Sprint Stops Offering Two-Year Phone Contracts

[AustinIllini]

Apparently you enjoy leaving out Android phones that don't fit your Apple crapping narrative. The current "Top Flight" Android would be the S6 Edge+, which you're correct has a slightly bigger screen than the 6s Plus. Not sure who or where you're looking at, but for a comparable 64GB phone, it is the same exact price as the 6s Plus. You can argue the 32GB model is slightly better priced since Apple does not make a 32GB 6s Plus....but other than that, you're flat-out wrong.

With all due respect, you're out of your league on this. The Nexus 6P is THE premium Android device with a larger screen than the iPhone 6S+ that is also $200 cheaper.

Perhaps you didn't read the part of my statement where I said "Soon, the only manufacturers that will dare make their base models so expensive will be Apple and Samsung."

 

[garylapointe]

How does it work in the US? Here in the UK you go to a Network's website, you see a contract, you agree to it, you get the phone and pay monthly. I got my iPhone 6s 64GB with no upfront payment, I get 20GB of Data, unlimited everything else and I pay £45 a month for it, that's £1080 over 24 months of a contract.

Until the last few years: you buy the phone at a discount ($199 for a 16GB iPhone 6) and commit to a 2 year contract with the cell company. If you quite early, you pay a huge termination fee (since you got a phone for cheap). The catch was after two years, you paid the same price for the plan: so if you didn't upgrade your phone you were paying more than you you needed (the subsidy wasn't a line item you could take off, it was was all one plan price).

Lately companies have been advertising cheaper plans ($25-ish less a month), BUT they don't include the phone subsidy anymore (so the phones appear cheaper). It's been confusing for some since both types of plans have been available.

With this 2 year option removal at Sprint (and AT&T) this week, plans will be more like other places in the world.

Gary

 

[AustinIllini]

Until the last few years: you buy the phone at a discount ($199 for a 16GB iPhone 6) and commit to a 2 year contract with the cell company. If you quite early, you pay a huge termination fee (since you got a phone for cheap). The catch was after two years, you paid the same price for the plan: so if you didn't upgrade your phone you were paying more than you you needed (the subsidy wasn't a line item you could take off, it was was all one plan price).

Lately companies have been advertising cheaper plans ($25-ish less a month), BUT they don't include the phone subsidy anymore (so the phones appear cheaper). It's been confusing for some since both types of plans have been available.

With this 2 year option removal at Sprint (and AT&T) this week, plans will be more like other places in the world.

Gary

Good summation. Basically, the only people benefitting now are those who don't buy new devices. If you have a four year old phone, that's essentially two years of gravy relative to everyone else. The carriers are betting (correctly) on everyone becoming accustomed to upgrading their phone every 1 or 2 years.

 

[JonathanK81]

With all due respect, you're out of your league on this. The Nexus 6P is THE premium Android device with a larger screen than the iPhone 6S+ that is also $200 cheaper.

Perhaps you didn't read the part of my statement where I said "Soon, the only manufacturers that will dare make their base models so expensive will be Apple and Samsung."

I'm done after this reply, but again fitting your narrative. I didn't consider that phone part of the discussion since it's not one you can get with a 2 year contract or even Next, or any of the plans. Since it's only available direct at this moment from them and not from the carriers. I can argue more about the price since it has to do with Google as well, but I'm just going to leave it as is. But thanks for playing and come again.

 

[Andres Cantu]

This basically means that 100% of contracts will be dead by August 2017.

 

[minimo3]

The loss of subsidized phones is bad news for those who get reimbursed for monthly cell plans by their company. In the past you'd be able to get a new phone every 2 years for $199/299, now you have to fork out the full price.

 

[chasonstone]

But they're still not putting a giant $649 price tag next to the phone either.

I noticed Verizon has replaced the old $199/$299 price tags with their new payment plan equivalencies:

$27.08/mo
$31.24/mo
$35.41/mo



The old way was paying $199 down and the rest of your phone payment was hidden inside your monthly bill. You're right... nobody knew what the hell was going on.

But the new way is showing you exactly how much of your bill is for the phone... and how much is for service. It's separate. When you talk to the salesman... they have a worksheet where they tally up the various parts of your plan (the base voice/sms plan, the phone, the data package, etc)

And if you do pay full price for a phone... or someone gives you an old phone... you're not paying for the phone every month. Only for the service.

It actually easier to understand now.

I agree. The new way is easier to understand. But that's where I think some people are going to be weary of spending 649+ on a phone. They'll think "it used to only be 199!" Even though you and I know and understand differently. But I guess it won't have a whole lot of affect on Apple, they'll still sell more than enough at whatever price.

 

[bushido]

dont see this ever happening in Europe

 

[ShadowJade]

Sprint will stop offering two-year phone contracts to customers who are activating a new account starting today, according to an internal document procured by AndroidCentral. While phones will not be available with subsidies on a two-year contract, tablets will.

As outlined by the document, two-year contracts will still be offered to select customers on a "reactive basis". The move makes Sprint the final carrier of the four major American carriers to end two-year contracts. New Sprint customers will be able to purchase their phones through Sprint programs like Easy Pay and iPhone Forever.

In 2013, T-Mobile began the trend by announcing its Un-carrier payment plans. Verizon followed suit in August 2015 and last month AT&T announced that they would drop two-year contracts. While AT&T's implementation takes away the ability for existing customers to sign up for two-year contracts, Verizon's does not, allowing existing Verizon customers to renew their two-year contracts.

Sprint has been planning to move away from two-year contracts for a while, first announcing the move in August 2015. However, the carrier had not announced when its implementation would take effect at the time.

Article Link: Sprint Stops Offering Two-Year Phone Contracts

 

[Mcdevidr]

I don't understand how everyone is missing the obvious Access fee crap. The phone plans are the exact same price as before except hidden inside this access fee. Sometimes you can get it waived but it is still there.

 

[Flow39]

Actually you'd be surprised how many people not only don't know, but actually believe that the iPhone in their hands only cost $199. I've had people argue that very issue with me. It's amazing but true.

Same here. People are so oblivious when it comes to the actual full retail price of their phone. People have asked me how much I payed for my 2014 Moto X and I told them $450, they said that's expensive because my iPhone/Galaxy was only $200. Little do they know, the iPhone is actually $650 full retail, not $200 like many believe.
[doublepost=1452224891][/doublepost]

Apparently you enjoy leaving out Android phones that don't fit your Apple crapping narrative. The current "Top Flight" Android would be the S6 Edge+, which you're correct has a slightly bigger screen than the 6s Plus. Not sure who or where you're looking at, but for a comparable 64GB 6s Plus, it is the same exact price. You can argue the 32GB model is slightly better priced since Apple does not offer a 32GB 6s Plus....but other than that, you're flat-out wrong.

Nexus 6p
-5.7" 1440p display
-32/64/128
-$499 32 GB, $549 64 GB, $649 128 GB

The 6p is the real top flight Android phone.

 

[ShadowJade]

Sprint will stop offering two-year phone contracts to customers who are activating a new account starting today, according to an internal document procured by AndroidCentral. While phones will not be available with subsidies on a two-year contract, tablets will.

As outlined by the document, two-year contracts will still be offered to select customers on a "reactive basis". The move makes Sprint the final carrier of the four major American carriers to end two-year contracts. New Sprint customers will be able to purchase their phones through Sprint programs like Easy Pay and iPhone Forever.

In 2013, T-Mobile began the trend by announcing its Un-carrier payment plans. Verizon followed suit in August 2015 and last month AT&T announced that they would drop two-year contracts. While AT&T's implementation takes away the ability for existing customers to sign up for two-year contracts, Verizon's does not, allowing existing Verizon customers to renew their two-year contracts.

Sprint has been planning to move away from two-year contracts for a while, first announcing the move in August 2015. However, the carrier had not announced when its implementation would take effect at the time.

Article Link: Sprint Stops Offering Two-Year Phone Contracts

Absolute crap. If you have 2 lines at $160/month, they are paying the subsidy. 2 years later you own, and can sell, the iphone for $200. Under the new scheme, your line cost is the same, (win for them), you pay a ridiculously high minthly lease, (win for them), and you give them back you phone to them at upgrade time, (win for them). Where's the outrage? At the very least, if they aren't paying the subsidy, your line cost should decrease.

 

[slippery-pete]

Exciting times

 

[Michael Scrip]

I think some people are going to be weary of spending 649+ on a phone. They'll think "it used to only be 199!"

The good thing is... people don't HAVE to pay $649 before they walk out of the store.

They will continue to pay a monthly phone payment along with a monthly service payment. Just like they always have.

At least now it's more clear what they're paying for.

I agree that $649 is a much bigger number than $199... but most people never paid the full $649 up-front anyway. Did you? I didn't.

So I'm not seeing how this supposed "sticker shock" will be as big a problem as you're making it out to be

 

[Flow39]

With all due respect, you're out of your league on this. The Nexus 6P is THE premium Android device with a larger screen than the iPhone 6S+ that is also $200 cheaper.

Perhaps you didn't read the part of my statement where I said "Soon, the only manufacturers that will dare make their base models so expensive will be Apple and Samsung."

Comparing 64 GB models, the 6s+ is $300 more expensive than the 6p. That's quite a difference for a phone that really isn't better (IMO) than the 6p.

 

[AustinIllini]

The good thing is... people don't HAVE to pay $649 before they walk out of the store.

They will continue to pay a monthly phone payment along with a monthly service payment. Just like they always have.

At least now it's more clear what they're paying for.

I agree that $649 is a much bigger number than $199... but most people never paid the full $649 up-front anyway. Did you? I didn't.

So I'm not seeing how this supposed "sticker shock" will be as big a problem as you're making it out to be

Spot on. Transparency is good.

 

[ShadowJade]

The good thing is... people don't HAVE to pay $649 before they walk out of the store.

They will continue to pay a monthly phone payment along with a monthly service payment. Just like they always have.

At least now it's more clear what they're paying for.

I agree that $649 is a much bigger number than $199... but most people never paid the full $649 up-front anyway. Did you? I didn't.

So I'm not seeing how this supposed "sticker shock" will be as big a problem as you're making it out to be

Absolute crap. If you have 2 lines at $160/month, they are paying the subsidy. 2 years later you own, and can sell, the iphone for $200. Under the new scheme, your line cost is the same, (win for them), you pay a ridiculously high monthly lease, (win for them), and you give them back your phone to them at upgrade time, (win for them). Where's the outrage? At the very least, if they aren't paying the subsidy, your line cost should decrease. Currently, I leave the store carrying the newest iPhone for $300-400. 2 years later, I sell it for $150-$200.

 

[ryanasimov]

Love how the photo in Sprint's own internal documents tacitly demonstrate that contracts are onerous.

 

[talkybear]

I think it's bad news for Apple when people finally realize how much they are paying for their iPhones.

 

[npmacuser5]

For me and many others, the "premium" price is worth it.

And besides... for those who continue to use carrier financing to purchase or lease phones, the game hasn't changed that much. Instead of the subsidization costs vaguely being applied to the bills of all postpaid customers, you're simply subsidizing the cost of your own device on a monthly basis.

In your face each month. Before bill example $80, now it is $115. Argue a good deal but still there it is a line item per phone and an increase in the payments. If I was to speculate, might delay some from upgrading as often. Like getting to the end of the car loan. Interesting to see how it will play out.

 

[Rockadile]

Absolute crap. If you have 2 lines at $160/month, they are paying the subsidy. 2 years later you own, and can sell, the iphone for $200. Under the new scheme, your line cost is the same, (win for them), you pay a ridiculously high minthly lease, (win for them), and you give them back you phone to them at upgrade time, (win for them). Where's the outrage? At the very least, if they aren't paying the subsidy, your line cost should decrease.

Wasn't the rest of the phone cost over $200 just being added to your phone bill that's spread out for 2 years? There's no free lunch.

I have AT&T Next 12. Phone retail price spread out for 18 month and I can upgrade and swap in 12 months...rinse and repeat, simple.

 

[thekev]

Good summation. Basically, the only people benefitting now are those who don't buy new devices. If you have a four year old phone, that's essentially two years of gravy relative to everyone else. The carriers are betting (correctly) on everyone becoming accustomed to upgrading their phone every 1 or 2 years.

There's also a better break even point if you just want to change services. You have to pay off the phone, but it can be much less than early termination fees beyond the first year. Less expensive phones are also viable on the major carriers with the change. Using the older pricing model, some received greater subsidies than others. Models with weaker subsidies often cost the same amount as nicer phones because of this. This especially kicked in below the $450 or so range where some devices were subsidized to $0 upfront.

You also have cheaper plans where none existed. Verizon and their weird access fee + data model were quite expensive for a single line at one point. This is no longer the case.

 

[Michael Scrip]

Absolute crap. If you have 2 lines at $160/month, they are paying the subsidy. 2 years later you own, and can sell, the iphone for $200. Under the new scheme, your line cost is the same, (win for them), you pay a ridiculously high monthly lease, (win for them), and you give them back your phone to them at upgrade time, (win for them). Where's the outrage? At the very least, if they aren't paying the subsidy, your line cost should decrease. Currently, I leave the store carrying the newest iPhone for $300-400. 2 years later, I sell it for $150-$200.

What is a "ridiculously high monthly lease" ?

I don't know how it works on Sprint... but on Verizon you pay $27.08/mo for the iPhone 6S

After 24 months that equals $649.92... which is the actual retail price of the phone.

If you want a new phone before then... you'll have to pay the difference. That's standard practice in any kind of payment plan.

But if you keep that phone longer than 2 years... you own it and you don't pay for the phone anymore. It's not even a lease... you actually own it after you finish paying for it.

And to be clear... you were ALWAYS paying for the phone over two years. You used to pay $199 up front... but then the other $450 was hidden inside your monthly bill. They called it a "subsidy" but you were paying for it all along.

At least now you know exactly what you're paying for each month with these new payment plans.

 

[chr1s60]

Should be interesting when Apple announces pricing for the next iPhone.

Perhaps they will start announcing prices by using the per month price on the iPhone upgrade plan.

And to be clear... you were ALWAYS paying for the phone over two years. You used to pay $199 up front... but then the other $450 was hidden inside your monthly bill. They called it a "subsidy" but you were paying for it all along.

At least now you know exactly what you're paying for each month with these new payment plans.

This is a common belief and one the phone companies have been preaching since the start of these "per month" plans, but if it were true and it was the same cost either way then companies wouldn't be rushing to get away from the 2 year deals.

 

[TheGdog]

Honestly I prefer the 2 year contract. My 5S still works great. I still don't understand how this is good for people who like to upgrade often? If you wanted to upgrade on a contract you had to pay full price. If you want to upgrade contract free, guess what. you have to pay full price. Unless you pay monthly, which will equal the cost of a phone in 2 years anyway.

I might wait till the 7 comes out, and pay full price.