Carrier I think everyone is confused with AT&T Next

[B's iPhone]

AT&T Next is basically like leasing a car that you're already making payments for.
There's no good way of looking at it.
In your monthly phone bill you're already paying for a phone. Why the hell would you add another payment?
The activation fee is simple to get waived, I have done it since the 3G and have owned each iphone since the original.
The resale of last years phone usually covers the cost of a new phone every year.
If you're dead set on buying the new iphone at $199 instead of the early upgrade price, just add a dummy line. Pay $10 a month and use a full upgrade each year. No reason to use the Next program unless you enjoy leasing a phone.

 

[Lindsford]

Bad plan. I have a plan that earns me $8 per year. Your plan costs you $90 per year.

Saving $8 is better than spending $90



My Math vs. Your Math:

You and I, each getting a new iPhone each year. You using AT&T Next and me using a regular 2-year contract.
(All math done for 2 years and then I divide it in half at the end to represent 1 year.)




AT&T - 2 Year Plan

Pay $199 for upgrade price on one year
Pay $649 for off-contract phone on the other year
Recoup ($900) for selling my phone each year
One $36 re-activation fee

= -$16 / 2
I am earning $8 per year off of this



Your AT&T Next Plan over 2 years:

$648 worth of monthly fees
$432 to pay off your phone early twice
Recoup ($900) for selling your phone each year

= $180 / 2
You are spending $90 extra per year

Your math is sound however it is dependant on the variable of (a) being able to sell the phone for $450 each year (b) not factoring in those who buy the 32/64gb who take a bigger hit on reselling.

 

[B's iPhone]

It is pretty simple to me...These new plans are for those that simply do not want, or do not have the means, to pay for a phone upfront, regardless of the cost.

It is the same reason why some people will purchase on a payment plan from a rent-to-own company. Like my brother-in-law's crazy girlfriend that once bought a PlayStation for "only $25/month" she enthusiastically proclaimed. Until I showed her that the $300 PlayStation was going to cost her $650. DUH!!! (She really is that naive.)

Further, Many many many people do not know that there is an aftermarket for used phones, and the prospect of eventually selling does not come into play. Many people just want to walk out of a store with as little out of pocket as possible. Period.

So are these newfangled plans "ripoffs"? Completely depends on your finacial requirements. $0 out-the-door completely overshadows the total cost of ownership for many people.

No, they're still rip offs.
Ignorant people trying to live above their means doesn't make it a good deal .

----------

Your math is sound however it is dependant on the variable of (a) being able to sell the phone for $450 each year (b) not factoring in those who buy the 32/64gb who take a bigger hit on reselling.

Even if you can't sell your phone for $450 or more, a $100 or even $200 out of pocket is still cheaper than paying Next prices.
I took $310 for my mint iphone 5 as a trade in on the new 5s. I could have gotten more selling on craigslist or ebay but it was easy and it still paid for my 32GB 5s.
And I'm not paying for it twice for the "Next" year.

 

[KillaMac]

Which carriers offer early upgrades? From what I understand, all the major carriers no longer offer early upgrading (in order to push people to their contractless plans).

I suggest you read up on this program vs posting misinformation like this.

 

[jdag]

No, they're still rip offs.
Ignorant people trying to live above their means doesn't make it a good deal

Look, I am not agreeing they these plans are economical. But to a huge number of people, money upfront is simply out of the question. The commentary about living above their means is irrelevant (fact is many many people live beyond their means). Someone could budget a monthly fee but not have a lump sum.

 

[B's iPhone]

Look, I am not agreeing they these plans are economical. But to a huge number of people, money upfront is simply out of the question. The commentary about living above their means is irrelevant (fact is many many people live beyond their means). Someone could budget a monthly fee but not have a lump sum.

You're welcome to feel however you want, I am not here to judge.
In my opinion my comment about living above their means is very relevant.
I don't think someone should jump at an iphone, data plan and two year contract if they can't afford it.
In my opinion, if you can not do better than the Next program, maybe you should think about going with a flip phone.

 

[jdag]

You're welcome to feel however you want, I am not here to judge.
In my opinion my comment about living above their means is very relevant.
I don't think someone should jump at an iphone, data plan and two year contract if they can't afford it.
In my opinion, if you can not do better than the Next program, maybe you should think about going with a flip phone.

We are in 100% agreement on that. I am completely with you that the expense of a phone for most people is a luxury and should not IMO come before other necessities. Yet for a lot of people it does, and that's unfortunate.

My point was that the AT&T plan, and the other new plans, do fit a need. Not my need. Apparently not your need. But they fit a need for people that can budget monthly but can't or do not want to make a lump sum payment. As such, they are not a "ripoff" to someone that needs such a financial construct.

 

[imaginex20]

Att next plan is like leasing a car. After a year you either turn in the phone or continue to pay until you own. If you turn it in you sign a new lease for a new phone

 

[B's iPhone]

We are in 100% agreement on that. I am completely with you that the expense of a phone for most people is a luxury and should not IMO come before other necessities. Yet for a lot of people it does, and that's unfortunate.

My point was that the AT&T plan, and the other new plans, do fit a need. Not my need. Apparently not your need. But they fit a need for people that can budget monthly but can't or do not want to make a lump sum payment. As such, they are not a "ripoff" to someone that needs such a financial construct.

Fair enough. I can't agree that it's not a ripoff but have no desire to keep arguing my point. I know people are going to use the Next program, I just can't help but to feel its a total scam and predatory.
I'm done arguing on the internet though, everyone is entitled to their own opinion.

 

[aneftp]

No, they're still rip offs.
Ignorant people trying to live above their means doesn't make it a good deal .

----------



Even if you can't sell your phone for $450 or more, a $100 or even $200 out of pocket is still cheaper than paying Next prices.
I took $310 for my mint iphone 5 as a trade in on the new 5s. I could have gotten more selling on craigslist or ebay but it was easy and it still paid for my 32GB 5s.
And I'm not paying for it twice for the "Next" year.

Car leases make a lot of sense especially in the higher range luxury market vs depreciation of buying and trying to resell in 3 years. Savvy consumers always look for "car lease deals"

This ATT Next is a "bad lease" deal period. I've examined it (along with all of the expert techie sites). No one has recommended Next or Edge.

I am surprised consumer reports hasn't come out and made a comment about next and edge programs.

The subsidy model makes huge profits for post paid carriers when it involved one line. But profits start eroding the more lines (more subsides) that are added. So lines 2-5 are given the same subsidy as the more profitable line 1.

Post paid carriers are in a pickle cause 60% of Americans are on family plans. But post paid carriers in the race towards the highest subscribers promoted family plans to inflate numbers. And subsidies are coming back to hurt their profits.

 

[Small White Car]

Your math is sound however it is dependant on the variable of (a) being able to sell the phone for $450 each year (b) not factoring in those who buy the 32/64gb who take a bigger hit on reselling.

None of that matters because it'll be the same on both of the equations.

Yes, it will change the end result. Maybe I don't actually save $8.

The point is that those changes will change each plan an identical amount so there is no way it ever shifts which one is cheaper.

 

[Lindsford]

None of that matters because it'll be the same on both of the equations.

Yes, it will change the end result. Maybe I don't actually save $8.

The point is that those changes will change each plan an identical amount so there is no way it ever shifts which one is cheaper.

Selling it for $450 each time doesn't matter? How does that make sense to your math equation, if you we're to only net $400 each time for whatever given reason that's $100 the other way. I'm not saying you're wrong, or that it can't happen because I cycle phones out every 6-12 months doing this and have put very little money out since I bought a 3GS. However, for some folks it will be YMMV on the factors I listed above. 64GB iPhone 5 more importantly taking the biggest hit as you can't* resell it for $200 more then people are selling their 16gbs

 

[vomhorizon]

Lets say you get the 32 GB 5S and want to upgrade it say after 10 months...You would have to get out and pay the ETF...For ATT its 325 USD Minus 10$ for every month that you have used..So thats 225 $ upfront just to get out of the contract. So In Total you have paid 300+225 = 525$ For the 32 GB Iphone 5S (aprox 10 months of usage)...Now lets say you go on E-Bay and sell the phone for 400 dollars (Are you allowed to do this? - I am new to the US so do not know exactly how things work with the carriers - whether they take the phone back or not)...and Buy a fully contracted phone for another 300 dollars (Iphone 6 32GB)..So you have paid a total of 225+300 = 525 USD all over again, and earlned 400 $ from the sale of your 5S. If this is true then you only need around 100-200 Dollars to upgrade to a new phone every year ( Hidden fees etc)...Thats not bad at all (if true)...I am not sure why one would want to get into the NEXT contract at all if this is how things work..

 

[AFDoc]

A lot of people have been pushing off AT&T Next as an instant ripoff, but never look further into it. Things have been said on the forum such as "you can't pay it off" or "you can't sell the phone and pay it off" which is completely un-true. Every AT&T rep I've spoken to said I can pay off the phone at anytime.
Here is an example:

You buy a 16GB iPhone 5s on AT&T Next, it's $0 down, sales tax due upfront.
There are 20 monthly payments of $27, totaling $540, which is $110 less than full retail price. After 12 months, you are eligible to trade in the phone for a new device. The payments on the old device are waived and you select a new device. Or, AT ANY TIME, you can sell the device or pay off the remaining balance. Let's use this as an example; you bought the iPhone 5s on AT&T Next and have made 12 payments of $27. That totals to $324. You're eligible to trade in the device and choose a new one, OR (like at any time) pay off the rest of the device and be eligible for a new two year subsidy or AT&T Next program. You can sell the device after it is a year old for let's say (give or take) $450. You still owe AT&T $216 for the device. You sell the device, make $450, pay off the remaining balance, and come out ahead $234, which you could put towards a 2 year contract or another AT&T Next plan. How is this "such a rip-off"?

Ummmmm if the math doesn't work for you how can we convince you otherwise?

 

[Small White Car]

Selling it for $450 each time doesn't matter? How does that make sense to your math equation, if you we're to only net $400 each time for whatever given reason that's $100 the other way.

If it's $100 less for me then it's $100 less for the OP. That's why it doesn't matter. It affects us both evenly.

Or are you arguing that being on AT&T Next will allow him to sell his phone for more money on Craigslists than I could? Because I'm working under the assumption that both he and I will get the same price for our phones.

 

[alent1234]

AT&T NEXT is a decent deal if you want to buy a new Galaxy Note every year

 

[dbalone]

NEXT worked fine for me. I did it because I no longer want to be on a two year contract. Got my 5S made one $32.00 monthly payment then went in and paid the remaining $618.00. Called and had it unlocked within 48 hours. My phone, no contract, paid no activation fee and a total of $640.00 for a 32gig.

Whats not to like?

 

[alent1234]

NEXT worked fine for me. I did it because I no longer want to be on a two year contract. Got my 5S made one $32.00 monthly payment then went in and paid the remaining $618.00. Called and had it unlocked within 48 hours. My phone, no contract, paid no activation fee and a total of $640.00 for a 32gig.

Whats not to like?

unless you go prepaid, you will be paying too much per month

 

[ucfgrad93]

The Verge has a nice write up about these plans.

http://www.theverge.com/2013/7/19/4536042/jump-edge-next-early-upgrade-plans-compared

 

[FiveZeroFour]

If it's $100 less for me then it's $100 less for the OP. That's why it doesn't matter. It affects us both evenly.

Or are you arguing that being on AT&T Next will allow him to sell his phone for more money on Craigslists than I could? Because I'm working under the assumption that both he and I will get the same price for our phones.

Man people are just daft sometimes, you can read this thread and basically see whats wrong with society :'D......especially just the few comments below yours about "its a decent deal if". Did they even read?!?! They could have bought the Note 3 for cash up front and still saved money. sigh.

There is no universe/use case/scenario in which AT&T NEXT is anything less than getting screwed, its so precisely polar opposite of a good deal it's perplexing. : /

 

[AlphaHumanus]

Nevermind.

 

[617aircav]

Att next plan is like leasing a car. After a year you either turn in the phone or continue to pay until you own. If you turn it in you sign a new lease for a new phone

except when leasing a car you pay less each month than someone financing. Its more like leasing a car and having the same monthly payments as someone financing the car.

 

[aneftp]

NEXT worked fine for me. I did it because I no longer want to be on a two year contract. Got my 5S made one $32.00 monthly payment then went in and paid the remaining $618.00. Called and had it unlocked within 48 hours. My phone, no contract, paid no activation fee and a total of $640.00 for a 32gig.

Whats not to like?

That's not bad. U saved $110. About the only way I think Next is worth doing.

But I do not think att will let you get a new phone for another 12 months. Will have to call them to check on this. Or else everyone will just keep buying $750 32gb iPhones for $640 and flipping them for profit even a $20 profit if they sell by volume.

 

[applegeek25]

Bottom line: All of these "phone instalment plans" are complete rip-offs. Verizon and AT&T are marketing these upgrade programs as a way to get yourself a new phone every 6 or 12 months. Realistically, how many people will sign up for these programs AND actually utilize them?

T-Mobile, on the other hand, is confident that you'll either upgrade every 6-12 months OR you'll keep your phone for 3+ years.

IMHO, none of these programs are worth it. Not a single one. Paying full price (or close to it) for any device on a carrier is insane. I don't care if they promise you that your rate will drop by $20+ after 24 months, it's too much of a risk. A lot of people think they'll keep their latest and greatest smartphone for over 2 years, but the reality is probably much different. The only way T-Mobile will save you money is if you keep that phone for at least 3 years.

As long as AT&T and Verizon are offering subsidized pricing, it's the best deal in town right now. Pay $199 for an iPhone and at the 24-month mark, upgrade and pay another $199. This isn't advanced physics, people

 

[macred]

For years it's been fashionable to bash AT&T. Especially within Apple forums.

Facts are usually avoided wherever possible