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

[31 Flavas]

I think it also reflects that voice and text are basically free while we use more data now for everything.

Yea, you can split the hair how ever you want. I'm not trying to or attempting to claim the cost of service hasn't increased. I just was trying to differentiate it from a defacto rate increase, as in, we're charging more for service.

They increased price by eliminating choice. Or as AT&T positioned it -- They "streamlined" contracts for the benefit of their customers.

 

[imlynxy]

Yea, you can split the hair how ever you want. I'm not trying to or attempting to claim the cost of service hasn't increased. I just was trying to differentiate it from a defacto rate increase, as in, we're charging more for service.

They increased price by eliminating choice. Or as AT&T positioned it -- They "streamlined" contracts for the benefit of their customers.

Exactly! sounds like they care! We do it for your satisfaction even you don't want it.

And ... people say something about FREEDOM here

 

[wolfpackfan]

I went ahead and upgraded my wife's 5 to a 6 Plus (being delivered today) just to make sure we kept our unlimited data and 2 year contract. First time I've purchased an iPhone from AT&T. Have always gone through Apple before. I had planned on upgrading her when the 6S Plus comes out, but I figure it won't be that much of an upgrade and I didn't want to take a chance of AT&T removing the 2 year option completely. I know people report you can keep unlimited with Next, but I just don't want to take a chance. My wife is on her iPhone constantly and uses a lot of data.

 

[imlynxy]

I went ahead and upgraded my wife's 5 to a 6 Plus (being delivered today) just to make sure we kept our unlimited data and 2 year contract. First time I've purchased an iPhone from AT&T. Have always gone through Apple before. I had planned on upgrading her when the 6S Plus comes out, but I figure it won't be that much of an upgrade and I didn't want to take a chance of AT&T removing the 2 year option completely. I know people report you can keep unlimited with Next, but I just don't want to take a chance. My wife is on her iPhone constantly and uses a lot of data.

You can also open additional line, buy iphone on it. Then transfer you upgrade eligibility from UDP line to 9.99 line, it will be off contract and contract transferes to your UDP line, call att and close it. This is a loophole Vezizon Wireless unlimited users do. ( with vzw you should not turn on the phone, swap sim cards first)
I bought iphone 6 128 on one line with Apple last day, but decided to take a chance and returned it.

 

[Zetaprime]

Is there a shorter installment plan than the 20 months. I would rather have paid more per month but just for 12 months so as to be able to upgrade a year from now without having to pay out on 2 phones at the same time.

 

[C DM]

Is there a shorter installment plan than the 20 months. I would rather have paid more per month but just for 12 months so as to be able to upgrade a year from now without having to pay out on 2 phones at the same time.

You can just pay off what remains at the end of 12 months and be able to upgrade then.

 

[Zetaprime]

You can just pay off what remains at the end of 12 months and be able to upgrade then.

Oh. Ok. That's fine, then. Thanks.

 

[h00ligan]

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).

My gut reaction was outrage. Then I did the maths. I examined my two year contract price for the iPhone six and compared that to the next offering. It's a $35 difference after the difference in activation fees.

I don't understand why people are blowing up about this. What am I missing. Is my month,y data plan forced to change? I have shared mobile 2 gig plan and that seemed fine.

Someone please correct me where there's an error.

I don't get the outrage honestly. Seems pretty equal. Very mint okay more but far less outlay.

Ok so here's the breakdown of the charges for my iPhone six plus when I got it.

Phone $399
Trade in credit on 4s was $200
Line charge increased by $15 for 24 months = $360
Activation fee $45

$605 for phone total on contract plan

Next plan for 6s plus
0 down
$25 for 30 months = $750
$15 activation
$200 line credit for trade in
$60 in sales tax roughly

$625 paid for phone total on next

so if the data plans aren't a forced change, I can keep my 2 gigs plan, does it matter to me. I'd lay $20 more over thirty months not to pay $400 wait for a credit of $200.

Can anyone explain where I'm wrong?

Appreciate the look over. To me for my use on my plan this doesn't seem like a bad change.

 

[jelew1985]

My gut reaction was outrage. Then I did the maths. I examined my two year contract price for the iPhone six and compared that to the next offering. It's a $35 difference after the difference in activation fees.

I don't understand why people are blowing up about this. What am I missing. Is my month,y data plan forced to change? I have shared mobile 2 gig plan and that seemed fine.

Someone please correct me where there's an error.

I don't get the outrage honestly. Seems pretty equal. Very mint okay more but far less outlay.

Ok so here's the breakdown of the charges for my iPhone six plus when I got it.

Phone $399
Trade in credit on 4s was $200
Line charge increased by $15 for 24 months = $360
Activation fee $45

$605 for phone total on contract plan

Next plan for 6s plus
0 down
$25 for 30 months = $750
$15 activation
$200 line credit for trade in
$60 in sales tax roughly

$625 paid for phone total on next

so if the data plans aren't a forced change, I can keep my 2 gigs plan, does it matter to me. I'd lay $20 more over thirty months not to pay $400 wait for a credit of $200.

Can anyone explain where I'm wrong?

Appreciate the look over. To me for my use on my plan this doesn't seem like a bad change.

AT&T will allow you to keep your old plans, even the unlimited plans. They can set up the installment billing on whatever plan you have. They strongly suggest that you change your plan due to the cost savings. Over the last 2 years of helping customers that have unlimited data, I have been able to show them the difference in pricing between their unlimited plan with a plan that fits their data use profile. The majority of them were able to save anywhere from $10-20 a month just by switching to a new plan and still be able to have enough data to cover their usage.

So, my recommendation for you and anyone else is, please really take a closer look at what the new plans are and calculate the monthly to the 2 year cost. Also, please remember that there are cell phone taxes that increases your bill. When you are calculating an estimated amount, your monthly installment billing amount is NEVER taxed, only the plan cost is taxed. What I mean by this is that if your 2GB plan is $30, your line cost is $25 and your IB cost is $31.21, then you will be taxed on $55 ($30+$25). After the taxed amount then the IB cost will be added. The reason for this is because you have already paid the taxes on the the phone when you picked it up. That is where the $60 of taxes come from.

I hope this clears up any confusion most have about IB. IF you have other questions, I will be more than happy to answer them.

 

[h00ligan]

I'm not really sure what IB is. My point was it doesn't seem the next plan is really any worse if a deal.

One question is when you hit the 30 month mark do you then trade the phone in for s line credit.

That may be he gotcha I'm not thinking of. If you never get any more credits for the phone you've paid for

Or if you upgrade at the 24 month mark I assume you're required to turn over your phone. Otherwise you have to hit thirty months.

Hmm I think I need to reconsider my choice to go next perhaps and go with s traditional two year contract. At least at the end of two years I then own a phone I can sell Or trade in

 

[jelew1985]

I'm not really sure what IB is. My point was it doesn't seem the next plan is really any worse if a deal.

One question is when you hit the 30 month mark do you then trade the phone in for s line credit.

That may be he gotcha I'm not thinking of. If you never get any more credits for the phone you've paid for

Or if you upgrade at the 24 month mark I assume you're required to turn over your phone. Otherwise you have to hit thirty months.

Hmm I think I need to reconsider my choice to go next perhaps and go with s traditional two year contract. At least at the end of two years I then own a phone I can sell Or trade in

IB is known as Installment billing which is what AT&T Next, Verizon Edge and Sprint EasyPay are.

 

[iMas70]

AT&T will allow you to keep your old plans, even the unlimited plans. They can set up the installment billing on whatever plan you have. They strongly suggest that you change your plan due to the cost savings. Over the last 2 years of helping customers that have unlimited data, I have been able to show them the difference in pricing between their unlimited plan with a plan that fits their data use profile. The majority of them were able to save anywhere from $10-20 a month just by switching to a new plan and still be able to have enough data to cover their usage.

So, my recommendation for you and anyone else is, please really take a closer look at what the new plans are and calculate the monthly to the 2 year cost. Also, please remember that there are cell phone taxes that increases your bill. When you are calculating an estimated amount, your monthly installment billing amount is NEVER taxed, only the plan cost is taxed. What I mean by this is that if your 2GB plan is $30, your line cost is $25 and your IB cost is $31.21, then you will be taxed on $55 ($30+$25). After the taxed amount then the IB cost will be added. The reason for this is because you have already paid the taxes on the the phone when you picked it up. That is where the $60 of taxes come from.

I hope this clears up any confusion most have about IB. IF you have other questions, I will be more than happy to answer them.

I'm going to miss buying my iPhone at the Apple Store every 2 years. I know it's the same phone that I can get anywhere else but it's the experience.

I have the unlimited plan. Some months I'll use 5-10GB and other months I'll use over 50. I've run the numbers a few times and don't see a benefit for me to go with an installment plan. My iPhone bill details are -

Nation 450 with Rollover $39.99
Messaging Unlimited with Mobile to Any Mobile Calling $20.00
Data Unlimited for iPhone on 4G LTE with VVM $30.00

National Account Discount $16.10

Total Monthly Charges
$73.89

I get a $450.00 discount when I buy the phone with a 2 year contract. I can't find any other way to save more than that.

Do you see anything that I'm missing?

Thanks!