Toggle sidebar Toggle sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

AT&T Raising exit fees on smartphones, Timing?

AT&T ETF $175 to $325 = Iphone on other Carrier

I dont know but it looks like the iphone will be on another carrier, cause why raise the ETF to $325. What you guys think?
 
snoopy07 said:
I dont know but it looks like the iphone will be on another carrier, cause why raise the ETF to $325. What you guys think?
Click to expand...
I'm sure it has to do with AT&T's CEO's confidence that no one will want to go through the hassle of switching carriers. 🙄
 
I would imagine it has something to do with the people who get an iPhone then cancel after a month or two just to save a few bucks.
 
kicko said:
This is not really shocking. If you sign up for 2 years, then do your time or pay up. Devices are getting more expensive, more people try to sign up for services and quit after 30 days just to sell a phone (unlocked or not) on ebay for $500+. All AT&T is doing is pugin' a hole in a place where they need to protect revenue.

What i would rather see is someone like AT&T let you but an unsubsidized device and since you paid upfront for it give you a discounted rate plan since they are not recouping money on a promotional price.

no more contract problems win - win
Click to expand...

I agree completely. there are people out there who try and screw AT&T that way. I think it's a business decision. An attempt to curb losses.
 
A few months ago I was sure that there would be no iPhone on another network for years to come...

but now it's seeming more like a reality.
 
nitromaxx said:
I agree completely. there are people out there who try and screw AT&T that way. I think it's a business decision. An attempt to curb losses.
Click to expand...

I also agree. The MSRP on the 8GB iPhone 3G is $499 and the 3GS is $599 and $699 respectively. Im sure AT&T is not paying Apple much less if any than these retail prices, so when they sell them for $99, $199, and $299 under contract they are selling the device at a $400 loss and recouping the loss over 24 months. Why wouldn't they increase their ETF on more expensive devices to keep the ETF more in line with their loss on the device. The cheap phones they sell have also gotten cheaper over the years so AT&T is reducing the ETF on these phones also to reflect smaller losses on those devices.
 
This is just to prevent people from getting the phone at the upgrade price ($200) then canceling with ETF ($175). Essentially getting the phone for $375 and then easily reselling on ebay for $600 if not more.
 
brdnboy said:
I also agree. The MSRP on the 8GB iPhone 3G is $499 and the 3GS is $599 and $699 respectively. Im sure AT&T is not paying Apple much less if any than these retail prices, so when they sell them for $99, $199, and $299 under contract they are selling the device at a $400 loss and recouping the loss over 24 months. Why wouldn't they increase their ETF on more expensive devices to keep the ETF more in line with their loss on the device. The cheap phones they sell have also gotten cheaper over the years so AT&T is reducing the ETF on these phones also to reflect smaller losses on those devices.
Click to expand...

But not only did they increase the ETF to recoup the subsidy they also require a data plan if you decide to honor the contract. Basically once they have you, you're screwed six ways from Sunday. One way or another you are going to pay mega $$$. Way more than AT&T deserves to make off of you.
 
I'm thinking it might mean the opposite. Perhaps AT&T made a deal with Apple to subsidize the iPhone by an extra $150 in order to maintain exclusivity. If that were the case, this fee increase could just be to adjust their fees to the new pricing. $49 for the new iPhone perhaps? $149 for the white 64gb model? Imagine the sales...
 
ogdogg said:
I'm thinking it might mean the opposite. Perhaps AT&T made a deal with Apple to subsidize the iPhone by an extra $150 in order to maintain exclusivity. If that were the case, this fee increase could just be to adjust their fees to the new pricing. $49 for the new iPhone perhaps? $149 for the white 64gb model? Imagine the sales...
Click to expand...

The ETF is for all smartphones, not just the iphone.
 
I doubt this means anything. Verizon has had theirs at these levels for a while. I still won't believe iPhone to Verizon until I see it. I just saw a Verizon commercial with Verizon|Google together. They seem to be aligning themselves with Google, and it would be a big 180 if they also cozied up to Apple 6 months later. It just doesn't make sense anymore. T-Mobile may get it.
 
AHDuke99 said:
I doubt this means anything. Verizon has had theirs at these levels for a while. I still won't believe iPhone to Verizon until I see it. I just saw a Verizon commercial with Verizon|Google together. They seem to be aligning themselves with Google, and it would be a big 180 if they also cozied up to Apple 6 months later. It just doesn't make sense anymore. T-Mobile may get it.
Click to expand...

Everyone keeps saying they are aligning themselves with Google, yet they loaded Bing as the default search engine on all of their phones.

They have many business partners for differing reasons. Just because they have and advertise Android phones doesn't mean they can't have an iPhone. Doesn't AT&T have Android phones?

But back on the subject...yeah, Verizon did this a while ago as well. I think they should be forced into a a plan where the subsidy paid matches the "ETF" and it's all prorated to equal $0 by the end of the contract. So $375/24 = $15.63/month.

I also think this is another way to get around the government mandated prorating of the ETF. They found a loophole.
 
Geckotek said:
Here's how it should be:

When you buy a new phone you get 2 options:
1) Pay full price for the phone and pay a rate that is lower than current rates.
2) Pay a discounted price for the phone. The amount of the discount is amortized over the life of the contract in the form of an added monthly fee on your contract. Perhaps the fee is slightly higher...finance charges. Once paid off, the fee drops off. If you cancel early, whatever remains of that amortized amount is your ETF. And the phone is unlocked once you complete the contract or pay the ETF.

This seems fair to me.
Click to expand...

This is exactly what I was thinking earlier today. The ETF shouldn't be a set amount for everyone, it should be the amount of subsidy they got. The 'contract' would just be an incentive for you to get a cheaper phone.
 
beamer8912 said:
But not only did they increase the ETF to recoup the subsidy they also require a data plan if you decide to honor the contract. Basically once they have you, you're screwed six ways from Sunday. One way or another you are going to pay mega $$$. Way more than AT&T deserves to make off of you.
Click to expand...

That's because one way or another that $400 subsidy has to be paid for!
 
plusonechoi said:
This is just to prevent people from getting the phone at the upgrade price ($200) then canceling with ETF ($175). Essentially getting the phone for $375 and then easily reselling on ebay for $600 if not more.
Click to expand...

+1. Some are reading WAY too much into this business decision.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back