my understanding is Unlimited Data is transferred to Next 18 mo. plan. Not really a loss here IMO.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
AT&T will increase monthly bill for standard upgrades vs Next
- Thread starter CruiseToGo
- Start date
- Sort by reaction score
Please someone help me understand this. Okay, so I went to my local AT&T store to ask if I'm eligible for an upgrade (for the 6). I'm on the 10GB mobile share plan with my wife.
Our monthly bills is about $130 after taxes now. So if I get the 6, our bill will increase about $30 (I forgot if it's 12 or 18 installments) to pay for the phone, correct?
If I want to go the old 2-year upgrade route, we will lose our $25 discount, also making our monthly bill go up.
Either way, our bill is increasing by $25 or $30, correct? I am actually fine just getting a phone every 2 years. I'd rather pay the $199 (and I understand the actual non-contract price of an iphone is way more than $199) upfront like the old way, and just get a phone every 2 years. Now if I do that (since I recently switched to Mobile share plan because it was going to save us money each month) our bill will go back up due to loss of the monthly discount?
Basically, if I want to get the iphone 6, our monthly bill will increase no matter what, right? I don't want my bill going over $130.
My thinking is get the iphone 6 for $199 upfront, use the old 2-year way, and then lower our plan to like 6GB shared. Does anyone think that will work to prevent our bill from going over $130?
Thanks in advance!
Our monthly bills is about $130 after taxes now. So if I get the 6, our bill will increase about $30 (I forgot if it's 12 or 18 installments) to pay for the phone, correct?
If I want to go the old 2-year upgrade route, we will lose our $25 discount, also making our monthly bill go up.
Either way, our bill is increasing by $25 or $30, correct? I am actually fine just getting a phone every 2 years. I'd rather pay the $199 (and I understand the actual non-contract price of an iphone is way more than $199) upfront like the old way, and just get a phone every 2 years. Now if I do that (since I recently switched to Mobile share plan because it was going to save us money each month) our bill will go back up due to loss of the monthly discount?
Basically, if I want to get the iphone 6, our monthly bill will increase no matter what, right? I don't want my bill going over $130.
My thinking is get the iphone 6 for $199 upfront, use the old 2-year way, and then lower our plan to like 6GB shared. Does anyone think that will work to prevent our bill from going over $130?
Thanks in advance!
It's easier if you start with the mindset that you are acquiring a device that costs $650 (assuming 16GB iPhone 6). That's the cost of the phone. Now, how to pay that cost is the question.
If you go contract for 2 years, that's $199 down, $40 upgrade fee, $25/mo for 24 months. Total cost over 2 years is $839 for that $650 phone.
Next is $0 down, $0 activation, $27.03 for 24 months (next 18). Total cost over 2 years is $648.72
If you don't like the monthly bill increase but like that 10GB data plan, there's always the option to pay off that Next loan in full at any time. Now you own the phone, and your bill remains $130/mo. Or, as you suggest, you can drop to a lower data level.
No matter how I ran the numbers, Next doesn't lock me in for 2 years and would save me about $190 over 2 years per device vs going the old contract route (I'm on the 10GB mobile share value plan).
That's the thing. In all the past years, I keep thinking $199. So we might as well put that out of our mind now?
Thanks for the reply!
If you make the following assumptions:
- iPhone 6 16GB
- 10GB Mobile Share Data
Next 12:
$0 down for phone (you will have to pay taxes)
Monthly cost for phone: $32.50 x 20 months = $650
Monthly cost for line: $15 x 24 months = $360
Monthly cost for data: $100 x 24 months= $2,400
Total cost after 2 years: $3,410
2 year contract:
$199 for phone
$40 upgrade fee
Monthly cost for line: $40 x 24 months = $960
Monthly cost for data: $100 x 24 months= $2,400
Total cost after 2 years: $3,599
Now things change a little if you go down to the 6GB data plan because the monthly phone charge increases:
Next 12:
$0 down for phone (you will have to pay taxes)
Monthly cost for phone: $32.50 x 20 months = $650
Monthly cost for line: $25 x 24 months = $600
Monthly cost for data: $80 x 24 months= $1,920
Total cost after 2 years: $3,170
2 year contract:
$199 for phone
$40 upgrade fee
Monthly cost for line: $40 x 24 months = $960
Monthly cost for data: $80 x 24 months= $1,920
Total cost after 2 years: $3,119
Hope this helps.
-Kevin
Thanks a lot, Kevin. My name's Kevin too!
So the monthly cost for line is more expensive for the 6GB shared plan?
Yes, and for ALL lines on the mobile share plan, not just the one that gets the new phone (as if things weren't already complicated enough) so that adds more math to consider on a multi-line plan.
It's always been $650 for the bottom end phone (well, since subsidies for it were offered) and we've all been paying more than retail because the subsidy was baked into the plan (and didn't drop when the contract ended).
Every situation is different, but we always upgraded two of our four lines each year. With Next, I'm still spending less per year than I was in 2010, 2011 etc. The introduction of the mobile value plans finally made the Next concept a decent alternative to contracts IMHO.
Sure, hope it helps.
Basically with Next you are paying for the phone, spread out over either 20 or 24 months, interest free from AT&T. They clearly break it out for you so you see the phone cost.
With a contract, you pay the $199 + $40, then somewhere in the $40/month they make back their money.
Data is the same regardless of contract or Next.
Next can be good, or contract can be good. You really have to run the numbers.
-Kevin
----------
This page helps explain it:
http://www.att.com/shop/wireless/data-plans.html
Basically on contract, it doesn't matter which data plan you are on....it's always $40/month for service.
On Next you get a discount on the phone charges (because you are subsidizing the phone).....the more you spend in data, the bigger the discount.
On Next if you have 300MB - 6GB the monthly charge is $25
On Next if you have 10GB+ the monthly charge is $15
Different scenarios change the overall cost of the plan.
For me and my wife.....we are getting the 16GB iPhone 6 and we only have the 2GB data plan. For us, going contract is about $100 less over 24 months than Next. So that's what we did. However, our same scenario changes if we did 10GB of data....at that point Next is better.
-Kevin
If you are on the family value plan and try to upgrade as a 2 yr contract, it says right when you are about to order that you will lose your value pricing and will revert back to a traditional pricing plan. If a customer doesn't read that then it is their own fault and not the fault of ATT.
I just want to mention that if you are upgrading on a 2 yr contract or with NEXT, ATT (until 9/30/14) will give you a $200 promotion card for your good used i4, i4s, i5 and $300 for your i5S. So, if you want to do the math you can factor that into your decision. Personally $200 for your i4 and 4S is a good deal. I5 you might get more selling yourself.
Last edited:
Can you trade in 2 or more iPhone 4s when you up grading to one iPhone 6? Example I trade in 2 iPhone 4s for $400 and buying one iPhone 6 64GB (regular price $749 - $400 trade) and pay balance $349?
I would think it is one trade in per iPhone 6 upgrade. Taking it into the store would be the best option rather than sending it in. Here is their link for more details http://www.att.com/shop/wireless/iphone-trade-in.html#fbid=pOL7D-NKGrC
And you can do that. Just know that BEFORE the mobile family share plan your bill was $25 per line higher than it is now (if you have a 10GB+ data share). So you can absolutely buy a $499 upgrade price phone, but then you go back to your $40/month for that subsidized line (instead of $15). You will end up paying MORE for the phone that way but whatever floats your boat.
It is a loss if my contract including subsidy is only $65 now....if I switch to Next 18 I'll be looking at $500 more for the contract term.
It is you who just don't understand how things work, that is all.
Clearly you have no clue how next works, what it does and does not do. If you are on a mobile share plan, the next plan is awesome. For me, I have 4 phones that share 10GB of data, so my monthly bill is 100$ for data + $15 for each line for a total of $160 per month not including taxes. If I use my upgrade for the $849 phone, I pay $399 + a $40 upgrade fee. Now, the line that used that upgrade jumps to $40 per month for 2 years from the $15 per month I currently pay. So now I am also paying $25 a month MORE for 2 years, or an additional $600. So let's add that all up. $399 + $40 + $600 = $1039, or $190 MORE than if I used Next or bought the phone outright! Where is your math?
So please, show me where your logic is? Plus, if I use the upgrade NOW I can't upgrade again next year. Please stop spreading misinformation. Thanks
Thank you. I did the math over and over too and always came out ahead on Next.
People are making this more complicated than it needs to be. A base iPhone model costs $650.00. Apple is going to get 100% of their $650 when they sell the phone.
YOU buy the phone. YOU are going to pay Apple $650 dollars for that iPhone. simple isn't it?
Oh but AT&T is giving me the phone for $199 bucks! what a bargain! only if I sign this service contract for 2 years. Where do I sign!
Hold on there partner..
You really think AT&T is going to eat the cost difference? AT&T is paying Apple $650 for that iPhone and you only put $199 towards it. There's about $450 missing there. Guess what. YOU are going to pay it with a subsidy (increased bill). There's no such thing as a new $199 iPhone. They don't exist. I don't care what you've paid for in the past, you were paying for those phones with an increased bill. It's really quite simple.
There are 3 ways you are going to pay FULL price for your phone.
1) pay full price for the phone duh.
2) AT&T 0% financing (AT&T Next)
3) Monthly service subsidy
YOU buy the phone. YOU are going to pay Apple $650 dollars for that iPhone. simple isn't it?
Oh but AT&T is giving me the phone for $199 bucks! what a bargain! only if I sign this service contract for 2 years. Where do I sign!
Hold on there partner..
You really think AT&T is going to eat the cost difference? AT&T is paying Apple $650 for that iPhone and you only put $199 towards it. There's about $450 missing there. Guess what. YOU are going to pay it with a subsidy (increased bill). There's no such thing as a new $199 iPhone. They don't exist. I don't care what you've paid for in the past, you were paying for those phones with an increased bill. It's really quite simple.
There are 3 ways you are going to pay FULL price for your phone.
1) pay full price for the phone duh.
2) AT&T 0% financing (AT&T Next)
3) Monthly service subsidy
Enough already
If one more AT&T salesman pulls out his calculator to do the math thing, I'll go bonkers. Enough already.
Every iPhone I've gotten was on a 2 year plan and subsidized. The PLAN NEVER CHANGED.
My 10GB plan with three lines is $145 (100 + 15/per) because of the discount, whatever.
If I do Next, my plan doesn change. I pay $949 for the 6+ 128GB. I MIGHT AS WELL BUY IT OUTRIGHT UNLOCKED, WHAT DEAL IS THAT?
Okay, if I wait for end of contract, I get subsidized with a 2 year commitment. Fair enough. MY PLAN SHOULD NOT CHANGE.
But it is. AT&T has proclaimed that you aren't worth it and will remove the $25 discount. Why? For what reason?
FOR THIS REASON: To get you to buy the phone full pop. And I can't believe the number of people saying "yeah dude, Next is awesome, great way to go." Really? You plan stays the same and you pay LIST PRICE and you're OK with this?
Dear AT&T: Stop being creeps. If I renew with you, I'll stay for 2 years and get the subsidized price. LEAVE THE PLAN ALONE like you have every time in the past.
Oh, last thought: When iPhone 5 came out, AT&T lifted the 2 -year contract and allowed anyone to upgrade: new 2 year plan, NO change in the price, subsidized phone. Time to petition AT&T and tell them we're onto them and to cut the garbage.
If one more AT&T salesman pulls out his calculator to do the math thing, I'll go bonkers. Enough already.
Every iPhone I've gotten was on a 2 year plan and subsidized. The PLAN NEVER CHANGED.
My 10GB plan with three lines is $145 (100 + 15/per) because of the discount, whatever.
If I do Next, my plan doesn change. I pay $949 for the 6+ 128GB. I MIGHT AS WELL BUY IT OUTRIGHT UNLOCKED, WHAT DEAL IS THAT?
Okay, if I wait for end of contract, I get subsidized with a 2 year commitment. Fair enough. MY PLAN SHOULD NOT CHANGE.
But it is. AT&T has proclaimed that you aren't worth it and will remove the $25 discount. Why? For what reason?
FOR THIS REASON: To get you to buy the phone full pop. And I can't believe the number of people saying "yeah dude, Next is awesome, great way to go." Really? You plan stays the same and you pay LIST PRICE and you're OK with this?
Dear AT&T: Stop being creeps. If I renew with you, I'll stay for 2 years and get the subsidized price. LEAVE THE PLAN ALONE like you have every time in the past.
Oh, last thought: When iPhone 5 came out, AT&T lifted the 2 -year contract and allowed anyone to upgrade: new 2 year plan, NO change in the price, subsidized phone. Time to petition AT&T and tell them we're onto them and to cut the garbage.
Last edited:
Basically, this is what most people were wanting for years... People who bought their phones outright or who had fulfilled their contract and were on month-to-month deals didn't like that their bills took into account the prices of subsidized phones. Next and the Mobile Share plans pretty much make it a fair deal (minus the cost of data and the upgrade fees, but that's another issue).
I think the plans are a little overly-complicated. So are T-Mobiles to a certain degree. I think they are okay values, but need explained a little better.
I think the plans are a little overly-complicated. So are T-Mobiles to a certain degree. I think they are okay values, but need explained a little better.
The only way it'll become easy to understand for everyone is if all carriers get rid of all the old plans, get rid of all the susidies and financing offers, make people pay full price for unlocked phones and have everyone on month-to-month plans with more reasonable service pricing. There's sure to be a huge outcry if ever that happens. People love their $199 iPhones. This is also why the iPhone has a much larger share of the market in the US compared to other countries where people actually pay cash full price for their devices.
Last edited:
Wasn't your plan more expensive before you switched to a value plan? You could subsidize your phones, but your plan rate was higher then now. That is how they made up for the subsidy price.
That really wasn't true with the old plans. Yes they obviously covered the subsidy through the 2 year agreement, but they didn't give you a discount if you chose not to use the subsidy. So you were essentially throwing away an extra $450 if you chose to buy an iPhone off contract.
For those of us who are still on old plans for things like unlimited, it still makes sense to renew the contract in exchange for a discount
You're totally right that that is the way an individual customer should think about it, but it's not quite right if you look at Apple and carrier financial statements. The carriers are actually getting a discount off MSRP for their inventory (though they're not passing those savings on to customers--with the switch away from subsidies and ETFs, that's how AT&T and others can still maintain their profits with "0%" loans on the hardware).
But it did change. That $145 plan has been around for less than a year. As a one-time transitional promotion, customers who had made some progress on their current contract were given the discount and allowed to change plans without waiting until month 24.
It wasn't charity. It was to do two things: (1) get customers off the subsidized model and (2) get more money from them when they upgraded their phones, which they'd be free to do sooner.
Next is only a financing model, not a "deal" at all. When you switched to the new, lower-priced plan, that lower price was only paid for because AT&T dropped the $20/mo or so that was paying for the subsidy. It didn't magically drop the costs of cellular service itself.
All they did was pay off your current phone's subsidy for you a little bit early.
It won't. End of contract, your plan and pricing will be unchanged. You'll continue getting that $25 discount as long as you are using a paid-for phone.
Because the $25 discount is only for bringing your own device (whether you bought it outright or financed it through Next).
If you choose to have AT&T subsidize your next phone instead, you lose the $25 discount. It's that simple. The cheaper plan is just the old plan minus the subsidy. If you want to add the subsidy back in, your price goes up to cover it.