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I also noticed that the Apple Online Store, with this change, no longer sells iPhones to new AT&T customers. It's almost as if AT&T doesn't want new business...
 
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You will most likely have to purchase full price from AT&T as Apple doesn't sell the iPhone full price if you have an upgrade on your account.
Lulz.
Where did you even hear that??
I'm glad some users here could correct you quickly, before you spread that misinformation to anyone else...
 
Seems to me AT&T is basically done subsidizing the iPhone (and others). The NEXT program is fine but you're paying full price for the phone in the long run.
 
I can't believe the amount of people fooled by the AT&T Next plan...

Let's do the math: AT&T says that the Samsung Galaxy S4 will have a monthly installment fee of $32, on top of your existing AT&T service fees, which already include a device subsidy. The exact amount of that subsidy is unknown, but most industry estimates have put it at something like $20 per month. That's how you can get a GS4 for $199 with a new two-year contract, even though it costs $620 at retail: after two years, AT&T will have collected $680 in total device payments from you, and you get to keep the phone.

But the balance tips entirely towards AT&T with Next. Assuming that same $20 subsidy, after 12 months of Next you will have paid AT&T $384 in Next monthly installments and $240 in device subsidies, for a grand total of $620. Again, that's exactly the full retail cost of an unlocked Galaxy S4 — but you don't get to keep that phone, even though you just paid full price for it. You have to trade it in to get a new phone — effectively giving AT&T a free GS4 to refurbish and resell to its next unwitting customer.

Now, you do get to keep your Next phone if you pay 20 monthly installments, which will cost you a whopping $1,040 if you assume a $20 subsidy: $640 in Next payments, plus $400 in subsidies built into your AT&T plan. That's $420 in pure profit for AT&T, which just made you pay full price for a phone while charging you inflated service prices that include a subsidy specifically designed to lower the upfront cost of that phone.

source: http://www.theverge.com/2013/7/16/4528404/att-next-phone-upgrade-plans-a-huge-ripoff
 
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

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.
 
Well, I think that's the final nail in the coffin. I've been wanting to switch off of AT&T for a couple years now and I've been whole heartedly avoiding AT&T Next. I haven't done as much research as I probably should have, but I have a bad gut feeling about it, I feel like somehow they're screwing me over or else they never would have switched to this model. Can anyone tell me otherwise? I think my next iPhone will be on Verizon though...
 
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Wow, that sucks. That's how I've always purchased my iPhones.

No way in hell I'm giving up my grandfathered unlimited data plan.

Same for my GF, she would be pissed to give up the unlimited data but looks like they will force you out of this next time you upgrade. Ugh.
 
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.


no savings the price increased by 30.00 per month after the original iPhone now you save 15... they are making more no matter how you look at it
 
Is AT&T doing away with 2 year contracts all together or just for the iPhone?

So much for potentially getting a 6S+ with my subsidy.

might be worth holding onto my jailbroken 6+ for quite some time then :D

They are offing the 2 year contract in steps. First they choke it out of third party retailers. After people funnel to AT&T for direct information and upgrades, in which they try their best to upsell on NEXT, eventually they don't give them a choice
 
So if one chooses the 64GB/$24.95/mo option, what is the total monthly bill with unlimited calling+text and say 1GB of data? Because I would rather pay $299 up front and have a lower monthly bill than pay $0 down and see my monthly bill jump to $90/mo.

I don't know about 1GB of data, but AT&T does provide a chart for 10GB of data to compare between the two plans:

macrumors_chart.png


The difference is, after the 30 months of payments, 2.5 years, your monthly due on the Next plan drops $25/month if you keep the phone. You can, if you want, trade in your phone at 24 months and get a new model. and keep your current bill the same.
 
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The "2 year contract" was a horrible deal.

$36 activation
$199 up-front + tax
$25 a month bill increase

That means for a $650 iPhone you end up paying at least $835 for it.

Many people end up paying the $25 a month after the 2 years is up, so they keep paying and paying and paying...

Either go with AT&T Next or buy the iPhone out-right. Put it on credit card, if you have to.
 
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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).

I did the math last fall and their NEXT program is more expensive than a 2-year contract even if they tell you differently, and when I went into an AT&T store and called their 800 number, I was told 10 different things:( If you are grandfathered into unlimited data or switch to a new phone every two years, then the 2-year contract is a better value by a couple hundred dollars. With NEXT, you trade your phone in, with the 2-year you can sell your phone and that works out better for the consumer if you keep you phone in great shape.
 
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.

You are leaving out that when you sign a 2-year contract, you own the phone and can sell it which I do for a min. of $200 after my two years are up and I'm ready for a new iPhone. I did the math, the NEXT is more expensive for me. Sad:(
 
Yeah the whole issue with AT&T getting rid of the 2 year contracts is that the plans are the same if not more expensive.

I pay $75/mo after discount for unlimited data, 450min, 1000 sms. And I get a new phone every 2 years at full discount, plus I can sell my old phone for at least a few hundred bucks.

If I have to pay $100/mo for non-unlimited data and a full price phone (even if it's spread out over monthly payments) then all of these arguments about saving people are bogus.
 
I was skeptical about ATT's new plans and the Next program, but once I did the math I saw we actually saved a lot of money by moving to a Family Share plan, and then getting new phones on ATT Next only brought the bill back up to what it was before, but gave us a better data package and finally included tethering without having to buy an add-on. And for four months of the two-year-life cycle of our phones, the bill drops down again.

I didn't have an unlimited data package to lose, but I do wonder if people who do have looked at their usage and compared it to current pricing. Are most of them really saving money, or is it just the psychological issue of losing "unlimited"? I'm sure there are outliers who use gobs and gobs of their unlimited data, but don't you get throttled eventually?
 
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Well, I think that's the final nail in the coffin. I've been wanting to switch off of AT&T for a couple years now and I've been whole heartedly avoiding AT&T Next. I haven't done as much research as I probably should have, but I have a bad gut feeling about it, I feel like somehow they're screwing me over or else they never would have switched to this model. Can anyone tell me otherwise? I think my next iPhone will be on Verizon though...

they are screwing you over:( NEXT can work for some but for me, it was more expensive than the 2-year.
 
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All Next is is phone leasing.
I do not like to lease.
I like to have some equity in my products.
When I upgrade I can usually get back close to the same amount that I paid for it in the beginning.
With Next, nope, you turn your phone in for what? NOTHING. No return.
 
Yep, because Verizon will probably soon follow suit too. Subsidized phones are going away at some point.

still don't get why it is called subsidized. Users are still paying the full price or even more (if they don't upgrade after two years), but they never pay less .... AT&T is not subsidizing anything, they are just hiding the cost in the monthly bill.
 
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The "2 year contract" was a horrible deal.

$36 activation
$199 up-front + tax
$25 a month bill increase

That means for a $650 iPhone you end up paying at least $835 for it.

Many people end up paying the $25 a month after the 2 years is up, so they keep paying and paying and paying...

Either go with AT&T Next or buy the iPhone out-right. Put it on credit card, if you have to.

Not true, if you keep your phone more than 2 years, yes NEXT would be better, but if you buy a new iPhone every two years, then for me the 2-year contract saved me over $200.
 
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Carriers trying to take some control from Apple?

I bet Apple is not happy with these convoluted changes as now ATT just complicated the whole buying process. I hope Apple fires back in some big way by exposing the true cost of switching to this plan.

Does apple typically sell unsubsidized phones day 1?
 
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