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Apple Store No Longer Sells iPhone With 2-Year Contract on AT&T
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First off we don't know if they'll start selling them outright on day one. And we are on here discussing EVERYONES situation....please read the last 16 pages.
I also like being able a to SELL MY PHONE FOR 300.00 like I do every year. It's not a big deal...I'll just end up buying it from AT&T instead of apple at midnight.
I might pay higher,but I also get to do what I want with my phone after. Weather it be sell it or give it away.
And I want to keep my unlimited. I might be in the minority,but if you read,I'm not alone.
This is my exact plan and I refuse to let it go. Every time I upgrade an ATT person tries to upsell me and they always end up telling me my current plan is the cheapest possible plan.
What extra charges? Activation fees waived fee for me. What's the such? A lot of heresay and nothing concrete.
Which is exactly why most people are complaining that Next screws us grandfathered users over. Either way I'm paying more.
I'm so confused. How is Next cheaper for me? I pay:
$39.99 a month for 400 minutes
$20.00 a month for unlimited text
$30.00 a month for unlimited data
$89.99 a month for my plan.
$~3.50 a month in "surcharges"
$~5.00 a month govt taxes and fees
~$100 a month TOTAL for my ATT service.
$199 to renew my expired 2 year contract with a new phone
vs
~$100 a month TOTAL for my ATT service
$519.36 in cost of the phone over 24 months
What am I missing from the Next supporters?
$39.99 a month for 400 minutes
$20.00 a month for unlimited text
$30.00 a month for unlimited data
$89.99 a month for my plan.
$~3.50 a month in "surcharges"
$~5.00 a month govt taxes and fees
~$100 a month TOTAL for my ATT service.
$199 to renew my expired 2 year contract with a new phone
vs
~$100 a month TOTAL for my ATT service
$519.36 in cost of the phone over 24 months
What am I missing from the Next supporters?
Wait. If the monthly plan price is the same, then instead of paying a subsidized price over two years to own your phone, you are paying full price over two years to own your phone. Same result, you just pay hundreds more. Why would anyone want that? I must be missing something here.
That's what I'm saying! It only makes sense if they lower the monthly plan cost by taking out that subsidy you're already paying.
I called AT&T today and did the next deal. We were paying $103 for 2 phones. With the next plan we are paying $159 for 2 phones with the same 3GB family share. The extra $56 is for a 6plus 128GB and a 6 64GB for 30 months which is the exact cost of the contract free phones, $950 for the plus and $750 for the 6. So we are getting a 0% interest loan from AT&T. The $1700 is worth more today than it will be in 30 months so I don't see any downside. We also have 2 iPhone5s' (Not 5S) that we can sell or pass on to other family.
As keeps on being mentioned in many replies, Next works out better for some on the current plans with more data, while not so much for quite a few others, especially those with single lines or perhaps a couple of lines on older plans (mostly because there is no discount that is applied to those to offset the included subsidy).
Right,
at&t wants to get people off of the grandfathered plans. However they will still be doing two year contracts at their stores, just not apple stores or third parties.
All companies will most likely follow with this until the 2 year is completely eliminated.
The problem is that the phone plans are too expensive. Unlike other countries where you have to buy full price and their phone plans are cheaper. ALL of us in the US are getting screwed. We are paying for the full price of the phone and then paying the same service fees.
Verizon right now has better plan options because you can get the 15$ line fee with their 6gb plans.
Sorry, which plan does ATT provide that has more data than my unlimited data plan?
"mostly because there is no discount that is applied to those to offset the included subsidy" Are you saying that on brand new 2 year agreements, a user will pay my $89.99, plus my ~$10 in taxes and fees, plus an additional amount to cover the cost of the $199 phone they purchase?
It looks like AT&T is trying to go away from subsidized phones, which is bad for consumers with multiple lines(family plans), which basically means that someone in the family(one line) can get a brand new iPhone every year for very little money at the expense of AT&T.
The old hardware can be sold to make up for the upgrade cost, making it very attractive for the consumer and less desirable for AT&T because the consumer would have been paying the same monthly service fees regardless.
The AT&T Next plan simply lowers your monthly service costs, but you're amortizing the cost of the iPhone over 24 months. So, the cost of the monthly service fee under next + the amortized cost of iPhone over 24 months is your total phone bill.
The iPhone price is a hard fixed price set by Apple and getting a new iPhone at $200 or $300 is a great deal by simply signing a 2-year service contract.
Bottom line, I hope AT&T doesn't eliminate the 2-year contract option.
The old hardware can be sold to make up for the upgrade cost, making it very attractive for the consumer and less desirable for AT&T because the consumer would have been paying the same monthly service fees regardless.
The AT&T Next plan simply lowers your monthly service costs, but you're amortizing the cost of the iPhone over 24 months. So, the cost of the monthly service fee under next + the amortized cost of iPhone over 24 months is your total phone bill.
The iPhone price is a hard fixed price set by Apple and getting a new iPhone at $200 or $300 is a great deal by simply signing a 2-year service contract.
Bottom line, I hope AT&T doesn't eliminate the 2-year contract option.
All I know is AT&T told me I had to pay activation fees as well as $40 a month extra forever. It came out to be insanely stupid to not do next.
The $40 dollars a month they told you about, you were already paying. There's nothing extra about it, they likely calculated that as the subsidy price you're paying for your phone on contract in your monthly bill. It sounds like a salesmen did their job really well in making you think you were being charged extra for something everyone is charged for. Though Next does end up being a little bit cheaper than a 2 year contract if you aren't a grandfathered customer. You need to be a little more aware of their terminology and do some research.
I agree. Too many emotions in here. This will not hurt at&t at all. Eventually as data use continues to rise all carriers will be forced to separate the phone from the plan. I doubt you will be able to go on contract even at an at&t store by the end of the year.
Everyone loves T-Mobile's product. However, they are now seeking a merger with Netflix to sustain their generosity.
Whether you like, or despise Randall L. Stephenson, I guarantee at&t will be around after most of us have departed. He understands his markets risks better than most CEO's.The Next Plan has been well thought out. Many opt for that $30 a month interest free payment as opposed to $299,$399, $849 up front.
While were on the subject of Cell Phones and "I'll never give up my unlimited data plan as long as I live." Very soon you will no longer have Unlimited Home Internet (yes, your Wi-Fi.) It's coming, say, $49.99 per 100g of access?
Lots of things to be concerned with other than just your Mobile Phone.
Understood. But that unlimited data plan with the cost of a phone built into it is STILL a better value than a base plan today. So buy buying a full price phone while still paying that grandfathered built-in price every month is still a better plan than the new plans today.
Verizon Edge or AT&T Next are actually good for early upgraders like you and me. You dont need to trade your old device. Just pay off the remaining installment balance remaining on your phone and then upgrade. No need to trade in then.
Problem with AT&T next is that Verizon edge is little bit superior. For the savings to kick in for Next plan, you need the $15 access fee, which you will get on 10GB plans. For Verizon, you can go with a cheaper 6gb plan to get the $15 access fee option. If you pay more than $15 access fee however, the next or edge plans become a little more expensive.
Sorry folks, but Interest-free loan with $0 down > 2 year contract.
I love time value money.
I love time value money.
I dont know about Next. I have Verizon Edge with 5 users. For me Edge is superior since it is cheaper.
For example, I have 10GB data for $80, which means $16 per user. With verizon edge, I am paying $27.08 for each iphone per month and $15 monthly access fee. So per user, the cost comes to $16 + $27.08 + $15 = $58.08. Over 24 months, the cost will be $58.08* 24 = $1393.92. I did not have to pay any upgrade fee, any activation fee or any $200 initial up front.
Now if I had to buy in 2 years contract, I would have to pay $200 upfront for each iPhone 6 and $30 upgrade fee. Monthly it would have been $40 access fee with $16 data cost per user = $56 per month. So over 24 months, I pay $200 + $30 + $56 * 24 = $1574. More expensive on 2 year contract.
Plus I can easily upgrade each year. Just pay off remaining balance on my phone with cash, sell my phone and upgrade with $0 at initial and the cycle repeats.
The more data is referenced relative to the data options provided by the current plans. It wasn't a comparison to older plans, which, again, as I (and various others) mentioned, generally don't work well with Next.
With a contract they subsidy is there that you are paying as part of the plan. With Next your payment is still the same with the subsidy but also with be additional phone payment.
that's because you switched over to the shared data plans.
att and verizon restructured BOTH the subsidy -> next/edge AND familyplans w/ individual data -> shared data plans.
remember on the old plans they only have a 9.99 a month access fee. by raising that fee to 15. along with other changes, it disincentives subsidized pricing.
in short once you are on a shared everything plan next/edge works out better financially cuz those plans are designed that way. but for people grandfathered in on older plans next/shared data plans can--and often do--end up being more expensive.
other way around. they are good for people that NEVER upgrade because the monthly payements are lower. as soon as you start upgrading your phone, you end up paying as much or more either through the outright phone purchase or the financing.
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there is also a time value of money on the 400 subsidy savings. furthermore i'd be a lump sum vs the monthly annuity you pay for the financing.
Why do we have to make purchasing something so simple as a cellphone so complex and convoluted to where you need to be a Phd in economics to figure out what it actually costs and which plan is better? I am amazed we just don't buy phones and subscribe to networks to use those phones as two entirely separate ideas still. I mean I know doing that is possible but it seems almost no one does. Is this our fault or the telecoms?