Note: Those who dont want to go through all the calculations and want a direct answer can choose to go to Table A for Iphone 5s and Table B for Iphone 5c.This article is meant for Indian Customers only.
I am providing these calculations, so that you dont have to do the hard work to figure out which iphone buying option is best for you.
If you find the calculations too hard to follow, you can switch to this other article, which explains in a summarized manner without going into further details...
http://mahernozdiary.blogspot.com/2013/11/should-i-go-for-reliance-iphone-5s5c_3.html
While googling, for "Iphone Offer 50%" i came across another offer by Reliance which gives a 16GB Iphone 5c and 16GB Iphone 5s for free, if taken on a 2 years contract of Rs.2599 and Rs.2999 respectively. There is a very informative page on firstpost.com describing both these offers by Airtel and Rcom.
http://www.firstpost.com/business/is-reliances-rs-2599-and-rs-2999-iphone-5-offer-worth-it-1206719.html
Also, i found another page, which describes Airtel's offer
http://www.bgr.in/news/airtel-offering-plans-for-iphone-5s-and-iphone-5c-at-50-percent-discount/
I decided to explore more about it, but couldn't find more information on Rcom's website, my main questions were, "what would happen after the 24 months contract?".
Anyways, i decided that this offer is really nice by reliance, but somehow my inner maths person, wanted to confirm it. Whether its better than Airtel or better than without an offer.
So, i got up and fired my excel and here are the calculations which i am sharing with you, so that you dont have to do the hard work.
Airtel vs Reliance vs Others 5s 16 GB Offers:
1. The Reliance Iphone 5s 16GB Offer
EMI: Rs. 2999
Service Tax(12.5%) : Rs.374.875
Your Monthly bill: Rs. 3373.875
Contract Period: 24 Months
Total Monthly Bill Amount for full contract period: 24x3373.875 = Rs.80973.
The price of the Iphone 5s if Rs.53500. As per the advertisement you pay Rs.2999(service tax is not included in advertisements). But if we consider it, then the calculations are like...
Rs. 80973(what you pay) - Rs. 53500 (for the phone) = Usage Charges = Rs.27473 for 24 months. So, for each month we pay Rs. 1144.70 towards usage charges.
Now, my calculations dont stop there.. you are spending Rs.3373.875 per month for the Iphone 5s 16 GB, what if you had not purchased this phone and instead put that same amount in a recurring deposit for 24 months. My point is, how much interest you are loosing on getting this phone, instead of investing this amount?
For this, we need to open the recurring deposit calculator for indian banks(Freely available on internet) on
http://www.allbankingsolutions.com/Recurring-Deposit-Calculator-India.shtml
For my calculations, i assumed the current rate of 8% in the Recurring Deposit(RD).
From the calculations it's easily seen that there is a total interest loss of Rs.7059 for 24 months.
Your total cost = Rs.80973(24x3373.875) + Rs. 7059 = Rs.88,032.
I really dont know whether there is a Cashback from Citibank on EMI. If its there then the cost of acquisition is Rs.79,228.70
2. The Airtel 5s 16 GB Offer
http://www.bgr.in/news/airtel-offering-plans-for-iphone-5s-and-iphone-5c-at-50-percent-discount/
Iphone 5s Price: Rs. 53500
Usage/month : Rs. 1000 (as reliance is offering unlimited calls, sms, data in india, i am selecting the most costliest offer of Rs.2000, as we are getting 50% discount, we get this offer for Rs.1000)
Plan Features: 1500 local mins, 600 Free SMS, 3GB 3G Data.
Service Tax 12.5%: Rs.125
Your Monthly Bill: Rs.1000+ Rs.125 = Rs.1125
My Usage for entire contract is : Rs.1125 * 24 = 27000
So, let's see how much is my cost using this route. The price of the Iphone 5s if Rs.53500 which you can buy from Airtel. You have two options, either you choose to buy the Citibank Credit Card and you get a decent 10% cashback or you can buy without it and get no Cashback offer.
Refer here
http://www.aegindia.org/2013/11/citibank-10-cash-back-offer-on-purchase-of-iphone-5c-and-iphone-5s-using-citibank-credit-cards/2135380.html
Let's see each of them.
If i have a Citibank Credit card, my cost would be Rs. 53500 - Rs.5350 (10% cash-back) = Rs. 48150
If without a Citibank Credit Card, my cost is Rs. 53500.
Now, our calculations dont stop from here. Instead of buying the Iphone 5s, if i had invested the amount of Rs.53500 for 2 years(24 months), then what interest i would have earned. So, how much interest i lost by choosing to buy this phone rather than investing in a Fixed Deposit (FD).
a) Without Citibank 10% cashback offer
I assume rate of interest is 8%
Rs .53500
Rs. 4280 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 57780
Rs. 4622.40 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 62402.40
So, my phone cost is around Rs.62402.40
Now, my usage cost is Rs. 27000.00
So, my total of phone cost plus usage is Rs. 89402.40 ( Rs. 62402.40 + 27000)
b) If i have a citibank Credit card, my cost would be Rs. 53500 - Rs.5350 (10% cash-back) = Rs. 48150.
Rs. 48150.
Rs. 3852 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 52002
Rs. 4160.16 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 56162.16
So, my phone cost is around Rs.56162.16
Now, my usage cost is Rs.27000.00
So, my total of phone cost plus usage is Rs. 83162.16 ( Rs. 56162.16 + 27000)
We had selected the costliest offer for per month is Rs.1125 (which is giving us only 3GB of internet usage, time to think about this Airtel!)
If we had put the same amount in a Recurring Deposit, how much interest would i have had earned. So, getting my phone recharged how much interest i am loosing.
Referring to the same link
http://www.allbankingsolutions.com/Recurring-Deposit-Calculator-India.shtml
With inputs
Monthly Installment Amount: Rs.1125
Annual Interest Rate: 8%
Period in Months: 24
I come to know that the interest i loose is Rs. 2354 for period of 24 months.
a) If without Citibank Credit Card
So, i need to add this to the cost as well which comes to Rs. 89402.40 + 2354 = Rs. 91, 756.40
b) If with Citibank Cashback 10% offer
So, i need to add this to the cost as well which comes to Rs. 83162.16 + 2354 = Rs. 85, 516.16
Note that there is a difference of Rs. 6240.24(Rs. 91, 756.40 - Rs. 85, 516.16 , though you got Rs.5350 as a cashback. The additional amount Rs. 890 is the interest component.
Airtel's Citibank 10% cashback offer makes it less costly than Reliance. It beats the reliance offer by Rs. 2515.84 for a period of 24 months contract. But note that, still it restricts your usage to a level which may bring you dissatisfaction and can overrun your bills if you overspend above the plan.
Here is the table showing different plans of airtel
A thought, if i choose some other Airtel plan what would be my cost(shown above). As due to space restriction its impossible to show all my calculations. I am giving you the final output.
Here is the table showing total cost in 24 months, if different plans are chosen, the plans are shown with their discounted value of 50% rather than their original value.
For those of you, who still want to choose Airtel because they trust its network coverage or services can refer the table below and make your choices. The Cheapest offer of Rs.300 beats the Reliance Cost by Rs. 23063.84( 88032 - Rs 64,968.16). One can go for 1GB data and still have a decent cost of acquisition of Rs. 85,885.40 (without Citibank) and Rs. 79,645.16 for those fortunate to have a Citibank Credit Card.
3. The Others
There is one common scenario where i dont buy from any of them(Reliance or Airtel), instead i buy it from Flipkart or Croma and then i carry on with my Vodafone prepaid 3G plan which gives me 1 GB for Rs.251 and my usual Rs.100 talktime. (i talk less and surf more!), which means my monthly prepaid amount is only Rs.351. If i want a 2 GB, my bill amount is Rs. 451 + Rs.100 = Rs.551
Refer here
https://www.vodafone.in/internet/pages/for_your_phone.aspx?cid=mum
So, let's see how much is my cost using that route.
Iphone 5s Price: Rs.53500 (for e.g. i buy it from Flipkart)
Usage/month: Rs.351 (my usage is 1 GB data and 100 Rs. talktime per month)
Usage/24 months: Rs.351*24 = Rs.8424
Service Tax: Nil (As its a prepaid, service tax is already included in my recharge amount).
Now, my calculations dont stop from here. Instead of buying the Iphone 5s, if i had invested the amount of Rs.53500 for 2 years(24 months), then what interest i would have earned. So, how much interest i lost by choosing to buy this phone rather than investing in a Fixed Deposit (FD).
The price of the Iphone 5s if Rs.53500. You have two options, either you choose to buy the Citibank Credit Card and you get a decent 10% cashback or you can buy without it and get no Cashback offer.
Refer here
http://www.aegindia.org/2013/11/citibank-10-cash-back-offer-on-purchase-of-iphone-5c-and-iphone-5s-using-citibank-credit-cards/2135380.html
a) Without Citibank 10% cashback offer
I assume rate of interest is 8%
Rs.53500
Rs. 4280 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 57780
Rs. 4622.40 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 62402.40
So, my phone cost is around Rs.62402.40
Now, my usage cost is Rs. 8424
So, my total of phone cost plus usage is Rs. 70826.40 ( Rs. 62402.40 + 8424)
b) If i have a citibank Credit card, my cost would be Rs. 53500 - Rs.5350 (10% cash-back) = Rs. 48150.
Rs. 48150.
Rs. 3852 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 52002
Rs. 4160.16 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 56162.16
So, my phone cost is around Rs.56162.16
Now, my usage cost is Rs. 8424
So, my total of phone cost plus usage is Rs. 64586.16 ( Rs. 56162.16 + 8424)
Now, my usage is Rs.351 per month, which i believe is a very sufficient usage for me, but you can tweak this setting as per your usage. In the reliance and Airtel offer, we had calculated that if we had put the same amount in a Recurring Deposit, how much interest would i have had earned. So, getting my phone recharged how much interest i am loosing.
Referring to the same link
http://www.allbankingsolutions.com/Recurring-Deposit-Calculator-India.shtml
With inputs
Monthly Installment Amount: Rs.351
Annual Interest Rate: 8%
Period in Months: 24
I come to know that the interest i loose is Rs. 732 for period of 24 months.
a) If without Citibank Credit Card
So, i need to add this to the cost as well which comes to Rs. 70826.40 + 734 = Rs. 71, 560.40
b) If with Citibank Cashback 10% offer
So, i need to add this to the cost as well which comes to Rs. 64586.16 + 734 = Rs. 65, 320.16
Note that there is a difference of Rs. 6240.24(Rs.71560.40 - Rs.65,320.16), though you got Rs.5350 as a cashback. The additional amount Rs. 890 is the interest component.
a) Read this, if without a Citibank Credit Card
Surprisingly, without any offer, my total cost for an Iphone 5s is Rs.71, 560.40 compared to Reliance Offer of Rs. 88032. So, it means there is a savings of Rs. 16,471.6 for 24 months compared to reliance offer, if i dont choose any offers, and just buy an Iphone 5s and continue with my usage habits.
b) Read this if with a Citibank Credit Card (10% cashback offer)
Surprisingly, my total cost for an Iphone 5s is Rs. 65, 320.16 with Citibank Credit Card option, which is the lowest.
Now, we do understand what the total cost of ownership means.. we formulate a table based on the 3G data pack that we receive and the price of each phone.
Table A: Cost of Ownership of Iphone 5S
Note: Not sure whether reliance gives a 10% Cashbank to Citibank Customers, if it gives then we have total cost of Ownership as Rs.79,228.70
While going through this table, you need to keep an eye on the cost and also your usage needed each month. Here is a good link to help you while deciding the usage.
https://www.vodafone.in/3gworld/pages/3g_tariff_calculator.aspx?cid=mum
Here are the winners
1) Airtel 200 MB plan is the most cheapest.
2) Vodafone Standard 1 GB plan with buying the mobile from Flipkart.
3) Vodafone Standard 2 GB plan with buying the mobile from Flipkart.
4) Airtel 500 MB plan is the 2nd cheapest.
Although Airtel plan is the most cheapest, the 200 MB cap, one can easily cross the line and can inflate the bill. So, its not a viable and safe option in today's times of smartphone usage. So, the 1st ranker is disqualified.
The best solution would be getting the mobile from Flipkart and then getting a prepaid internet 3g connection. As you know your usage is 1GB to 2GB per month, and you can easily fill up the talktime, and it comes to around Rs.351 per month. Even if you double your talktime, you still wont spend Rs.1125 (as in airtel) or Rs.1144 (as in reliance).
How is it better than reliance?
Reliance acquisition cost is Rs. 88032, which means it is Rs.22711.84 more than the option of Rs.61954.16. So per month you are spending Rs. 946.33 more than your current usage, which is not advisable. So reliance option is not advisable.
How is it better than Airtel?
If one does have an Citibank Card, one still cant go fro 200 MB option, as its impractical. Even 500 MB is very less, considering that its 3G. Let's take 1.2 GB which is near to our 1GB plan, which is of Rs. 79,645.16 , which is more by Rs. 14325, which means one needs to spend Rs. 596.88 extra compared to our plan. Airtel option is not advisable.
So, our best bet is Buying the mobile from a online/retail outlet like Flipkart or Croma and use the prepaid internet facility.
Where should i buy Iphone 5c from?
Well, its clear who the winner was in Iphone 5s. As now, you are familiar with basic concepts like cost of acquisition. I would straight away show you the table for Iphone 5c.
Table B: Cost of Ownership of Iphone 5C
Note: Not sure whether reliance gives a 10% Cashbank to Citibank Customers, if it gives then we have total cost of Ownership as Rs.68,661.70
While going through this table, you need to keep an eye on the cost and also your usage needed each month. Here is a good link to help you while deciding the usage.
https://www.vodafone.in/3gworld/pages/3g_tariff_calculator.aspx?cid=mum
Here are the winners
1) Airtel 200 MB plan is the most cheapest.
2) Vodafone Standard 1 GB plan with buying the mobile from Flipkart.
3) Vodafone Standard 2 GB plan with buying the mobile from Flipkart.
4) Airtel 500 MB plan is the 2nd cheapest.
Although Airtel plan is the most cheapest, the 200 MB cap, one can easily cross the line and can inflate the bill. So, its not a viable and safe option in today's times of smartphone usage. So, the 1st ranker is disqualified.
The best solution would be getting the mobile from Flipkart and then getting a prepaid internet 3g connection. As you know your usage is 1GB to 2GB per month, and you can easily fill up the talktime, and it comes to around Rs.351 per month. Even if you double your talktime, you still wont spend Rs.1125 (as in airtel) or Rs.949.58 (as in reliance).
How is it better than reliance?
Reliance acquisition cost is Rs. Rs.76,290 which means it is Rs.23147.06 more than the option of Rs.Rs. 53,142.94. So per month you are spending Rs. 964.46 more than your current usage, which is not advisable. So reliance option is not advisable.
How is it better than Airtel?
If one does have an Citibank Card, one still cant go fro 200 MB option, as its impractical. Even 500 MB is very less, considering that its 3G. Let's take 1.2 GB which is near to our 1GB plan, which is of Rs. 67,467.94 , which is more by Rs. 14325 compared to our best plan, which means one needs to spend Rs. 596.88 extra compared to our plan. Airtel option is not advisable.
So, our best bet is Buying the mobile from a online/retail outlet like Flipkart or Croma and use the prepaid internet facility.
*********************************************************************************
My conclusions for Iphone 5s: Dont go for either reliance or airtel offer. In Reliance you loose Rs. 26077.84(which is less by Rs.435.22 than what you loose in Iphone 5c: Rs.26513.06 ) more than what is necessary to give. The only plus factor you can go for reliance is when you dont want any cap on the usage. In Airtel you loose Rs. 17691 more than what is necessary than you usually give.
So, best option is to buy a phone from a retail outlet and get the Citibank 10% cashback and choose a prepaid 3g plan, and opt for a 2GB or 1 GB plan, whichever suits you.
My conclusions for Iphone 5c: Dont go for either reliance or airtel offer. In Reliance you loose Rs. 26513.06(which is more by Rs.435.22 than what you loose in Iphone 5s: Rs.26077.84 ) more than what is necessary to give. The only plus factor you can go for reliance is when you dont want any cap on the usage. In Airtel you loose Rs. 17691 more than what is necessary than you usually give.
Best Option
So, best option is ignore both Airtel and Reliance Offer and to buy a phone from a retail outlet and get the Citibank 10% cash back and choose a prepaid 3g plan, and opt for a 2GB or 1 GB plan, whichever suits you.
Choose reliance only if you want a cap on your telephone bills and your telephone bills are on the higher side, the unlimited Call, Text, Data and a fixed billing amount can really help such an individual, in that case only reliance looks like a better choice.
If your usage is low, then its better to avoid both this offers and as follow the old way of buying from retail and inserting a prepaid sim.
I hope my calculations saved you lots of hard work.
*********************************************************************************
I am providing these calculations, so that you dont have to do the hard work to figure out which iphone buying option is best for you.
If you find the calculations too hard to follow, you can switch to this other article, which explains in a summarized manner without going into further details...
http://mahernozdiary.blogspot.com/2013/11/should-i-go-for-reliance-iphone-5s5c_3.html
While googling, for "Iphone Offer 50%" i came across another offer by Reliance which gives a 16GB Iphone 5c and 16GB Iphone 5s for free, if taken on a 2 years contract of Rs.2599 and Rs.2999 respectively. There is a very informative page on firstpost.com describing both these offers by Airtel and Rcom.
http://www.firstpost.com/business/is-reliances-rs-2599-and-rs-2999-iphone-5-offer-worth-it-1206719.html
Also, i found another page, which describes Airtel's offer
http://www.bgr.in/news/airtel-offering-plans-for-iphone-5s-and-iphone-5c-at-50-percent-discount/
I decided to explore more about it, but couldn't find more information on Rcom's website, my main questions were, "what would happen after the 24 months contract?".
Anyways, i decided that this offer is really nice by reliance, but somehow my inner maths person, wanted to confirm it. Whether its better than Airtel or better than without an offer.
So, i got up and fired my excel and here are the calculations which i am sharing with you, so that you dont have to do the hard work.
Airtel vs Reliance vs Others 5s 16 GB Offers:
1. The Reliance Iphone 5s 16GB Offer
EMI: Rs. 2999
Service Tax(12.5%) : Rs.374.875
Your Monthly bill: Rs. 3373.875
Contract Period: 24 Months
Total Monthly Bill Amount for full contract period: 24x3373.875 = Rs.80973.
The price of the Iphone 5s if Rs.53500. As per the advertisement you pay Rs.2999(service tax is not included in advertisements). But if we consider it, then the calculations are like...
Rs. 80973(what you pay) - Rs. 53500 (for the phone) = Usage Charges = Rs.27473 for 24 months. So, for each month we pay Rs. 1144.70 towards usage charges.
Now, my calculations dont stop there.. you are spending Rs.3373.875 per month for the Iphone 5s 16 GB, what if you had not purchased this phone and instead put that same amount in a recurring deposit for 24 months. My point is, how much interest you are loosing on getting this phone, instead of investing this amount?
For this, we need to open the recurring deposit calculator for indian banks(Freely available on internet) on
http://www.allbankingsolutions.com/Recurring-Deposit-Calculator-India.shtml
For my calculations, i assumed the current rate of 8% in the Recurring Deposit(RD).
 |
| If Iphone 5s Offer is taken, there is a total interest loss of Rs.7059 for 24 months. |
From the calculations it's easily seen that there is a total interest loss of Rs.7059 for 24 months.
Your total cost = Rs.80973(24x3373.875) + Rs. 7059 = Rs.88,032.
I really dont know whether there is a Cashback from Citibank on EMI. If its there then the cost of acquisition is Rs.79,228.70
2. The Airtel 5s 16 GB Offer
http://www.bgr.in/news/airtel-offering-plans-for-iphone-5s-and-iphone-5c-at-50-percent-discount/
Iphone 5s Price: Rs. 53500
Usage/month : Rs. 1000 (as reliance is offering unlimited calls, sms, data in india, i am selecting the most costliest offer of Rs.2000, as we are getting 50% discount, we get this offer for Rs.1000)
Plan Features: 1500 local mins, 600 Free SMS, 3GB 3G Data.
Service Tax 12.5%: Rs.125
Your Monthly Bill: Rs.1000+ Rs.125 = Rs.1125
My Usage for entire contract is : Rs.1125 * 24 = 27000
So, let's see how much is my cost using this route. The price of the Iphone 5s if Rs.53500 which you can buy from Airtel. You have two options, either you choose to buy the Citibank Credit Card and you get a decent 10% cashback or you can buy without it and get no Cashback offer.
Refer here
http://www.aegindia.org/2013/11/citibank-10-cash-back-offer-on-purchase-of-iphone-5c-and-iphone-5s-using-citibank-credit-cards/2135380.html
Let's see each of them.
If i have a Citibank Credit card, my cost would be Rs. 53500 - Rs.5350 (10% cash-back) = Rs. 48150
If without a Citibank Credit Card, my cost is Rs. 53500.
Now, our calculations dont stop from here. Instead of buying the Iphone 5s, if i had invested the amount of Rs.53500 for 2 years(24 months), then what interest i would have earned. So, how much interest i lost by choosing to buy this phone rather than investing in a Fixed Deposit (FD).
a) Without Citibank 10% cashback offer
I assume rate of interest is 8%
Rs .53500
Rs. 4280 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 57780
Rs. 4622.40 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 62402.40
So, my phone cost is around Rs.62402.40
Now, my usage cost is Rs. 27000.00
So, my total of phone cost plus usage is Rs. 89402.40 ( Rs. 62402.40 + 27000)
b) If i have a citibank Credit card, my cost would be Rs. 53500 - Rs.5350 (10% cash-back) = Rs. 48150.
Rs. 48150.
Rs. 3852 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 52002
Rs. 4160.16 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 56162.16
So, my phone cost is around Rs.56162.16
Now, my usage cost is Rs.27000.00
So, my total of phone cost plus usage is Rs. 83162.16 ( Rs. 56162.16 + 27000)
We had selected the costliest offer for per month is Rs.1125 (which is giving us only 3GB of internet usage, time to think about this Airtel!)
If we had put the same amount in a Recurring Deposit, how much interest would i have had earned. So, getting my phone recharged how much interest i am loosing.
Referring to the same link
http://www.allbankingsolutions.com/Recurring-Deposit-Calculator-India.shtml
With inputs
Monthly Installment Amount: Rs.1125
Annual Interest Rate: 8%
Period in Months: 24
I come to know that the interest i loose is Rs. 2354 for period of 24 months.
a) If without Citibank Credit Card
So, i need to add this to the cost as well which comes to Rs. 89402.40 + 2354 = Rs. 91, 756.40
b) If with Citibank Cashback 10% offer
So, i need to add this to the cost as well which comes to Rs. 83162.16 + 2354 = Rs. 85, 516.16
Note that there is a difference of Rs. 6240.24(Rs. 91, 756.40 - Rs. 85, 516.16 , though you got Rs.5350 as a cashback. The additional amount Rs. 890 is the interest component.
Airtel's Citibank 10% cashback offer makes it less costly than Reliance. It beats the reliance offer by Rs. 2515.84 for a period of 24 months contract. But note that, still it restricts your usage to a level which may bring you dissatisfaction and can overrun your bills if you overspend above the plan.
Here is the table showing different plans of airtel
| Plan | Units | 600 | 1,000 | 1,600 | 2,000 |
| Local mins | Minutes | 500 | 900 | 1,400 | 1,500 |
| Free SMS | Number | 300 | 400 | 500 | 600 |
| 3G Data | MB | 200 | 500 | 1,200 | 3,072 |
| Discount | 50 percent | 50 percent | 50 percent | 50 percent | |
| You Pay | Rs | 300 | 500 | 800 | 1,000 |
A thought, if i choose some other Airtel plan what would be my cost(shown above). As due to space restriction its impossible to show all my calculations. I am giving you the final output.
Here is the table showing total cost in 24 months, if different plans are chosen, the plans are shown with their discounted value of 50% rather than their original value.
Offer
|
300
|
500
|
800
|
1000
|
Without Citibank
Cashback 10%
|
Rs. 71,208.40
|
Rs. 77,079.40
|
Rs. 85,885.40
|
Rs. 91,756.40
|
With Citibank Cashback
10%
|
Rs. 64,968.16
|
Rs.70,839.16
|
Rs. 79,645.16
|
Rs. 85,516.16
|
You can choose the
offer based on your preference and budget
|
||||
For those of you, who still want to choose Airtel because they trust its network coverage or services can refer the table below and make your choices. The Cheapest offer of Rs.300 beats the Reliance Cost by Rs. 23063.84( 88032 - Rs 64,968.16). One can go for 1GB data and still have a decent cost of acquisition of Rs. 85,885.40 (without Citibank) and Rs. 79,645.16 for those fortunate to have a Citibank Credit Card.
3. The Others
There is one common scenario where i dont buy from any of them(Reliance or Airtel), instead i buy it from Flipkart or Croma and then i carry on with my Vodafone prepaid 3G plan which gives me 1 GB for Rs.251 and my usual Rs.100 talktime. (i talk less and surf more!), which means my monthly prepaid amount is only Rs.351. If i want a 2 GB, my bill amount is Rs. 451 + Rs.100 = Rs.551
Refer here
https://www.vodafone.in/internet/pages/for_your_phone.aspx?cid=mum
So, let's see how much is my cost using that route.
Iphone 5s Price: Rs.53500 (for e.g. i buy it from Flipkart)
Usage/month: Rs.351 (my usage is 1 GB data and 100 Rs. talktime per month)
Usage/24 months: Rs.351*24 = Rs.8424
Service Tax: Nil (As its a prepaid, service tax is already included in my recharge amount).
Now, my calculations dont stop from here. Instead of buying the Iphone 5s, if i had invested the amount of Rs.53500 for 2 years(24 months), then what interest i would have earned. So, how much interest i lost by choosing to buy this phone rather than investing in a Fixed Deposit (FD).
The price of the Iphone 5s if Rs.53500. You have two options, either you choose to buy the Citibank Credit Card and you get a decent 10% cashback or you can buy without it and get no Cashback offer.
Refer here
http://www.aegindia.org/2013/11/citibank-10-cash-back-offer-on-purchase-of-iphone-5c-and-iphone-5s-using-citibank-credit-cards/2135380.html
a) Without Citibank 10% cashback offer
I assume rate of interest is 8%
Rs.53500
Rs. 4280 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 57780
Rs. 4622.40 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 62402.40
So, my phone cost is around Rs.62402.40
Now, my usage cost is Rs. 8424
So, my total of phone cost plus usage is Rs. 70826.40 ( Rs. 62402.40 + 8424)
b) If i have a citibank Credit card, my cost would be Rs. 53500 - Rs.5350 (10% cash-back) = Rs. 48150.
Rs. 48150.
Rs. 3852 8% of 53500, compound interest of Year 1(12 months)
---------
Rs. 52002
Rs. 4160.16 8% of 57780, compound interest of Year 2(24 months)
-------------
Rs. 56162.16
So, my phone cost is around Rs.56162.16
Now, my usage cost is Rs. 8424
So, my total of phone cost plus usage is Rs. 64586.16 ( Rs. 56162.16 + 8424)
Now, my usage is Rs.351 per month, which i believe is a very sufficient usage for me, but you can tweak this setting as per your usage. In the reliance and Airtel offer, we had calculated that if we had put the same amount in a Recurring Deposit, how much interest would i have had earned. So, getting my phone recharged how much interest i am loosing.
Referring to the same link
http://www.allbankingsolutions.com/Recurring-Deposit-Calculator-India.shtml
With inputs
Monthly Installment Amount: Rs.351
Annual Interest Rate: 8%
Period in Months: 24
I come to know that the interest i loose is Rs. 732 for period of 24 months.
a) If without Citibank Credit Card
So, i need to add this to the cost as well which comes to Rs. 70826.40 + 734 = Rs. 71, 560.40
b) If with Citibank Cashback 10% offer
So, i need to add this to the cost as well which comes to Rs. 64586.16 + 734 = Rs. 65, 320.16
Note that there is a difference of Rs. 6240.24(Rs.71560.40 - Rs.65,320.16), though you got Rs.5350 as a cashback. The additional amount Rs. 890 is the interest component.
a) Read this, if without a Citibank Credit Card
Surprisingly, without any offer, my total cost for an Iphone 5s is Rs.71, 560.40 compared to Reliance Offer of Rs. 88032. So, it means there is a savings of Rs. 16,471.6 for 24 months compared to reliance offer, if i dont choose any offers, and just buy an Iphone 5s and continue with my usage habits.
b) Read this if with a Citibank Credit Card (10% cashback offer)
Surprisingly, my total cost for an Iphone 5s is Rs. 65, 320.16 with Citibank Credit Card option, which is the lowest.
Now, we do understand what the total cost of ownership means.. we formulate a table based on the 3G data pack that we receive and the price of each phone.
Table A: Cost of Ownership of Iphone 5S
Offer
|
200MB
|
500MB
|
1024MB(Standard vodafone 1GB)Rs.351
|
1200MB
|
2048MB(Standard Vodafone 2GB)Rs.551
|
3072MB
|
Unlimited
|
|
Airtel
|
Without Citibank
Cashback 10%
|
Rs. 71,208.40
|
Rs. 77,079.40
|
N/A
|
Rs. 85,885.40
|
Rs. 91,756.40
|
N/A
|
|
With Citibank Cashback
10%
|
Rs. 64,968.16
|
Rs. 70,839.16
|
N/A
|
Rs. 79,645.16
|
Rs. 85,516.16
|
N/A
|
||
Reliance
|
Without Citibank
Cashback 10%
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
Rs.88,032
|
|
Others
(Buying from Flipkart
and Installing a Vodafone SIM)
|
Without Citibank
Cashback 10%
|
N/A
|
N/A
|
Rs. 71560.40
|
N/A
|
Rs. 76,779.40
|
||
With Citibank Cashback
10%
|
N/A
|
N/A
|
Rs 65, 320.16
|
N/A
|
Rs.70,539.16
|
Note: Not sure whether reliance gives a 10% Cashbank to Citibank Customers, if it gives then we have total cost of Ownership as Rs.79,228.70
While going through this table, you need to keep an eye on the cost and also your usage needed each month. Here is a good link to help you while deciding the usage.
https://www.vodafone.in/3gworld/pages/3g_tariff_calculator.aspx?cid=mum
Here are the winners
1) Airtel 200 MB plan is the most cheapest.
2) Vodafone Standard 1 GB plan with buying the mobile from Flipkart.
3) Vodafone Standard 2 GB plan with buying the mobile from Flipkart.
4) Airtel 500 MB plan is the 2nd cheapest.
Although Airtel plan is the most cheapest, the 200 MB cap, one can easily cross the line and can inflate the bill. So, its not a viable and safe option in today's times of smartphone usage. So, the 1st ranker is disqualified.
The best solution would be getting the mobile from Flipkart and then getting a prepaid internet 3g connection. As you know your usage is 1GB to 2GB per month, and you can easily fill up the talktime, and it comes to around Rs.351 per month. Even if you double your talktime, you still wont spend Rs.1125 (as in airtel) or Rs.1144 (as in reliance).
How is it better than reliance?
Reliance acquisition cost is Rs. 88032, which means it is Rs.22711.84 more than the option of Rs.61954.16. So per month you are spending Rs. 946.33 more than your current usage, which is not advisable. So reliance option is not advisable.
How is it better than Airtel?
If one does have an Citibank Card, one still cant go fro 200 MB option, as its impractical. Even 500 MB is very less, considering that its 3G. Let's take 1.2 GB which is near to our 1GB plan, which is of Rs. 79,645.16 , which is more by Rs. 14325, which means one needs to spend Rs. 596.88 extra compared to our plan. Airtel option is not advisable.
So, our best bet is Buying the mobile from a online/retail outlet like Flipkart or Croma and use the prepaid internet facility.
Where should i buy Iphone 5c from?
Well, its clear who the winner was in Iphone 5s. As now, you are familiar with basic concepts like cost of acquisition. I would straight away show you the table for Iphone 5c.
Table B: Cost of Ownership of Iphone 5C
Offer
|
200MB
|
500MB
|
1024MB(Standard vodafone 1GB) Rs. 351
|
1200MB
|
2048MB(Standard Vodafone 2GB) Rs. 551
|
3072MB
|
Unlimited
| |
Airtel
|
Without Citibank Cashback 10%
|
Rs. 57,678.16
|
Rs. 63,549.16
|
N/A
|
Rs. 72,355.16
|
Rs. 78,226.16
|
N/A
| |
With Citibank Cashback 10%
|
Rs. 52,790.94
|
Rs. 58,661.94
|
N/A
|
Rs. 67,467.94
|
Rs. 73,338.94
|
N/A
| ||
Reliance
|
Without Citibank Cashback 10%
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
Rs.76,290
| |
Others
(Buying from Flipkart and Installing a Vodafone SIM)
|
Without Citibank Cashback 10%
|
N/A
|
N/A
|
Rs.58,030.16
|
N/A
|
Rs. 63,249.16
| ||
With Citibank Cashback 10%
|
N/A
|
N/A
|
Rs. 53,142.94
|
N/A
|
Rs.
|
Note: Not sure whether reliance gives a 10% Cashbank to Citibank Customers, if it gives then we have total cost of Ownership as Rs.68,661.70
While going through this table, you need to keep an eye on the cost and also your usage needed each month. Here is a good link to help you while deciding the usage.
https://www.vodafone.in/3gworld/pages/3g_tariff_calculator.aspx?cid=mum
Here are the winners
1) Airtel 200 MB plan is the most cheapest.
2) Vodafone Standard 1 GB plan with buying the mobile from Flipkart.
3) Vodafone Standard 2 GB plan with buying the mobile from Flipkart.
4) Airtel 500 MB plan is the 2nd cheapest.
Although Airtel plan is the most cheapest, the 200 MB cap, one can easily cross the line and can inflate the bill. So, its not a viable and safe option in today's times of smartphone usage. So, the 1st ranker is disqualified.
The best solution would be getting the mobile from Flipkart and then getting a prepaid internet 3g connection. As you know your usage is 1GB to 2GB per month, and you can easily fill up the talktime, and it comes to around Rs.351 per month. Even if you double your talktime, you still wont spend Rs.1125 (as in airtel) or Rs.949.58 (as in reliance).
How is it better than reliance?
Reliance acquisition cost is Rs. Rs.76,290 which means it is Rs.23147.06 more than the option of Rs.Rs. 53,142.94. So per month you are spending Rs. 964.46 more than your current usage, which is not advisable. So reliance option is not advisable.
How is it better than Airtel?
If one does have an Citibank Card, one still cant go fro 200 MB option, as its impractical. Even 500 MB is very less, considering that its 3G. Let's take 1.2 GB which is near to our 1GB plan, which is of Rs. 67,467.94 , which is more by Rs. 14325 compared to our best plan, which means one needs to spend Rs. 596.88 extra compared to our plan. Airtel option is not advisable.
So, our best bet is Buying the mobile from a online/retail outlet like Flipkart or Croma and use the prepaid internet facility.
*********************************************************************************
My conclusions for Iphone 5s: Dont go for either reliance or airtel offer. In Reliance you loose Rs. 26077.84(which is less by Rs.435.22 than what you loose in Iphone 5c: Rs.26513.06 ) more than what is necessary to give. The only plus factor you can go for reliance is when you dont want any cap on the usage. In Airtel you loose Rs. 17691 more than what is necessary than you usually give.
So, best option is to buy a phone from a retail outlet and get the Citibank 10% cashback and choose a prepaid 3g plan, and opt for a 2GB or 1 GB plan, whichever suits you.
My conclusions for Iphone 5c: Dont go for either reliance or airtel offer. In Reliance you loose Rs. 26513.06(which is more by Rs.435.22 than what you loose in Iphone 5s: Rs.26077.84 ) more than what is necessary to give. The only plus factor you can go for reliance is when you dont want any cap on the usage. In Airtel you loose Rs. 17691 more than what is necessary than you usually give.
Best Option
So, best option is ignore both Airtel and Reliance Offer and to buy a phone from a retail outlet and get the Citibank 10% cash back and choose a prepaid 3g plan, and opt for a 2GB or 1 GB plan, whichever suits you.
Choose reliance only if you want a cap on your telephone bills and your telephone bills are on the higher side, the unlimited Call, Text, Data and a fixed billing amount can really help such an individual, in that case only reliance looks like a better choice.
If your usage is low, then its better to avoid both this offers and as follow the old way of buying from retail and inserting a prepaid sim.
I hope my calculations saved you lots of hard work.
*********************************************************************************
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