Sunday, November 03, 2013

Should i Go for the Reliance Iphone 5s/5c Contract offer or the Airtel Iphone Contract Offer...... or No Contract Offer! ?

Many of the people are confused whether to buy an Iphone from Reliance or Airtel or just continue with the old way of buying from a store and installing your old sim in that.

I am providing this calculations, so that you dont have to do the hard work to figure out which iphone buying option is best for you. 

To understand the benefits one needs to know the exact cost of ownership such ownership provides. This cost of ownership includes the interest component you may loose while investing in your iphone. 

The Iphone 5s

In the table below four offers are clubbed together.
1) Citibank Offer
2) Reliance Unlimited Offer
3) Airtel Offer
4) Vodafone/Idea offer.

Here is the Total cost of ownership, for Iphone 5s

Table A: Cost of Ownership of Iphone 5S

Citibank Offer
Airtel 200MB
Airtel 500MB
1024MB(Standard vodafone 1GB)Rs.351
Airtel 1200MB
2048MB(Standard Vodafone 2GB)Rs.551
Airtel 3072MB
Reliance 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


If you want to know, how these figures were pulled out, you are free to navigate to my page


This page clearly explains all the aspects and how to calculate the cost of ownership of buying the Iphone 5s.

So, from where should we buy the Iphone 5s?

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/Croma/Others 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 this option 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 this option 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.



The Iphone 5c


Here is the Total cost of ownership, for Iphone 5C


Table B: Cost of Ownership of Iphone 5C
Citibank Offer
Airtel 200MB
Airtel 500MB
1024MB(Standard vodafone 1GB) Rs. 351
Airtel 1200MB
2048MB(Standard Vodafone 2GB) Rs. 551
Airtel 3072MB
Reliance 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.58,361.94


If you have doubts, regarding how these figures were coming from please refer my other article which has the detailed analysis of this table.

So, from where should we buy the Iphone 5c?

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 this option 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 this option 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.


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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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