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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?
That's what they are getting closer to by phasing out contracts. People are just unwilling to accept that phones are actually expensive when faced with the real unsubsidized price.
 
It almost seems like telecoms are unwilling to lower their service charge for unsubsidized phones vs subsidized, they just no longer want to subsidize the phone but they still want an absurd amount each month to give you a bit of bandwidth. And how is text and data and voice all really separate things you add up? Aren't they all just prioritized data nowadays? They make it sound like and bill you like they are 3 separate things.
 
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Same here. I've been with ATT from the start (very first iPhone) and always choose the 2 year contract. I sell my previous phone for around $200 every two years and then sign up for a new contract. Since I only use 300mb of data or less, my bill is $68 a month. Last fall, I went to an ATT store and called their 800 number before buying the new iPhone 6, from my calculations, I would save a couple hundred of dollars sticking to the 2-year contract over the NEXT program. So this doesn't seem to be good news if they won't allow me to do this when the iPhone 7 comes out. Also, my GF is grandfathered into the unlimited data, will they not allow this either? Could be bye-bye AT&T for me.


I'm on a really decent plan with unlimited data, so the Next plan had some savings, and would allow me to tether, but I'm thinking I lose the unlimited data (no unlimited data with the tethering, right?). I want the easy tethering!

The annoying part is when I got the iPhone and switched to AT&T they had unlimited data and announced tethering, they just never honored both at the same time...

Gary
 
I'm on a decent plan with unlimited data, so the plan had some savings, but would allow me to tether, but I'm thinking I lose the unlimited data (no unlimited data with the tethering, right?).

The annoying part is when I got the iPhone and switched to AT&T they had unlimited data and announced tethering, they just never honored both at the same time...

Gary
 
It almost seems like telecoms are unwilling to lower their service charge for unsubsidized phones vs subsidized, they just no longer want to subsidize the phone but they still want an absurd amount each month to give you a bit of bandwidth. And how is text and data and voice all really separate things you add up? Aren't they all just prioritized data nowadays? They make it sound like and bill you like they are 3 separate things.

I don't know why there is so much vitriol over the carriers when they make pennies in profit compared to what Apple makes. Why isn't anyone asking Apple to lower their absurd prices for smartphones?
 
I don't know why there is so much vitriol over the carriers when they make pennies in profit compared to what Apple makes. Why isn't anyone asking Apple to lower their absurd prices for smartphones?

Apple charges the same price Samsung, Sony, HTC, etc, charge for their flagship phones. These prices are not unique to Apple.
 
Apple charges the same price Samsung, Sony, HTC, etc, charge for their flagship phones. These prices are not unique to Apple.

Unfortunately, all the others are just following Apple's lead. The one thing they all have in common is the carrier subsidy which is now going away. Without the subsidy, I'm not sure Apple can command the margins it does on the iPhone. Their other iOS devices don't have those margins because they don't get the subsidy.

With all the confusion on this thread about subsidized pricing, it may actually make buyers think twice before spending close to a grand on a phone. Hopefully, that puts some realistic pricing into the iPhone.
 
You can still get it at AT&T on their site (at least for now...) on the 2 year plan.
ATT%20iPhone%206Plus_zps4ekypvgy.jpg
 
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?

When I deciding between 2 year contract or Next for iPhone 64GB
2 Year Contract: $299 + (80.00/month X 24) + $40 activation fee = $2259.00
AT&T Next: ($31.21/month + 65.00/month) x 24* + $0 activation fee = $2309.04
*Can upgrade and opt out to a new phone after 18 months

Basically Next is $50.00 more then a 2 year contract however you can upgrade your phone after 18 months
 
Unfortunately, all the others are just following Apple's lead. The one thing they all have in common is the carrier subsidy which is now going away. Without the subsidy, I'm not sure Apple can command the margins it does on the iPhone. Their other iOS devices don't have those margins because they don't get the subsidy.

With all the confusion on this thread about subsidized pricing, it may actually make buyers think twice before spending close to a grand on a phone. Hopefully, that puts some realistic pricing into the iPhone.

Apple did not invent expensive phone prices. Even the first Motorola Razr was crazy expensive. 500 bucks WITH a contract in 2004. $600 in 2003. Let's not make things up here.

http://www.engadget.com/2004/12/06/hands-on-with-motorolas-razr-v3-for-cingular/
 
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Apple did not invent expensive phone prices. Even the first Motorola Razr was crazy expensive. 500 bucks WITH a contract. And that is 100 bucks less than it was the year prior in 2003. Let's not make things up here.

http://www.engadget.com/2004/12/06/hands-on-with-motorolas-razr-v3-for-cingular/

That was more than 10 years ago! Do you know what's happened to prices of other consumer electronics in 10 years? Even the iPad with better internals, bigger battery, and better screen is cheaper than an iPhone.
 
That was more than 10 years ago! Do you know what's happened to prices of other consumer electronics in 10 years? Even the iPad with better internals, bigger battery, and better screen is cheaper than an iPhone.

Dang. You really missed the point here huh. Lol.
 
Quick comparison for those with grandfathered unlimited iPhone accounts. Numbers are for family iPhones, lowest model current generation iPhone. The grandfathered upgrades require $40 upgrade fee, which I added though most of us can get those waived or partially waived.

Yellow is the breakeven plan for the grandfathered unlimited, taking advantage of the current 2-year subsidy. Green is the breakeven plan if AT&T entirely removes subsidized upgrades.

Mobile Share becomes better the longer you keep your iPhone.

Ro8ISJq.png



As some of you can see, the grandfathered accounts are real cost savings. Why there are some in these forums that are greatly upset if 2-year contract upgrades are eliminated entirely.

Hopefully this helps to clearly show savings with grandfathered unlimited. And where you need to be to see any savings, seems like they are pushing more people into mobile share.
 
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Contracts and subsidized phone deals are lame. We have been using AT&Ts go phone plan for a while now and it works great. Sure, we have to buy the phones outright but if you wait for sales or deals you can make it work in your favor. The beauty is that for $40 bucks a month we have unlimited everything and the service level is excellent. And, unlike contracts there are NO ticky tack fees or extra charges. It's just $40 a month plus sales tax. That's it.

Recently we bought two LG G3s from Best Buy on sale. Paid $350 each. We own them. No BS or contracts or other gimmicks. Great phone too. Such a simple way to do this cell phone thing. But, people are still hoodwinked into thinking they are getting their iPhone 6 or Whatever for $200 bucks. No, you are NOT.
 
Contracts and subsidized phone deals are lame. We have been using AT&Ts go phone plan for a while now and it works great. Sure, we have to buy the phones outright but if you wait for sales or deals you can make it work in your favor. The beauty is that for $40 bucks a month we have unlimited everything and the service level is excellent. And, unlike contracts there are NO ticky tack fees or extra charges. It's just $40 a month plus sales tax. That's it.

Recently we bought two LG G3s from Best Buy on sale. Paid $350 each. We own them. No BS or contracts or other gimmicks. Great phone too. Such a simple way to do this cell phone thing. But, people are still hoodwinked into thinking they are getting their iPhone 6 or Whatever for $200 bucks. No, you are NOT.

Like everything here it depends. Really have to run the numbers for your situation. When I ran the numbers initially, the family plan provided more savings. Plus kids (if you have any) can take advantage of unlimited text for extra 10-15 a month.

But if I couldn't take advantage of a family account, Yes normally a single line prepaid are great deals.
 
BUT...does it end? So yes if you upgrade each cycle it could end up being cheaper..but what if you don't? Say someone got a new iPhone and held on for 3 or 4 years (yes parents do this) are they still paying $21 a month? Yes it is $504 after 2 years, but if that is a fixed rate, it's over $1000 for 4 years. My guess is that ATT starts making a lot of $$$ on people who don't upgrade.

I have ATT and been grandfathered in. Each year I sell my old phone on Gazelle and my new phone is very inexpensive..contract renewal years it's free (or I make money) after selling..off years it still only costs me a few hundred (paying full price and selling the old phone)

I always have bought my phone at the Apple store. Look like I may be switching to T-Mobile or some other one if this is the new deal...

Yes. It ends after the full price of the phone is paid off. The length of the payment term is described in the version of Next chosen. I bought my wife's iPhone 6 on Next 12... Meaning she can upgrade after 12 months - but payments are divvied up to 20 payments. So total cost is 750/20, so 37.50 per month, then totally eliminated once it's paid off, which you can do at any time (and I did)... So monthly costs are $15 access + monthly device payment until paid off, versus $40 access cost forever. After 2 years, you always have saved money as the extra 25 you spend per month amounts to 600... Yet the subsidy itself is 550 after down payment, and that extra 25 dollars never goes away.
 
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