So you buy a device on a payment plan, decide hafway thru paying for it you want a newer device, upgrade on another payment plan and still pay off the old payment plan PLUS $120 extra dollars a year?
SEEMS LEGIT.
The way I understand it is this (for example):
10/1/2013: Pay downpayment on iPhone 5S (is this $200? I don't know)
Oct 2013-Sept 2014: Pay $20/month payment on phone, plus $10/month jump fee
10/1/2014: Pay downpayment on iPhone 6, surrender half-paid-for iPhone 5S
Oct 2014-Sept 2015: Pay $20/month payment on phone, plus $10/month jump fee
Anyone else see it this way? In this sense, you are paying $560/year to have the latest and greatest device. T-Mobile then re-sells your one generation old device to someone who wants a lower downpayment/monthly payment/etc.
The other scenario is:
10/1/2013: Pay $649 for unlocked iPhone 5S
10/1/2014: Pay $649 for unlocked iPhone 6
10/?/2014: Sell iPhone 5S for ~$450.
In this scenario, you have a greater initial investment ($649 in year one instead of $560) but only about a $200 cost in the years going forward.
This seems like a good way for T-Mobile to make money off of customers who want the ease of just paying a set monthly price for their device and not deal with the hassle of buying and selling phones each year.
It's almost like leasing a car.