Rumor: Samsung Galaxy Note II Pricing Revealed In New Image

We’re hopefully starting to narrow down the list of unknowns regarding T-Mobile’s Galaxy Note II launch as a newly leaked documents provides some possible insight into rumored price points. Keeping in mind that like all good rumors, these prices are subject to change, it looks as if T-Mobile will launch the Galaxy Note II for $299.99 on Value Plans. Classic plan customers seem to be looking at a $419.99 price tag before a $50 mail-in rebate. Assuming that’s $379.99 after rebate, that’s still $80 ahead of where Sprint is pricing their own Note II and this could appear to be a similar-style launch to the Galaxy S III. T-Mobile’s Galaxy S III launch was met by a bunch of frustrated customers as T-Mobile priced their own model $80 higher than the competition.

We’ll have to wait and see if these prices are in fact the real deal, or if they change between now and the official launch. Speaking of the launch, we’re back to two different possible timeframes as the October 24th/25th date is still appearing on our radar — along with the middle of November. Regardless of when it launches, if T-Mobile does ultimately decide to launch the Note II for $419 prior to rebate, you’ve always got Walmart and their $299 price to keep your wallet happy.

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  • Paul

    Yeah…paying more than Sprint, and paying more than Value Plan holders, is very discouraging. I’m starting to think that I may not be a day-one buyer.
    I want this phone, but my mom didn’t raise a dummy.

    • philyew

      Not sure how you are paying more than Value Customers. This piece doesn’t mention that the VP customer also has to pay $20/20 months on the installment plan, making a total of $700 for the device – considerably more than the Classic Plan customer has to pay.

      Sprint also recovers more on their plan charges to offset their subsidy. For example, their everything unlimited plan is $109.99/ month without tethering, compared with TM’s Unlimited – Unlimited 4G plan which is $89.99/ month. That’s an additional $480 over the lifetime of the contract.

      • Paul

        It looks like it’s $420 for Classic Plans, and $700 for Value with a $300 downpayment.

        • philyew

          Well, it’s $420 less the $50 MIR, which will be $370. Classic plan customers then pay $20/month more than Value plan customers to recover the subsidy, so I have to modify my original comment.

          If you look at the big picture, Classic plan customers do pay more for their subsidized device ($370+$480 = $850), but that is ALWAYS the case to one degree or another – not just for this device.

        • Paul

          Wait, Value Plan customers pay more.

        • http://profiles.google.com/mrice.hill Mr. Hill

          Value Plan customers save more through the duration of the contract due to the lower rates. Classic Plan rate plans are all $20 more expensive than their Value Plan counterparts, so there’s really no reason to ever choose the Classic plan since you would be paying more upfront and still paying the same price for your rate plan as someone who is paying the $20 per month EIP.
          Difference is: After 20 months the person on the Value Plan will see their monthly bill drop by $20 while the person on the Classic Plan will still keep paying the higher rate plan.

        • Paul

          Welp, I guess I need switch with my upgrade!

        • philyew

          Because the Classic plans cost $480 more than the Value plans over the lifetime of the contract, the Classic plan customer is paying more for the same equipment and service.

          Review:
          Value plan customer pays $700 for phone and $69.99/month for Unlimited – Unlimited 4G
          Classic plan customer pays $370 for phone and $89.99/month for Unlimited – Unlimited 4G.

          That’s effectively $850 for the privilege of having a subsidized phone for the Classic plan customer v. $700 paid by the Value plan customer.

          In this case, the VP customer is also paying LESS upfront if they opt to use the Equipment Installment Plan, where they pay $20/month for 20 months after an initial cost of $299, while the CP customer is paying $420 outright and then taking a $50 MIR.

        • philyew

          Perhaps some finance specialist here can explain how booking the $20/month to the EIP rather than the subscription plan allows TM to be happy booking less upfront income and $150 less overall for each customer using the Value Plan rather than the Classic Plan?

        • JB

          I’m no finance specialist or anything, but I would imagine that T-Mobile takes some sort of monetary hit when subsidizing vs EIP that’s unseen by the consumer that validates the need for their pricing structure… the small caveat is that with the Value Plan you have to pay taxes on the full retail of the phone at the point of sale.

        • philyew

          I assume that too, but I was hoping someone could elaborate in more detail.

        • JB

          I had to recall my economic lessons from college on this one but I figured it out. LOL. Here’s the monetary hit. We’ll use the Note II as an example. We’ll assume the phone is $700 retail. For a phone at this price, the carriers pays somewhere around $400-$500 per phone. When a carrier sells it at the normal subsidy of $300 they are losing $100-200 per phone. As we all know the carriers make that up by locking a consumers in a contract by way of higher rates. Larger carriers like  VZW and ATT (and Sprint to an extent) can afford to subsidize the way they do because they have the money to do so.

          Concering T-Mobile, they buy the Note II at the same price, but because they are the value leader, they have to sell the same phone at a higher subsidy to recoup what they are losing while keeping your month-to-month low. Value Plans eliminate subsidies altogether because they finance you the full price of the phone. So it’s a win for T-Mobile and the customer because not only does T-Mobile recoups the $400-$500 they spent on each Note II, they net the extra $200-$300 by removing the subsidy. In turn, they can pass the savings on to the consumer.

          Hope that helps…

        • philyew

          Thanks, JB.

          What I found odd about the Note pricing is that normally they collect more from the down payment on the value plan than they do from a subsidized charge on the classic plan. The value of that extra revenue over time serves to offset the reduced income from the value plan.

          In this case, however, the upfront income from the value plan is less than the subsidized price, meaning there is no front loading to offset the reduced plan revenue. It just doesn’t work the same way as in the past and that’s the bit I was really hoping someone could explain.

        • JB

          @philyew:disqus I always thought the down payment for the Value Plan was cheaper than the subsidy for the Classic Plan. At least that was my experience when I bought my S III. I wanted to do some shopping to see if the Value Plan was right for me vs my grandfathered plan. It turns out that it wasn’t so I bought it full retail, but this is what I got out of it:

          On Classic, the S III was $279 after MIR so pretty much $330 upfront. On Value, it was $229. You have to pay sales tax on the full retail of the phone at point of sale, so in Kansas, that brought the total up to $290 some odd upfront.

          So I’m thinking the formula with smartphones is that they are always going to finance you $400 (or $20 for 20 months) so the down payment is always going to be the balance of the retail price what would technically be the standard subsidy you find on other carriers in the case of the Note II, or close to it being that at least in the case of the S III, it was $30 more than what other carriers were selling it for at launch. On Value Plans, the revenue offset is the $20 monthly payments.

          According to the flyer, it looks like the Note II is going for $420 on Classic. Though I’m not sure if that’s before or after the MIR the way it’s worded… Though if it’s in line with the Galaxy S III launch, I’m suspecting that the $419.99 price is before rebate which would bring the price down to $369.99 Which would make it $70 more than the subsidized price, just like the GS III was $80 more after rebate.

          If the Value upfront pricing was higher than the Classic subsidy, they would never attract people to the Value Plan.

        • philyew

          You are right that it didn’t start with the Note II…and maybe not the GS3 either, though I got my subsidized 32GB GS3 for close to the value down payment price and I read about people getting theirs for way less than that.

          It’s probably my imagination, but I did think there was a period when the Value Plan down payment was greater than the amount charged for the subsidized device, even though the overall cost (equipment + plan) is normally substantially less.

          However, I was sure I was going to go over to the Value model when I renewed the four devices on my family plan in August, but found in the end that I couldn’t beat the combined cost of getting a GS3 and three GS2s under subsidy for a total of $380 while keeping my legacy MyFaves plan for another couple of years.

  • Cham

    Average consumers who want a high end phone, don’t look at how much they pay per month, they look at how much the phone is. T-Mobile will have to explain to consumers that they are actually saving in the long term, but how often to Americans look at things in the long term, they would rather pay less now at the expense of later.

  • UpsetLoyalCustomer

    I’ve been a long time Tmo customer but this is the last straw. My contract ends in a few months and I’ll be taking my business to Sprint where I can get a true selection of high-end phones without the price gouging. Tmo just doesn’t get it. For those of us who don’t want samsuck junk we have no choice of high-ends. Where’s the one x+? We got screwed on that. No word of the xperia t that passed through the fcc. Guess we’ll get screwed on that too. No moto phones at all. No LG optimus G. Not even any high-end Chinese phones from Huawei. Come on Tmo bring us some high ends and don’t screw us over. If you want to compete in this market you have to play the game. Sprint gets it. There’s actually a choice of … gasp … high-end phones and price them reasonably!

  • http://about.me/daylondeon Deacon

    lol no thanks

  • salesrule

    Retail sales don’t make commission on price of phones…

  • yozo

    If non-contract SG3 is $719, I can imagine what the Note2 will cost us.

    • GwapoAko

      SG3 is $549 on tmobile website :0)

  • yoPOPS

    price is expensive as hell. Although walmart is cheaper per se, the out of contract price should be the same. WOW. There goes some extra holiday shopping. ouch

  • http://twitter.com/AtheGrreat $A$ the Great

    I totally agree with some of you about the mail in rebates. Do away with it please! While the value plan is cool, I’m not feeling the 2yr contract that comes with it. Just merge the monthly 4G with the Value. Techinally they both are the same thing right?

    • 21stNow

      There are benefits with postpaid (roaming and EIP, for example) that don’t exist with prepaid.

    • http://www.facebook.com/people/Jamille-Browne/1184321457 Jamille Browne

      Aside from the contract with cheaper plan that is Value?

  • CRT24

    T-Mobile has something to satisfy all of the complaints that seem to come up every time there is a new phone that launches but I have some solutions for all of you:
    1. Don’t want to pay $420.00 for the phone? Do value and pay $299.99
    2. Don’t want to mess with a MIR? Do value and there is no MIR
    3. Don’t want a contract? Do Monthly 4G
    There you have it folks…I just solved all your issues so now we shoudn’t see any more bitching and moaning over phone price, MIR’s, or contracts……I know that’s fantasy but one can dream!

    • http://profiles.google.com/mrice.hill Mr. Hill

      Thank you

    • Guest

      My grandfathered plan is better than the Value though…so I wouldn’t be saving money by switching plans. I will just wait for the price to come down. I still have the MT4G and it’s working fine for me so I can wait a while…

    • 21stNow

      I don’t want to pay $700 for the phone. I’ll see what other carriers are charging before I make my decision.

      • CRT24

        You are way to hung up on phone price. You are going to pay 300.00 up front no matter who you buy it from. From that point you have to look at what you will pay per month and total cost. Using unlimited everything as a baseline, With t-mobile you will be at 90.00/month with the phone installment paynent included. Given the fact that you pay the same up front isnt it still better to have a lower monthly payment??????….. Which you will have with t-mobile in this case so the full cost of the phone DOESNT MATTER!!! You are getting the discount on the SERVICE, not the phone and the fact you are able to pay the phone out at no interest makes it BETTER even though you are techncally paying full price. I have no idea why this is so difficult to get through the thick skulls out ther because its math…… If you pay the same up front and your payment is still less with the phone payments included then wth does it matter how much the phone actually is?

        • 21stNow

          It’s impossible to make a valid argument over what I’m hung up on if you don’t know my whole situation. It’s complicated, so I won’t go into it here. I’m with T-Mobile because of some advantages that they offered in the past. Some of those advantages have disappeared. I was never with T-Mobile because of cheaper pricing (at least on my postpaid line), because I actually get service for a lower price elsewhere.

          I wanted the Galaxy Note II on T-Mobile to satisfy my curiosity about some things (T-Mobile’s 4G speed in my location, Wi-Fi calling performance on the handset and some other things). However, the higher handset price and the higher monthly fee is making me consider doing otherwise. I didn’t get the SGS III with T-Mobile and the SGN II is up in the air now.

          I don’t get why people have to argue with someone else’s decision on where to buy this phone and which company to get service with. There are many variables that can make one carrier good for that customer while the same carrier would be bad for you. That’s why we have choices in this country and why I fight to keep those choices available to us.

        • CRT24

          People argue because some make statements that just arent true. Even still you are talking about “the higher handset price and higher monthly rate” when neither are the case. Of course you are free to buy the phone and service from any carrier you like but you just said price is making you consider other options when in fact the up front cost is the same and the rate is lower that the other 3 major carriers. Unless you are talking about boost or cricket then the least expensive option is t-mobile..that is a fact! So by all means pick whatever carrier meets your needs but just be honest about the FACTS!

        • 21stNow

          How can you argue about facts when you’ve never seen my bills? I know that the rate that I pay T-Mobile is higher than what I pay elsewhere. You make arguments based on what you see on a flyer, versus I make statements based on my actual bills. The SGS III came out far cheaper in device price and monthly service fee on another carrier for me. Just in case you haven’t noticed yet, the key words in the previous sentence were “for me”.

        • CRT24

          yes I did notice that you said “for me” but no carrier has a special rate for different people unless you get some kind of discount based on where you work. The rates are the rates and they are the same for everyone…..I and I’m sure everyone else here would like to know where “elsewhere” is that the rates are “far cheaper” than t-mobile. Your bills are based on the rates and the fact is that T-Mobile’s RATES are less than the other 3 mojor carriers in most if not all cases. If your bills or “high” as you say then maybe you are on the wrong plan and are experiencing overage charges but like I said, please let us know the carrier that you are refferring to that is “far cheaper” than T-Mobile so people can check it out. My guess is since you havent already stated what carrier its is, that is doesnt exist….unless you are referring to one of the regional pre-paid carriers in which case is not and apples to apples comparision

        • 21stNow

          I never described my T-Mobile bill as high because it isn’t. I just get lower prices elsewhere. I have no reason to come in and lie about something like this on a blog. I started this by stating that I didn’t want to pay $700 for a phone. You jumped in with the price of the device and monthly rates, without knowing my situation and for some odd reason, want to argue about it without any knowledge of the factors that I base my decision on.

          My post was a statement of my opinion. I will do what’s best for me. You do what’s best for you. However, your commentary doesn’t affect my decision at all, as it gives no new information.

        • CRT24

          As I said, by all means do what is best for you. I am not trying to “influence” your decision at all but yet merely state the facts that regadless of the actual cost of the phone being $700, when you combine that with rates that are much lower than the competition and the fact that t-mobile allows to to pay out a large portion of the phone with interest free installments on your bill that is is still by far the best option out there regardless of what phone you choose, not just on the Note2. And you absolutely did reference your “bills” and the “higher monthly fee” as your reason for looking “eslwehere with far cheaper rates” which by the way you still have not shared as to who that is so that seems rather odd that you want to keep this great deal a secret. I assume that no matter where you purchase a phone that you will use that particular carriers service so if the up front cost is the same and the monthly rate is less even with the remaining cost of the phone factored in then:
          Same upfront cost + Lower monthly bill = better……doesnt it?

        • 21stNow

          “Higher” doesn’t carry the same connotation as “high”. I had a Virgin Mobile plan in the past that was $35; I have a T-Mobile Monthly 4G plan that is $30 now. I would describe the Virgin Mobile plan as “higher” in cost than the T-Mobile plan, but I wouldn’t describe the Virgin Mobile as “high”. So yes, I did say that my T-Mobile (postpaid) was higher than my other bills, because it was true. However, I would not describe my T-Mobile bill as “high”.

          I don’t like the $700 price of the phone if it is higher than other carriers for the same device. If other carriers are charging $700, then I don’t have a problem with the price. It’s the principle of charging a higher price for the same thing. I don’t buy Shell gas near my job, because Shell gas is cheaper where I live and of course, it’s not out of my way to go there. I believe that the same device should have the same price across the carriers and when it doesn’t, I exercise my available choices to go where the device is cheaper. Monthly service fees don’t matter as much to me because when they get to be too expensive for me, I will stop paying them. This is why I place a high value on not having contracts for cellular service.

        • CRT24

          I completely get it, price is important to everyone but “price” and “up front cost” are 2 different things so that’s why I am just tryng to get people to think about that. Not sure if Virgin will offer that phone but I can guarnatee if they do it will not be at a discount and my point was that on and apples to apples comparison T-Mobile wins 99% of the time on value. You will pay $700.00 for the phone with our (T-Mobile’s) prepaid but if the $30.00 plan works for you then thats great but full cost up front is your only option with our pre-paid as well as the regional pre-paid carriers.

        • 21stNow

          I’m no longer with Virgin Mobile. Like I said earlier, my situation is complicated.

          Either way, can we stop arguing about this now? The price is $650, which is the same price that I think that AT&T will sell it for. I haven’t seen a price from VZW or Sprint, but I’m willing to go for the $650 if that’s what another carrier is selling it for.

          I will be there tomorrow at 10:00 AM to buy this phone. I held it in my hand tonight and loved it! It’s better than I thought that it would be. I even like the gray color better than I thought that I would. It feels like a combination of the first Note and the SGS III in my hand. I love my first Note to pieces and this will be even better.

    • http://www.facebook.com/people/Jamille-Browne/1184321457 Jamille Browne

      1.$200 migration fee from classic to value if you have time left in your contract and no its not the same time as device renewal.
      2.See Point 1 and in Addition to that point theres no rebates because you pay Full Price for the phone.
      3.Monthly4G after all the fees is more expensive than contracted plans.

      You did not solve any problems by my standards. So I’m a keep on keeping on about Phone price, MIRs, not about contract because i’m content with contract as I would never switch carriers and if things get more expensive without you knowing or giving authorization its breach of contract is what it is and gets you a way out for free.

      • CRT24

        Well you are one that refuses to look at FACTS. M4G price compared to single line value plans is the same price for all levels of M4G plans offered unless of course you are talking about family plans then the price benefit shifts to value….. FACT! Once again it doesnt matter if you are paying full price for the phone if your monthly rate and total cost are less. Lets use sprint as an example and assume they will sell the note2 for 300.00 up front….unlimited everything is 110/mo for a 24 month cost of 2940.00 over 2 years. With t-mobile your rate will be 90/mo giving you a total cost of 2860.00 over 2 years. You can try and argue with math but the numbers don’t lie….20.00 less per month (40.00 less after the phone is paid off) and less total cost. Not sure how this doesn’t answer your question as to why phone price doesn’t mean a hill of beans in the grand scheme with the options t-mobile gives you.

        • CRT24

          Actually 2380.00 total cost with t-mobile including the phone which amplifies my argument even more… 560.00 less than sprint even with a “700.00″ phone

      • 21stNow

        What fees are you seeing on Monthly 4G? I have a monthly 4G line, and I only pay local sales taxes in addition to the monthly charge. The taxes and fees on my postpaid line are higher than what the sales tax amount would be.

  • Ford_Thundercougarfalconbird

    OUCH! Well, I hate the price, but I understand why T-Mobile charges more, and I’m not willing to give up my Classic plan. I knew it would be an expensive phone, so I’ll pop on it.

  • Guest

    The price I’m not upset with too much. It’s a 5.5 inch phone with new features and it’s brand spanking new so it’s going to cost a lot. It’s the rebates I’m sick and tired of. Next time around, I won’t do it through the store. Not only do I have to pay more, but basically give T-mobile some money to hold onto for 6-8 weeks?…

    I’ll pass on the phone for now. My current phone is working and me and the hubby always upgrade at the same time. $420 x 2 right before Christmas is a little steep. I’m still semi-considering the SIII, but after finally buying a tablet and TOTALLY LOVING IT, I am considering this phone also.

  • 21stNow

    I think that the $700 price is too high, but not surprising from T-Mobile, unfortunately.

  • thehumptydance

    I Signed a family plan with T-Mobile and opted for the SG3 on all lines. T-Mobile corporate wanted $350 Per phone – Best Buy wanted $149 with no rebate. Do the math. I imagine There will be similar sales for this one too.

    • CRT24

      you would have paid the same up front price for the phones if you did value and your monthly service cost would be less. So yep, you got the phones cheaper at BB but you are paying more for your monthly service since you are on classic. Up front cost is only part of the story so I would suggest you check your rate that you just signed up for and compare it to value…..it will probably be a little better on value even with the phone installment payments. just some freindly advice.

  • http://www.facebook.com/jvossman John Voss

    any word on the full retail price?

    • http://tmonews.com David

      Yup it was in our previous post, $700.

  • Quadbaby

    All Note 2′s on backorder per customer care and retention at T-Mobile, but will be back in stock soon.

  • bvira

    Hello….keep posting some more articles like this….