I do find the auto leasing analogies interesting. Cell phone manufacturers and carriers seem convinced that upgrade fatigue is not an issue and in fact with the new plans are saying the desire will only accelerate. Maybe that is so but if the Moto X and "cheaper" iPhone end up being mid-range phones around $300 off-contract they are also hedging their bets. So like cars maybe the analogy is appropriate, I personally don't get a hard-on for the new car smell but to each their own if they want to pay for it.
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AT&T Rolls Out New 'AT&T Next' Smartphone and Tablet Upgrade Program
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I do find the auto leasing analogies interesting. Cell phone manufacturers and carriers seem convinced that upgrade fatigue is not an issue and in fact with the new plans are saying the desire will only accelerate. Maybe that is so but if the Moto X and "cheaper" iPhone end up being mid-range phones around $300 off-contract they are also hedging their bets. So like cars maybe the analogy is appropriate, I personally don't get a hard-on for the new car smell but to each their own if they want to pay for it.
Back on topic, as someone who gets a great discount with att this is not a bad deal. I can still most likely lose less buying a phone out right and then reselling it, but not everyone has $650. Some people prefer monthly payments over a big lump sum...hence credit cards. I can see the appeal of this plan.
I love how society functions today.
Businesses outright try to scam us, mislead us, and the media does nothing. Then the media reports, 'iPhone user electrocuted. Apple investigates. Story at 11'. And THAT is basically a lie too.
I remember the times where people at least TRIED to be honest.
So after all these companies "new plans" we wind up paying full price for the phones. I thought plans cost more to offset the subsidies of the phone. So in reality now we are just being over charged.
No wonder the cell carriers are excited about this. They will now start selling people unsubsidized phones while not changing the price of the rate plans. This is better then the two year contract for the carriers. Gee, where do I sign up!
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Welcome to America.
It's the same in the car business. People just look at their monthly cost rather then the total cost of their purchase and don't realize they are getting screwed. So what if that car loan has been spread out over 7 years, it's only $199 a month! Never mind that with interest you just added about $5k to the price of the car if you make all the payments and when you get tired of the car after 3 years and try to trade it in you will be upside down.
I worked in car sales for about 6 months right after college (hey, i needed a job). Saw this stuff all the time.
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Welcome to America.
It's the same in the car business. People just look at their monthly cost rather then the total cost of their purchase and don't realize they are getting screwed. So what if that car loan has been spread out over 7 years, it's only $199 a month! Never mind that with interest you just added about $5k to the price of the car if you make all the payments and when you get tired of the car after 3 years and try to trade it in you will be upside down.
I worked in car sales for about 6 months right after college (hey, i needed a job). Saw this stuff all the time.
Some leasing deals (for cars) make a lot of sense. (depending on depreciation costs and tax write offs) for many people.
Everyone does the math with car leases. Total payments vs. how much car would be worth after 27-48 month car lease.
ATT has already done the math with the Next program. And the math is clearly bad and heavily in favor of ATT.
It's like you wanting to lease a car with a total payment of 20000 (MSRP of car is 50000) after 36 months and you end up with nothing. Or paying full price for a car even with low interest payments and that same car would still be worth at least 25000 after 36 months.
That's what ATT is trying to sucker people. ATT says lastest iPhone will be worth $260 after 12 months.
I can tell you this. I can easily put up an ad for a 16GB iPhone 5 on craigslist at the 12 month mark and list it for $300 and sell it in less than 2 mintues and it's probably worth at least $350 or more and still sell easily after 12 months.
Oh no doubt it is in ATT's favor. I had the iphone 5 for 6 months and sold it for $525. I would fully expect to still get $400 for a perfect condition iphone 5. Also, att lets you upgrade to the newest iphone each year for $199 plus a $250 upgrade fee. Selling your old iphone 5 would almost pay for the iphone 5s. If you are an iphone user it makes zero sense to get on this plan.
They forgot to mention how much this lowers the current rate plans since you are not subsidizing it anymore!
So your saying I can now pay basically 2/3's the price of a new phone vs 1/3 the price you normally pay when its subsidized. Then trade it back to you after a year. It's basically like paying about 400 dollars more a year to be able to get a new phone each year. So really its like you are renting the phone for 400 dollars additional a year. I guess if you like throwing away money just to get the latest and greatest each year this gives you the option now. But I can't justify that much more money a year.
Right now I get a new phone every 2 years and sell my old one before buying the new one, usually at about the same price that I buy the new one (with the subsidized price). Sometimes even coming out ahead. I have actually owned almost every iphone, except the 4s. But I haven't actually paid a penny for a phone with my method over 6 years. With AT&T's new plan you will have paid 2400 dollars and have nothing to show for it as you don't get to keep them either! That's just insane!!! Hmm let me think about it, pay nothing for a phone and only get a new one every 2 years or pay an additional 4000 dollars a year on my cell phone bill.
AT&T I don't know how you do it, but you are the biggest most sleaziest and conniving company that has ever walked this planet! To be able to come up with a plan like this and most likely get people to buy into it, that takes skill. But it makes me hate you so so so much more!
So your saying I can now pay basically 2/3's the price of a new phone vs 1/3 the price you normally pay when its subsidized. Then trade it back to you after a year. It's basically like paying about 400 dollars more a year to be able to get a new phone each year. So really its like you are renting the phone for 400 dollars additional a year. I guess if you like throwing away money just to get the latest and greatest each year this gives you the option now. But I can't justify that much more money a year.
Right now I get a new phone every 2 years and sell my old one before buying the new one, usually at about the same price that I buy the new one (with the subsidized price). Sometimes even coming out ahead. I have actually owned almost every iphone, except the 4s. But I haven't actually paid a penny for a phone with my method over 6 years. With AT&T's new plan you will have paid 2400 dollars and have nothing to show for it as you don't get to keep them either! That's just insane!!! Hmm let me think about it, pay nothing for a phone and only get a new one every 2 years or pay an additional 4000 dollars a year on my cell phone bill.
AT&T I don't know how you do it, but you are the biggest most sleaziest and conniving company that has ever walked this planet! To be able to come up with a plan like this and most likely get people to buy into it, that takes skill. But it makes me hate you so so so much more!
you can always buy the $300 no contract phone like people do around the world. people in the USA want the latest phone
Where are you getting your numbers? T-Mobile's $50 plan is 500MB of "high-speed data" (unlimited 2G data afterwards). You don't pay overages of any kind after going over the 500MB, versus AT&T and Verizon, where you get charged anywhere from $15-$30 every time you use your allotment of data.
But outside the USA rate planes tend to be lower. Here it does not matter if you do the subsidized price or pay full price, the rate plan is the same. The only benefit to paying full price is its easier to unlock phones and you are not tied to the carrier (and for VZW customers they can keep their grandfathered data plan).
If this new plan AT&T is offering lowered your monthly plan cost $10-$20, it might be worth it. Otherwise it is a ripoff because you are now paying full retail for a phone with no reduction in rate plan.
you can pay lower monthly costs via straight talk, t-mobile and other prepaid carriers. just buy your own phone
straight talk is like $40 a month if you prepay and don't stream video
So im lost. This sounds like an amazing deal to me..What am I missing?
Lets say I wait till Sept 15 when I have owned my phone for a year. According to apples website I would pay the below.
16GB : Black & Slate
$649.00
No extension to your current contract commitment is required.
On September 15, 2013 you will be eligible to buy an iPhone for $449.00.
On September 15, 2014 you will be eligible to buy an iPhone for $199.00.
So in this case I pay $449 dollars. Or I can use this NEXT program and pay $32.50 a month and give it back to them after a year and do it all over again.
32.50 x 12=390 - 260(giving it back) = $130
I end up saving $319(449-130) each year..
Am I wrong? Why would anyone not do this? Keep in mind I get a new phone EVERY year.
Lets say I wait till Sept 15 when I have owned my phone for a year. According to apples website I would pay the below.
16GB : Black & Slate
$649.00
No extension to your current contract commitment is required.
On September 15, 2013 you will be eligible to buy an iPhone for $449.00.
On September 15, 2014 you will be eligible to buy an iPhone for $199.00.
So in this case I pay $449 dollars. Or I can use this NEXT program and pay $32.50 a month and give it back to them after a year and do it all over again.
32.50 x 12=390 - 260(giving it back) = $130
I end up saving $319(449-130) each year..
Am I wrong? Why would anyone not do this? Keep in mind I get a new phone EVERY year.
My words exactly. People often think how much per month, rather then how much in total.
Not going to stray off topic, but for me I'll stick with just getting my devices as I have been.
They don't give you $260 when you give it back. They just wipe out the balance you owe on the phone. You are still out the $390 you paid. You could also likely sell your old phone for more then the $260.
And you are double paying the cost of the phone since AT&T is not removing the $18.75 monthly "fee" (built into the monthly service charge) for a subsidized iPhone. So you always need to add in that $225 when comparing to a subsidized plan.
GL
OHHHHH! Its not as amazing then..
I guess its either $449 or $390.. So if you did this you would save 53 dollars a year.
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Not sure im aware of the $18.75 fee your referencing.
Buying a brand new phone every year is always going to be very expensive. I used to have that bug, now I keep my phones until they are no longer useable and find that I get buy just fine and I have a few extra bucks in my pocket.
Exactly.
Although the resale value of iPhones is much higher than other devices. So this may make more sense for the Android/WP crowd.
everyone keeps saying that at&t already increases their rate plan every month to subsidize the cost of the equipment, can someone please show me where at&t has ever said that this is the case? the threat of the ETF is how at&t subsidizes their equipment. whether you buy the equipment at a discount with a two year contract, utilize this new plan, or buy a phone at full price or provide your own phone the price of the rate plan stays the same. I love how everyone says "i would go to t-mobile in a heartbeat IF THEY HAD BETTER COVERAGE".....bingo, ding-ding-ding, guess why at&t and verizon's rate plans are more expensive (hint: it is not to subsidize the cost of the equipment). Again i challenge anyone to link a specific statement from at&t that says the rate plan price includes phone subsidizes.....and i don't want to hear "its obvious" or "everybody knows that is what they are doing"
oh and at&t haters have a read: HERE
oh and at&t haters have a read: HERE
True, but the subsidized prices of Android phones tend to drop much faster then the iPhone. There were outlets offering the GS4 for $50 less then a month after it was released. One $50 payment for a two year contract sounds like a better deal to me then $390 in payments for a year and then starting over again.
Seems to me the only thing I would be getting through this program is a perpetual $30+ addition to my bill every month.
Seriously? I mean, you're not wrong, but AT&T didn't build the iPhone. They don't deserve to make money off the hardware. They make a fortune off their service plans. The original reason they started subsidizing smartphones in the first place was to make it easier to r*** more people with their service plans. Now you think they're justified in being a middle-man peddler, selling you an iPhone for roughly double what you'd pay to buy from Apple directly? And it's worth it because OMG $0 DOWN!!