The situational price discrimination always bothered me:
a) $199 -- the sweet spot (contracts suck, but if you're staying with them for the foreseeable future go for it, why wouldn't you do this)
b) $199+249 early -- meh, but still better than the beast of full price for iPhone (but really, almost there, and another 2 year term with it?!?)
...I think I did this with 3GS from 3G because that's when it was $199+$199 early upgrade fee, they changed it to $249 at some point). I got 3G because I was instantly eligible for an upgrade from original generation since $599/and consequent $399 with price drop 2-year price wasn't really a subsidy price. It was just the price and you had to do it with a contract. LOL. Effectively, full unsubsidized price+ you got no choice unless you hacktivate 2 year agreement.
c) Somewhere in between second hand -- snagged a great deal for a 4S back in January. Traded a guy my 4 32GB+$100 for his white 4S 32GB. He "needed" jailbreak and couldnt hold out any longer. Apparently, jailbreak surfaced not even but a week or two after. I was not going use my upgrade on 4S (especially considering I wasn't eligible then, until March, too late in the game and didn't want to do the early upgrade for some of the reasons mentioned in this thread, but this deal came along and I couldn't turn it down especially while not touching the contract)
d) $649 -- obviously a huge hit up front, but if you really are going to be going international, or aren't tied to any one carrier for any length of time, the only option. I don't mind buying a phone contract free, but only if it's reasonable. $349 for an unlocked Nexus new, straight from Google is still a steal as far as I'm concerned.
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But, I am considering going this route for my dad since he upgraded to 4S back in February (thinking we'd get another subsidy in 12 months spending >$99/month). That way, and to re-emphasize,
the main draw of this isn't have something amortized over time, I mean it's nice versus getting whacked up front especially when at&t already always adds these extraneous fees, there's no fighting it off completely unless you go Straight Talk or another great prepaid option;
it's to be eligible for an upgrade next year so he can get 5S/6 at the subsidy price and then use that added line as a 2014 upgrade (and finally reap some full-time benefits of signing that filthy contract, since his 4S 2-year terms extends eligibility until 9/2013).
Thank goodness AT&T is keeping unlimited with subsidy. 5GB+throttle for $30 LTE is a steal these days for US.
Plus you'd always have a second phone line, just in case you want to be that person carrying around a Sony Ericsson or something while surfing the web on your iPhone on the other line as a "free perk" to the $10/month amortization
1) Has any one ever done this before as mentioned before in this thread? Is it something you think we can pull off with the preorder (gonna weigh in today to see if my dad wants me to get him a preorder, and others in the family -- the other 3 lines, are all eligible for upgrades).
2) Can you do this "make an individual line, then merge it to family plan" thing work out over the phone without going into an AT&T retail store? I have unpleasant experiences there with things just being more of a hassle than they need to be (when getting a replacement SIM, guy told me he had to have the IMEI of my 3GS, blatantly not true, I trade+cashed a 4S from Craigslist and never gave the IMEI to AT&T still with full functionality just by micro SIM swapping the phones, I even got my 4S bought second hand unlocked through at&t and resold my 32 for $550 back in July!
3) Would it be worth it for me to do this, even with an upgrade available to preserve it for next year?