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

[FtrV8]

I just did * services on my ATT iPhone by pressing *NEW# on the dialer and hitting send.

Got the following message: Congratulations! This line is eligible for an AT&T NEXT installment plan upgrade. Or upgrade with a 2-year service agreement and a $40 upgrade fee. Our fastest way to order is att.com/upgrade.

So maybe two year is still available directly from them? Dunno. Just speculating.

 

[gugy]

You also loose your unlimited plan by choosing AT&T next...

That's how I see it too. Unless there is something we are missing here.

 

[chumpy34]

This and by proxy, your math, is objectively wrong.

Um, no it's correct.

 

[Tapdawg]

I bought my 6 Plus with Next. No BS upgrade fee (which I always got waived off with a phone call later in the past but still nice now not having to do that). I'm simply paying off my phone in monthly installments.

The hidden subsidy is no longer hidden with AT&T. If you signed a 2 year contract, you will pay more monthly. With Next you are paying for your phone monthly and you know exactly how much you paying for their service.

That's not true... you still have a hidden $20 subsidy you also have a $30 visible subsidy on NEXT.

 

[Dmunjal]

Um, no it's correct.

You've already been proven wrong by many posters. The NEXT program is not a lease. You get to keep your phone after payments are completed.

 

[HobeSoundDarryl]

My wife and I bit the bullet last December and purchased two 128 GB 6 Pluses unlocked and contract free. Cost about $2300, but now I am no longer tied to anyone and can re-sell my phone and upgrade whenever I please going forward.

That's the best way to do it for anyone who can. Pair that with shopping services other than AT&T, Verizon & Sprint and you can probably find a plan that will give you all you want for less than the best of what you can get from the big 3 or 4.

Financing/leasing/etc always comes with the strong attraction of little-to-nothing out-of-pocket and "low" monthly payments. But there's ALWAYS a hook in "too good to be true" offers. Financing/leasing/etc just lets the bankers into the transaction and part of "too good to be true" will line their pockets. If there's any confusion, YOU and/or Apple are the one's doing the lining.

Look at anything else Apple sells. When you buy that "anything else", you probably just pay for it. If you pay cash, Apple pretty much gets as much as it can out of the price you paid. If you pay with a card, Apple is going to lose a cut to the bank behind the card. If you take the no-interest Barclaycard offer, Apple is actually paying Barclaycard something so they can offer that "no interest". As the apparent offer gets sweeter and sweeter, the hook is getting more and more sunk in.

This Next deal looks like it might have at least one aspect that is actually better for consumers. Knowing that this is an AT&T creation, I'm sure there are probably 10 hooks within the plan itself. Buyer beware.

 

[abowlby]

Chump, you don't even know the basics about Next, you've admitted it yourself. You ARE objectively wrong. Sorry.

Also +1 for serendipitous usernames.

 

[speedbumpnv]

I'm 100% sure you own the phone free and clear after making all the necessary payments. Upgrading early is an option and not a good one at that. But if you choose not to upgrade, you keep the phone.

Source: https://m.att.com/shopmobile/wireless/modals/next-faqs.html

What if I don't want to trade in and upgrade my smartphone and I want to keep it?

You don’t have to trade in your smartphone. You can continue to make your monthly installment payments until your installment agreement is complete.

From the main story on the front page.

- AT&T Next allows a customer to purchase a new iPhone for $0 down and make equal payments for 12, 18 or 24 months until the full price of the smartphone has been paid, at which point the device can be traded in for a new iPhone.

This is similar wording I have seen elsewhere.

 

[supersalo]

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...

After two years, your iPhone is paid off and that extra $21/month goes away.

 

[chumpy34]

You've already been proven wrong by many posters. The NEXT program is not a lease. You get to keep your after your payments are completed.

Yes, that part is correct now, was brought up after I posted but my math was still correct Just didn't know you could keep you phone with NEXT once paid off, trust me, I talked to 3 different online ATT reps and in two stores last fall and was given so much mis-information I was more than happy to stick with my 2-year but will consider NEXT in 2016.

 

[Tapdawg]

After two years, your iPhone is paid off and that extra $21/month goes away.

But the hidden $20/mo subsidy is still on there.

 

[LouieTheLug]

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.

Yea Me Too.. It was Perfect. Now they F*cked it all up ... C*ck Suckers. I hate AT&T for this

 

[ChazSch]

Having looked at this, the new program is better for the user. After you've paid off the phone, you no longer pay the phone surcharge like you did with the 2-year contract (i.e., if you keep your phone longer then two years, your bill doesn't go down). You're free to keep your phone after that, but if you want to upgrade earlier, then you have to trade in your phone.

Of course, you're always free to purchase the phone outright, from what I'm hearing, on the new plan, they'll still honor the Unlimited plan folks.

I'd expect Verizon to follow this before the next iPhone comes out.

yeah you guys do not realize the surcharges every month if you do the $200/2 year contract phone. The BEST way is to purchase it outright.
But I disagree with the person I am quoting...my plan DID go down on my last phone after the 2-years...I kept the phone 2.5 years...It went up significantly once I got the iPhone 6

 

[supersalo]

That's not true... you still have a hidden $20 subsidy you also have a $30 visible subsidy on NEXT.

Where is the hidden $20? I'm not a huge Next fan, but people aren't looking at the math.
For example, 10GB plans charge $15/month per line (normally $40, but discounted $25 for being on the Next plan).

Unless you're thinking that "hidden" $20 subsidy is in the monthly data charge (but good luck with that, because AT&T, Sprint & Verizon are charging roughly the same amount per month for data)

 

[Locoboof]

I feel like goal posts keep moving here.

I originally replied to a different guy because he appeared to be worried that this move would hurt AT&T's business. I don't see how it hurts AT&T as it looks like it will help them sell more phones.

You replied to my reply about how this could be bad for unlimited plan owners. I replied that I don't see that either since unlimited people can still buy new iPhones for cash or creative financing if they need monthly payments and preserve their unlimited deals.

Now you reply that this may drive traffic from Apple stores to AT&T stores and that accessory profits may be lost by Apple. First, I'm not sure Apple gives a hoot whether an iPhone is purchased at AT&T or Apple as they are going to get paid in full for that phone either way. There's probably some accounting math that shows that unit sales of iPhones sold and serviced by salespeople paid by other companies is more profitable than paying Apple employees for the same amount of selling & service time.

Second, there may be some merit to the concern about accessory sales. But it seems those accessories are going to be sold anyway. Every time I've been in an AT&T store, I've never personally noticed them stocking much in the way of accessories for iPhone. They probably do have some such stock but I haven't noticed. So yes, I suppose if an AT&T store happens to stock an iPhone accessory that a consumer wants to buy when they buy their new iPhone, they may buy it from AT&T, robbing Apple of the profits from getting to sell that accessory direct. But I'm sure Apple will be fine. For ever incarnation of that scenario playing out, there are probably at least the same number of scenarios of AT&T salespeople doing all of the showing work for consumers who then go to an Apple store (physical or online) to actually buy their new iPhone and any iPhone accessories.

Don't worry so much about Apple profitability. They are doing very well. VERY, VERY, VERY well. If AT&T accessory sales was a big threat to Apple profitability, Apple could stop/slow supply of new iPhones through the AT&T store channel.

With AT&T next you loose your unlimited.

I don't want to finance anything if I have the 199.99 to pay upfront.

You're referring to "cash" as in buying it outright? Why on earth would I do that if its 799.99 to buy the phone out of contract?

So my only option to keep unlimited is. Buying it from AT&T with a two year as I do every year.Which drives potential accessory sales from apple. It also will make their launch lines look a lot smaller on the news.

I don't like paying for something monthly when I have the money to pay for it up front,plus keep my original data plan. And no,I don't want to buy it outright for 3 times the price.

Also,if I'm not mistaken,you CAN NOT buy a phone cash...out of contract on launch day. Which is when I prefer to buy my iPhone.

 

[OneTraveler]

TL;but Did Read....and still confused.

Currently 2 iPhones on staggered unlimited 2yr plans (I take the upgrade each year, the wife gets my "old" phone...it's like we both get upgrades.) I sadly see that I can't get them on the Apple Store anymore (loved being in and out in moments with the iOS app for the past few years), and hate that I will have to do it through AT&T's site. Of course that's assuming i can still do it through them. If i HAVE to switch to NEXT, i'm totally confused to best course of action that keeps my current system alive (and affordable).

 

[supersalo]

But the hidden $20/mo subsidy is still on there.

Where? In the data charge?

 

[HobeSoundDarryl]

I just did a chat session with ATT and they said you can sell your phone after your installments are completed and then just start over with a new NEXT payment plan. if this is true, then NEXT could end up being cheaper in the end. I might stop in an ATT store to ask this again as I always get varying answers, but glad you brought this up.

AT&T reps will, of course, encourage the trade-in... and/or may be as UNinformed about the details of seemingly ever-evolving plans as anyone here. AT&T doesn't want to promote concepts that make it easy for subscribers to switch to someone else. So, if you hear different, do your own homework. A salesman will always give you reasons to drive sales even if you absolutely do not need their product. Sometimes they are misleading and sometimes they just don't know better. More than a few times in my life, I've found myself educating salespeople because I did my own homework before I got to a store.

 

[name99]

Having looked at this, the new program is better for the user. After you've paid off the phone, you no longer pay the phone surcharge like you did with the 2-year contract (i.e., if you keep your phone longer then two years, your bill doesn't go down). You're free to keep your phone after that, but if you want to upgrade earlier, then you have to trade in your phone.

Of course, you're always free to purchase the phone outright, from what I'm hearing, on the new plan, they'll still honor the Unlimited plan folks.

I'd expect Verizon to follow this before the next iPhone comes out.

Next is better for a user IF they plan to keep their phone for longer than two years.
The old plan better if you upgraded your phone every two years --- it basically saved you about $360 over two years. It was not a win if you held onto your phone for longer than two years (I never bothered to calculate the break even point, since I always upgraded after two years.)

Given that phones are (I'm guessing) going to change less fast in future than they have in the past, overall more people will want to hold onto their phones for longer than two years, and given this the change is a "win for society" (though having the choice between two programs was even more of a win).
One interesting point is that Next is basically just a hire purchase plan. Unless you really can't pay upfront (in which case, maybe, you shouldn't be upgrading your phone so often?) it makes more sense to buy an unlocked phone from Apple. That way you can use international SIMs straight away and don't have to be locked into any ATT nonsense. The option to sell to ATT after two years that Next provides is worthless --- you can do the same thing any time you like with a locked phone by selling it on eBay.

 

[supersalo]

With AT&T next you loose your unlimited.

I don't want to finance anything if I have the 199.99 to pay upfront.

You're referring to "cash" as in buying it outright? Why on earth would I do that if its 799.99 to buy the phone out of contract?

So my only option to keep unlimited is. Buying it from AT&T with a two year as I do every year.Which drives potential accessory sales from apple. It also will make their launch lines look a lot smaller on the news.

I don't like paying for something monthly when I have the money to pay for it up front,plus keep my original data plan. And no,I don't want to buy it outright for 3 times the price.

Also,if I'm not mistaken,you CAN NOT buy a phone cash...out of contract on launch day. Which is when I prefer to buy my iPhone.

You pay FULL PRICE for the phone regardless if you use the 2-year subsidy contract, Next Plan or outright purchase. It's a question of do you pay it on day 0, or day 720?

You're paying $199 upfront, but you pay the remaining ~$500 over the 24 months.

 

[mikeinternet]

This is a mess. Any word on the next Touch gaining a SIM card/data plan option like the iPad?

 

[DanielSw]

I can't speak to unlimited plans because I don't have one but other than that how is Next worse than the 2 year contract? Either way you're paying off the phone in installments.

It's not worse, it's better. Last September when the 6/6+ came out, we were eligible, but didn't quite have the cash for two subsidized contracts (one each: 6 for the wife, and 6+ for me). Apple had just started accepting Next Plan purchases at the Apple store, which offered "good enough" availability over the AT&T store, and we only had to pay sales tax. It's now been eight months, and we have four remaining before we can trade in our phones for new ones, and that just may coincide with the 6s release. The payments have been manageable, and the prospect of not having to hassle with finding the best purchaser of the current phones makes the whole deal very nice. We also get discounted data rates because we're on Next. All this whining we hear is just silly. Too many people too lazy to simply look at the facts.

 

[Tapdawg]

Where is the hidden $20? I'm not a huge Next fan, but people aren't looking at the math.
For example, 10GB plans charge $15/month per line (normally $40, but discounted $25 for being on the Next plan).

Unless you're thinking that "hidden" $20 subsidy is in the monthly data charge (but good luck with that, because AT&T, Sprint & Verizon are charging roughly the same amount per month for data)

Your monthly AT&T service fees already includes a subsidy for your phone regardless if you buy your phone outright, go on a 2 year contract or use NEXT. By choosing NEXT or buying the phone outright, you're paying double the subsidy for the phone. The only time you do not pay for the phone twice is by doing the 2 year contract and getting a new phone every 2 years.

 

[jelew1985]

Well that it just means you won't be able to buy the phone at the Apple Store with a contract. But you should still be able purchase a phone through the ATT store on contract.

@
gramirez2012 many think they will loose their grandfathered unlimited plans. However, that is not true. I sell the services for AT&T and the customers that still have unlimited data are still able to keep the unlimited data. Just won't be cost effective when you do next because the monthly payments will just be added on top of your current monthly plan.

Others that are not on unlimited and are on the mobile share plans, all of those customers will see a better deal by going with the Next payment option. But, because of those god awful media companies (like cnn) are painting a picture that its not a good deal and they don't even sell cell phone services on a daily basis. I would strongly suggest everyone to really take a look at the cost difference before making a decision.

 

[supersalo]

Your monthly AT&T service fees already includes a subsidy for your phone regardless if you buy your phone outright, go on a 2 year contract or use NEXT. By choosing NEXT or buying the phone outright, you're paying double the subsidy for the phone. The only time you do not pay for the phone twice is by doing the 2 year contract and getting a new phone every 2 years.

No, it doesn't. You're paying one amount for data (ie, $100 for 10GB) and then a per line equipment charge.