AT&T Rolls Out New 'AT&T Next' Smartphone and Tablet Upgrade Program

[Chupa Chupa]

I love how society functions today.

Businesses outright try to scam us, mislead us, and the media does nothing.

Or one could say consumers want everything cheap and easy w/o any consequences.

What exactly is the media suppose to do? And why? What is so inherently wrong about a company offering consumers another choice? ATT is killing off its other plans here. This is just one more for consumers to consider.

But people need to start using their own brains and assess if a program is right for them or not. Personally I don't see the value in the plan, but someone who wants to upgrade every year but can't afford to front the full upgrade price or doesn't want to use the amount toward a CC credit limit might. It's no different than someone who normally could only afford to buy a Toyota Avalon leases instead because the monthly payments are less than buying because you are only paying to use the car for x amount of time.

 

[KdParker]

If I am reading it right, you wouldn't get anything back. You return the phone which "covers" the part you didn't pay, and you just start on a new payment plan. It's like renting the phone, you never build any equity in it.

True and since rates aren't changing we would pay more for the right to only be locked into a one year agreement instead of a traditional 2yr contract.

 

[freediverdude]

Hidden gotcha on iPhone release day

And another thing that's kind of hidden in the background with this: think about iPhone release day. With these new plans, the carriers are essentially saying "you have to come to the carrier store to do your upgrade, since you have to swap devices."

So no more being able to wait in line at the Apple store on iPhone release day, or even being able to preorder the iPhone and have it shipped for release day. You would have to wait until the phone gets shipped to the carrier store to come in and swap out (and remember carrier stores get very few iPhones during the release, and people wait for weeks or months for theirs to come in).

No wonder Apple is concerned about upping their in-store iPhone sales- with these plans a lot of people won't be able to buy an iPhone at an Apple store at all!

 

[Alisstar]

When iOS 7 rolls out, reselling an iPhone won't be as simple as it is now. The device is linked to your iTunes account, so when you reset it to sell it, the buyer will need to know your iTunes password in order for the buyer to use it. That's how I understand iOS 7's security feature to work. Please correct me of I'm wrong.

My point is that trade-in programs through the carriers may be the easiest option for most users when wanting to upgrade their devices.

 

[Technarchy]

I emailed AT&T asking about this and they called me back. She confirmed that the subsidy hidden in your rates does NOT go away when you do AT&T Next. So there really is no reason for doing this program.

No reason at all.

You're better off with the normal $199 upgrade price, and selling the phone for $300-500 on the used market in a year.

T-Mobile's jump makes vastly more sense in terms of price, perks and implementation.

AT&T Jump is a complete scam, because it double dips you and actually doubles the price of whatever phone you choose.

In context, with AT&T next a 64gb iPhone actually costs you $1,698. That's disgusting and a huge scam.

 

[psymac]

Check my math on this, but here is a comparison I came up with from the current subsidy plan (requires 24 months before upgrade discount) and the Next plan for those who will upgrade after 12 months from one phone to the next. I used 16GB iPhone 5 and assumed iPhone 5S prices of $199 for full discount and $650 for outright purchase. I know not everyone goes out and pays full price immediately for the new phone, but to compare the new plan, this is one way to look at it.. With the new plan, you can upgrade to the new phone right away.. and to do so you will actually pay less.. see picture:

Now this doesn't account for the fact that you can resell your original phone to offset the cost of the new one. No guarantee of pricing on resale phones (and this plan may even drive used prices down) but if you figure getting $300 for a used iPhone 5 16GB after 12 months, you will save money with the subsidy plan.

Did you subtract the $300 after selling the iPhone? If not, then $921-300=$621, and $780-621=$159 more on the new plan.

 

[ToddClemmer]

Been with them for over 8 years. $100 a month unlimited. Not one issue.
I don't know why everyone cries like they do over AT&T. Maybe if you stayed with a carrier for more than a year you would reap some benefits.

 

[austinkays]

You guys are all thinking about this for yourselves. If it isn't for you, then just do what you have done in the past.

What this IS for, are those customers that want to pay nothing in the store at all. They usually buy the iPhone 4 for $.99, and are unhappy with an older device. Now they can get any phone they want, with a different way to pay for it.

Also, one of the reasons it may cost a bit more is because people ARE going to take the phone and not pay their bill. It's gonna happen. And everyone else will pay for that. Theft is a reason why prices are inflated in stores.
That's all it is. Why get upset over this?

 

[Chupa Chupa]

When iOS 7 rolls out, reselling an iPhone won't be as simple as it is now. The device is linked to your iTunes account, so when you reset it to sell it, the buyer will need to know your iTunes password in order for the buyer to use it. That's how I understand iOS 7's security feature to work. Please correct me of I'm wrong.

My point is that trade-in programs through the carriers may be the easiest option for most users when wanting to upgrade their devices.

No that isn't how it works. Under iOS 7's security, IF your iPhone is lost or stolen THEN whoever found it would have to know your iTunes PW to do a factory reset to activate it as their own.

However, you, the rightful owner, can do a factory reset anytime you like and that completely de-links the phone from iTunes as it does now. Remove the SIM card. Sell phone as usual.

 

[2298754]

The best deal is still getting a phone at the two year contract price and keeping it for two years. Keeping your phone for the two years saves you about $400 minimum.

If AT&T doesn't offer any sort of contract-free plans, then they are basically "double-dipping" the customers. If we're under the 2 year contract, we're already paying the subsidy for the device. If we pay monthly via AT&T Next (at full price), you're basically paying for the same phone TWICE

 

[Chupa Chupa]

If AT&T doesn't offer any sort of contract-free plans, then they are basically "double-dipping" the customers. If we're under the 2 year contract, we're already paying the subsidy for the device. If we pay monthly via AT&T Next (at full price), you're basically paying for the same phone TWICE

But if you pay full price for an iPhone today you don't get any discount on the rates. Nothing has changed in that regard. ATT is just letting you lease the phone so you can swap out every year.

ATT recent bought Cricket which is a no-contract provider and sells the iPhone. We'll see if they continue to offer current iPhones at less expensive rates. I'm loathe to give up my grandfathered data, but could be tempted if Cricket under ATT had better rates and used ATT's footprint.

 

[3282868]

The North American wireless system is horrendous. Other nations allow purchasing the device (at full price) without contracts on a pay as you go need, saving consumers from high contracted costs. In North America, corporations utilize the same business mode - contracts with exorbitant monthly costs, early termination fees, inconsistent service and battling competitors over location rights (town approval doesn't help either). Even then, consumers generally pay ⅓ or more for a device upfront with a locked in 2-year contract.

The "system" is skewed heavily for providers (the "big four") who milk consumers dry. Over the course of a typical 2-year contract, we pay more than most other nations and receive less. This "renting" model simply cuts the initial cost of the device into monthly payments, yet the consumer pays more for the device over a 12 month period, especially factoring increased monthly taxes and fees from spreading out device costs). Eliminating or adjusting contracts to allow device upgrades is a start, yet consumers can't purchase a new device annually (unless full price). Providing a larger range of varying contract options and device prices based on chosen contract may improve sales and profits and would be a win/win (VZW could have sold their back stock of iPhone 5's).

Consumers need to vote with their dollars and petition for a restricted model, allowing providers to profit while pushing competition to improve service and support. Providers are less apt to improve when competition follows the same model.

 

[Alisstar]

No that isn't how it works. Under iOS 7's security, IF your iPhone is lost or stolen THEN whoever found it would have to know your iTunes PW to do a factory reset to activate it as their own.

However, you, the rightful owner, can do a factory reset anytime you like and that completely de-links the phone from iTunes as it does now. Remove the SIM card. Sell phone as usual.

Thank you!

 

[maxosx]

Would you like a punch in the nose, or a punch in the nose plus a kick in the groin?

Ten points for the stellar humor

 

[nutmac]

tl;dr: AT&T Next is a leasing program for phone, where you pay $154 more (than subsidized AT&T pricing) for the privilege of being able to exchange your iPhone for the latest model every year.

If you aren't the type who needs to upgrade phone every year, you are better off selling 2-year iPhone either directly to Apple (where you can recoup about 75% or more of the subsidized cost), third party (e.g., Gazelle, Amazon), or DIY (eBay, Craigslist) then buy the phone at subsidized price (and pay $36 activation fee).

 

[ugahairydawgs]

I have been leasing vehicles for a while now, and I probably always will. I get a new car every 2 years and with good credit and a lease history you can usually get zero due at signing. Usually by time people pay off a car they are ready to buy a new one...not to mention with interest they usually pay about $36,000+ for a $30,000 car that they sell for $15,000

Definitely off topic, but flipping cars that often is a huge waste of money. I agree though that the interest payments on a car note are outrageous, but thats why you should just pay cash. Buy year old used cars and let someone else eat a huge chunk of the depreciation....but definitely pay cash. Financing a depreciating asset is just madness, IMO.

 

[mattopotamus]

Definitely off topic, but flipping cars that often is a huge waste of money. I agree though that the interest payments on a car note are outrageous, but thats why you should just pay cash. Buy year old used cars and let someone else eat a huge chunk of the depreciation....but definitely pay cash. Financing a depreciating asset is just madness, IMO.

I keep payments under $350 and always have a new car. I never put money down and if I decide to buy I can.

 

[DotCom2]

Definitely off topic, but flipping cars that often is a huge waste of money. I agree though that the interest payments on a car note are outrageous, but thats why you should just pay cash. Buy year old used cars and let someone else eat a huge chunk of the depreciation....but definitely pay cash. Financing a depreciating asset is just madness, IMO.

Not necessarily so. I got a 2% 5 year loan on my Lexus. I can get more than 2% on the 40K through investments. If you can get a low enough interest rate, take the cash and invest it in something that gives you more than 2%!

 

[ugahairydawgs]

I keep payments under $350 and always have a new car. I never put money down and if I decide to buy I can.

Just a difference in philosophy, I suppose. I have a 2010 SUV that I own outright, so I pay $0 a month on it and put $$ aside for the next car, so 8 years or so from now when I have to buy one I can walk in with a stack of cash and get just about anything I want.

A life of always owing someone $$ is just silly to me regardless of the product in question.

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Not necessarily so. I got a 2% 5 year loan on my Lexus. I can get more than 2% on the 40K through investments. If you can get a low enough interest rate, take the cash and invest it in something that gives you more than 2%!

You could get a whole lot more on your investment if you weren't feeding the finance company $480 (the average car payment in the US) each month.

 

[DotCom2]

Just a difference in philosophy, I suppose. I have a 2010 SUV that I own outright, so I pay $0 a month on it and put $$ aside for the next car, so 8 years or so from now when I have to buy one I can walk in with a stack of cash and get just about anything I want.

A life of always owing someone $$ is just silly to me regardless of the product in question.

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You could get a whole lot more on your investment if you weren't feeding the finance company $480 (the average car payment in the US) each month.

I'm not feeding the finance Co. $480. I feeding the finance Co. 2% which is nada! You still have to pay for the car someway. You pocket the $ and pay for the car all at once. I leave the cash in investments and have the 40K grow more than the 2%. As you said, just a diff philosophy. But we are getting off-topic so I will leave it at to each their own.

 

[Vanilla35]

I personally don't see what the problem is with this deal. First, the main idea people seem to be pushing around in a negative approach to this is that AT&T already "charges" you for what it would cost to have a subsidized phone for the traditional 2 year contract method. Although this is probably true, no one actually knows this. Second, with this deal. You would pay $390 for the 12 months of having a new phone (with contract you pay $250 for 24 months), but after that, if you pay off the left over $260, you own the phone. Which means you can probably sell it for $550. Then you can get the newest phone out after that. You only pay $100 (for the entire year) and get to upgrade to the newest phone after that. What's the problem? You actually pay less if you were to do that every year. Because $250 over 24 months is $125 per year, and if you upgrade every year you'd only pay $100 per year. Why are people raging? If it's simply because everyone is claiming that AT&T already has built in prices for their 2 year contract subsidies, well guess what. They're giving you 0 finance for holding these phones too! It's the same thing. Just over a monthly payment (true value), instead of all upfront but total discounted as it is with the 2 year contract subsidy.

 

[CrAkD]

I like the deal as long as I can put partial money down. Like I have no problem putting the $400 down for a 64gb iPhone. So $22 a month for 12 months is worth it to me to be able to get the next iPhone without the hassle of paying $900 upfront then trying to sell my old one to get half back.

That being said if tmobile gets good enough service I'd also switch to save money monthly as well. I have a lot of crap on my phone bill that I could eliminate to eat the $20 and not even feel it.

 

[saturn88]

Your current plan:
$199 upfront + $161 per month ($400 subsidy baked into your current plan over two years) and you get to keep/resell your device when the term is over

Proposed plan:
$0 upfront + $161 per month + $32.50 per month. After one year is up you either give them the phone back with nothing to show for it, or continue to pay $32.50 for an additional 8 months and keep it. So you are paying $150-$400 more than you would be by paying the $199 upfront.

I actually paid $250 upfront for my Galaxy S4. So paying $100 more a year is not much considering a convenience of getting a new one and no contract. $100 is nothing for the American middle class and mobile phone is probably most important device for people.

It's like leasing a car: sure leasing costs me more than buying. But I pay for the convenience. I don't have to deal with buying/selling headache and I drive new clean car on warranty with latest technology and trade it every 30 months.

It's an option and it's not for everyone.

 

[cwwilson]

I just want them to go back offering a full upgrade after 18 months like they used to.

 

[kmichalec]

This sums it up well. The TMobile plan is not as bad, cause of the lower service costs, but isn't for everyone.

The AT&T plan is just a big F' you, and only works for the lazy/clueless people who don't care about losing money and don't want to/can't figure out how to sell a phone.

http://www.pcmag.com/article2/0,2817,2421840,00.asp