Downside of ATT's new plans?

[spinedoc77]

Just for this round... this is a one time thing. It will not be extended to future transactions.

That must be nice for someone who signed a 2 year contract on 1/31/14, lol.

----------

Read carefully. This was referring to the old (non-mobile share) plans.

That's on their Mobile Share Value Plans webpage.
http://www.att.com/shop/wireless/data-plans.html#fbid=ehu5kivECzi

scroll down to pricing at the bottom and it's in that paragraph.

 

[Rigby]

That's on their Mobile Share Value Plans webpage.
http://www.att.com/shop/wireless/data-plans.html#fbid=ehu5kivECzi

scroll down to pricing at the bottom and it's in that paragraph.

Please, read carefully what I wrote in the first posting.

 

[cameronjpu]

I really appreciate all the back and forth and the math you guys have done for me. Just haven't been on the web today, but thanks!

 

[aneftp]

$100/10gb data share plus


$15/month on next (or pay full price/Craigslist/eBay)

Or pay $40/line with 2 year contract.

Considering the subsidy was worth $18.75/month $450.

Now ATT wants u to pay $25/extra a month for contract that equals $600. Plus $199. That means they are valuing a $650 iPhone at $800.

Can't someone see ATT has tried to make it look like a bargain when in fact their original mobile share was overpaid.

The spread is $6.25/month difference per line.

 

[mantan]

I know the knee jerk tendency is to bash AT&T, but I think this is a pretty fair way for them to get out of the subsidized model. Especially if you're a shared plan user.

The problem with the old model is you paid the same monthly service fee whether your phone was paid for or not. By lowering the cost to the $15/month for phones out of contract, it provides a cost incentive to keep your phone past the subscription date.

Essentially AT&T threw everybody the bone of giving them 'off contract' access pricing for the duration of the current contract with the stipulation you move to NEXT and pay for you device moving forward. If you signed a contract within the last year, it's a great deal. You can easily save $180-$360 for the duration of you contract. Our monthly family bill is going to drop $80.

Now the flip side is you have a higher per month charge than the old $30/month when you buy a new phone. But when you factor in no money down and the money you saved from the initial conversion, a lot of users are going to come out ahead.

I think it'll also change how people look at their devices. If your NEXT bill was $44 a month...a $29 a month drop to 'service only' will make a lot of people second guess upgrading.

The one knock is they aren't clearly communicating the impact of NEXT during the conversion. I think a lot of people are in for sticker shock when they buy their next device. But again, if you look at the cost you would have paid upfront ($200-$400) and spread it out over the life of the NEXT contract, it's only costing a bit more per month.

 

[rui no onna]

$100/10gb data share plus


$15/month on next (or pay full price/Craigslist/eBay)

Or pay $40/line with 2 year contract.

Considering the subsidy was worth $18.75/month $450.

Now ATT wants u to pay $25/extra a month for contract that equals $600. Plus $199. That means they are valuing a $650 iPhone at $800.

Can't someone see ATT has tried to make it look like a bargain when in fact their original mobile share was overpaid.

The spread is $6.25/month difference per line.

The original Mobile Share wasn't actually that bad. I remember doing the math on the Mobile Share 10GB and my old 700 minute rollover plan with 4 smartphones (5GB/$45 x1, 2GB/$25 x2, 200MB/$15 x1) and shared unlimited text and they ended up around break even.

$120/10GB
$30/smartphone

I believe AT&T adjusted plans last year so base 10GB is $100 but per line fee is $40 so with 4 lines it's a monthly cost of $260 which is an easy $20 increase for nothing. If you've got more lines in the plan, then the higher the price increase. Comparing the older subsidized plans and the new AT&T MS Value 10GB with Next on a 4-line account, savings for me is $80/mo or $20/mo per line.

If you still have any basic phones on the account, then the older plans are definitely better. On an all smartphone account, the new MS Value plans might end up cheaper particularly if you keep phones for more than 2 years.

 

[lordofthereef]

That must be nice for someone who signed a 2 year contract on 1/31/14, lol.

Agreed. But I am guessing very few will realize this or take them up on this offer. I personally think AT&T wants as many of their customers to "voluntarily" move over to the new plans before they just decide to permanently get rid of the old plans all together. Just a theory.

 

[crzdcolombian]

With the phone companies no longer paying the 400+ dollar difference in the price of Samsung Galaxies and iPhones. I think the prices will go down. $650 is crazy for a phone. I love my iPhone and got a new one every year because I would use someones upgrade on my plan

No way in hell am I paying $650 every 1-2 years even tho I can still prob get 300-400 per phone by selling it online. This is really going to mess with Apples bottom line. Maybe the next 6c is going to actually be cheaper and affordable.

As for non contract phones. My friend got a motorola G for 100 bucks no contract and its not so bad. I got my mom a windows phone for 50 bucks and its actually pretty good. In no way 7x worse than my 5s haha

 

[rui no onna]

With the phone companies no longer paying the 400+ dollar difference in the price of Samsung Galaxies and iPhones. I think the prices will go down. $650 is crazy for a phone. I love my iPhone and got a new one every year because I would use someones upgrade on my plan

No way in hell am I paying $650 every 1-2 years even tho I can still prob get 300-400 per phone by selling it online. This is really going to mess with Apples bottom line. Maybe the next 6c is going to actually be cheaper and affordable.

True. The new pricing structure is likely to impact top of the line models. The original iPhone was released at $500 4GB and $600 8GB. Apple cut prices by $200 just a couple of months after, had the 4GB on clearance for $300 and introduced a 16GB model for $500. Fastforward to now, the lowest capacity iPhone 5s is $650 and highest is $850. If not for phone subsidies, I highly doubt manufacturers would have seen such a high volume of smartphone sales particularly on top of the line models.

As for non contract phones. My friend got a motorola G for 100 bucks no contract and its not so bad. I got my mom a windows phone for 50 bucks and its actually pretty good. In no way 7x worse than my 5s haha

I've got the Moto G on Verizon, too, and it's a darned good phone for the price. Definitely an upgrade over my Galaxy Nexus. It's pretty impressive to see how well Jelly Bean and Kit-Kat runs on such an inexpensive device.

 

[aneftp]

I just don't think Apple or Samsung can maintain their high msrp prices.

A galaxy s3 msrp at ATT retail store from 2012-2013 when it was the top Samsung phone was $550. Than the S4 came and Samsung jacked up the price by $80.

iPhone 4: apple raised the price in the middle of the phone cycle in April 2011. It's crazy. The msrp was $599 when it launched in June 2010. Than in April it was raised to $649.

I have never heard such electronics prices being raised in the middle of a production cycle.

 

[mantan]

I just don't think Apple or Samsung can maintain their high msrp prices.

A galaxy s3 msrp at ATT retail store from 2012-2013 when it was the top Samsung phone was $550. Than the S4 came and Samsung jacked up the price by $80.

iPhone 4: apple raised the price in the middle of the phone cycle in April 2011. It's crazy. The msrp was $599 when it launched in June 2010. Than in April it was raised to $649.

I have never heard such electronics prices being raised in the middle of a production cycle.

I wonder if Next pricing actually makes it easier to keep the prices high. I agree that consumers would change their purchasing habits if they had to swallow the actual cost of the device in one bite...or a couple of small bites.

But programs like Next make it 'just a few more dollars a month'. At that point the difference between a $650 and $850 device becomes $10 a month with Next 12....even less for Next 18.

More importantly, people will direct their anger at the cell phone companies (for 'jacking their rates') than at Apple or Samsung for making 50% profit on each device.

There will be less downward pressure on prices than ever.

 

[rui no onna]

I wonder if Next pricing actually makes it easier to keep the prices high. I agree that consumers would change their purchasing habits if they had to swallow the actual cost of the device in one bite...or a couple of small bites.

But programs like Next make it 'just a few more dollars a month'. At that point the difference between a $650 and $850 device becomes $10 a month with Next 12....even less for Next 18.

For some folks, this will likely be true. I reckon not having to pay for the $200-400 upfront cost might actually encourage some to get a more expensive device. Mind, that extra $10 a month per device adds up quickly when you have 4 or more lines on the account.

For the more budget conscious though, I think the Next plans are more likely to affect upgrade frequency. You're much more likely to keep phones until they break when forgoing an upgrade means a savings of $150 per month (4x iPhone 32GB).

More importantly, people will direct their anger at the cell phone companies (for 'jacking their rates') than at Apple or Samsung for making 50% profit on each device.

There will be less downward pressure on prices than ever.

More like 100+% markup. I think Apple will be a bit better off than Samsung in keeping high device prices, though. Apple has a monopoly on iOS. Meanwhile, there are plenty of lower cost Android devices available including those made by Samsung themselves.

 

[Deguello]

I think it will be the opposite. Seeing the phone and service separately will make some people better understand how expensive the phones are. The 64 GB is already almost as expensive as a MacBook Air and the 32GB isn't far behind. How many people update their laptops every two years?

 

[mantan]

For some folks, this will likely be true. I reckon not having to pay for the $200-400 upfront cost might actually encourage some to get a more expensive device. Mind, that extra $10 a month per device adds up quickly when you have 4 or more lines on the account.

For the more budget conscious though, I think the Next plans are more likely to affect upgrade frequency. You're much more likely to keep phones until they break when forgoing an upgrade means a savings of $150 per month (4x iPhone 32GB).


More like 100+% markup. I think Apple will be a bit better off than Samsung in keeping high device prices, though. Apple has a monopoly on iOS. Meanwhile, there are plenty of lower cost Android devices available including those made by Samsung themselves.

Agree about keeping devices longer. My wife's phone is up in April. She is completely happy with it. In the past we probably would have upgraded just 'because'. I was always more excited about her upgrading than she was. No reason to upgrade until there's something she really wants or something happens to her phone.

My son may miss out as well. He has my old iPhone 4. He's been saving his money to buy a new iPhone 6 when they come out this fall. Previously it would have just been the $200 upfront. But now I also have to consider the increase in a monthly cost. He'll have to contribute to that as well. I could see him angling for me to upgrade and inherit my iPhone 5 instead...

 

[rui no onna]

I think it will be the opposite. Seeing the phone and service separately will make some people better understand how expensive the phones are. The 64 GB is already almost as expensive as a MacBook Air and the 32GB isn't far behind. How many people update their laptops every two years?

Lol, I actually do build desktops and buy laptops almost yearly.

 

[zorinlynx]

I'm actually quite happy with my iPhone 5, and since I'll be paying less once out of contract, will probably hang onto it a bit longer than I normally would (unless the iPhone 6 is AMAZING or something)

I may actually upgrade to a used 5s once the 6 comes out, because I want that motion processor and TouchID.

Basically, it's nice to be free of the whole "My contract is over so now I'm being ripped off unless I buy a new phone" thing.

 

[Deguello]

Lol, I actually do build desktops and buy laptops almost yearly.

You'll grant that you are an outlier, I bet.

 

[Dmunjal]

You can still get a phone with the subsidy but you have to pay the extra $15 per month.

The next time you are ready to get a phone you will be debating Next versus buying outright vs paying the extra $15 and still getting the subsidy.

I switched last month to the family 10GB plan. Just like this, I will save monthly but it will cost me more when I get new phones one way or the other.

For $10 a month.... I would keep what you have.

You would need to save $20 a month to break even.

There is a 4th option. You can buy a used phone. I've seen a lot more depreciation on phones lately making used phones a bargain. And no sales tax either.

 

[rui no onna]

You'll grant that you are an outlier, I bet.

Not on OCN and [H]. Granted, outside of those forums, all the folks I know have computers that are at least 2 years old... Weird...

 

[bniu]

Don't really see much downside to these new plans.

Upsides are that it finally gives me the cell phone plan simplicity I've been looking for. I pay my $140 and I get 10GB of data to use over 3 smartphone lines and a tablet line, all with no contract. I'm not stuck with AT&T, any full price phone I buy will be unlocked, and I can tether all I want, text all I want, even internationally, call all I want domestically, only thing I really need to track is data usage and that goes nowhere near 10GB. I also don't have to wonder when I'll be eligible for a phone upgrade because now, the phone purchase process is independent from service.

I can upgrade anytime I feel like it, I can upgrade only when the moon is full, I can choose to upgrade only if it's a leap year, or whatever. I upgrade phones now on my schedule and I continue to pay the low AT&T monthly rate.

And NEXT is available if I should choose to go that route, which I may or may not. I might even exercise the trade in offer on NEXT if I'm too lazy to attempt selling my phone

 

[qtrim]

I'm getting an iPadMini Retina with Cellular (ATT) Friday. Should I add it first, then switch to the Shared plan, or switch and then add it afterwards for $10? Just wanting to make sure I get the '$100 add a line' credit.

 

[Michael CM1]

From what I gather, here's the deal:

1) You like to buy a new phone every two years. So you sign up for the subsidy plans or do the payment plans through the carrier to get a reduced rate.

2) You're like my parents and really don't need a new phone every two years, just when the old one is long in the tooth. So you use that cheaper plan and go past the two years, saving money that before would've been "wasted" by you not buying a new phone.

I had to beg my mom to upgrade her 3GS to a 5 once I saw them for $150 and she could trade in the 3GS for about $150 credit. She had been complaining about a bazillion problems but heard all the standard media complaints, such as the new connector and random other stuff. She hasn't had much trouble since. The only thing I lament is her and my dad not getting the Touch ID until a few years from now. Man, that thing saves time and "uh, what's my passcode?" trouble. I also finally talked her into getting her own iPad late last year, and she loves it now.