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Apple Store No Longer Sells iPhone With 2-Year Contract on AT&T

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Apple overnight removed the option to purchase a new iPhone on a two-year contract with AT&T on the Apple Online Store, eliminating the ability for customers to purchase an iPhone for a subsidized price of $199 or $299 through the carrier. Apple now sells iPhones on AT&T exclusively through the AT&T Next carrier financing program, while two-year contracts remain available through Verizon and Sprint.

ATT-Next-iPhone-Apple-Store.png

AT&T Next allows a customer to purchase a new iPhone for $0 down and make equal payments for 12, 18 or 24 months until the full price of the smartphone has been paid, at which point the device can be traded in for a new iPhone. The full price breakdown for each iPhone model on AT&T Next, available through both the Apple Online Store and Apple Retail Store, is listed below.

iPhone 6
- 16GB: From $21.64/month
- 64GB: From $24.97/month
- 128GB: From $28.30/month

iPhone 6 Plus
- 16GB: From $24.97/month
- 64GB: From $28.30/month
- 128GB: From $31.64/month

The shift away from two-year contracts is not specific to Apple or iPhone, but rather part of a larger move by AT&T. Droid-Life reported last month that AT&T would begin moving away from two-year contracts on June 1, although the report claims that the option will remain available through AT&T's website, company-owned retail stores, local dealers via direct fulfillment and customer service.

Article Link: Apple Store No Longer Sells iPhone With 2-Year Contract on AT&T
 
Article Link
https://www.macrumors.com/2015/06/05/apple-store-iphone-att-next-only/
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garylapointe

garylapointe

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Feb 19, 2006
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Not sure what that'll mean in the long run...

Can I still buy an iPhone from them for my current contract (not Next)?

Will AT&T continue to let me buy an iPhone for my current contract? (it looks like it for now)

If I've got to switch my plan, I'll probably shop around. That can't be good for them...

Gary
 
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d0minick

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Mar 8, 2011
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then i guess ill be passing on this years iphone. horrible decision.


jeremypodom said:
I do a lot of iPhone upgrades at my job for AT&T. 9/10 people choose 2 year contracts. AT&T could go out of business for this.
Click to expand...

Also in the same boat. Though the clients won't mind, i often urge them to stay up to date.
 
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solarguy17

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Sep 10, 2007
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d0minick said:
then i guess ill be passing on this years iphone. horrible decision.
Click to expand...
Well that it just means you won't be able to buy the phone at the Apple Store with a contract. But you should still be able purchase a phone through the ATT store on contract.
 
theFly

theFly

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Mar 6, 2003
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Having looked at this, the new program is better for the user. After you've paid off the phone, you no longer pay the phone surcharge like you did with the 2-year contract (i.e., if you keep your phone longer then two years, your bill doesn't go down). You're free to keep your phone after that, but if you want to upgrade earlier, then you have to trade in your phone.

Of course, you're always free to purchase the phone outright, from what I'm hearing, on the new plan, they'll still honor the Unlimited plan folks.

I'd expect Verizon to follow this before the next iPhone comes out.
 
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netnothing

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HobeSoundDarryl

HobeSoundDarryl

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jeremypodom said:
I do a lot of iPhone upgrades at my job for AT&T. 9/10 people choose 2 year contracts. AT&T could go out of business for this.
Click to expand...

Isn't that likely price driven? With 2-year contact, get the new iPhone for only $199?

The new plan is $0 down for a new iPhone and you pay it out over 12-24 months. Nothing really changes much except customers attracted to $199 might be even more attracted to $0.

I think you are thinking that the end of 2-year contracts means having to pay full price up front for iPhones. That doesn't appear to be the new version of the (same) game.

From my perspective, unbundling the purchase of the phone from a contract appears to be great for consumers. Conceptually, the old way could have a fixed monthly rate carry on well after the cost of the phone is recouped. The new way appears to be a no-interest loan for the cost of the phone which, once it's paid off, falls off of the monthly bill for the balance of the time one might keep using that phone. Paired with shifting from generally $100-$200 down to $0 down, it seems they can sell more phones AND actually deliver a better value for their clients (the latter of which seems very un-AT&T-like... so I must be missing something here).
 
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s8film40

s8film40

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theFly said:
Having looked at this, the new program is better for the user. After you've paid off the phone, you no longer pay the phone surcharge like you did with the 2-year contract (i.e., if you keep your phone longer then two years, your bill doesn't go down). You're free to keep your phone after that, but if you want to upgrade earlier, then you have to trade in your phone.

Of course, you're always free to purchase the phone outright, from what I'm hearing, on the new plan, they'll still honor the Unlimited plan folks.

I'd expect Verizon to follow this before the next iPhone comes out.
Click to expand...
The "discounted" next plan is more than my current plan so for me this represents buying the phone outright and raising the monthly cost of my plan.
 
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Locoboof

Locoboof

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jeremypodom said:
I do a lot of iPhone upgrades at my job for AT&T. 9/10 people choose 2 year contracts. AT&T could go out of business for this.
Click to expand...

We can still get the two year upgrade,it just won't be through apple. This is AT&T jamming us up to buy through their stores and website.

I always pre-order or sleep outside a Apple Store every year. Now I have to pre-order on AT&T's site to do a two year and keep my unlimited.

Not even so much keep my unlimited,but I'd rather just pay for my phone outright.
 
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bbeagle

bbeagle

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jeremypodom said:
I do a lot of iPhone upgrades at my job for AT&T. 9/10 people choose 2 year contracts. AT&T could go out of business for this.
Click to expand...

Why? If you look at the details, it's actually CHEAPER.

Pay $199 for a phone on Verizon or Sprint, but pay $0 for a phone on AT&T Next

$21/month is $504 after 2 years. But you get a savings of $15/month off your bill by going with AT&T Next - so you save $340 - actual cost is $504-$340 = $164. CHEAPER.

I actually think you'll get many more people making the switch TO AT&T when they find they can get a phone NOW for $0, and the other carriers force them to pay $200 up front. People will ignore the fact (at purchase time) that their bill will go up month to month. Then, of course, they'll complain later.
 
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Locoboof

Locoboof

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HobeSoundDarryl said:
Isn't that likely price driven? With 2-year contact, get the new iPhone for only $199?

The new plan is $0 down for a new iPhone and you pay it out over 12-24 months. Nothing really changes much except customers attracted to $199 might be even more attracted to $0.

I think you are thinking that the end of 2-year contracts means having to pay full price up front for iPhones. That doesn't appear to be the new version of the (same) game.
Click to expand...

You also loose your unlimited plan by choosing AT&T next...
 
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solarguy17

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Sep 10, 2007
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kbmb said:
Not likely......AT&T will be transitioning away from the 2 year contracts as well.
http://time.com/money/3907384/att-contracts-subsidized-phones/

Sad really, as the contracts were always slightly less expensive if you had under 10GB data plan.

-Kevin
Click to expand...

Yeah I saw that rumor. But there article quoted for this macrumors article mentions that contracts will still be available at the ATT stores.
But it its NEXT or no upgrade. I'll just switch to Verzion. Their plans are cheaper.
 
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bidwalj

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Feb 16, 2007
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Wonder how preorders will work for those that are on this plan going forward. Might have to pay off the phone first.
 
Rogifan

Rogifan

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Nov 14, 2011
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I can't speak to unlimited plans because I don't have one but other than that how is Next worse than the 2 year contract? Either way you're paying off the phone in installments.
 
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