Do we have to use this new plan, ATT next if we want to update an iphone every year? can we still buy the phone subsidised or partially subsidised without doing their crazy plan and trade in?
Thanks yeah not clear if the old annual upgrade options was available. Guess we'll find out when the new iphone comes out and for people who got the 5 in the past 8-12 months.
What annual upgrade are you referring to?
... but there is no doubt that many of the carriers are changing the choices.
Agreed. I'd sit tight right now if I was out of contract. I certainly wouldn't extend any contracts.
I expect this rumored 'cheap iPhone' to shake the market up considerably. I think the carriers expect it too. Why else are they scrambling to push 'good' deals all of a sudden? Somethings changing. Something big. What seems a 'good' deal now may look like golden handcuffs in a few months.
Here is the big concern:
If all the major carriers go this new "early upgrade" route, and make it the new norm and mandatory for all consumers, they have effectively found a way to fleece the consumer of approx $160 per year by effectively ending the premise of the cel phone subsidy in exchange for 2 year contract days. For most people, signing a 2 year contract in exchange for $500 off their phone purchase is a great deal. Most people are not going to change their cel phone provider in less than 2 years anyways, so getting $500 off a phone in exchange for services they were already going to receive is a huge savings.
With the new plans, that subsidy goes away, but the average person is no more likely to switch their carriers. Essentially, they are forfeiting the subsidy (as well as ownership of their phone) for the ability to go to a different carrier at any time, but the other major carriers won't be offering a subsidy either, so there is little to gain from a switch (taking reception and customer service preferences out of the equation).
This is all VERY concerning and could be incredibly costly every consumer.