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View Full Version : AT&T Cuts Pricing on 'AT&T Next' Smartphone Upgrade Program, iPhone Now $1/Year Cheaper Than Verizon




MacRumors
Aug 9, 2013, 05:16 PM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2013/08/09/att-cuts-pricing-on-att-next-smartphone-upgrade-program-iphone-now-1year-cheaper-than-verizon/)


Following a strong backlash (http://www.theverge.com/2013/7/16/4528404/att-next-phone-upgrade-plans-a-huge-ripoff) after the introduction of its AT&T Next smartphone upgrade program (http://www.macrumors.com/2013/07/16/att-rolls-out-new-att-next-smartphone-and-tablet-upgrade-program/), AT&T has cut pricing on a number of devices in the program, including the iPhone.

Previously, the iPhone cost $32.50 per month under AT&T Next, making it more expensive (http://www.macrumors.com/2013/07/18/comparing-the-new-frequent-device-upgrade-programs-from-u-s-carriers/) than comparable plans from Verizon and T-Mobile. Now, however, the 16GB iPhone can be had for $27 per month (http://www.att.com/shop/wireless/devices/smartphones.html#next) -- one dollar per year cheaper than under a comparable Verizon plan.

http://images.macrumors.com/article-new/2013/08/newattnext.jpg
Through the program, customers end up double paying for their devices through both the new monthly handset payments and the portion of the monthly service charge that has traditionally been collected by the carrier to recoup its upfront handset subsidies. Assuming that $20 of AT&T's monthly service fees go toward recouping the carrier's handset subsidy, a customer looking to upgrade after 12 months would have paid $324 in device payments on a 16 GB iPhone 5 and $240 from monthly service fees, yielding total payments of $564 for the $650 device, although they also have to turn in the device to AT&T.

Verizon's Edge program appears to work in a similar manner, and now, for a similar price. Splitting the $650 iPhone cost over 24 months yields monthly payments of just over $27, and thus a customer looking to upgrade after 12 months would have paid $325 in device payments and $240 from monthly service fees, making for total payments of $565 plus the device trade-in.

Article Link: AT&T Cuts Pricing on 'AT&T Next' Smartphone Upgrade Program, iPhone Now $1/Year Cheaper Than Verizon (http://www.macrumors.com/2013/08/09/att-cuts-pricing-on-att-next-smartphone-upgrade-program-iphone-now-1year-cheaper-than-verizon/)



rneglia
Aug 9, 2013, 05:39 PM
The reason there hasn't been any comments on this yet is because everybody is still figuring out the math

Xgm541
Aug 9, 2013, 05:47 PM
This is petty competition. $1 cheaper? Yes they can say they're cheaper but the consumer isnt really saving anything/

tasset
Aug 9, 2013, 05:50 PM
Haha, Oh my these telcos are so repulsive. AT&T's bean counters must be patting themselves on the back for undercutting Verizon a whole dollar. Little Ralphie must be proud of their brand of "competition".
I personally have moved on to Tmobile and am not looking back. Separating device cost from service is the way to go.

darkslide29
Aug 9, 2013, 05:51 PM
LOL. No thanks, AT&T!

Hurry, this 0.2% savings may not last long!

appleguy123
Aug 9, 2013, 05:57 PM
Wth AT&T and Verizon, you pay the same amount per month as people who are getting the phone significantly cheaper. This is pointless.

jayducharme
Aug 9, 2013, 05:58 PM
If the DoJ wants to investigate collusion, forget about books. Why aren't they turning their attention to the telecoms?

Oh, that's right -- there's competition: T-Mobile...

alent1234
Aug 9, 2013, 06:12 PM
If the DoJ wants to investigate collusion, forget about books. Why aren't they turning their attention to the telecoms?

Oh, that's right -- there's competition: T-Mobile...

t-mobile is not any cheaper once you figure in the price of the phone and the amount of LTE data you get

Xavier
Aug 9, 2013, 06:20 PM
Oh yeah! Finally a sweet deal from AT&T! Time to trade in!

Carlanga
Aug 9, 2013, 06:24 PM
Good to know these guys are still using their snake oil salesman experience to this day.




No thanks AT&T, no thanks.

osofast240sx
Aug 9, 2013, 06:32 PM
t-mobile is not any cheaper once you figure in the price of the phone and the amount of LTE data you get

Not true!

12vElectronics
Aug 9, 2013, 06:35 PM
I don't get it

crees!
Aug 9, 2013, 06:42 PM
So you're paying $324 for a $199 device just so you can upgrade a year early. Works only if it's in your budget.

tizeye
Aug 9, 2013, 06:49 PM
I currently am "upgrade eligible" with ATT and fully free Oct 1, so shopping. One thing is abundantly clear, even if wife and I liked our phones, must upgrade Oct 1 as rates are not going down when phone payment obligation is complete. It just becomes excess profit for the carrier.

Looked at the NEXT and Edge and immediately said "no thanks". The sell it on 'new phone every year' as if you need a new phone. As the math noted earlier, the 1 year payment almost paid fully for the phone, but given the resale value of the mandatory trade-in, ATT/Verizon will actually make more. An easy no thanks.

At least T-Mobile drops the monthly phone payment charge when paid for, and talk/data becomes significantly cheaper. It is nice that they itemize it out - and $0 if you bring your own. The also have a Jump program for new phone up to twice a year, but so turned off by NEXT and Edge that didn't explore it. Just don't know about T-Mobile network speed as sales people at stores that carry all three networks consistently bash T-Mobile over that issue, pushing ATT or Verizon. Of course, they could be getting a bigger bonus from ATT or Verizon.

Waiting for Oct 1...and perhaps a new iPhone will be announced. Even if not available Oct 1, I could delay a few months I I knew it was coming.

CEmajr
Aug 9, 2013, 07:13 PM
t-mobile is not any cheaper once you figure in the price of the phone and the amount of LTE data you get

False. AT&T and Verizon don't even offer a data plan that competes with their unlimited data plan.

RF9
Aug 9, 2013, 07:21 PM
So you're paying $324 for a $199 device just so you can upgrade a year early. Works only if it's in your budget.
Well this plan only works if you're upgrading annually. It is completely pointless if you upgrade every 2 years or more.

The way to compare it is:
$324 per year for a new phone every year.
Vs.
$199 for a phone the first year and $650 for a phone on your 2nd year.

So compare:
$650 out of pocket vs $850 for annual upgrades.

At this point, don't confuse yourself with in the built in $20 month subsidy in the bill because that's already figured in at this point.

Why AT&T Next is a ripoff:
1) You don't keep the old phone. This becomes basically a lease.
2) Eventually you have to "exit" the program and pay off the final device which you'll keep. This is effectively overpaying by hundreds of dollars because you're not getting any advantage of subsidy.
3) If you just buy your phones every year and sell the old one, it would cost you less.
A) Buy Phone #1 at $199.
B) Buy your upgrade (#2) at $650, sell the old one for about $300.
C) Over 2 years it cost you about $550 to buy and sell the old phone vs $650 to be on AT&T Next (aka $275/yr vs $325/year.) And should you decide to not upgrade every year, you aren't penalized. Selling on gazelle.com for $300 on a 1 year old iPhone is almost hassle so there's no excuse to make these numbers work.

Also, AT&T will give you 1/2 subsidy to upgrade early (after 12 months.) So instead of paying $199 you'd pay $399 if you upgrade at 1 year. AT&T gives you $450 subsidy per year (or $225 per year as early upgrades.)

So by that math, you'd be paying $400 per year to OWN and keep devices (after the first year at $199) vs paying $325 per year on AT&T Next where you do NOT keep your devices. And remember you can always sell that old phone for about $300 on gazelle making it again better/cheaper to buy than use Next.

The scarry thing about Next is that you have to commit to upgrading every year or it's a complete ripoff. Also if you lose that iPhone (or it's stolen) I believe you simply have no choice than to pay it off. You would have paid full price for the phone without getting the advantage of that $450 subsidy. I don't know if Next has any kind of deductible (insurance wise) that makes it so you can get a new phone.

Also under Next there is no contract and therefore not ETF. But paying the ETF on a 2 year contract isn't any worse than just paying full price for the phone which is what you'd don on Next (because you're "exiting" the upgrade program.)

No, I haven't put any thought in to this at all /s

fr33 loader
Aug 9, 2013, 07:22 PM
I currently am "upgrade eligible" with ATT and fully free Oct 1, so shopping. One thing is abundantly clear, even if wife and I liked our phones, must upgrade Oct 1 as rates are not going down when phone payment obligation is complete. It just becomes excess profit for the carrier.

Looked at the NEXT and Edge and immediately said "no thanks". The sell it on 'new phone every year' as if you need a new phone. As the math noted earlier, the 1 year payment almost paid fully for the phone, but given the resale value of the mandatory trade-in, ATT/Verizon will actually make more. An easy no thanks.

At least T-Mobile drops the monthly phone payment charge when paid for, and talk/data becomes significantly cheaper. It is nice that they itemize it out - and $0 if you bring your own. The also have a Jump program for new phone up to twice a year, but so turned off by NEXT and Edge that didn't explore it. Just don't know about T-Mobile network speed as sales people at stores that carry all three networks consistently bash T-Mobile over that issue, pushing ATT or Verizon. Of course, they could be getting a bigger bonus from ATT or Verizon.

Waiting for Oct 1...and perhaps a new iPhone will be announced. Even if not available Oct 1, I could delay a few months I I knew it was coming.

Haha. I know the feeling. I hated that when I was completely eligible and I'm in the middle of once a year iPhone transition. "Should I get the 8 month old iPhone or should I wait for an unknown iPhone that may come out in the next 4 months while paying extra to AT&T for that 4 months? ". In android, when your contract expires, there's always a couple months old handset from >insert maker here< or a new one next month if you're willing to wait. What eventually hooked me though was the bigger screen.

HiRez
Aug 9, 2013, 07:23 PM
What a deal. I think I will dump my excellent Verizon coverage for crappy, completely unreliable AT&T coverage just so I can cash in on that sweet, sweet $1 bonus. :rolleyes:

CaptHenryMorgan
Aug 9, 2013, 07:24 PM
So you're paying $324 for a $199 device just so you can upgrade a year early. Works only if it's in your budget.

It's not a $199 device, it's a $600 device. Either way, it's still a scam.

pmz
Aug 9, 2013, 07:36 PM
I don't see how this benefits anyone, even people who want to upgrade every 12 months.

Even If I pay $399 up front for the phone (partial subsidy), which I'm entitled to every 12 months anyway, I OWN the phone. AND, come next year, I can sell the phone for around the same amount on Ebay (even used, an iPhone that was $650 new goes for $400+ used a year later).

So effectively, the second upgrade is FREE after you sell your previous 12-month-old phone to pay for it.

RF9
Aug 9, 2013, 07:38 PM
I currently am "upgrade eligible" with ATT and fully free Oct 1, so shopping. One thing is abundantly clear, even if wife and I liked our phones, must upgrade Oct 1 as rates are not going down when phone payment obligation is complete. It just becomes excess profit for the carrier.

Looked at the NEXT and Edge and immediately said "no thanks". The sell it on 'new phone every year' as if you need a new phone. As the math noted earlier, the 1 year payment almost paid fully for the phone, but given the resale value of the mandatory trade-in, ATT/Verizon will actually make more. An easy no thanks.

At least T-Mobile drops the monthly phone payment charge when paid for, and talk/data becomes significantly cheaper. It is nice that they itemize it out - and $0 if you bring your own. The also have a Jump program for new phone up to twice a year, but so turned off by NEXT and Edge that didn't explore it. Just don't know about T-Mobile network speed as sales people at stores that carry all three networks consistently bash T-Mobile over that issue, pushing ATT or Verizon. Of course, they could be getting a bigger bonus from ATT or Verizon.

Waiting for Oct 1...and perhaps a new iPhone will be announced. Even if not available Oct 1, I could delay a few months I I knew it was coming.
I've done comparisons of AT&T share everything with 2 iPhones vs T-Mobile's share plans with 2 iPhones and when you consider that $20/month goes toward a $450 discount for phone purchase on AT&T that you don't get on T-Mobile, T-Mobile is basically the same price as AT&T.

Eg: $150/month on AT&T for share everything for 2 iPhones vs $110 on on T-Mobile is the same price when you consider $40/month on AT&T is subsidizing your phone. (On T-Mobile you pay $650 for a phone, on AT&T you pay $199.)
Now this isn't a true apples to apples comparison of plans, but it's close and what I'd choose. T-Mobile also offers unlimited data, so if you use a lot of data T-Mobile is all of a sudden a better value.

Also consider this: AT&T is technically a better/bigger network than T-Mobile, so I personally expect to pay more for AT&T than T-Mobile and more for Verizon than AT&T if you consider network size.
But network performance totally "depends" on your situation, location, and needs and no one network is better everywhere. Eg: In Washington DC AT&T is better than Verizon, but in Northen California Verizon is literally the only one who has service in some rural areas.
Now that's for simply paying for phones. When you involve these upgrade programs T-Mobile's is a win because there is no penalty if you don't upgrade annually or choose to leave the carrier (because there's no hardware cost built in to the plan.) Also, T-Mobile's plan is actually also insurance (with a deductible mind you) but I don't recall seeing any kind of insurance scenario on AT&T Next.
The other way to look at is is that if you pay $10/month for insurance on T-Mobile you're getting an early upgrade advantage as a perk.

Of course one could pay $100 for Applecare instead and get some of the same protections.

KdParker
Aug 9, 2013, 07:44 PM
Don't see any reason not to pay full price and sell my phone when I am ready to upgrade.

Cheaper overall and with more options....no brainer.

rdlink
Aug 9, 2013, 09:06 PM
t-mobile is not any cheaper once you figure in the price of the phone and the amount of LTE data you get

Hey look. Randall Stephenson has a Macrumors login. How are you this evening, Randy, boy?

gotluck
Aug 9, 2013, 09:08 PM
Don't see any reason not to pay full price and sell my phone when I am ready to upgrade.

Cheaper overall and with more options....no brainer.

For GSM yes

folks that need verizon have it more rough

Technarchy
Aug 9, 2013, 10:03 PM
Get the subsidized phone, sell it in 12 months. You'll be better off.

Middiebear
Aug 9, 2013, 10:18 PM
Well this plan only works if you're upgrading annually. It is completely pointless if you upgrade every 2 years or more.

The way to compare it is:
$324 per year for a new phone every year.
Vs.
$199 for a phone the first year and $650 for a phone on your 2nd year.

So compare:
$650 out of pocket vs $850 for annual upgrades.

At this point, don't confuse yourself with in the built in $20 month subsidy in the bill because that's already figured in at this point.

Why AT&T Next is a ripoff:
1) You don't keep the old phone. This becomes basically a lease.
2) Eventually you have to "exit" the program and pay off the final device which you'll keep. This is effectively overpaying by hundreds of dollars because you're not getting any advantage of subsidy.
3) If you just buy your phones every year and sell the old one, it would cost you less.
A) Buy Phone #1 at $199.
B) Buy your upgrade (#2) at $650, sell the old one for about $300.
C) Over 2 years it cost you about $550 to buy and sell the old phone vs $650 to be on AT&T Next (aka $275/yr vs $325/year.) And should you decide to not upgrade every year, you aren't penalized. Selling on gazelle.com for $300 on a 1 year old iPhone is almost hassle so there's no excuse to make these numbers work.

Also, AT&T will give you 1/2 subsidy to upgrade early (after 12 months.) So instead of paying $199 you'd pay $399 if you upgrade at 1 year. AT&T gives you $450 subsidy per year (or $225 per year as early upgrades.)

So by that math, you'd be paying $400 per year to OWN and keep devices (after the first year at $199) vs paying $325 per year on AT&T Next where you do NOT keep your devices. And remember you can always sell that old phone for about $300 on gazelle making it again better/cheaper to buy than use Next.

The scarry thing about Next is that you have to commit to upgrading every year or it's a complete ripoff. Also if you lose that iPhone (or it's stolen) I believe you simply have no choice than to pay it off. You would have paid full price for the phone without getting the advantage of that $450 subsidy. I don't know if Next has any kind of deductible (insurance wise) that makes it so you can get a new phone.

Also under Next there is no contract and therefore not ETF. But paying the ETF on a 2 year contract isn't any worse than just paying full price for the phone which is what you'd don on Next (because you're "exiting" the upgrade program.)

No, I haven't put any thought in to this at all /s

Oh my god this is crazy!

I can't believe these cell phone carriers are taking something that should be so simple, and making it that complicated.

I myself had to re-read your post 3 or 4 times to comprehend; and I think I'm still partially confused.

I could just imagine what these poor Customer Service Representatives have to go through trying to explain all of these plans... When I'm sure they themselves don't know exactly how they work.

T-Mobile truly made everything more complicated when they transitioned to their "Un-Carrier" policies...

Hugely ironic considering these policies were supposedly created to simplify things and make customers feel more secure without a "contract."

All that has happened is that these companies (including T-Mobile) found a new way to make more money in sneaky and under-handed ways.

And then they wonder why churn rate is so high and customer service ratings are so low.

tdiaz
Aug 9, 2013, 10:26 PM
OMG!!WTHBBQ!!!

Duuuuuuuuuuuuude!

It's a whole dollar less!!!

Meh. Snake oil is right.

JayCee842
Aug 9, 2013, 10:38 PM
lol I feel this to be a slap in the face, to me at least...

macs4nw
Aug 10, 2013, 01:02 AM
Haha, Oh my these telcos are so repulsive. AT&T's bean counters must be patting themselves on the back for undercutting Verizon a whole dollar. Little Ralphie must be proud of their brand of "competition".
I personally have moved on to Tmobile and am not looking back. Separating device cost from service is the way to go.

Absolutely! It's the only fair and 100% transparent way to buy. Regardless of upgrade cycles, you, the customer, know at any given time what you owe on the phone, and if you're ready to get a newer model at any time of your choosing, you pay off what you owe (if any), get a new phone, and can then sell your old phone privately, or do with it as you please.

Conversely, if you don't feel the need for a new phone as often, you know that once you've paid off the phone, you're not subsidizing others, thru monthly payments that remain unchanged.

TouchMint.com
Aug 10, 2013, 01:26 AM
Competition driving down price and the consumer winning!

Carlanga
Aug 10, 2013, 01:40 AM
Competition driving down price and the consumer winning!

Lol all three are competing on who will you choose from them to get then ripped off. These plans are ridiculous please don't even consider them.

---------

I always thought they would lower the plan prices the first two years on these new plans and then just start increasing monthly fees after people are on the plan. But i didn't anticipate the level of greed an how fast they want to take our money.

Zellio
Aug 10, 2013, 02:45 AM
Oh well, I can never upgrade anyway. I'm on a grandfathered verizon plan with 450 minutes, 1000 texts and 20 gb for $110 (More like $130 after taxes).

pukifloyd
Aug 10, 2013, 03:08 AM
ATT and Verizon prices make me cringe. I've been on T-Mobile since I moved to this country and couldn't be happier with their service. I pay about $90 for 4 lines, which include unlimited data (throttled after 2gb) and unlimited texting on 2 lines. I just upgraded to a Nexus 4 so it went up by $17/month, but I'm not complaining. :D

I know there's no LTE or true 4G on T-Mobile, I honestly don't need it. I get Wi-Fi on campus and at home, and HSPA is pretty fast for when I don't have Wi-Fi. I'm sure 95% of America can be happy with 3G speeds too. The Jump program is so much better than all this crap. Jump also includes insurance for your devices, which covers accidental damage too...all for $10/month!

Now if T-Mobile just put a little bit more $$ into expanding their network, they would be unbeatable. Unless there is no coverage in their area or they really need LTE speeds, I don't see any reason why people still put up with this f**kery.

terraphantm
Aug 10, 2013, 05:13 AM
Unless there is no coverage in their area or they really need LTE speeds, I don't see any reason why people still put up with this f**kery.

The no coverage is a pretty big deal. For those of us who travel and/or don't live in cities, t-mobile is pretty crappy. For the longest time, T-mobile had at best 2-bars throughout my town. Even today, they only have edge where I live. Not having LTE isn't a huge deal to me, but not having 3G is. Sprint is even worse. So that really only leaves AT&T and Verizon.

I am surprised that the DOJ hasn't gone after the carriers for anything. The SMS price hikes a few years back screamed price fixing to me, and that was with all 4 carriers. And no matter what, if AT&T or Verizon make a change, the other follows within a month or two. Both companies have vastly superior coverage than T-mobile or Sprint, so they effectively have a duoply and have appeared to make deals in the background to eliminate competition.

ValSalva
Aug 10, 2013, 07:47 AM
If you don't get to keep your phone at the end of the year then this program only really benefits the carriers. You can't even offset any costs by selling your 'old' iPhone to a service like Gazelle. No thanks.

glutenenvy
Aug 10, 2013, 11:25 AM
Are they trying to out-Netflix Netflix and design the mobile version of Qwikster?

Will do good
Aug 10, 2013, 11:49 AM
The reason there hasn't been any comments on this yet is because everybody is still figuring out the math

Rest assure, if it takes us this long to figure it out, it means ATT is screwing their users.

----------

I left ATT and go with T Mobile pre-paid plan:
$30 per month, unlimited web & Text & 100minutes talk.

So happy to have left ATT.

gauchotee
Aug 10, 2013, 01:07 PM
I think Att is more about loyalty. I have this plan for more than a decade started with cingular.

I'm in a family plan that shares 450 minutes between 4 of us starting at $40. I take on 3 more lines for the family, 2 of those lines are 300mb data, and one $5 text

40+10+10+10+20+20+5=$115 a month. +tax
I'm one of the few that doesn't hate att

egoistaxx9
Aug 10, 2013, 03:39 PM
well, $1 isn't a big difference, and their service is also very poor, i dont think i'll be switching to at&t anytime soon.

mbh
Aug 10, 2013, 04:14 PM
Here's something Apple could innovate. How about a phone service plan that doesn't require a spreadsheet to understand?

alent1234
Aug 10, 2013, 05:09 PM
Here's something Apple could innovate. How about a phone service plan that doesn't require a spreadsheet to understand?

buy unlocked and go prepaid or t-mobile

wmukj
Aug 11, 2013, 06:52 AM
Ugh. I don't know what it is, but anything AT&T related makes me cringe as I think of getting abused on a monthly basis by them financially. Of course I am a willing participant, but cell providers and cable providers need to have these oligopolies broken apart. If only modern day capitalism had a place for perfect competition.

tizeye
Aug 11, 2013, 08:45 AM
Don't see any reason not to pay full price and sell my phone when I am ready to upgrade.

Cheaper overall and with more options....no brainer.

That would be true with T-Mobile as they have separated out data/service charge from the phone finance fee which you don't pay if you bring your own phone.

Show up at ATT or Verizon with a fully paid for phone and you continue to pay the approximate $20/mo phone payback fee on a phone you have already paid for. It is just excess profit for them as they don't reduce their rates by the approx $20/mo. The only difference is, you can leave them at any time and not locked in for 2 years. They rely on nowhere to go - and unfortunately, locally and in most markets T-Mobile is not strong enough in their infrastructure compared to ATT and Verizon.

----------

Here's something Apple could innovate. How about a phone service plan that doesn't require a spreadsheet to understand?

That is the way it is presented in the Apple Store online. While ATT and Verizon are listed first with phone/plan choices, scroll to the bottom. There you will find the 2 full price options. One comes with the T-Mobile SIM, the other "international GSM"

IGregory
Aug 11, 2013, 09:32 AM
Haha, Oh my these telcos are so repulsive. AT&T's bean counters must be patting themselves on the back for undercutting Verizon a whole dollar. Little Ralphie must be proud of their brand of "competition".
I personally have moved on to Tmobile and am not looking back. Separating device cost from service is the way to go.

I'm not defending the Tel Coms but when you think of all the billions they have spent and continue spend to upgrade their systems nationally, that cost has to be recouped somehow.

Mistrblank
Aug 11, 2013, 10:09 AM
t-mobile is not any cheaper once you figure in the price of the phone and the amount of LTE data you get

The $30 I'm saving on the plan for my wife and I to go to unlimited calling (from 450 minutes), unlimited texting (from limited texting), and larger data plans (from 2GB each to 2.5GB each phone) disagrees with you.

jokuhl
Aug 11, 2013, 02:15 PM
I currently am "upgrade eligible" with ATT and fully free Oct 1, so shopping. One thing is abundantly clear, even if wife and I liked our phones, must upgrade Oct 1 as rates are not going down when phone payment obligation is complete. It just becomes excess profit for the carrier.

Looked at the NEXT and Edge and immediately said "no thanks". The sell it on 'new phone every year' as if you need a new phone. As the math noted earlier, the 1 year payment almost paid fully for the phone, but given the resale value of the mandatory trade-in, ATT/Verizon will actually make more. An easy no thanks.

At least T-Mobile drops the monthly phone payment charge when paid for, and talk/data becomes significantly cheaper. It is nice that they itemize it out - and $0 if you bring your own. The also have a Jump program for new phone up to twice a year, but so turned off by NEXT and Edge that didn't explore it. Just don't know about T-Mobile network speed as sales people at stores that carry all three networks consistently bash T-Mobile over that issue, pushing ATT or Verizon. Of course, they could be getting a bigger bonus from ATT or Verizon.

Waiting for Oct 1...and perhaps a new iPhone will be announced. Even if not available Oct 1, I could delay a few months I I knew it was coming.

Please also note and consider: if you are a Verizon customer, they want you to upgrade, but for me, a customer since 1984, I can upgrade every 2 years, and NOW they tack on a $30.00 upgrade fee to my husband's new phone (he was eligible for upgrade 2 years ago, but his phone recently DIED) in addition to the profit they make when we overpay for equipment and then their services. It is a racket and WHY do I have to pay $200 a MONTH for two smart phones and neither one goes over minutes or data usage? It is OUTRAGEOUS! The Verizon agent said the $30.00 fee is to make up the cost difference of phones sold and allows them to continue to provide free classes and help to customers needing help with their new phones. Really, it is not free if I am paying for it! The class is done by a sales person in the store, in the main open area, which is crowded, loud and the training is for all in attendance and good luck getting individual help for specific issues at this training session. Been there, done that, and it was not good!

tbone0726
Aug 11, 2013, 02:44 PM
So you're paying $324 for a $199 device just so you can upgrade a year early. Works only if it's in your budget.

And you have to turn in your old phone, so in effect your paying for the phone twice!

appleisking
Aug 11, 2013, 04:11 PM
Much like with cable, we're still living in the stone age when it comes to telecom services and pricing.

TouchMint.com
Aug 11, 2013, 06:30 PM
Lol all three are competing on who will you choose from them to get then ripped off. These plans are ridiculous please don't even consider them.

---------

I always thought they would lower the plan prices the first two years on these new plans and then just start increasing monthly fees after people are on the plan. But i didn't anticipate the level of greed an how fast they want to take our money.

I usually have to buy my phone straight up or just slightly discounted since I need to newest hardware to dev/ test on. I don't plan on grabbing one of these but maybe they will get low enough where they are actually a good deal.

pimentoLoaf
Aug 11, 2013, 07:52 PM
I misread the headline. I thought it read (in part), "... iPhone Now Only $1/Year." :eek: :cool:

starbird
Aug 11, 2013, 09:20 PM
Soon, the subsidies will disappear all together, the telcos will still make money, cause you need them for any phone to work.

Remember when competition was supposed to help?

jav6454
Aug 11, 2013, 09:21 PM
This is still an expensive option... unless you are rich. Then, who the hell cares about money expenditures.

winston1236
Aug 12, 2013, 07:33 AM
these subsidies are what keep phone prices high, they haven't come down in price like any other technology does.

JAT
Aug 12, 2013, 04:23 PM
I see someone stole my spreadsheet comment. :p

Here's what I do:
-Verizon, but grandfathered plan including unlimited data
-Corporate discount of 22% (unlimited data is only $23)
-Buy phone at full price on zero interest plan to ease payments
-Jailbreak for many reasons
-Happiness!

RF9
Aug 13, 2013, 01:31 AM
these subsidies are what keep phone prices high, they haven't come down in price like any other technology does.
I would tend to agree with you, but outside the US they don't have subsidies and the phones are still $650 or even more expensive when you tack on import tariffs.

This is one reason cheap Android phones are doing so much better outside the US than in the US. Apple is still outselling Android phones on the Verizon and AT&T, but outside the US it's about 80% Android and 20% iPhone.

The rumored iPhone 5C is supposed to help address this issue with a "mid range" iPhone probably closer to $300-$400 (without subsidy) vs $650 for what the latest iPhone goes for.

So I guess by that logic you're right. Apple wouldn't be making an iPhone 5C if it weren't for the no-subisdy model outside the US.