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

[supersalo]

Are you sure you can do that, I was told that you have to trade your phone in with NEXT even if you have paid your 24 months or 18 or whatever. Of course, I was told ten million different things by AT&T If you are free and clear with NEXT and own your phone, then that would change things quite a bit but ???

Once you pay the phone off, it's YOURS. You don't have to trade it in if you don't want to. It's right on the AT&T website.

 

[HobeSoundDarryl]

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.

Your situation is not everyone's situation. If you want to keep your unlimited plan, there are only certain options available to you. If Next is not one of them, why are you even messing around in a thread about Next?

If you are paying $199 for new iPhones you ARE financing the balance of it's cost in some way. The word "finance" may not appear but Apple wants you to pay them more than $199 for a new phone. AT&T is not a charity service that wants to pay the difference above $199 for you. If Apple is not giving you a special price and AT&T is not paying the difference, who is paying the difference? Hint: who's left?

You are ALSO paying at least "3 times the price" one way or another. Again, AT&T is not a charity and Apple wants full price for it's phones. You are not getting some special deal. In fact, odds are high that within the 2-year contract you are paying more than full price for each new iPhone you buy.

Historically, it has been hard to buy new iPhones on launch day for cash. But that seemed to be tied to making subsidy partners wanting to lock people into 2-year plans happy. Now that even they are moving away from 2-year plans, it seems likely that Apple will no longer delay selling phones outright on launch day. The partner-pleasing incentive to hold back that option is evaporating.

 

[abowlby]

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).

Why dont you try visiting an AT&T store with your AT&T based question?

I honestly feel that a lot of the confusion and frustration here is based on the fact that people dont really understand that carriers provide service. They do not make phones. AT&T and Apple are not the same company.

 

[wizard]

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.

This is only true if you actually end up paying less than you currently do after the phone is paid off. I really need to look into the specifics here.

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.

If this is an ethical attempt to address the current situation where your bill doesn't change after the expiration of your two year contract then it might be a good deal for users. However I sitting here not convinced one bit this is the case. If data plan rates are kept the same it is likely very anti consumer. You will effectively have the finance charge tacked upon the service plan whatever that might be.

 

[uberman15]

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.

Wow, MacRumors made a completely misleading statement then. First of all, 12 equal payments (through Next 12) are for 1/20 the full purchase price of the phone. After 12 equal payments, you can upgrade although the full price has not been paid. After 20 payments, you own the phone free and clear and are under no obligation to upgrade. And frankly, if you want to upgrade, pay down the remainder of the balance and sell the old phone on eBay (or elsewhere).

It's absolutely atrocious that MacRumors would make such a misleading and, frankly, incorrect statement like this for a program that clearly many people misunderstand.

 

[supersalo]

with a 2-year contract I own my phone and can sell on the open market, with NEXT you have to trade your phone in and get $0 back. So I subtracted the $220 I received from the sale of my iPhone 5 from the 2-year contract as that was money in my pocket and lowered the amount I paid overall to get a new iPhone 6, but if I was on NEXT, I just turn my phone in, so in the end, NEXT costs me more.

This is wrong. You DO NOT have to trade in the phone. It's all on the AT&T website, people.

Hell, I don't even particularly like AT&T, but the amount of disinformation here is really high.

 

[Tapdawg]

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

You might want to reread the agreement you signed. Part of the Administrative Fees and Surcharges on your monthly bill is a hidden subsidy for your phone. AT&T says that the iPhone 6 16GB will have a monthly installment fee of $22, but that is 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.

 

[name99]

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.

No it's not. At the time I looked at this (when the iPhone 6 came out)
- with Next: you pay the FULL price of the phone over (say) two years. That's it. No subsidy.

- with non-Next: you save $360 on the price of the phone over two years, but then once you pass two years you keep paying an addition $15 per month higher than the "raw" data plan. Where do the savings come from? You pay more for data each month than Next, but Next has an additional "cost of the iphone" item for two years which ends after two years, whereas with this plan the data cost never comes down.

So if you upgrade at exactly two years you save $360. If you delay, every delayed month you are paying ATT an extra $15 and so your subsidy is going down by $15.
[The numbers may be slightly off cause I'm going from memory, but they're approximately correct.]

- with upfront purchase you pay the same as Next, you get an unlocked phone right away (so that's a win) and you don't get the option to sell the phone to ATT at the end of your payments period (but IMHO that option is worthless anyway).

There are also differences if you have family plans, data sharing plans etc. I only looked at MY situation (one iPhone, no sort of sharing plan, and that's what I saw --- 2yr contract is best if you want to upgrade after two years, otherwise buy an unlocked phone, Next is NEVER the right choice).

 

[bobr1952]

Once you pay the phone off, it's YOURS. You don't have to trade it in if you don't want to. It's right on the AT&T website.

That's one of the main reasons I switched to Next. I usually do keep my phone a bit longer than some and with the 2 year contract, I was not getting anything after 2 years. Yes, I gave up my unlimited but I didn't need it anyway and my total bill is actually less now by a few dollars than it was on contract and if I do keep my 6 longer, my monthly bill will go down significantly. It is an 0 interest loan so it works for me--all things considered.

 

[wizard]

The "discounted" next plan is more than my current plan so for me this represents buying the phone outright and raising the monthly cost of my plan.

This is what I was afraid of. In the end this is a major price hike for most users.

 

[Mydrivec]

Let the buyer beware...
So anyone with ATT should know that they don't allow plan discounts if you receive a subsidized phone (cheaper with 2 year contract). I had to go with the full cost payment for the Iphone because if I didn’t I would lose my monthly discount (about $30/month through my employer) for good. I decided it was better to pay the $35 per month or so for 18 months and retain the discount past the phone payoff.

 

[supersalo]

This is only true if you actually end up paying less than you currently do after the phone is paid off. I really need to look into the specifics here.


If this is an ethical attempt to address the current situation where your bill doesn't change after the expiration of your two year contract then it might be a good deal for users. However I sitting here not convinced one bit this is the case. If data plan rates are kept the same it is likely very anti consumer. You will effectively have the finance charge tacked upon the service plan whatever that might be.

Once again, with the Next plan, you pay a monthly surcharge for the equipment. Once you've made enough payments, that surcharge GOES AWAY.

You are also free to upgrade halfway through that cycle by giving them your existing phone.

There's no trick here. Do the math.

 

[LouieTheLug]

Next is NOT leasing.

Next is simply a 0% APR finance contract that spreads the price of the phone over a certain number of months. You own the phone the entire time.

The ONLY time you are required to turn your phone back in is if you want a new phone BEFORE you've completely paid off your previous phone. That is 100% optional and controlled entirely by you.

FWIW, here's a Next contract:

BUT by going into a NEXT contract you lose your Unlimited Data. That is why we are pissed. They want us out & we don't want to go. Just because everyone else bought into the Next program doesn't mean we should have to. WTF

 

[Tapdawg]

BUT by going into a NEXT contract you lose your Unlimited Data. That is why we are pissed. They want us out & we don't want to go. Just because everyone else bought into the Next program doesn't mean we should have to. WTF

I don't like the NEXT plan, but you can keep unlimited on it. https://forums.att.com/t5/Data-Mess...fathering-my-unlimited-data-plan/td-p/4066078

 

[diamond.g]

Not just make up the difference, but gain a profit. These next plans are designed to steal the profits from selling iPhones on secondary market to offset the purchase of a new phone.

iPhones have always should for more that the subsidized price at the end of a 2 year contract, and now with Next program you will simply hand over that profit to ATT so they can sell the phone or use again in the Next program.

Seems like this is a good deal for ATT.

Eh, Apple could (should) sell refurbished iPhones on the cheap to kill such market.

 

[supersalo]

You might want to reread the agreement you signed. Part of the Administrative Fees and Surcharges on your monthly bill is a hidden subsidy for your phone. AT&T says that the iPhone 6 16GB will have a monthly installment fee of $22, but that is 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.

Yes, "most industry estimates have put it at something like $20 per month" was true when the only option was the 2-year subsidy (that Verge article listed earlier is from 2013, before T-Mobile introduced plans that separated equipment from service (and forced AT&T & Verizon to follow suit)).

I'm done trying to convince you.

 

[mikemch16]

ITT - People that don't understand the math behind phone contracts.

 

[Tapdawg]

Yes, "most industry estimates have put it at something like $20 per month" was true when the only option was the 2-year subsidy (that Verge article listed earlier is from 2013, before T-Mobile introduced plans that separated equipment from service (and forced AT&T & Verizon to follow suit)).

I'm done trying to convince you.

All NEXT does is add an extra $20-30/mo to your bill for 12-24 months. After your NEXT plan is up, you're back to the price a person on a 2 year contract is paying. Why would I want to spend a couple hundred bucks for the exact same thing?

 

[Tapdawg]

ITT - People that don't understand the math behind phone contracts.

Right?

 

[KPOM]

then i guess ill be passing on this years iphone. horrible decision.




Also in the same boat. Though the clients won't mind, i often urge them to stay up to date.

Unfortunately, it was AT&T's decision, not Apple. They are gradually getting rid of 2 year contracts.

 

[supersalo]

No it's not. At the time I looked at this (when the iPhone 6 came out)
- with Next: you pay the FULL price of the phone over (say) two years. That's it. No subsidy.

- with non-Next: you save $360 on the price of the phone over two years, but then once you pass two years you keep paying an addition $15 per month higher than the "raw" data plan.
So if you upgrade at exactly two years you save $360. If you delay, every delayed month you are paying ATT an extra $15 and so your subsidy is going down by $15.
[The numbers may be slightly off cause I'm going from memory, but they're approximately correct.]

This is incorrect. After 2 years (on a subsidized plan), you own the equipment. If your carrier doesn't adjust your bill, call them up. You're essentially in the 'Bring Your Own Device' camp now. No different than if you had an old phone and called up to activate service on it (there's no equipment subsidy).

 

[KPOM]

All NEXT does is add an extra $20-30/mo to your bill for 12-24 months. After your NEXT plan is up, you're back to the price a person on a 2 year contract is paying. Why would I want to spend a couple hundred bucks for the exact same thing?

For those on tiered data plans (not us on old unlimited plans), you also pay $15-25/month less than those on contracts for service.

 

[OneTraveler]

Why dont you try visiting an AT&T store with your AT&T based question?

I honestly feel that a lot of the confusion and frustration here is based on the fact that people dont really understand that carriers provide service. They do not make phones. AT&T and Apple are not the same company.

Because the people that work at the local store don't know much and can never seem to agree on an answer. And the next nearest ATT store is 250 air miles away. I knew from reading the threads that there were other people in the same boat so I was looking to find some information that they have gained.

 

[supersalo]

All NEXT does is add an extra $20-30/mo to your bill for 12-24 months. After your NEXT plan is up, you're back to the price a person on a 2 year contract is paying. Why would I want to spend a couple hundred bucks for the exact same thing?

Wrong.

 

[mikemch16]

All NEXT does is add an extra $20-30/mo to your bill for 12-24 months. After your NEXT plan is up, you're back to the price a person on a 2 year contract is paying. Why would I want to spend a couple hundred bucks for the exact same thing?

This is utterly false. I have done the math ad nauseum and it's not true. ATT dropped my monthly fees by about $100/month when I uncoupled hardware from my monthly service cost. This puts the cost of the hardware onto me. I can either buy it out of pocket (which I now do since cash flow isn't an issue for me) or I can do NEXT which for 5 phones (the amount in my family) would add approx. the $100 back on. It's all the same but people get so confused about it. If you are in fact paying subsidy pricing and footing the bill for your hardware then you need to call ATT because you are getting ripped off...