Carrier AT&T 2yr contract or NEXT?

[Gizmotoy]

Next works out a little cheaper over 2 years than our current plan, so I'll probably go with that. I'm a bit worried about unlocking, though, as I see many complaints online that people can't get their fully paid off NEXT devices unlocked.

Might just buy the unlocked T-Mobile instead and use it on AT&T with the discounted Mobile Share plans (NEXT and off-contract pricing is the same).

 

[potaco]

Contract also charges you $40 activation fee.

And Next allows you to upgrade every year. It also gives them back a handset to sell.

I'm in favor of contract but Next does have some advantages, depending on your plan and cost. Make sure with Next you are on the 15GB plan to get the $25 per month savings. 10GB plans only save $15 per month and that definitely makes a difference over 2 years.

Maybe I should clarify... if you're trading in the phone on Next, it's not nearly as attractive of an option. You're better off paying it off in full and reselling it. If you trade in a $650 phone after a year, you paid $390 into it (twelve $32.50 monthly payments) and don't get anything to show for it. Or you could buy it out for the remaining $260 and sell it on your own... You can absolutely get more than $260 for a 1 year old iPhone.

And the 10GB plans do save $25/mo/line, as well (that's what I have).

 

[iSee]

Do other carriers have the $40 "activation fee" that AT&T has?

Why wouldn't I switch, e.g., to Verizon, and save myself $80 (a phone for me, a phone for my wife)??

 

[apple.snapple]

I'm using the Next program.

- I always get the newest iPhone. Period. It's a habit I haven't been able to break for 7 years now. Before, I would have to list my phone on ebay, wait for it to sell, ship it, hope the buyer is pleased/doesn't return and use that money TOWARD getting the latest and greatest. It was always a money pit and a time sink. Using Next 12, I'll never have to go through that. I'll just give them the phone, scratches, dings, etc (I think they'll take any abuse, minus screen cracks) and get my brand new 6S, 7, etc.

- Speaking of scratches, dings, etc. 2 years is simply too long to keep a phone going these days. My iPhone 4 home button was starting to fail when I sold it. Same with my 5C. They've all had at least one or two issues around the one year mark (poor battery life, scuffs, scratches, dings, dents, you name it). With the Next program, I'll just give them the phone and they'll give me a brand new one. So easy. I wish they had this back in 2007.

 

[wgr73]

Me too! My unlimited data makes people jealous! I love it ... Haha.

I had unlimited data (up until yesterday) but chose to forfeit it for a $149/mo savings. So overpriced compared to their Family Plan, plus I was only using 12gb/mo on our TOTAL plan. Foregoing unlimited data was a no-brainer for us.

 

[ricktat]

Instead of explaining all of this to my wife, I am just paying her NEXT payment without her knowing the cost.

She has the same "I'm not leasing a phone" and "Get off my lawn" thoughts of others on here.

Last year I couldn't justify NEXT anyway that I calculated it. This year it saves money as many have said because of my 10 GB share.

Unlimited people and under 10GB people can find some merit in still doing a contract.

But any of the you lease it, you don't own it, and the what if it breaks comments in countless threads are silly.

 

[hasanahmad]

so with my unlimited data and 2 devices and 700 minutes i have an average bill of 145


I pay $399 for the 6+ and $40 for the contract renewal.for $440 + 1740 = $2180 by next september

or

I pay $0 for the 6+ and $0 activation fee but $43 a month for 12 month of NEXT12 for 1740 + 516 =2256

So NEXT will cost me $100 more per year but I get a new Phone NEXT12 year.


If I go with NEXT18

2180 with contract renewal

or

$32 a month for 18 months of NEXT18 for 1740+576 = 2316 and I get a new Phone in 2 years

If you use the contract renewal for THIS purchase and NEXT purchase (2016)

It will be 2180+440 = 2600

so its almost as if, if I want a new phone every year, NEXT 12 is a better option than contract

If I get the NEXT 18 and wait 6 months I still save money by not paying for another contract renewal phone and activation fee in 2 years

What do you guys think

 

[jpcarro]

From what I'm seeing, it ends up being about the same. It just depends on how much you want to pay up front, vs how much you want to pay per month.

lets assume a 10GB plan. whatever that is plus a phone $650 -

contract - $40 per phone + $200 up front (divided by 24 months = a little over $8 a month would equal about $48+ a month for 24 months).

Next - $15 a month phone + $32 and change per month $0 down = roughly $47+ a month for 24 months.

look at it as basically stretching that initial $200 up front into 24 monthly payments of about $8. that's the difference in monthly payment. And you are not in contract...technically... but you still owe the $649.

Oh and with Next, taxes are due up front. so its not completely $0 up front.

^^^This

Plus I prefer to own and sell my used iPhone. I get a premium for it which I think is worth more than what Next would wave if/when I return my iPhone at the next phone upgrade.

 

[bpeeps]

It boils down to this.

Next at the higher mobile share plan saves you $25 per month. That's $600 over 2 years. If you get an iPhone 6 64GB on contract it is $299 + $40 Activation fee for a total of $339. If you get the same model on Next it is $37.50 per month for 12 months or $450. You can then trade it in for a new iPhone 6S next year. You will pay another $450 to "rent" that for the Next 12 months. After 2 years you will pay $900 in next charges but save $600 on your billing, meaning that the 2 phones cost you $300, but you have to Next again after 2 years or pay the remaining 8 months of payments on the 2nd phone, which is another $300. You get 2 phones, and you get the new model each year. If you go contract, you pay the $339 which includes the activation fee. If you do not trade in after 12 months, you can still upgrade but pay the remaining price on the phone and then keep it or sell it. However, if you pay the entire 20 payments, you pay $750 for the phone, the retail price of the 64GB iPhone 6. The only benefit for Mobile Share users is that doing so saves them the $25 a month in plan charges.

This is a great summary, thank you.

 

[potaco]

so with my unlimited data and 2 devices and 700 minutes i have an average bill of 145


I pay $399 for the 6+ and $40 for the contract renewal.for $440 + 1740 = $2180 by next september

or

I pay $0 for the 6+ and $0 activation fee but $43 a month for 12 month of NEXT12 for 1740 + 516 =2256

So NEXT will cost me $100 more per year but I get a new Phone NEXT12 year.


If I go with NEXT18

2180 with contract renewal

or

$32 a month for 18 months of NEXT18 for 1740+576 = 2316 and I get a new Phone in 2 years

If you use the contract renewal for THIS purchase and NEXT purchase (2016)

It will be 2180+440 = 2600

so its almost as if, if I want a new phone every year, NEXT 12 is a better option than contract

If I get the NEXT 18 and wait 6 months I still save money by not paying for another contract renewal phone and activation fee in 2 years

What do you guys think

Since you're not on a Mobile Share Value plan and your monthly service costs don't change whether you're on or off contract, you can remove them from your calculations to make things a little easier.

Let's also ignore taxes, for simplicity. Depending on where you live, you may pay the same taxes either way. To be honest, it doesn't really affect the results either way.

If you buy on-contract this year, you'll pay $400 for the phone + $40 upgrade fee = $440 over two years. The phone will be yours to keep or sell. If you want a new phone next year, you'll likely have to pay full price ($850, assuming same pricing/tier), bringing you to $1290 over two years (could be $100-200 less depending on whether they offer partial upgrade pricing) with 2 phones to keep or sell.

If you buy via AT&T Next 12 this year, you'll pay $0 up front, but your monthly bill will go up by $42.50/mo for 12 months = $510. At that point, you can trade in the phone and start a new AT&T Next 12 plan. If we assume the same pricing, that'd be $510 * 2 = $1020 after two years, but no phones to keep or sell.

Alternatively, you could buy out your phone instead of trading it in. So after 1 year, you'd pay the remaining $340 and keep it for a total of $850. Assuming two years of this, you'd pay $1700 and have 2 phones to keep or sell.

Summary: Contract pricing is the way to go in your situation if you want to keep your current plan and are willing to resell your phones on your own. The only way AT&T Next is better is if you absolutely hate the idea of selling an old phone and are willing to give up money to have to be gone.

Keeping the same phone for 2 years:
- Contract = $440/2 years
- AT&T Next with buyout = $850/2 years

Changing phones every year:
- Contract = $1290/2 years (with 2 phones left to sell)
- AT&T Next without buyout = $1020/2 years (with NO phones left to sell)
- AT&T Next with buyout = $1700/2 years (with 2 phone left to sell)

 

[appleii.c]

Contract also charges you $40 activation fee.

And Next allows you to upgrade every year. It also gives them back a handset to sell.

I'm in favor of contract but Next does have some advantages, depending on your plan and cost. Make sure with Next you are on the 15GB plan to get the $25 per month savings. 10GB plans only save $15 per month and that definitely makes a difference over 2 years.

you don't necessarily have to give them the handset back. You can simply check the market value and see if you can get more, then you just pay off the difference. If you are on next 12 for example, after the 12 months you pay the balance of your remaining 6 payments. same as the next 18 (24 payments).

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Not sure about other states but in RI you pay sales tax on the $649 .... Contract or no contract

Correct. but with next you pay it up front. The others might be included in the monthly price. If you pay the $200 on contract, I'm not sure if they charge for tax on the full $649 up front, or pro-rate it throughout the term of the contract.

 

[roland.g]

I can unlock my iPhone 5 64GB AT&T which AT&T has to do for me and sell it. Amazon will give me $300-350 depending on their determination of condition in Amazon credit which I know I will use. For me that is essentially the same as cash and will be gone by the time the holidays are over. Or I can take it to a Best Buy that buys phone and get probably slightly less or sell it on Craigslist, which is the biggest hassle but possible the best return.

A new on contract iPhone 6+ 64GB is $399 plus activation fee. That puts my cost around $100-150 or less if I sell via Craigslist.

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you don't necessarily have to give them the handset back. You can simply check the market value and see if you can get more, then you just pay off the difference. If you are on next 12 for example, after the 12 months you pay the balance of your remaining 6 payments. same as the next 18 (24 payments).

----------



Correct. but with next you pay it up front. The others might be included in the monthly price. If you pay the $200 on contract, I'm not sure if they charge for tax on the full $649 up front, or pro-rate it throughout the term of the contract.

That is correct. You can buy it out for the remaining cost if you can get more for it than that. FYI, on the Next 12, it is 20 payments, so you would owe them 8 more payments worth. It brings the total cost up to the $650/750/850 $750/850/950 pricing that is the full retail price.

 

[zelaya]

I hope I'm not jumping on OP backyard but what would happen if I bite on the two year contract just to get the discounted price and 30 days later change to the Att next plan, however if I do that I will be losing the unlimited data.

 

[Rugburn]

I will be doing NEXT as it is $154 cheaper than doing a contract. And I plan on keeping my phone for a long time. (Because I hand down phones to kids)

Already on the 10gb Mobile Share plan and am already receiving the $25 discount.

If I went contract it would increase my bill for 24 months.
$600 rate increase over 2 years
$40 upgrade fee
$299 i phone 6 64gb
$25 sales tax
-------------------------
$964 for a iPhone 6 64gb under contract.


With NEXT
$0 rate increase (already getting the discounts)
$0 upgrade fee
$749 iPhone 6 64gb (payments spread on phone bill)
$61 sales tax
------------------
$810 for iPhone 6 64gb under the next plan.



When I want a new phone I will give this phone to one of my kids, no need to trade in or resell. This year my daughter gets my current 5s to replace her iPhone 4.

 

[potaco]

I hope I'm not jumping on OP backyard but what would happen if I bite on the two year contract just to get the discounted price and 30 days later change to the Att next plan, however if I do that I will be losing the unlimited data.

Switching to Next is just a different way of paying for the device, so you wouldn't have to switch your plan (though if you're on an unlimited plan, Next doesn't really make sense for you unless you were switching your plan).

I'm pretty sure that you can't switch to AT&T Next immediately after signing a new contract. When they first introduced Next, they made people eligible if they were under contract before a certain date. Going forward, I believe there is some period of time you'd have to wait to qualify again.

 

[barrett14]

Can you do the NEXT program when you pre order the phone through Apple or do you have to go through AT&T?

 

[lsh]

For me, on contract works best. I have a few kids on my account that are happy to get my hand-me-down 1 yr old phone so I can upgrade on one of their eligible phones if mine isn't eligible. I do have to buy the phone from AT&T to trade eligibility. OR I buy from Apple on one of their phones then I take two phones to AT&T to switch & activate which takes the thrill out of opening the package.
I then sell the older phone and get $100-200.

 

[ukwildcat]

Can you do the NEXT program when you pre order the phone through Apple or do you have to go through AT&T?

Just got off a chat with Apple. She told me "you can absolutely pre-order through our website and sign up for AT&T next."

 

[Rugburn]

For me, on contract works best. I have a few kids on my account that are happy to get my hand-me-down 1 yr old phone so I can upgrade on one of their eligible phones if mine isn't eligible. I do have to buy the phone from AT&T to trade eligibility. OR I buy from Apple on one of their phones then I take two phones to AT&T to switch & activate which takes the thrill out of opening the package.
I then sell the older phone and get $100-200.

Ish, I essentially do the same thing you do with the kids. BUT I find it's cheaper to go NEXT this time vs contract.

Are you already on the Mobile share value plan? If so, do the math. It seems that NEXT may work in our favor, honestly.

This year I'll use NEXT on my line.
Next year I will use NEXT on a kid's line.
And so on...
1 phone on NEXT is cheaper than 1 phone on a contract. And when the NEXT is paid off my kids will keep carrying it and carrying it.

 

[rui no onna]

Correct. but with next you pay it up front. The others might be included in the monthly price. If you pay the $200 on contract, I'm not sure if they charge for tax on the full $649 up front, or pro-rate it throughout the term of the contract.

For me (California), I've always had to pay tax on the full price upfront. Taxes area actually a double whammy for me on contract. Not only do I have to pay tax for $749 upfront, since the subsidy is hidden inside the service cost, I also pay regulatory taxes and fees on the subsidy portion.

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For me, on contract works best. I have a few kids on my account that are happy to get my hand-me-down 1 yr old phone so I can upgrade on one of their eligible phones if mine isn't eligible. I do have to buy the phone from AT&T to trade eligibility. OR I buy from Apple on one of their phones then I take two phones to AT&T to switch & activate which takes the thrill out of opening the package.
I then sell the older phone and get $100-200.

I do the same with my parents line and even then, MSVP+NEXT/BYOD is saving us money.

 

[zelaya]

Thank you! I just hate contracts but been with att for 7 yrs. I just wished there plan would be cheaper.

Switching to Next is just a different way of paying for the device, so you wouldn't have to switch your plan (though if you're on an unlimited plan, Next doesn't really make sense for you unless you were switching your plan).

I'm pretty sure that you can't switch to AT&T Next immediately after signing a new contract. When they first introduced Next, they made people eligible if they were under contract before a certain date. Going forward, I believe there is some period of time you'd have to wait to qualify again.

 

[richard371]

So the Next price does not extend your contract is based off the full retail price of the phone? Looks like to me if you are not eligible for an upgrade such as the $849 model I'm getting I would pay the same price but spread over 20 months @42.20 a month?

If I my 2 year contract were over then then I could sign another 2 years and get the phone $399 and if I choose Next I do not have to sign a contract for 2 years but will still pay the same $42.40?

Also if choosing next and ordering from Apple how much will the out the door price/shipped price be?

Thanks

 

[duaneu]

So the Next price does not extend your contract is based off the full retail price of the phone? Looks like to me if you are not eligible for an upgrade such as the $849 model I'm getting I would pay the same price but spread over 20 months @42.20 a month?

If I my 2 year contract were over then then I could sign another 2 years and get the phone $399 and if I choose Next I do not have to sign a contract for 2 years but will still pay the same $42.40?

Also if choosing next and ordering from Apple how much will the out the door price/shipped price be?

Thanks

That's correct. The only payment due up front is the sales tax.

 

[richard371]

Thanks. Just hope ATT only taxes the base of my bill each month then and not the $42 each month since I will be paying tax up front.

That's correct. The only payment due up front is the sales tax.

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I wonder with Next since its off contract if the phone will be unlocked like when buying it at full price?

 

[TroyBoy30]

You guys seem to know all the details. Mind looking at this

https://forums.macrumors.com/showthread.php?p=19632292#post19632292