Upgrading iPhone with AT&T, Next or 2 Year Contract?

[Splitbolt]

I am an AT&T customer with an iPhone 5 and I also have my iPad Mini 2 on the plan for cellular data.

The 2 year contract for my iPhone 5 is up July 2, I would like to get an iPhone 6. My only concern is this new Next program. Here is my current plan:

Plan and Feature Cost Summary

Mobile Share Value 3GB with Rollover Data
$40.00/mo.

John Smith
342-245-2398
$25.00/mo.*
Apple iPhone 5 - On-contract

John Smith
245-854-7845
$10.00/mo.
Apple iPad mini with Retina display with Wi-Fi + Cellular - Off-contract

Sub-total for Talk, Text & Data
$75.00/mo.

Total Monthly Cost
$75.00

*Amount reflects Mobile Share Value access charge savings for smartphones bought via AT&T Next, with No Annual Contract or via bring your own. If you upgrade to a new smartphone with a 2-yr contract, you will lose this savings.

Originally I planned to sign another 2 year contract and pay $200 for the iPhone 6 like i have been doing over the years. I could help fund the $200 by selling my iPhone 5.

But now AT&T has Next and I am not sure if it would be better or worse to use Next than to do it the conventional 2 year contract way.

If you look at the footnote next to the $25 monthly fee for the iPhone it gets a bit confusing. Why am I getting that savings if I am in-contract?

 

[heyyitssusan]

You probably signed up at a certain period to get that discount. If you were to upgrade on a 2 year again, you will lose that $25 line access and that will go up to $40. The only way to keep it is go on NEXT, or buy your phone outright.

 

[Splitbolt]

You probably signed up at a certain period to get that discount. If you were to upgrade on a 2 year again, you will lose that $25 line access and that will go up to $40. The only way to keep it is go on NEXT, or buy your phone outright.

I actually changed my billing a few months ago (without changing my contract length). That's when I must have gotten that discount. It's just odd because I am in contract even though it says that voids the discount.

Anyway, I wonder if Next is going to be the better option for me. I will save $15/month which is $360 over 2 years, but I have to pay full price for the phone instead of the $200 cost when doing a 2 year contract.

 

[heyyitssusan]

Yes. Don't forget if you upgrade on a 2 year contract there's the $40 activation fee.

 

[C DM]

I actually changed my billing a few months ago (without changing my contract length). That's when I must have gotten that discount. It's just odd because I am in contract even though it says that voids the discount.

Anyway, I wonder if Next is going to be the better option for me. I will save $15/month which is $360 over 2 years, but I have to pay full price for the phone instead of the $200 cost when doing a 2 year contract.

Just calculate the math basically using those numbers and you can see which is better.

 

[Splitbolt]

Yeah, I am doing the math, but there are some other variables. As mentioned above, there is different activation fees. Also, sales tax on the full amount of the phone could be a large amount.

 

[C DM]

Yeah, I am doing the math, but there are some other variables. As mentioned above, there is different activation fees. Also, sales tax on the full amount of the phone could be a large amount.

Yeah those can differ from state to state so you'd need to factor those in based on your location.

 

[h00ligan]

I just did the math on mine in another thread and I also don't really see a negative

The way I figured it upgrading from a 5 to 6s plus is $20 more expensive than my 4 to 6 plus upgrade.

Seems like a fine deal to avoid laying out $200-499 up front

 

[Aibocyrus]

I actually changed my billing a few months ago (without changing my contract length). That's when I must have gotten that discount. It's just odd because I am in contract even though it says that voids the discount.

Anyway, I wonder if Next is going to be the better option for me. I will save $15/month which is $360 over 2 years, but I have to pay full price for the phone instead of the $200 cost when doing a 2 year contract.

With your plan, a 2 year is cheaper.

 

[ckorhonen]

In most cases the 2 year contract will likely be cheaper assuming you qualify for the full subsidy. Also remember that this is likely the last year that you'll be able to do the 2 year contract with the carriers moving toward Next style financing.

 

[C DM]

In most cases the 2 year contract will likely be cheaper assuming you qualify for the full subsidy. Also remember that this is likely the last year that you'll be able to do the 2 year contract with the carriers moving toward Next style financing.

It's not really most cases, it's case by case basis depending on the plan in question.