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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.

THIS!!!! Why are people forgetting that $20 of your monthly bill is already a subsidy. The next plan just adds an extra $30 to that amount to give you a *savings*... yeah right!
 
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.

You always do ... the cost for subsidized phones is just hidden in the monthly cost - with NEXT you play less every month than with a subsidized plan.

Subsidized phones are not really subsidized - it just sounds better, but is not.

AT&T does not give you a free gift .....
 
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I had a great system before. 2 year contract up, sell my iphone for 200. buy the new iphone for 200. keep my old and cheaper data plan.
I had checked to see if the new plans were any cheaper and they are not.
Just another move to get us to pay more.

Been wanting to switch to T-mobile so i can add my parents and get them iphones.

AT&T just gave me a good reason to do that.

You just described what I do every two years, saves me money in the end and keeps my monthly down, for me the NEXT was a couple hundred more over two years, ugh.
 
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Yep, because Verizon will probably soon follow suit too. Subsidized phones are going away at some point.
I wish the industry would quit with the subsidy term. When I buy or lease a car no one says the car company is subsidizing my purchase. Nobody is getting a phone for nothing. You're basically paying it off in installments every month.
 
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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...

Have you ever tried to purchase an iPhone while off contract? I have every other year and it always defaults to the lower price.
 
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?

Apple does not harm their business partners in any way at any time. If AT&T wants to make their own business decision with their services, it's up to them. Regardless of how it's done, iPhones will still be sold and Apple will still make profit.
 
Wonder how preorders will work for those that are on this plan going forward. Might have to pay off the phone first.

Yes. That's the only negative for the next plan. If you want to turn in the phone, you have to order through at&t rather than directly from apple. i just plan to make the final payment for the phones either next month or in august... then we'll own them and will be able to order from apple (and sell our 6+'s)
 
I do a lot of iPhone upgrades at my job for AT&T. 9/10 people choose 2 year contracts. AT&T could go out of business for this.
Wait what? Do these people know AT&T is ****ing them right in the ass with 2 year?!?!
All the extra charges, activation fee and such.
 
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One thing with att is that when I purchase my last htc phone from att.com it arrived " open box " and this is tricky because you don't know if your phone is refurbish or new.!!? I notice a massive att junk inside that phone and it can't be removed.!
I wander if this is the reason behind all of this...so att can install some of the junk without your approval.!?

Also not to mention that I still have so much problem with how att bill my daughter Filip2 GPS Watch...its a nightmare.
 
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Non contract plans are the best thing to happen in the US. Other countries have had these for years. The problem that many people have here is the service. Cheapest is T-Mobile but others prefer ATT or Verizon.

And I find it very hard to believe that 2 year contracts are cheaper. They aren't. You end up paying the same thing or even higher but the difference is you can't get out of it. Just because a phone is $199, multiply your service price for 2 years + taxes. Same crap. So I'm not understanding how people think getting stuck in a contract is cheaper.

As for selling the phone, how about eBay? Trade-ins?
 
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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?


oh please create the company APPLE Wireless ill switch in a heart beat
 
Holy cow, look at all this confusion and number crunching. We as the customers, shouldn't have to worry about this stuff, but unfortunately we do. Just another example of how screwed up the US-based carriers' pricing has become.

Is it safe to say that the cheapest/safest way to get a smartphone is to buy it outright, no contracts or leasing, and then to get a contract-free, month-to-month plan?
 
Wait what? Do these people know AT&T is ****ing them right in the ass with 2 year?!?!
All the extra charges, activation fee and such.

That's not true. For some of us, the 2-year contact is less expensive. I did the research last Fall and stuck with a new 2-year over the NEXT and saved $197 over the course of my contract. I also like my monthly bill to be less each month which now it's only $68. For others with family plans or high data use, NEXT can work out better but it's not "always" the cheaper option.
 
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.

This math only applies if the customer in question is lazy or stupid. You get that up front fee back entirely if you sell your phone in a private transaction; you still get a big chunk of it back if you're lazy and let a third party do the work for you. Yes, some people do neither and keep paying, but that just means they're being dumb or lazy; it does NOT make the two year contract a "horrible deal" as you alleged. For conscientious consumers, the contract with subsidy remains the most economical concept.

Why do you think AT&T wants it to die in the first place? This ought to be really, really obvious...
 
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I always thought American mobile carrier traditions are sort of weird, and never understood why people just rolled with it. I know here in Germany it used to be very similar, you paid monthly for a plan and got the phone for free (or at least you thought that's how it worked). Nowadays, everybody knows that it's a huge ripoff, and the "subsidized" phones are generally a lot more expensive than just getting a cheap plan exactly like you need it and buying the phone somewhere else (although you can still buy your phone from the carrier, but I literally don't know a single person who was dumb enough to do that). I hope this slowly becomes a thing in the US, as it's a lot more transparent and flexible.

I worked in telecom years ago and I fought with executives that pushed the subsidized model. From the perspective of the carrier subsidized prices are a double edged blade. Yes you lower the cost of entry for customers and therefore get them using and relying of heavy data usage, but you also cause a disconnect between the cost of service and the cost of equipment. My prediction at the time was that subsidized pricing would allow equipment manufactures to blackmail us with our customers. If customers began to care more about the device they had then the quality of wireless service then manufacture could demand more per device wiping out any gains earned by the carrier. What was leaderships response? Promote devices more by signing exclusivity agreements. I left the industry shortly after the iPhone was available on multiple carriers.
 
I don't really care how I pay for the phone. Upfront, 2 year pricing, or payments. But I DO care about my unlimited data... we need more info about how that is going to work.
 
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Holy cow, look at all this confusion and number crunching. We as the customers, shouldn't have to worry about this stuff, but unfortunately we do. Just another example of how screwed up the US-based carriers' pricing has become.

Is it safe to say that the cheapest/safest way to get a smartphone is to buy it outright, no contracts or leasing, and then to get a contract-free, month-to-month plan?

That would be true if they removed the hidden $20/mo subsidy from your bill... but they don't. The cheapest is still the 2 year contract.
 
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...
Once your installment agreement is complete and the phone is paid off you're no longer being charged that monthly fee.
 
This sucks. I did the math -- this will cost me $11.68 per month more, based on spreading the cost of the phone out over 2 years ($399.00 before, $679.20 with AT&T Next). The ONLY advantage is that there is no upfront cost -- but you do eventually end up paying for it, and then some.
 
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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

That article is two years old. I don't know if the AT&T plan changed since the article or the article itself was misleading, but you get to keep your phone if you choose to do so. You only lose it if you choose to upgrade, but in that case you have a new phone in your hand. However, in the meantime, AT&T Next provided you with free financing of your phone.

The trade-in part of the program is one place where AT&T makes money. You can choose to trade-in before paying off the phone in full, however the value of the phone is greater than the remaining monthly installments. Trading the phone in is a bad financial decision although AT&T does provide convenience here as a service if you want to upgrade.

The best option for people who want 10GB+ plans is to use AT&T Next, eventually pay the phone in full, and sell the phone on the private market when you want to upgrade. I'd like someone to break down how that is financially worse than a 2-year contract (not including grandfathered unlimited plans, which can make sense to keep for those who use a lot of data).

Let's look at it this way. A 10GB plan with 16GB iPhon 6 costs $100 per month base regardless. Contract costs $40 while Next costs $15 for the same phone. Plus, contract requires $200 upfront payment. That's a total of $800 cheaper. Now, with Next you have to pay installments on your phone. Over 2 years, those installments equals to the full price of the phone which is $650. That's $150 cheaper. And, in the end, in both cases, you have a fully paid for phone which you own.
 
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You just described what I do every two years, saves me money in the end and keeps my monthly down, for me the NEXT was a couple hundred more over two years, ugh.

Great deal my butt. they don't include the full price of the phone. you end up paying 2-400 dollars more with next. No thanks.
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