AT&T undercuts T-Mobile’s full price on the Lumia 635: $139.99

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Perhaps this non-subsidized cellular device approach — where carriers don’t pay part of a phone’s cost in return for lengthy service contracts — is starting to pay off for U.S. consumers.

To wit: AT&T will offer the new Lumia 635 for nearly $30 less than competitor T-Mobile‘s(s tmus) full retail price. That may not sound like a big discount, but we’re not talking about a $600 phone here: You can pick up the new Windows Phone 8.1(s msft) handset for $139 at AT&T(s t) on August 8, so that discount represents a sizable percentage.

Lumia 635 featured

Nokia Conversations

That’s not the only way to get the phone, though.

Starting on July 25, AT&T will sell the Lumia 635 for $99.99 to its pre-paid GoPhone customers. Note that T-Mobile is also selling the phone early for $99.99 to its MetroPCS customers. Following that, on August 8, all other AT&T customers can buy the phone off-contract and will get both a black and orange cover for the handset.

Aside from the $139 option, customers can pay zero down and either $5.84 per month for the handset in the Next 18 program or $7 a month for the Next 12 program. By comparison, T-Mobile is selling the phone for $7 a month over 24 months, which works out to $168; the same amount as its advertised full retail price. And both carriers have priced the Lumia 635 under the $189 MSRP that Nokia announced in April.

For the price, the LTE handset has much to offer. I had a chance to use one at a private Nokia event in April and while I wouldn’t call this a high-end handset, it’s very capable and has some higher-end features. The IPS display is sharp and bright, for example, and thanks to Windows Phone 8.1 software, performed faster than I expected on the low-power Snapdragon(s qcom) 400 chip.

8 Comments

Will Ginn

Okay, so how are you handling the Gmail/calendar situation? $140 is tempting to stick my toe in WP 8.1 water.

Kevin C. Tofel

I don’t have any issues using Gmail or multiple Google Calendars on Windows Phone. I have had to use a 3rd party app for Google Calendar on the Surface Pro 3, but that’s Windows, not Windows Phone.

GuestPoster

You will have issues with Skype. This thing doesn’t even have a FFC. When will they learn?

Mike

How can you have issues with Skype on this Windows phone, when Skype is owned by Microsoft? nonsense….

frank

i notice in the prepaid side of thing such as cricket, boost and metroPCS that everyone is very competitive on discounting all the lower and mid range handset. they also offer all the top end phones like iphone 5s and galaxy S5 but at no discount. i wonder if the price competition will every come to the highly sought after higher end models in prepaid.

brown_te

Finally! Burying the cost of overpriced phones in 2-year contract has kept prices artificially high forever.

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