I could upgrade to a Galaxy Nexus on the same plan I have now for a total cost of $588 over the next 12 months ($888-$300). The advantage over buying it outright is I get $750 worth of calls and 2GB of downloads a month, so decent value for an extra $89. There is no need to cancel the iPhone 4 contract just let it continue and maybe give it to a family member to use.

It is still expensive but I have to pay something somewhere, do you think my logic make sense? If you have a better opinion leave me a comment below. Otherwise keep posted because I will have the full unboxing, review and multiple other videos about the Galaxy Nexus and Android soon.

Sources:

Vodafone Australia Galaxy Nexus Pricing

Optus Australia Galaxy Nexus Pricing

Image Source: Samsung

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