AT&T or iPhone sales ever?

Discussion in 'iPhone' started by ls1dreams, Nov 23, 2015.

  1. ls1dreams macrumors 6502

    Joined:
    Aug 13, 2009
    #1
    Hi all,

    Has AT&T ever run a discount on the iPhone during black friday or other sales?

    A couple of years ago I was able to get a $100 account retention credit when I purchased my new iPhone, but wasn't able to find anything similar this year. (I ALSO found a $100 off a phone credit). I'm on an unlimited plan + FAN discount, so I think it might be difficult to negotiate.

    My 2 year contract just ended, and I'm ready to pull the trigger, but debating waiting a few days to see if anything pops up.
     
  2. aneftp macrumors 68040

    Joined:
    Jul 28, 2007
    #2
    That's the problem with ATT being the only retailer for those under older grandfathered plans wanting 2 year subsidized contracts.

    Since att stopped giving third party like Best Buy Walmart etc option of 2 year contracts.

    You have a monopoly. Att.com or att official retailer. Att has zero incentive to offer any discount whatsoever.
     
  3. ls1dreams thread starter macrumors 6502

    Joined:
    Aug 13, 2009
    #3
    That's what I assumed, but figured it would be worth waiting a few days to confirm.
     
  4. nostresshere macrumors 68030

    Joined:
    Dec 30, 2010
    #4
    I am confused about this. I dropped the 2 year plans and the unlimited and dropped our cellphone costs over $1,000 a year. Why do people insist on keep those older more expensive plans?

    I could switch carriers tomorrow with no penalty, but I actually prefer to stay put. I would like to get a newer iphone for my wife if there was some sort of sale.
     
  5. aneftp macrumors 68040

    Joined:
    Jul 28, 2007
    #5
    Because older plans offer more savings with more lines under the subsidy model. Older plans allow you to buy a subsidized iPhone for $199. Than put a flip phone back on that add a line for $9.99 and delete the data plan.

    I pay $133 a month (includes taxes) for 2 lines under older grandfathered plan. This includes a subsidy upgrade every 20 months worth $450 per line.

    Just do the simple math.

    15gb/$100 plus $15/line with ATT NEXT no subsidy. Two lines under current plan would cost me $130 a month BEFORE taxes with no subsidy. I do get 24% discount. But when u re add back in cell phone taxes. It's gonna cost me roughly $130/month for 2 lines for 15gb data.

    Vs 2 lines/$133 a month for me with unlimited data and text PLUS subsidy worth roughly $20/line per month.

    Now explain to how my plan is more expensive?

    In fact every rep who tries to trick people like me falls flat on their face when I work the math out with them.

    I would be paying roughly $40/month more under att current plans when u factor in the subsidy i get with the grandfathered plan.
     
  6. titans1127 macrumors 6502a

    Joined:
    Mar 10, 2009
    #6
    I use anywhere from 35-55GB of data every month. For me to drop unlimited and switch to a comparable plan, my bill would go from $117 to almost $400.
     
  7. ls1dreams thread starter macrumors 6502

    Joined:
    Aug 13, 2009
    #7
    I have a single line, which currently costs $71/month for unlimited data with my FAN plan.
    Assuming a subsidy for $450 ($650 phone - $200) over 24 months, that's $18.75 per month subsidy, which means my actual plan cost is $52 or so.

    What pre-paid plan can I get that is cheaper than $52 with a reasonable amount of data? Google Fi is even $10/gb, so that's only 5gb while I currently have unlimited.
     
  8. aneftp macrumors 68040

    Joined:
    Jul 28, 2007
    #8
    ATT usually lets u upgrade full subsidy at 20 months So the subsidy is really $22.50/month!

    $450/20 equals $22.50.

    Which means your action plan costs around $48 only.


    People just get tricked by the carriers because the newer mobile sharing plans with installment plans were such a ripoff when they were first introduced. People think they are getting good deals now that the carriers had to adjust their mobile sharing prices quite a few times.

    The carriers seem to have found a "sweet spot". $100/10gb. It's pure marketing genius. The public sees $100 and than $15/line. So the average family line is 4 lines or $160/month.

    And than the carriers start playing with math. What sounds better? $160/month. Or $280/month (when installment plans are added for each iPhone X 4)?

    And than they tell consumers they are "savings" $1000-1200 a year in the cell phone bill by using the $160/month price mark. But half of att consumers want expensive iPhones. So the supposedly $1200 a year savings goes out the window if 4 lines finance iPhones.
     
  9. ls1dreams thread starter macrumors 6502

    Joined:
    Aug 13, 2009
    #9
    I was recently offered a discounted 6gb plan which would have dropped my bill $17 per month that I strongly considered since I tend to use between 4-6gb per month, but I fear that that usage will continue to grow.
     
  10. cousintim macrumors 6502

    cousintim

    Joined:
    Jan 14, 2015
    #10
    Keep in mind that there is only about $60 margin on a 16GB 6s.
     
  11. aneftp macrumors 68040

    Joined:
    Jul 28, 2007
    #11
    No. It costs around $250 to make an iPhone and they sell it for $650.

    The profit margins are outrageous. We can re add back in labor and advertising etc and Apple is still looking at over $300 profit margin for $650 iPhone. And even more for the $750/850 iPhones.
     
  12. cousintim macrumors 6502

    cousintim

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    Jan 14, 2015
    #12
    Seller's margins are around $60, not Apple's margin.
     
  13. aneftp macrumors 68040

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    Jul 28, 2007
    #13
    Huh? Which sellers margins? Att profit margin?

    We all know carriers do not pay full msrp price for iPhones. They pay much less than full price for android devices.

    Apple usually discounts volume buyers 10% like the us govt who purchased like 20k iPads and iPhones.

    Att gets similar discount buying 5-10 million iPhones from Apple directly.

    Att makes an instant profit putting u on installment plans since there is no discount.

    Sure you sometimes have third party sales like this weekend at SAMs club discounting $250 gift card for new iPhone.
     
  14. cousintim macrumors 6502

    cousintim

    Joined:
    Jan 14, 2015
    #14
    AT&T pays a little less than $600 for a 16GB 6s. About two years ago, it was reported that its wholesale cost was the lowest of any iPhone seller.
     
  15. aneftp macrumors 68040

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    Jul 28, 2007
    #15
    Which makes sense. Like I said Apple discounts volume buyers around 10%. Msrp iPhone $650. 10% off is around $600 give or take.

    And if att is pushing installments with very little sales. People paying full msrp in installments. That generates 10% automatic profit for att. So att is not only making money off its service. It's still making money off selling the iPhone in installments.

    Now they added a $15 next fee. That's pure profit. When the Feds finally raise the central bank rates. Watch for the carriers to start raising their installment "fees". Att next fee could be $45 before we know if the Feds raise interest rates. Don't think att and other carriers are being kind with giving you zero percent financing. It's all tied into what the current interest rates are.
     
  16. cousintim macrumors 6502

    cousintim

    Joined:
    Jan 14, 2015
    #16
    You don't understand profit. The $60 margin is not "pure profit." AT&T has to account for the costs of logistics, contract administration, retail labor, sales commissions, fraud, etc. AT&T's profit comes from services, not low-to-zero margin equipment sales.
     
  17. nostresshere macrumors 68030

    Joined:
    Dec 30, 2010
    #17
    The profit that Apple or ATT makes is a worthless piece of information. It doesn't matter. They can charge whatever the market will pay. All that matters is if you are willing to pay it.

    By the way, there are millions of people still on Ihone 4 and 5s. And many of them are still paying the subsidized price. Now that is sad!
     
  18. bpeeps macrumors 68020

    bpeeps

    Joined:
    May 6, 2011
    #18
    This dumb ridiculous argument again? Newer plans are not cheaper for everyone, especially those on individual plans. Unlimited data is still cheaper than a 5Gb a month plan for me. ME. We all have different needs and plans. Relax.
     

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