I'm in a somewhat of a unique situation. I am on a very minimal, now discontinued plan of 250 MB, Unlimited T&T for $45 + tax (about $51). I could care less about data, as I'm around Wi-Fi 99% of the time.
What I used to do was buy on upgrade every two years for the discounted price (I would buy outright every other year I wasn't eligible because I wanted the latest phone). By the time I sold my phones on eBay, Craigslist, etc., I wouldn't be paying much at all.
Math:
Bought: iPhone 6 Plus for $300
Sold: iPhone 5S for $500
Bought iPhone 6S Plus for $750
Sold: iPhone 6 Plus for $500
Bought: iPhone 7 Plus for $320
Sold: iPhone 6S Plus for $500
Total Investment: Net Profit of $130. NOTE: This does NOT include any activation fees, which would basically cancel out the profit.
If I did the same thing buying outright, I would be at:
Bought: iPhone 6 Plus for $750
Sold: iPhone 5S for $500
Bought iPhone 6S Plus for $750
Sold: iPhone 6 Plus for $500
Bought: iPhone 7 Plus for $770
Sold: iPhone 6S Plus for $500
Total Investment: Loss of $770.
If I did device payment plan, it's hardly better, and this does NOT factor in a plan change, which would be required.
Bought: iPhone 6 Plus for $32.08/Month for 12 Months
Sold: iPhone 5S for $500
Bought iPhone 6S Plus for $32.08/Month for 12 Months
Sold: iPhone 6 Plus for $0 (CAN'T SELL, MUST TURN IN UNLESS IT'S PAID OFF)
Bought: iPhone 7 Plus for $32.08/Month for 12 Months
Sold: iPhone 6S Plus for $0 (CAN'T SELL, MUST TURN IN UNLESS IT'S PAID OFF)
Total Investment: Loss of $654.88, and it's only that because of my 5S before I would have started DPP. Otherwise it's a bad deal, as I might as well just buy outright and sell myself if I want a new phone.
I am on Verizon, FYI. So once the new iPhone comes out, I will likely switch to prepaid on Verizon, because DPP does not make sense to me at all. Or look into T-Mobile, just for the option of unlimited data which I really do not need. Verizon currently (through Walmart) has a 7 GB option for $50, which is really tempting.
I could be wrong, but I've done the math over and over again and come up with the same numbers.
I knew they would axe them eventually. Just sucks the time is now.
^^ This. Grandfathered on a very old Verizon plan and it was $50 for Unlimited Talk/Text + 1GB data. Like poster, rarely needed data as I'm practically always on Wifi. No idea the phone subsidy was ending and my timing was poor as I meant to purchase right after Xmas. Now what would have been $199 has grown to $749 over 24 mos. The "new" monthly usage plan is actually $5 more per month so there is no way to rationalize I'd actually be paying less over the long term without the phone subsidy. Lame. Snooze you lose I guess but really stings to pay retail for a phone that will be deemed undesirable in a year.