Register FAQ / Rules Forum Spy Search Today's Posts Mark Forums Read
Go Back   MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Jul 15, 2013, 11:00 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
AT&T Rolls Out New 'AT&T Next' Smartphone and Tablet Upgrade Program




AT&T is following T-Mobile's lead and introducing a new upgrade eligibility program for its customers called 'AT&T Next'. With Next, AT&T customers can purchase a new smartphone or tablet every twelve months with no activation, upgrade or financing fees.

Customers purchase a smartphone or tablet with no money down, making monthly payments equal to 1/20th of the retail cost of the device. After 12 payments, they can trade the device in and upgrade to a new one with no other fees. Or, after 20 payments, they own the device outright.
Quote:
"With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment. That's hard to beat, and it's an incredible value for customers who want the latest and greatest every year," said Ralph de la Vega, president and chief executive officer of AT&T Mobility.
For customers purchasing a 16GB iPhone 5, they would pay $32.50 per month for 12 months, and could then upgrade to the latest iPhone -- trading in the previous device. They would pay $390 over that time, with the phone being bought back for the equivalent of $260. If the customer makes the 20 monthly payments, they can upgrade to a new phone and keep the old one.

Because there is no activation or upgrade fee, customers save $36 on activating a new line. Depending on the customer's needs, this may be a better option than the old AT&T upgrade system, which requires customers wait 24 months between fully subsidized upgrades.

AT&T customers who still have grandfathered unlimited data plans are fully eligible to participate in this program.

T-Mobile recently announced a similar upgrade plan, and a leak from Verizon today suggested they also had something like it in development.

Article Link: AT&T Rolls Out New 'AT&T Next' Smartphone and Tablet Upgrade Program
MacRumors is offline   1 Reply With Quote
Old Jul 15, 2013, 11:03 PM   #2
Frank Gore
macrumors newbie
 
Join Date: Jan 2012
What a sham
Frank Gore is offline   15 Reply With Quote
Old Jul 15, 2013, 11:05 PM   #3
NewAnger
Banned
 
Join Date: Apr 2012
Location: Denver Colorado
You knew it would not be a good deal.
NewAnger is offline   6 Reply With Quote
Old Jul 15, 2013, 11:05 PM   #4
mofoliar
macrumors member
 
Join Date: Mar 2010
that sounds good deal, better than verizon upcoming "VZ Edge".. i just purchased an iphone 5 yesterday for big red! damn...
mofoliar is offline   3 Reply With Quote
Old Jul 15, 2013, 11:06 PM   #5
braddick
macrumors 68030
 
braddick's Avatar
 
Join Date: Jun 2009
Location: Encinitas, CA
Excellent news!
For those that like their iPhone new and shiny, this will be the way to go.
Almost like a new vehicle lease.
braddick is offline   2 Reply With Quote
Old Jul 15, 2013, 11:06 PM   #6
BruiserB
macrumors 6502a
 
Join Date: Aug 2008
Sounds good on the surface, but the main disadvantage is that AT&T's service rates are artificially high to pay for phone subsidies. If AT&T doesn't change their rates, then you are kind of paying twice for your phone....once in your rates and again paying 1/20th of the full cost of the phone each month.

Another company has a new creative way to separate people from their money! The best option is to buy outright and go with T-mobile's (or another discount no contract carrier's) plans.
BruiserB is offline   28 Reply With Quote
Old Jul 15, 2013, 11:07 PM   #7
tascon
macrumors newbie
 
Join Date: Aug 2012
Are they lowering the monthly prices?

If I am still paying the same per month, what is my benefit if they don't subsidize the iPhones anymore?
tascon is offline   13 Reply With Quote
Old Jul 15, 2013, 11:08 PM   #8
Squid7085
macrumors 6502
 
Join Date: Aug 2002
Location: Lawrence, KS
Send a message via AIM to Squid7085
What a joke, You end up paying MORE over the course of 12 months then you would have upfront, and then you have to give the device back. You'd be better off opening up another line for a "12 month upgrade cycle" and paying the extra $10 a month. Thats what I have been doing for years, I just bought the AT&T Home Phone Connect thing to throw my other line on, gives me a phone on the wall which is nice and it would STILL be cheaper then doing this. And I get to keep the phones and sell them on my own terms, if I were in to that kind of thing.

The question i would like to ask AT&T, if you are doing this, and I am paying for more of the phone then I would have under the subsidy model, where is the money I am paying in to a subsidy going? This wouldn't be a complete sham if monthly service were cheaper.
__________________
 2011 13" MacBook Air  2008 15" MacBook Pro  2013 Mac mini  20" Cinema Displays  iPhone 5S Space Gray 32GB  iPad mini Black 32GB  Apple TV
Squid7085 is offline   6 Reply With Quote
Old Jul 15, 2013, 11:08 PM   #9
rowensiv
macrumors member
 
Join Date: Apr 2007
I don't really see how this is such a bad deal... Like in the example for a 16GB iPhone 5 you would end up paying $390. Provided the phone wasn't destroyed you'd get back $260 - Which equals $130 for the phone. Yeah, AT&T has their flaws but I don't think this is such a bad deal.
__________________
15" MacBook Pro (Mid-10), iPhone 5, 16GB iPad 2 WiFi
rowensiv is offline   3 Reply With Quote
Old Jul 15, 2013, 11:09 PM   #10
ladeer
macrumors 6502
 
Join Date: Feb 2007
Location: SF Bay Area
Well I rather pay $650 up front so my phone will be factory unlocked if I am going to amortize the phone anyway. It's basically an option to finance your phone at 0 interest rate in exchange for the ability to have factory unlocked?
ladeer is offline   4 Reply With Quote
Old Jul 15, 2013, 11:11 PM   #11
jesusplay
macrumors 6502
 
Join Date: Sep 2007
Location: SOUTH
I haven't paid money for a phone out of pocket since I bought my first iphone.

iphone's don't lose resale value, hell they are worth more than the subsidized price when you sell it 2 years later.
__________________
MBP 17 Early 2011
iPhone 5 64GB
jesusplay is offline   3 Reply With Quote
Old Jul 15, 2013, 11:13 PM   #12
BruiserB
macrumors 6502a
 
Join Date: Aug 2008
Quote:
Originally Posted by ladeer View Post
Well I rather pay $650 up front so my phone will be factory unlocked if I am going to amortize the phone anyway. It's basically an option to finance your phone at 0 interest rate in exchange for the ability to have factory unlocked?
But you're not really financing it at 0 interest rate. You make 20 monthly payments equal to the the full amount, plus you still pay around $20 per month of your service that would have gone to the subsidy under the traditional contract plan. So you're actually paying about $400 extra for your phone.

Best to get it unlocked up front and go to a carrier that doesn't have subsidies built into their rate plans.
BruiserB is offline   6 Reply With Quote
Old Jul 15, 2013, 11:15 PM   #13
Small White Car
macrumors G3
 
Small White Car's Avatar
 
Join Date: Aug 2006
Location: Washington DC
Quote:
Originally Posted by rowensiv View Post
I don't really see how this is such a bad deal... Like in the example for a 16GB iPhone 5 you would end up paying $390. Provided the phone wasn't destroyed you'd get back $260 - Which equals $130 for the phone. Yeah, AT&T has their flaws but I don't think this is such a bad deal.
The bad deal is that the AT&T rate ALREADY includes the money they need to buy you the iPhone every 2 years. When you sign up for this your monthly rate doesn't go down. So, sure, it's a perfectly good deal except that you are also paying AT&T for half an iPhone every year that you'll never see.
Small White Car is offline   11 Reply With Quote
Old Jul 15, 2013, 11:15 PM   #14
Squid7085
macrumors 6502
 
Join Date: Aug 2002
Location: Lawrence, KS
Send a message via AIM to Squid7085
Quote:
Originally Posted by rowensiv View Post
I don't really see how this is such a bad deal... Like in the example for a 16GB iPhone 5 you would end up paying $390. Provided the phone wasn't destroyed you'd get back $260 - Which equals $130 for the phone. Yeah, AT&T has their flaws but I don't think this is such a bad deal.
If I am reading it right, you wouldn't get anything back. You return the phone which "covers" the part you didn't pay, and you just start on a new payment plan. It's like renting the phone, you never build any equity in it.
__________________
 2011 13" MacBook Air  2008 15" MacBook Pro  2013 Mac mini  20" Cinema Displays  iPhone 5S Space Gray 32GB  iPad mini Black 32GB  Apple TV
Squid7085 is offline   6 Reply With Quote
Old Jul 15, 2013, 11:15 PM   #15
tbrand7
macrumors 6502
 
Join Date: Feb 2013
Location: New York
Well, it seems T-Mobile is a lot like Apple in this situation. They disrupted the status quo and are changing the phone buisness as we know it. Now here come the copycats running so they don't get left behind.
tbrand7 is offline   0 Reply With Quote
Old Jul 15, 2013, 11:17 PM   #16
Klae17
macrumors 6502a
 
Join Date: Jul 2011
This is why T-Mobile was kept its own entity. This is good.

ATT+Tmobile = bad.
__________________
15" rMBP, iPhone 5s Gold, iPod Nano, Shuffle, iPad Air, Apple TV, Mac Pro.
Klae17 is offline   5 Reply With Quote
Old Jul 15, 2013, 11:18 PM   #17
BruiserB
macrumors 6502a
 
Join Date: Aug 2008
Quote:
Originally Posted by jesusplay View Post
I haven't paid money for a phone out of pocket since I bought my first iphone.

iphone's don't lose resale value, hell they are worth more than the subsidized price when you sell it 2 years later.
But you have lost money....because each month of your service you are paying around $20 more than you would have to if your phone wasn't subsidized. So take whatever you paid upfront for your phone, then add $480 to that (the extra amount you paid for it over the 24 months) and then tell me you sold your used phone for more than that total.

This plan basically amounts to a $20 a month rate increase for AT&T.
BruiserB is offline   6 Reply With Quote
Old Jul 15, 2013, 11:19 PM   #18
T.Smith4
macrumors newbie
 
Join Date: Jun 2012
Rubbish

Garbage program. If they do this they need to lower their rateplans. I hope people don't fall for this crap otherwise this will become the new standard for stealing peoples money.
T.Smith4 is offline   19 Reply With Quote
Old Jul 15, 2013, 11:20 PM   #19
tascon
macrumors newbie
 
Join Date: Aug 2012
Looks like they are keeping the subsidies

In addition to AT&T Next, customers continue to have their choice of all current options, including getting a discounted device with a two-year service commitment; paying full retail price for a device with no-commitment; getting a partial discount for an early upgrade after six months with a two-year service commitment; or bringing their own compatible device.
tascon is offline   2 Reply With Quote
Old Jul 15, 2013, 11:24 PM   #20
liavman
macrumors 6502
 
Join Date: Sep 2009
Quote:
you still pay around $20 per month of your service that would have gone to the subsidy under the traditional contract plan.
Can someone post a reference to where this is stated? That does not make any sense to pay extra $30.00 without a reduced monthly service plan. I do not even see how AT&T will sell this idea to a customer.
liavman is offline   1 Reply With Quote
Old Jul 15, 2013, 11:24 PM   #21
BruiserB
macrumors 6502a
 
Join Date: Aug 2008
Quote:
Originally Posted by tascon View Post
In addition to AT&T Next, customers continue to have their choice of all current options, including getting a discounted device with a two-year service commitment; paying full retail price for a device with no-commitment; getting a partial discount for an early upgrade after six months with a two-year service commitment; or bringing their own compatible device.
Yea the subsidies still exist, but most people won't realize that they are actually the better deal here. All they will see is "get a new iPhone for $0 up front" and think they have found a fantastic deal.
BruiserB is offline   2 Reply With Quote
Old Jul 15, 2013, 11:25 PM   #22
T.Smith4
macrumors newbie
 
Join Date: Jun 2012
Quote:
Originally Posted by liavman View Post
Can someone post a reference to where this is stated? That does not make any sense to pay extra $30.00 without a reduced monthly service plan. I do not even see how AT&T will sell this idea to a customer.
I don't know if it is stated anywhere I think it is just common knowledge. Its why there are 2 year contracts, companies need to recoup the cost of discounting the phones.

Last edited by T.Smith4; Jul 15, 2013 at 11:32 PM.
T.Smith4 is offline   5 Reply With Quote
Old Jul 15, 2013, 11:26 PM   #23
jason2811
macrumors 6502a
 
Join Date: May 2006
After one year, do you have to pay any money for the new upgrade?

Also, after one year, are you required to sign a new 2-year agreement?

Can someone explain how this is a bad deal economically?
jason2811 is offline   0 Reply With Quote
Old Jul 15, 2013, 11:27 PM   #24
crashlander
macrumors newbie
 
Join Date: Nov 2007
T-mobile: try cutting price

T-mobile should reduce their plans. $50 for only $250MB is nowhere near good enough. Unlimited voice or text? Who needs that when you can easily make calls and SMS through data. What t-mobile should do is increase data to 3GB or unlimited, reduce voice and SMS and reduce the plan price to their earlier Pre-paid plans. Imagine 300 minutes, 3GB, 100 SMS for $35. I'd switch over in a heartbeat.
crashlander is offline   2 Reply With Quote
Old Jul 15, 2013, 11:29 PM   #25
LoloBond
macrumors 6502
 
Join Date: Nov 2011
This deal is complete crap... still better to buy the phone and resell after a year.
LoloBond is offline   4 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
AT&T Announces Upgrade to In-Store Smartphone Trade-In Program MacRumors iOS Blog Discussion 44 Sep 16, 2013 09:59 PM
AT&T Cuts Pricing on 'AT&T Next' Smartphone Upgrade Program, iPhone Now $1/Year Cheaper Than Verizon MacRumors iOS Blog Discussion 54 Aug 13, 2013 01:31 AM
You know you've been using a smartphone or tablet too much when... kylera Community Discussion 16 Feb 10, 2013 07:22 PM
How would you design your smartphone or tablet Melab Community Discussion 9 Sep 12, 2012 03:49 AM

Forum Jump

All times are GMT -5. The time now is 04:28 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC