Keeping two year contract

[Irock619]

I see a lot of discussion about the new upgrade programs but nothing about keeping two year contracts. I am thinking about keeping my two year contract on AT&T for two phones on my account. It seems this is not an option if I preorder through Apple's website, only AT&T website. I will be upgrading two iPhones to the 6s+ 64GB, with the two year contract on AT&T it will be $800 for both phones not including tax and upgrade fees. The phones will not be unlocked and will not have Apple care, however the phones will be mine in two years and I only paid $800 for two new iPhones. After two years I can unlock both phones to increase resale value, which is what I did with my current 5s.

My question is....doesn't this sound better than paying a monthly premium for Apple's new program or AT&T NEXT program? I have been on the "s" series of iPhones for many years so I don't care about upgrading each year. With that said....after my two year contract is up I would've only paid $800 for TWO iPhones, rather than $1600 with the AT&T NEXT program or Apple's new program. What is the benefit of ditching my two year contract with AT&T other than the ability to upgrade each year and having AppleCare.

 

[Apollonian]

I have little interest in these new convoluted payment schemes. I am not implying that the contract system is without flaws but I absolutely hate this whole "leasing my phone" type of concept. I understand there are some financial and ease advantages. I have two lines under contract one has an offer for partial upgrade and the other for some reason didn't get one, I will likely stick the contracts out for this round but soon it looks like contracts may go the way of the dinosaur.

I have upgraded every year since the original iPhone and contracts with my grandfathered unlimited plans have treated me well so I can't complain.

 

[LunkerHunter]

I see a lot of discussion about the new upgrade programs but nothing about keeping two year contracts. I am thinking about keeping my two year contract on AT&T for two phones on my account. It seems this is not an option if I preorder through Apple's website, only AT&T website. I will be upgrading two iPhones to the 6s+ 64GB, with the two year contract on AT&T it will be $800 for both phones not including tax and upgrade fees. The phones will not be unlocked and will not have Apple care, however the phones will be mine in two years and I only paid $800 for two new iPhones. After two years I can unlock both phones to increase resale value, which is what I did with my current 5s.

My question is....doesn't this sound better than paying a monthly premium for Apple's new program or AT&T NEXT program? I have been on the "s" series of iPhones for many years so I don't care about upgrading each year. With that said....after my two year contract is up I would've only paid $800 for TWO iPhones, rather than $1600 with the AT&T NEXT program or Apple's new program. What is the benefit of ditching my two year contract with AT&T other than the ability to upgrade each year and having AppleCare.

Depends on your plan with AT&T. If you're on a shared data plan, then you'll pay an extra $25 per subsidized phone, that's $1200 over two years. If you have unlimited data on one of the older plans, you're likely paying for talk, messaging and text individually and a higher rate than the 15GB shared plan. The older plans are more pricey and take into account the cost for the subsidized phone. You need to do the math and closely compare your current plan with a Shared plan with Next phones over two years to see if it's really worth it.

 

[Irock619]

I have little interest in these new convoluted payment schemes. I am not implying that the contract system is without flaws but I absolutely hate this whole "leasing my phone" type of concept. I understand there are some financial and ease advantages. I have two lines under contract one has an offer for partial upgrade and the other for some reason didn't get one, I will likely stick the contracts out for this round but soon it looks like contracts may go the way of the dinosaur.

I have upgraded every year since the original iPhone and contracts with my grandfathered unlimited plans have treated me well so I can't complain.

I agree. I guess consumers will decide. They will follow the consumers lead.

 

[barry.wiestling]

I am in the same boat. I will probably buy my subsidized phone for $299. It makes my life easier by not paying a "monthly" fee for the phone.

My only concern is pre-ordering through AT&T since their systems are not very good compared to Apples.

 

[nostresshere]

difficult for anyone here to answer the question. Depends on what plan you have and if a phone is "hidden" in your rates or not. And, are there other plans that are better for you. You need to price it out for 24 months on all plans and all purchase options.

 

[xRYD3Rx]

Why $1600 with apples program?

 

[Irock619]

Depends on your plan with AT&T. If you're on a shared data plan, then you'll pay an extra $25 per subsidized phone, that's $1200 over two years. If you have unlimited data on one of the older plans, you're likely paying for talk, messaging and text individually and a higher rate than the 15GB shared plan. The older plans are more pricey and take into account the cost for the subsidized phone. You need to do the math and closely compare your current plan with a Shared plan with Next phones over two years to see if it's really worth it.

I spoke to AT&T and actually the $25 is for both phones. I am on the 15GB shared plan. I also have a premier account which is 20% off the whole plan. I think the difference may be very small. There's too many numbers to calculate

 

[Irock619]

Why $1600 with apples program?

In my case I'm upgrading two phones. At the end of two years on Apples program you will have paid full price for two phones.

 

[aristobrat]

I have little interest in these new convoluted payment schemes.

Funny, most of the rest of the world have the price of the wireless service unbundled from the price of the phone (which is all that these installment plans really do). Lots of posts from foreign folks shaking their heads at the convoluted 2-year contracts that the US carriers are trying to move away from.

I am not implying that the contract system is without flaws but I absolutely hate this whole "leasing my phone"

None of the Apple/ATT/Verizon device installment plans require that you turn in your phone at a certain time, like a lease does.

 

[xRYD3Rx]

In my case I'm upgrading two phones. At the end of two years on Apples program you will have paid full price for two phones.

Makes sense, so basically this at&t or apples new program are good for people if they want to upgrade once a year without paying full price every year?

 

[aristobrat]

In my case I'm upgrading two phones. At the end of two years on Apples program you will have paid full price for two phones.

But since you didn't use an ATT 2-year contract to buy them, if you were on an ATT Share plan, ATT would give you a $25/mo per phone discount on the service. $50/mo discount * 24 months = $1200 discount in service fees. You don't get that discount if you buy using a 2-year contract.

Depending on what you currently pay, the monthly service discount may make the total 2 year cost for everything less.

 

[aristobrat]

Makes sense, so basically this at&t or apples new program are good for people if they want to upgrade once a year without paying full price every year?

Or if you want a 128 GB iPhone 6s Plus and don't want to pay $499 up-front for it.

 

[Apollonian]

Funny, most of the rest of the world have the price of the wireless service unbundled from the price of the phone (which is all that these installment plans really do). Lots of posts from foreign folks shaking their heads at the convoluted 2-year contracts that the US carriers are trying to move away from.


None of the Apple/ATT/Verizon device installment plans require that you turn in your phone at a certain time, like a lease does.

I hear you and I agree on most points. However with some of these plans, like a lease, it will never truly be yours unless you decide to pay it off. While you do not have a set number of months that they must be turned in by, the idea behind most is that they will be turned in at some point in time.

I'll admit that comparing it to a vehicle lease is a bad analogy but hey whatever.

 

[xRYD3Rx]

I hear you and I agree on most points. However with some of these plans, like a lease, it will never truly be yours unless you decide to pay it off. While you do not have a set number of months that they must be turned in by, the idea behind most is that they will be turned in at some point in time.

I'll admit that comparing it to a vehicle lease is a bad analogy but hey whatever.

As long as no interest has to be paid its fine especially if you dont have the $1000 to drop on a phone especially for people wanting to buy 2-3 phones.. Its great to put on a monthly plan and slowly pay it off each month without paying interest thats great.

 

[Irock619]

But since you didn't use an ATT 2-year contract to buy them, if you were on an ATT Share plan, ATT would give you a $25/mo per phone discount on the service. $50/mo discount * 24 months = $1200 discount in service fees. You don't get that discount if you buy using a 2-year contract.

Depending on what you currently pay, the monthly service discount may make the total 2 year cost for everything less.

I am on a two year contract with mobile data share plan of 15GB between two phones with roll over data. Don't forget to add the $80 a month payment each month for the lease of the phones. I think we are talking maybe a difference of $200-$300 over two years, I just don't know which side you'll be saving, two year contract or NEXT/Apple program.

 

[Irock619]

I am in the same boat. I will probably buy my subsidized phone for $299. It makes my life easier by not paying a "monthly" fee for the phone.

My only concern is pre-ordering through AT&T since their systems are not very good compared to Apples.

I've never pre ordered through Apple, always AT&T and never had a problem. What I don't get is why I can't order through Apple and keep my two year contract.

 

[karmatourer]

Renewing my 2 year contract in a few days. Was considering going prepaid but prepaid doesn't allow FAN discount,21% in my case. Must be done through AT&T this time around.

 

[d0minick]

I am confused and maybe someone can explain it better to me. I have older grandfather unlimited plans.

3 iphones, 2 unlimited data, 1 2GB data, 700 min a month, for 205$ after taxes.

If i do the shared family, correct if im wrong, its 100 for 15GB, plus 40 for each iphone, coming out to 220 before taxes?

never mind, i see, it would be $170. but since we always have new phones, we'd have to add that fee on top coming out at about the same price.

 

[aristobrat]

I think we are talking maybe a difference of $200-$300 over two years, I just don't know which side you'll be saving, two year contract or NEXT/Apple program.

Looks like it's a $150 cheaper on Next. I didn't include taxes and upgrade fees and stuff, so that's ballpark.

Here's what I calculated for the total price of buying the phone and using it for two years:

Buying phone with an AT&T 2-year Contract:
$399: up-front cost for 64GB iPhone 6s+
$000: monthly device installment total
$960: monthly service fee total (24 months x $40/month)
-------
$1,359

Buying phone with an AT&T Next Plan:
$000: up-front cost for 64GB iPhone 6s+
$849: monthly device installment total
$600: monthly service fee total (24 months x $15/month)
--------
$1,209

 

[netnothing]

Most people need to do the math. For AT&T any data plans 5GB and under.....AT&T Next will cost you more over 24 months than the old subsidized plans. Once you get to the next tier in data and you get the further discount....that's when you start to save with Next.

Also remember that AT&T will hit you with a $15 upgrade fee per line when going from the old plans into Next. Once in Next, there are no upgrade fees in the future (as of now at least).

-Kevin

 

[mizzourah]

No 'upgrade' fees on NEXT, but there is a $15 'activation' fee per phone, which is total crap. That said, I am still ditching my 2 year contract for NEXT. One of the main reasons is so I can preorder through Apple, which has been good this far vs many many AT&T debacles. I'm sure I just jinxed that for myself, though.

 

[netnothing]

No 'upgrade' fees on NEXT, but there is a $15 'activation' fee per phone, which is total crap. That said, I am still ditching my 2 year contract for NEXT. One of the main reasons is so I can preorder through Apple, which has been good this far vs many many AT&T debacles. I'm sure I just jinxed that for myself, though.

Yeah sorry.....not technically an upgrade fee.....but yeah still crap. At least you only have to pay it once, not like the $45 per line fee you have to pay every time you upgrade via the subsidized option.

I am being told by AT&T that if you pre-order online, you do get the option to choose either Next or subsidized. Again, people will have to do their own math, but so far I'm finding that if you don't want to upgrade every year and have a data plan 5GB and under, subsidized in the long run might be less.

-Kevin

 

[roccobladr]

I talked to customer care today and did the math. I have a 5GB plan and the subsidized plan ends up being about 90$ less than buying the phone outright over the 2 years (after adding in the 15$ line discount that I lose for the subsidized plan).

 

[Irock619]

I talked to customer care today and did the math. I have a 5GB plan and the subsidized plan ends up being about 90$ less than buying the phone outright over the 2 years (after adding in the 15$ line discount that I lose for the subsidized plan).

Yeah I guess it's only worth it if you have a 15gb plan