Staying w/ ATT for years, Not Going Intl - why would I buy a phone outright?

[Derek87]

i would also add that it depends too on what your current plan is.

i'm grandfathered into a 450min plan and rarely use txts so am thinking of getting ride of my $5/mo text plan. coupled with a 2gb plan for $25 and a FAN discount, my monthly charge, under contract is only $52+ a month. that adds an extra incentive to stick with the 2 year contract model.

 

[Tinmania]

That was directed at people calling NEXT a rip off.

I will be doing NEXT...next month

Ahhh... alrighty then! I agree.



Mike

 

[nostresshere]

A guy at work told me that he wouldn't do NEXT because he doesn't buy insurance and if they phone breaks, he will still have to make payments on a broken phone... I told him that if his 2 year contract phone breaks that he still has to pay the contract.... and if he breaks the phone he paid $649 cash for that he is still out $649

Why are some people this stupid!

I know LOTS of people that think this way.

Just like people that have been avoiding contracts all these years, even though they stayed with the same carrier. Just because they do not do contracts.

Emotions get the better of logic way too often.

No matter how many times this is beat up, the only POSSIBLE reasons to buy outright is if you
a) Going intl and need it unlocked.
or
b) Will be switching carriers.

In either case, you can still pay off the NEXT plan, right?

 

[ricktat]

Another good use for NEXT is that it allows you to buy the phone on launch day and still sell your old phone and put that money in the bank until you are ready to pay it off.

Same as cash.


For those wondering.... and it's been discussed before. ATT does not pull your credit for NEXT if you are a current customer in good standing.

 

[Eileen89]

ATT NEXT has one purpose!

NEXT will allow people who can not pay cash for their phone a way to buy the hardware under installments.

This isn't the case for everyone. I just paid full retail for my unlocked 64GB 5S and have absolutely no issue with doing it again with the iPhone 6. However, I think there are many people out there who use programs like NEXT to avoid signing a long contract. This is why I pay outright for my phones and also why I might think about NEXT for the new iPhone.

 

[rui no onna]

No matter how many times this is beat up, the only POSSIBLE reasons to buy outright is if you
a) Going intl and need it unlocked.
or
b) Will be switching carriers.

I can think of another reason - complimentary extended warranty if buying outright with select credit cards. My American Express, Visa Signature and Discover cards all offer this. That's a $100 savings over getting AC+ (although it won't cover accidental damage). I do believe Amex has theft coverage for 90 days so there's that.

 

[ChasInVictoria]

It's a pity to see so many people here declare they're NOT going to travel internationally. Putting aside the phone for a moment, the one thing I'd *strongly* recommend more Americans do is travel abroad. I really think that would fix a lot of the issues America has these days.

 

[yg17]

It's a pity to see so many people here declare they're NOT going to travel internationally. Putting aside the phone for a moment, the one thing I'd *strongly* recommend more Americans do is travel abroad. I really think that would fix a lot of the issues America has these days.

Because an iPhone forum is representative of America

Signed,
An American who has 2 international trips planned in the next 3 months.

 

[nostresshere]

It's a pity to see so many people here declare they're NOT going to travel internationally. Putting aside the phone for a moment, the one thing I'd *strongly* recommend more Americans do is travel abroad. I really think that would fix a lot of the issues America has these days.

Well, great idea.

Can I have you credit card number to pay for my trip?

 

[iZollo]

For me I think the best option is doing what I have been doing for the last 4 years signing a 2year contract every year with a different line. I use upgrade swap on family plan and I sell my 1 year old iphone every year and pay nothing for the sub. upgrade with the money I get from selling my iphone every year which I could not do with NEXT.

 

[nostresshere]

For me I think the best option is doing what I have been doing for the last 4 years signing a 2year contract every year with a different line. I use upgrade swap on family plan and I sell my 1 year old iphone every year and pay nothing for the sub. upgrade with the money I get from selling my iphone every year which I could not do with NEXT.

If you do the pricing, it is more expensive to be on contract vs next, over time.

 

[Deguello]

I can think of another reason - complimentary extended warranty if buying outright with select credit cards. My American Express, Visa Signature and Discover cards all offer this. That's a $100 savings over getting AC+ (although it won't cover accidental damage). I do believe Amex has theft coverage for 90 days so there's that.

Yes, this. And theft coverage will be based on the full price, not the subsidized price.

 

[blairh]

I'm very interested in getting an iPhone 6. I've been with AT&T since 2008 and before that with Verizon for 12 years.

I'm most likely going back to Verizon next month on-contract when my AT&T contract will expire.

I can only speak for single line users as I don't have a family/kids.

I have purchased full price for phones with AT&T in the past to ensure the availability to use the phone unlocked in Italy. I travel to Italy at least once a year, often times more, and I use a local SIM there.

I hated myself for paying full price each time. With my Moto X or Nexus 5 it wasn't as bad but still pricey. But I'll never forget the day I paid $600+ just so I could use my S4 in Italy last summer. Never again.

If you have no plans or desire to leave America, then I don't think you'll ever need to buy the phone outright. With respect to Next, I believe this is only a good idea if you don't want to wait 2 years to upgrade your phone. Once I purchase the iPhone 6 I'm really looking forward to not updating my hardware for 2 years. My curiosity for Android is gone and I'm never tempted by the 'S' cycle of iPhone.

Verizon also offer a one-two punch with their newly announced $60 a month plan (2 GB/unlimited talk/text). That's the same plan I have now with AT&T but I'm paying $5 more. Plus, and this is huge for me personally, I can use the iPhone 6 with a local SIM in Italy moving forward even by signing a contract. Can't say the same for AT&T.

I personally find $600 and up phones to be ridiculously priced. That's probably the same price I'll be paying for a new Mac Mini in the fall and I'll be using that computer for at least 5 years.

OP if you know you won't travel and you don't think you'll want to upgrade your phone early I'd just sign a contract. However keep in mind that AT&T is making it clear that you are paying a $15 subsidy monthly by signing that contract. Verizon shockingly is not. I'll be paying $60/month on-contract.

 

[Blueline29]

Thanks for all of the info, folks. I'd been doing a line swap and upgrading every year that way (signing a new 2-year contract), but after reading this, I'm gonna drop that second line and just do NEXT, paying for the phone outright toward the end of the year so I can still sell it if need be (or give it to a friend or family member).

 

[PFKMan23]

It's a pity to see so many people here declare they're NOT going to travel internationally. Putting aside the phone for a moment, the one thing I'd *strongly* recommend more Americans do is travel abroad. I really think that would fix a lot of the issues America has these days.

As a person who has traveled abroad, who has relatives outside the USA, it does give you an additional perspective, but I will still say that the USA still has a lot more going for it than many countries.

That said, I am a person who prefers to swallow the cost and pay outright. But then again, my financies allow me to budget for stuff like this, although not with the frequency of some people here.

 

[dauby88]

For me, and I would suspect everyone else, it's cheaper to buy the phone up front rather than get the discounted upgrade pricing. The cost is more up front, but less in the long term because your plan costs more when you upgrade. Here's the math I've used. Feel free to correct it.

Out Right Purchase: $650

Upgrade Purchase: $200 + $28/month
$25/month * 24 months = $672
Total: $872 long term

The plan costs $28 more per month when you use the upgrade price, which is the killer. Tax and other variables change the numbers a bit but it ends up being more than $200 extra over 2 years. For some, being able to unlock the phone and sell it the next year is another big plus which makes buying the phone out right even more attractive.

I need to look at the Next plan and see what that is exactly.

 

[aristobrat]

With respect to Next, I believe this is only a good idea if you don't want to wait 2 years to upgrade your phone.

Even if you only upgrade every two years, NEXT can help lower the up-front out-of-pocket cost for upgrading.

When you buy a new phone on an upgrade:

• 2-year contracts require that you pay $199+
• NEXT requires that you only pay the sales tax

For a family of four that wants to upgrade every two years, that's the difference between having to shell out $796 up-front ($199 x 4) vs. $156 up-front ($39 x 4 <using my state's sales tax>.

 

[uwdude]

Plus with plans like Next, people say, "oh, well if you buy the phone at full price and it gets destroyed, you're still out $649". Yes, but with Next, you'll have to pay off the rest of the destroyed phone PLUS pay another $649 for a new one at the time of the loss. You might end up paying over $1000 at the time of the accident. Or else pay for the expensive carrier insurance plus deductible.

Personally I've started going with a cheaper prepaid plan and buying the phone upfront. It's just cheaper all around than all these postpaid + Next/Edge/Jump! plans.

 

[blairh]

Even if you only upgrade every two years, NEXT can help lower the up-front out-of-pocket cost for upgrading.

When you buy a new phone on an upgrade:

• 2-year contracts require that you pay $199+
• NEXT requires that you only pay the sales tax

For a family of four that wants to upgrade every two years, that's the difference between having to shell out $796 up-front ($199 x 4) vs. $156 up-front ($39 x 4 <using my state's sales tax>.

Yeah I really only focus on single lines as I don't have a family.

If you don't need to travel abroad and don't plan on upgrading in 2 years I think you are better off signing a contract versus using Next.

 

[aristobrat]

Plus with plans like Next, people say, "oh, well if you buy the phone at full price and it gets destroyed, you're still out $649". Yes, but with Next, you'll have to pay off the rest of the destroyed phone PLUS pay another $649 for a new one at the time of the loss. You might end up paying over $1000 at the time of the accident.

Hmm, if the phone is "just" destroyed, you should be able to take it Apple for an out-of-warranty replacement ($269 or less). If the phone is lost/stolen, wouldn't you just pay off your remaining balance in NEXT, which makes you eligible to get another phone on NEXT (i.e. where the only up-front cost is the sales tax)?

 

[mnsportsgeek]

Staying w/ ATT for years, Not Going Intl - why would I buy a phone outright?

Hmm, if the phone is "just" destroyed, you should be able to take it Apple for an out-of-warranty replacement ($269 or less). If the phone is lost/stolen, wouldn't you just pay off your remaining balance in NEXT, which makes you eligible to get another phone on NEXT (i.e. where the only up-front cost is the sales tax)?

People are just riding the "Next sucks" train because when it was first unveiled it really did suck.

It has improved a lot since then if you plan on getting a 10gb or higher plan. If you are sticking with 6gb, then contract is actually marginally cheaper.

 

[freediverdude]

Hmm, if the phone is "just" destroyed, you should be able to take it Apple for an out-of-warranty replacement ($269 or less). If the phone is lost/stolen, wouldn't you just pay off your remaining balance in NEXT, which makes you eligible to get another phone on NEXT (i.e. where the only up-front cost is the sales tax)?

I think isn't Next only after 12 months? So the answer is maybe depending on where you are in your Next contract.

 

[CrAkD]

i wonder if att is going to do early upgrades again. I do not plan to leave att and adding the cost of a 64gb iphone to my bill every month will suck. id much rather pay the $399 + $250 or whatever then sell my 5s to recoup most of it and my bill stay the same.

 

[aristobrat]

I think isn't Next only after 12 months? So the answer is maybe depending on where you are in your Next contract.

I saw this on their FAQ.

Can I upgrade my AT&T Next smartphone earlier than 12 or 18 months?

Yes, you can. After you have been billed and made two monthly installment payments, as long as your account is in good standing, you are eligible to take advantage of our Pay to Upgrade option.

To reach upgrade status, you will need to pay your remaining installments in one lump sum.

http://www.att.com/shop/wireless/next.html#fbid=NLFZm_rIF0_

 

[C DM]

People are just riding the "Next sucks" train because when it was first unveiled it really did suck.

It has improved a lot since then if you plan on getting a 10gb or higher plan. If you are sticking with 6gb, then contract is actually marginally cheaper.

That's more or less what it seems to come down to in a lot of these types of threads.