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.
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 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.
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.Yep, because Verizon will probably soon follow suit too. Subsidized phones are going away at some point.
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...
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?
Wonder how preorders will work for those that are on this plan going forward. Might have to pay off the phone first.
Wait what? Do these people know AT&T is ****ing them right in the ass with 2 year?!?!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.
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?
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.
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.
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.
Doubt they are scared. Carriers only care about their bottom dollar.
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?
Once your installment agreement is complete and the phone is paid off you're no longer being charged that monthly fee.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...
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
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.