5S AT&T Next Users Upgrade to iP6?

[allthingsapple!]

Hmmm, I thought when you do the 12 month plan that you must trade in your phone to get another which is what the next is all about. You have to pay the additional amount over the last month to keep the phone which is like $200-300.

If you pay $32 a month for next for 12 months for the iPhone 5s thats $384. thats ridiculous for a 16GB iPhone.

 

[Steve686]

Bottom line is, whether or not we buy the phone at full retail price, or on the NEXT program, how long we keep or use it translates into a pseudo monthly cost. Sure, you can try to offset this by selling the phone and recouping some of the $$ especially if you paid full price, but chances are you aren't getting much more than half of what you paid.

Say I buy a phone for 800. I use it for 12 months until the next version comes around. Then, I sell it for $400. I've, in effect before selling it, accrued a usage amount of roughly $66 per month for the year. After I've sold it for half of what I paid for it, that amount breaks down to $33 per month for the year.

This is pretty close to in line with the prices that you are paying for the NEXT program per month.

Does this sound correct. Input if it is close to truth or way the hell off.

 

[C DM]

Hmmm, I thought when you do the 12 month plan that you must trade in your phone to get another which is what the next is all about. You have to pay the additional amount over the last month to keep the phone which is like $200-300.

You can trade it in and get a new phone, or you can keep it an keep on making payments until it's paid off and yours, or you can pay off the balance at almost any point and it's yours as well.

 

[allthingsapple!]

Bottom line is, whether or not we buy the phone at full retail price, or on the NEXT program, how long we keep or use it translates into a pseudo monthly cost. Sure, you can try to offset this by selling the phone and recouping some of the $$ especially if you paid full price, but chances are you aren't getting much more than half of what you paid.

Say I buy a phone for 800. I use it for 12 months until the next version comes around. Then, I sell it for $400. I've, in effect before selling it, accrued a usage amount of roughly $66 per month for the year. After I've sold it for half of what I paid for it, that amount breaks down to $33 per month for the year.

This is pretty close to in line with the prices that you are paying for the NEXT program per month.

Does this sound correct. Input if it is close to truth or way the hell off.

I still don't see the benefit of next...it all makes sense now though...the ATT rep just told me with NEXT you are NOT on a contract. That explains why you end up paying full retail price for the phone. With that, I will NOT be using NEXT. Contracts don't bother me.

 

[C DM]

I still don't see the benefit of next...it all makes sense now though...the ATT rep just told me with NEXT you are NOT on a contract. That explains why you end up paying full retail price for the phone. With that, I will NOT be using NEXT. Contracts don't bother me.

With contract you are paying pretty much the same full price of the phone over the contract period when you combine the initial subsidized price with the higher monthly fees. Now, it certainly depends on your plan, so if your plan doesn't give you a discount for being on Next (or having your own owned phone) or not enough of a discount, then, yes, a subsidized contract phone can certainly be a better option.

 

[allthingsapple!]

With contract you are paying pretty much the same full price of the phone over the contract period when you combine the initial subsidized price with the higher monthly fees. Now, it certainly depends on your plan, so if your plan doesn't give you a discount for being on Next (or having your own owned phone) or not enough of a discount, then, yes, a subsidized contract phone can certainly be a better option.

I still don't get it like I am sincerely confused as to how NEXT ends up being cheaper than a contract.

 

[RyanG]

I still don't see the benefit of next...it all makes sense now though...the ATT rep just told me with NEXT you are NOT on a contract. That explains why you end up paying full retail price for the phone. With that, I will NOT be using NEXT. Contracts don't bother me.

You end up paying pretty close to full retail over the course of your 2 year contact.

Easiest way to think of Next: Upgrade whenever you want (contracts you HAVE to wait 2 years to upgrade to get subsidized price; Next is whenever you pay it off) and the subsidy is now a separate line item on your bill. The device subsidy was always included in your monthly rate on contract. Don't think for a second AT&T didn't get full retail of the phone and more over the course of 2 years.

Next makes it more transparent to the customer about the subsidy instead of tying it into one lump monthly sum. It also helps get the FCC off their ass about contracts/ETFs.

Was it designed to save the customer money? Not in the slightest (although the more lines you have and higher data allowance it actually does in some cases). It allows AT&T to get the subsidy of your phone quicker since they front Apple/any manufacturer the money for the phone in which you pay over 2 years on contract, as well as appease FCC concerns.

I still don't get it like I am sincerely confused as to how NEXT ends up being cheaper than a contract.

I believe I explained it rather well above so if you still don't understand it, I would just forget about Next. Not to be rude, but with information available on the web, it's really not that hard to understand.

 

[allthingsapple!]

You end up paying pretty close to full retail over the course of your 2 year contact.

Easiest way to think of Next: Upgrade whenever you want (contracts you HAVE to wait 2 years to upgrade to get subsidized price; Next is whenever you pay it off) and the subsidy is now a separate line item on your bill. The device subsidy was always included in your monthly rate on contract. Don't think for a second AT&T didn't get full retail of the phone and more over the course of 2 years.

Next makes it more transparent to the customer about the subsidy instead of tying it into one lump monthly sum. It also helps get the FCC off their ass about contracts/ETFs.

Was it designed to save the customer money? Not in the slightest (although the more lines you have and higher data allowance it actually does in some cases). It allows AT&T to get the subsidy of your phone quicker since they front Apple/any manufacturer the money for the phone in which you pay over 2 years on contract, as well as appease FCC concerns.



I believe I explained it rather well above so if you still don't understand it, I would just forget about Next. Not to be rude, but with information available on the web, it's really not that hard to understand.

It kind of is hard to understand what the point of paying full retail price for a phone is when you can just pay $200 for a phone. That's what i'm confused about.

 

[C DM]

I still don't get it like I am sincerely confused as to how NEXT ends up being cheaper than a contract.

Since there are a few threads about this topic, I think you can take a look at the first post (OP) at https://forums.macrumors.com/threads/1771390/ to see an example of how Next can be cheaper.

 

[RyanG]

It kind of is hard to understand what the point of paying full retail price for a phone is when you can just pay $200 for a phone. That's what i'm confused about.

You're NOT just paying $200. You pay $200/$300/$400 UP FRONT; the subsidy is lumped into your bill, hence the device access discount for phones on Next. If you think you actually only pay $200 for a phone over 2 years on contract then I am speechless.

 

[C DM]

It kind of is hard to understand what the point of paying full retail price for a phone is when you can just pay $200 for a phone. That's what i'm confused about.

With full retail phone vs. a contract phone you are not locked in to the carrier for 2 years (or any amount of time), you also get an unlocked phone. Depending on your plan you are also going to pay less in monthly fees with a full retail phone than with a contract phone.

 

[allthingsapple!]

You're NOT just paying $200 You pay $200/$300/$400 UP FRONT; the subsidy is lumped into your bill, hence the device access discount for phones on Next. If you think you actually only pay $200 for a phone over 2 years on contract then I am speechless.

and then you pay the monthly phone bill? I don't sit and study phone bills so i don't know what "subsidy" is lumped into the bill. That's why i'm here asking about it. So if you aren't willing to help then i'm not sure why you keep responding to me...

 

[C DM]

and then you pay the monthly phone bill? I don't sit and study phone bills so i don't know what "subsidy" is lumped into the bill. That's why i'm here asking about it. So if you aren't willing to help then i'm not sure why you keep responding to me...

At least the last few posts (including what they might link to) should have cleared it up for you hopefully.

 

[allthingsapple!]

With full retail phone vs. a contract phone you are not locked in to the carrier for 2 years (or any amount of time), you also get an unlocked phone. Depending on your plan you are also going to pay less in monthly fees with a full retail phone than with a contract phone.

ohh so the NEXT phones are unlocked phones? And I have the lowest minute package ATT offers, unlimited text, and the 3GB data plan.

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At least the last few posts (including what they might link to) should have cleared it up for you hopefully.

I just don't think you all fully understand what i am asking. Because now it's kind of veered off into another discussion, "subsidy". I don't know about that. Like i said, I don't sit at home and study my phone bills. So to me, yes, I am "only paying 200 for a phone"

 

[RyanG]

and then you pay the monthly phone bill? I don't sit and study phone bills so i don't know what "subsidy" is lumped into the bill. That's why i'm here asking about it. So if you aren't willing to help then i'm not sure why you keep responding to me...

You don't need to study phone bills to understand it.

Let's say you buy an iPhone 5S 16GB from AT&T on a 2-year contract. You pay $200 + taxes up front. Before you even purchased that, AT&T purchased the phone from Apple at retail price, sometimes more (not sure if that is still the case with carrier to manufacturer contracts). They are out the difference between what you paid for the phone and the amount they bought it from Apple.

Now, over the course of your 2-year contract, that difference is divided up and added into your overall bill on a monthly basis. Over the course of 2 years you make up the difference (in most cases) between what you paid ($200) and whatever AT&T bought the phone for from Apple.

The bill on a contract doesn't break down the difference you owe, or "subsidy." They have always just said "okay you pay this for data, minutes and texts and that's it." It is all just lumped into what you view as your phone bill each month.

Does that help?

 

[C DM]

ohh so the NEXT phones are unlocked phones? And I have the lowest minute package ATT offers, unlimited text, and the 3GB data plan.

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I just don't think you all fully understand what i am asking. Because now it's kind of veered off into another discussion, "subsidy". I don't know about that. Like i said, I don't sit at home and study my phone bills. So to me, yes, I am "only paying 200 for a phone"

You are paying some money first to get the phone on a contract, and then you are paying let's say $40/month for the service on your line. If you buy the phone for full price (or if you do Next) then depending on your plan you can get a discount on the service on your line, for up to $25/month off, meaning you would be only paying $15/month for your service on your line.

So, compared to contract you can be paying $25/month more with a contract phone, and over 2 years that's basically $600 more that you are paying. Add that on to the $200 you paid in the beginning for the phone and over the contract period the phone cost you $800.

 

[allthingsapple!]

You don't need to study phone bills to understand it.

Let's say you buy an iPhone 5S 16GB from AT&T on a 2-year contract. You pay $200 + taxes up front. Before you even purchased that, AT&T purchased the phone from Apple at retail price, sometimes more (not sure if that is still the case with carrier to manufacturer contracts). They are out the difference between what you paid for the phone and what they bought it at Apple for.

Now, over the course of your 2-year contract, that difference is divided up and added into your overall bill on a monthly basis. Over the course of 2 years you make up the difference (in most cases) between what you paid ($200) and whatever AT&T bought the phone for from Apple.

The bill on a contract doesn't break down the difference you owe, or "subsidy." They have always just said "okay you pay this for data, minutes and texts and that's it." It is all just lumped into what you view as your phone bill each month.

Does that help?

Yes that does help a lot more. so basically from my understanding, in the end we all end up paying full retail price its just with contracts you don't get to keep the phone you just payed &700 for (unless you finish the 2 years which I never do) whereas with next you do? Also next is "more expensive" over the months where as contracts are "more expensive" up front? is that right?

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You are paying some money first to get the phone on a contract, and then you are paying let's say $40/month for the service on your line. If you buy the phone for full price (or if you do Next) then depending on your plan you can get a discount on the service on your line, for up to $25/month off, meaning you would be only paying $15/month for your service on your line.

So, compared to contract you can be paying $25/month more with a contract phone, and over 2 years that's basically $600 more that you are paying. Add that on to the $200 you paid in the beginning for the phone and over the contract period the phone cost you $800.

got it! that makes sense. Now I am considering NEXT...the only thing is I wish I wouldn't have gotten my iPad (which i rarely use) on next bc that runs my bill a lot higher than what it would've been with just my iPhone on next (which i use daily).

 

[RyanG]

Yes that does help a lot more. so basically from my understanding, in the end we all end up paying full retail price its just with contracts you don't get to keep the phone you just payed &700 for (unless you finish the 2 years which I never do) whereas with next you do? Also next is "more expensive" over the months where as contracts are "more expensive" up front? is that right?

You get to keep your phone when you purchase it on contract. If you cancel your contract before the 2 years though, that's where the carrier's ETF (early termination fee) kicks in. On AT&T, I believe that number starts around $325 and decreases by $10 each month you pay your bill on contract.

So let's say you decide you want to cancel your contract and keep your phone after 2 months. Your final AT&T bill will include the access charges that month AND the ETF, which is $305 at that point. This fee is to recoup the difference between your $200 purchase price and what AT&T bought it from Apple.

Alternatively, I think you could return the device to AT&T if you didn't want to pay that ETF but I wouldn't quote me on that.

 

[allthingsapple!]

You get to keep your phone when you purchase it on contract. If you cancel your contract before the 2 years though, that's where the carrier's ETF (early termination fee) kicks in. On AT&T, I believe that number starts around $325 and decreases by $10 each month you pay your bill on contract.

So let's say you decide you want to cancel your contract and keep your phone after 2 months. Your final AT&T bill will include the access charges that month AND the ETF, which is $315 at that point. This fee is to recoup the difference between your $200 purchase price and what AT&T bought it from Apple.

Alternatively, I think you could return the device to Apple if you didn't want to pay that ETF but I wouldn't quote me on that.

okay got it! that makes a little more sense. thanks!

 

[RyanG]

okay got it! that makes a little more sense. thanks!

No problem. I apologize if I was a bit rude- that wasn't my overall intent. I just see a lot of confusion spread about Next due to misinformation posted by other forum members (C DM is not who I'm referring to).

 

[allthingsapple!]

No problem. I apologize if I was a bit rude- that wasn't my overall intent. I just see a lot of confusion spread about Next due to misinformation posted by other forum members (C DM is not who I'm referring to).

no problem at all. I apologize as well if I came off rude. I constantly hear different things thats why I joined this forum yesterday to hopefully get a better understanding. The lady at the ATT store was no help so I decided to find my own answers.

 

[mhdena]

If you have an older plan with unlimited data, the subsidy is better, IMO.

Now AT&T would like everyone to be on Next, why? because most people on Next will pay the former subsidized cost of the phone every year. They didn't have 2 tier price plans on the family talk and those prior.

Next is a brilliant idea for AT&T, the head guy admitted he hates subsidized phones and unlimited data. Once they are able to convince someone to give up an old plan they ring a bell in celebration at the home office.

Mobile share plans are designed to get as many lines per household as possible, knowing it will be harder to leave.


I have
450 minutes anytime
5000 night & weekend
Mobile to any Mobile
Unlimited Text
Unlimited Data
Rollover
A-List
Fan
$70 and change per month

 

[tx2005]

On the new mobile share plans it's clear what the price differences are for contract vs non contract (40 vs 25 or 15 on that additional fee).

For those of us on old plan structures, $40 for my calling, $20 texts and $30 for 3 gb data, is the subsidy built into pricing out those plans? I always assumed you got the same rates with a contract phone or paid in full phones on the old plan structures.

 

[mhdena]

The old plans the subsidy was the cost of doing business.

There were no 2 tiered plans prior to mobile share.

May sound good, but is better for AT&T

 

[cnotes2019]

If you have an older plan with unlimited data, the subsidy is better, IMO.



Now AT&T would like everyone to be on Next, why? because most people on Next will pay the former subsidized cost of the phone every year. They didn't have 2 tier price plans on the family talk and those prior.



Next is a brilliant idea for AT&T, the head guy admitted he hates subsidized phones and unlimited data. Once they are able to convince someone to give up an old plan they ring a bell in celebration at the home office.



Mobile share plans are designed to get as many lines per household as possible, knowing it will be harder to leave.





I have

450 minutes anytime

5000 night & weekend

Mobile to any Mobile

Unlimited Text

Unlimited Data

Rollover

A-List

Fan

$70 and change per month

How is it harder? Pay the balance on the phone and leave correct ? Same as paying the etf on a contract.