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Staying w/ ATT for years, Not Going Intl - why would I buy a phone outright?

N

nostresshere

macrumors 68030
Original poster
Dec 30, 2010
2,730
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People keep talking about buying a phone, unlocked when they become available. If I know I will be staying with ATT for years to come, and I know I am not going to travel intl, why should I pay out $750 - or whatever upfront?


Please help me understand the logic here.

I could care less about a contract - have been with them for 10+ years.
I am not concerned with intl.
I really do not see myself selling a phone.
 
nostresshere said:
People keep talking about buying a phone, unlocked when they become available. If I know I will be staying with ATT for years to come, and I know I am not going to travel intl, why should I pay out $750 - or whatever upfront?


Please help me understand the logic here.

I could care less about a contract - have been with them for 10+ years.
I am not concerned with intl.
I really do not see myself selling a phone.
Click to expand...

This has been my thought process, too. I'm still on the tail end of a 2-year contract with them, and I think I'm going to switch to their Next program next month. I've heard people saying it's a big waste of money, that you should just buy outright, but honestly, I can't figure out how it's a bad deal. You pay for 60% of the phone over one year, then get a new one, all while keeping a pre-subsidy plan. I fail to see how it's a bad option. Anyone have thoughts?
 
Even if you don't go intl or are planning to switch carriers, you still have that flexibility.

You feel a sense of freedom from being off contract (like I am)
You never know if you have to ever travel outside the continental US.
some people sell their phones to afford the new one. Unlocked phones can be sold from way more than a carrier locked phone.

But you're right - whether you pay $649 unlocked (16GB) it's sill the same phone as the $199 option with contract.

It's all personal preference.
 
I agree with the OP.

With AT&T Next you're not under contract for the service and you can quit any time. Sure you'd have to purchase your phone in order to leave, but how is that different than just purchasing it to begin with?

0% financing and a new phone each year? Yeah, I'm switching to Next for the iPhone 6.
 
jlake02 said:
I agree with the OP.

With AT&T Next you're not under contract for the service and you can quit any time. Sure you'd have to purchase your phone in order to leave, but how is that different than just purchasing it to begin with?

0% financing and a new phone each year? Yeah, I'm switching to Next for the iPhone 6.
Click to expand...

I forgot it was month-to-month, device aside. I'm sold.
 
If I was able to keep my unlimited data and finance a phone, I would. Dam you Verizon. Should of stuck with AT&T.
 
nostresshere said:
People keep talking about buying a phone, unlocked when they become available. If I know I will be staying with ATT for years to come, and I know I am not going to travel intl, why should I pay out $750 - or whatever upfront?


Please help me understand the logic here.

I could care less about a contract - have been with them for 10+ years.
I am not concerned with intl.
I really do not see myself selling a phone.
Click to expand...
Because people like the fact that they can leave their carrier if they want to.

Take your post though and read back through it. Substitute the word "Sprint" for "AT&T" in your post and see if your opinion might change. Considering the hate that is out there for Sprint, it might.

I'm a 15 year Sprint customer (1999). Sprint has been my first and only cell carrier, I have never been on another. So, I see things much the same way you do. The only difference is that with Sprint paying full price does not mean an unlocked phone, it means contract free.
 
mac.cali said:
If I was able to keep my unlimited data and finance a phone, I would. Dam you Verizon. Should of stuck with AT&T.
Click to expand...

That stinks how Verizon won't even allow their UL data customers to use EDGE. I have an UL data plan with AT&T and currently have the option to use either NEXT or a full subsidy upgrade and keep my UL plan.
 
oldwren said:
This has been my thought process, too. I'm still on the tail end of a 2-year contract with them, and I think I'm going to switch to their Next program next month. I've heard people saying it's a big waste of money, that you should just buy outright, but honestly, I can't figure out how it's a bad deal. You pay for 60% of the phone over one year, then get a new one, all while keeping a pre-subsidy plan. I fail to see how it's a bad option. Anyone have thoughts?
Click to expand...

It's kind of like the whole buying outright/financing/leasing a car thing. Some people have strong opinions about which is the best way to go. In reality, all these different methods have their advantages and disadvantages. Same with buying a cell phone. Do what makes sense for you.
 
Yep, everyone has their own opinion. Unless you need help buying the phone and have to use Next, I would just pay outright for the phone and be done with it. I have been with ATT forever but no longer under contract.

To each his own.
 
oldwren said:
This has been my thought process, too. I'm still on the tail end of a 2-year contract with them, and I think I'm going to switch to their Next program next month. I've heard people saying it's a big waste of money, that you should just buy outright, but honestly, I can't figure out how it's a bad deal. You pay for 60% of the phone over one year, then get a new one, all while keeping a pre-subsidy plan. I fail to see how it's a bad option. Anyone have thoughts?
Click to expand...

Next is a rip off IMHO. They're pushing that plan hard for one reason. They will make more money and the consumer will pay for it. Also, if you upgrade before the phone is paid in full, you lose the old phone. You can't keep it and sell it or whatever. They will keep it and sell it as a refurb. I have Verizon, but I'm staying away from their Edge plan. I'm happy with the More Everything Plan i have my 4 phones on.
 
Ledsteplin said:
Next is a rip off IMHO. They're pushing that plan hard for one reason. They will make more money and the consumer will pay for it. Also, if you upgrade before the phone is paid in full, you lose the old phone. You can't keep it and sell it or whatever. ....
Click to expand...

Please explain more to me.

If I go NEXT, I have the option of paying over an extended time period. If I want another phone next year, I can

a) Continue with the next plan on a new phone (they take back my old one)
or
b) Pay off the NEXT phone and sell it, etc (same cost as if I bought it upfront)

What am I missing here?
 
Newtons Apple said:
ATT NEXT has one purpose!



NEXT will allow people who can not pay cash for their phone a way to buy the hardware under installments.
Click to expand...

Yes, it will. And if that were my only option financially, I'd do it if I wanted a new phone. But carriers are not offering those installment deals out of the goodness of their hearts. They stand to make a huge killing on those plans. And consumers will pay for it. My point is if you are able to go with the 2 year subsidized contract plan, you'd come out better in the long run. They are banking on most Next users upgrading every year. So the carrier keeps the old phone and sells it as a refurb. That's a big loss there to the user. If you upgrade after paying 60% in 1 year, you have to turn your phone in. So you have paid maybe $400 on a phone you can't keep. I don't see that as a good deal. But, as stated, I'd do it if it were my only option.
 
nostresshere said:
Please explain more to me.

If I go NEXT, I have the option of paying over an extended time period. If I want another phone next year, I can

a) Continue with the next plan on a new phone (they take back my old one)
or
b) Pay off the NEXT phone and sell it, etc (same cost as if I bought it upfront)

What am I missing here?
Click to expand...

You aren't missing anything, that is exactly how Next works. I honestly don't understand how Next is a ripoff, to me the Subsidized plan is a rip off, I sign a contract and pay an extra $25 per month even AFTER the phone is paid for, how is that a better deal? At least under the Next Program, once the device is paid for, it is paid for.
 
nostresshere said:
Please explain more to me.

If I go NEXT, I have the option of paying over an extended time period. If I want another phone next year, I can

a) Continue with the next plan on a new phone (they take back my old one)
or
b) Pay off the NEXT phone and sell it, etc (same cost as if I bought it upfront)

What am I missing here?
Click to expand...

Exactly. If you exchange it after 12 mos, you've only paid for 60% of the device. The other 40% amounts to what you would make from selling it on eBay anyhow.
 
If you search the 300 threads about this you will find that the overall expense is the same over a 2 year period no matter what plan you go with or how often you trade in your phone.

There are so many factors like resale value and how often you want to trade but the house always wins.

ATT will still get your money, no matter what version you do. If you feel happy, then be happy.

Some people feel better with $199 and contract, some feel better with NEXT, and others just want to pay cash. ATT will still make money on you. The expense lost or saved will be within $200 over 2 years... even if you have 4 lines.
 
Ledsteplin said:
My point is if you are able to go with the 2 year subsidized contract plan, you'd come out better in the long run. They are banking on most Next users upgrading every year. So the carrier keeps the old phone and sells it as a refurb. That's a big loss there to the user. If you upgrade after paying 60% in 1 year, you have to turn your phone in. So you have paid maybe $400 on a phone you can't keep. I don't see that as a good deal. But, as stated, I'd do it if it were my only option.
Click to expand...
If you're on the MS Value 10GB plan or higher, the 2-year contract is more expensive.

Again, you can do whatever you want with your Next phone as long as you pay it off. You are not required to trade it in to AT&T. If you want to sell it on CL or ebay or swappa and use the amount to pay off the balance, you can.

That said, the trade-in value through AT&T Next appears to be in line with what you can get from trade-in sites like Gazelle.

iPhone 5s

AT&T Next 12
16GB $260
32GB $300
64GB $340

Gazelle

Good
16GB $300 unlocked / $265 locked
32GB $310 unlocked / $275 locked
64GB $325 unlocked / $285 locked

Flawless
16GB $315 unlocked / $280 locked
32GB $325 unlocked / $290 locked
64GB $350 unlocked / $300 locked
 
rui no onna said:
If you're on the MS Value 10GB plan or higher, the 2-year contract is more expensive.

Again, you can do whatever you want with your Next phone as long as you pay it off. You are not required to trade it in to AT&T. If you want to sell it on CL or ebay or swappa and use the amount to pay off the balance, you can.

That said, the trade-in value through AT&T Next appears to be in line with what you can get from trade-in sites like Gazelle.

iPhone 5s

AT&T Next 12
16GB $260
32GB $300
64GB $340

Gazelle

Good
16GB $300 unlocked / $265 locked
32GB $310 unlocked / $275 locked
64GB $325 unlocked / $285 locked

Flawless
16GB $315 unlocked / $280 locked
32GB $325 unlocked / $290 locked
64GB $350 unlocked / $300 locked
Click to expand...

A guy at work told me that he wouldn't do NEXT because he doesn't buy insurance and if they phone breaks, he will still have to make payments on a broken phone... I told him that if his 2 year contract phone breaks that he still has to pay the contract.... and if he breaks the phone he paid $649 cash for that he is still out $649
 
ricktat said:
Some people feel better with $199 and contract, some feel better with NEXT, and others just want to pay cash. ATT will still make money on you. The expense lost or saved will be within $200 over 2 years... even if you have 4 lines.
Click to expand...
For us, with 4 iPhones (32GB) and staggered upgrades, it's $1,200 saved over a 2 year span either buying outright or Next versus signing a 2-year contract.
 
Ledsteplin said:
Next is a rip off IMHO. They're pushing that plan hard for one reason. They will make more money and the consumer will pay for it. Also, if you upgrade before the phone is paid in full, you lose the old phone. You can't keep it and sell it or whatever. They will keep it and sell it as a refurb. I have Verizon, but I'm staying away from their Edge plan. I'm happy with the More Everything Plan i have my 4 phones on.
Click to expand...

I guess I don't see how it is a 'rip-off'. You are just essentially financing the phone at 0% interest. If you can get 0% financing on something you'd be dumb not to take it, even if you can pay cash upfront. Take that money and invest it instead and you will come out ahead - assuming you don't make a horrible investment decision.

If you decide you no longer want AT&T or Next you can just pay the phone balance off at any time and be done with it. Then you own the phone and can do whatever you want with it. You aren't paying additional finance charges or fees by using Next.

Yeah AT&T will make money on people trading in early and surrendering their phone. Some out of stupidity, some willingly. Some people will willingly always have an additional monthly fee to have a new phone and that's ok. Just like some people will lease a car and always have a payment to have a new car all the time. Some people think cable TV is a necessity and some don't. Some people play video games and some think it is a waste of money. People can choose to spend their money however they want.
 
Obviously if you are staying with att buying outright might not be the best move. Those that buy outright are usually moving to another carrier, or want the flexibility to do so.
 
For one person, staying on the regular subsidy is probably = or < in cost. But, for a family that is currently paying $15 a month per phone on a family plan, it is more.

Looking at 2 year cost, just for the 2 phones we plan to switch right now:

If I buy 2 new phones outright, the cost is $1300 and then 2 years of service at $15 a month per line for $720. This gives us no commitment and the phone can be sold whenever. Total of $2020

If I use Next, the cost is $1300 (spread out over 18 payments) and then 2 years of service at $15 a month per line. This can be paid off any time after month 2 and then we own the phone, can sell it, and have no commitment. Total of $2020.

If I use the subsidy, the up front cost is about $460 ($199 per phone plus $30 upgrade fee), and then the per line cost goes up to $40 a month (2 years = $1920). This requires a two year commitment. At the end of two years, we can sell the phones. Total of $2380.

Because AT&T agents have given conflicting answers about whether upgrading 2 phones on the plan will result in losing the $25 discount on all the phones still in contract, the subsidy option could potentially be another $150 a month for us, because we have 8 phones on the plan.

I've been told 2x that we can upgrade using Next and not lose the $25 discount on the other 6 lines, but am going to ask again and try to get that in writing before we decide. If that's not the case, then we will buy outright. If it is the case, then we will probably do Next, primarily because we can preorder and I'm not able to stand in line.
 
ricktat said:
If you search the 300 threads about this you will find that the overall expense is the same over a 2 year period no matter what plan you go with or how often you trade in your phone.

There are so many factors like resale value and how often you want to trade but the house always wins.

ATT will still get your money, no matter what version you do. If you feel happy, then be happy.

Some people feel better with $199 and contract, some feel better with NEXT, and others just want to pay cash. ATT will still make money on you. The expense lost or saved will be within $200 over 2 years... even if you have 4 lines.
Click to expand...

No offense but in what universe would someone not expect to pay for their cellphone server and/or phone, as well as the company providing it making a profit? Of course AT&T will make money.

As for Next I don't see the flexibility it provides ever being a negative. You can keep the device, sell the device, turn in the device... whatever you want. With a contract you either wait for upgrade eligibility, pay a higher price for a partial upgrade eligibility, or pay an early termination fee that decreases each month but never matches exactly what is owed on the device like Next.

To me contracts are only useful for people who are okay with two generations old devices. The device you get for free on a contract but still sell for $400 outright. But even then you are stuck on a two year contract with a device only the Smithsonian will want when completed.




Mike
 
Tinmania said:
No offense but in what universe would someone not expect to pay for their cellphone server and/or phone, as well as the company providing it making a profit? Of course AT&T will make money.

As for Next I don't see the flexibility it provides ever being a negative. You can keep the device, sell the device, turn in the device... whatever you want. With a contract you either wait for upgrade eligibility, pay a higher price for a partial upgrade eligibility, or pay an early termination fee that decreases each month but never matches exactly what is owed on the device like Next.

To me contracts are only useful for people who are okay with two generations old devices. The device you get for free on a contract but still sell for $400 outright. But even then you are stuck on a two year contract with a device only the Smithsonian will want when completed.




Mike
Click to expand...


That was directed at people calling NEXT a rip off.

I will be doing NEXT...next month
 
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