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WTF subsidy? look at the fine print!!!

Appl3FTW

Appl3FTW

macrumors 603
Original poster
Nov 15, 2012
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Ok so I did a calculation, EDIT: YMMV this is on the new mobile share family plan.

ATT charges price of the subsidized phone + $25 per subsidized line in addition to your subsidized prize. so let's say you buy 128gb 6s plus for subsidized price of 499+tax.

Buying subsidized:
499 + tax (6% ymmv) = 528.94
$25 * 24 months = 600

528.94 + 600 = $1128.94 total price of the new phone (within 2 years).

VERSUS

Buying full price:
$949 (retail) + tax (6% ymmv) = $1005.94 total price of the new phone.

1128.94 - 1005.94 = $123 TOTAL savings
 
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Yes, they obviously want to dissuade customers from buying subsidized phones. When you buy full price, they don't lose money "up front".
 
What is the $25 charge you are figuring? Is this on a mobile share plan?
 
To clear up confusion...

Say I'm buying a 64GB iPhone 6. It's ~$37 for AT&T Next 12. $299 On contract.

On NEXT, my monthly dues for that specific line would be $15 (line fee) + $37 (phone fee).
On 2-year contract, my monthly dues would be $15 (line fee) +the $25 =$40.

The difference between the two is you are paying only tax up front with Next and $299 up front with 2 year contract and a larger bill for that specific over time.

And yes, this is all on mobile share plans. This is old news though. Been like this for about a year+
 
In fairness to AT&T, you don't even have to read the fine print. It's quite obvious what the charges are...
 

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Must be on a contract. You have to pay for the phone somehow. On the mobile share plan there is a discount to remove that charge.
 
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CoriG said:
which charge? I was told by numerous reps that if I buy a subsidized phone (and 2 year contract), my bill would not change at all
Click to expand...

Well if you're on a 2 year cycle and you finish your cycle, then it shouldn't matter.

i.e. if you've always been paying $40 for 2 years.. then resign up subsidy again for 2 years, then yes they will charge you $40 again LOL.

my point is I have a family plan, one of my phones I have a discount of $25 for not using subsidy. so instead of paying $40, I'm only paying $15 ($25 savings). If I convert that same phone to a subsidized, I will lose the $25 discount and will now be charged $40 instead of the $15.
 
The difference comes to $5.13/mo. over the course of 24 months if you buy a subsidized phone from them. I guess that's their unofficial "in-house financing" charge.
 
kshen1 said:
To clear up confusion...

Say I'm buying a 64GB iPhone 6. It's ~$37 for AT&T Next 12. $299 On contract.

On NEXT, my monthly dues for that specific line would be $15 (line fee) + $37 (phone fee).
On 2-year contract, my monthly dues would be $15 (line fee) +the $25 =$40.

The difference between the two is you are paying only tax up front with Next and $299 up front with 2 year contract and a larger bill for that specific over time.

And yes, this is all on mobile share plans. This is old news though. Been like this for about a year+
Click to expand...

Can I infer from this that the subsidized price difference between the 64GB model and the 128GB model is $200? :eek:
 
Cryates said:
Just do Next
Click to expand...

Cryates said:
So just do Next. Saves in the short term AND the long term.
Click to expand...

WRONG.. I did the calculations see below: model 128gb 6s plus

Option 1: Subsidy for 2 years
528.94 + 600 = 1128.94

Option 2: Buy phone full price
949 + tax = 1005.94

Option 3: Att NEXT Plan 47.45/month 12/20
$47.45 * 12 = 569.40
$47.45 * 20 = 949

Ok so for NEXT plan they require you to surrender your existing phone. Hence for the iphone 7 next year you will have to surrender your 6s plus to start over. Let's just say I can sell my phone iphone 6s Plus 128gb next year for $528.94, mind you this is a fairly conservative price for a year old iphone. then...

Option 1:
1128.94 - 528.94 = $600 cost of ownership for 1 year.

Option 2:
1005.94 - 528.94 = $477 cost of ownership for 1 year.

Option 3:
47.45 * 12 = $569.40 cost of ownership for 1 year.

Bottom line, BUY THE PHONE FULL RETAIL PRICE! NEXT is a good plan but not the best at it seems.
 
Appl3FTW said:
WRONG.. I did the calculations see below: model 128gb 6s plus

Option 1: Subsidy for 2 years
528.94 + 600 = 1128.94

Option 2: Buy phone full price
949 + tax = 1005.94

Option 3: Att NEXT Plan 47.45/month 12/20
$47.45 * 12 = 569.40
$47.45 * 20 = 949

Ok so for NEXT plan they require you to surrender your existing phone. Hence for the iphone 7 next year you will have to surrender your 6s plus to start over. Let's just say I can sell my phone iphone 6s Plus 128gb next year for $528.94, mind you this is a fairly conservative price for a year old iphone. then...

Option 1:
1128.94 - 528.94 = $600 cost of ownership for 1 year.

Option 2:
1005.94 - 528.94 = $477 cost of ownership for 1 year.

Option 3:
47.45 * 12 = $569.40 cost of ownership for 1 year.

Bottom line, BUY THE PHONE FULL RETAIL PRICE! NEXT is a good plan but not the best at it seems.
Click to expand...
Using the Next plans gives you a $15/$25 line fee discount that you don't get buying full retail or subsidy. That's a savings of $180/$300 a year depending on your data plan. You have to factor in the monthly bill savings to option 3 in your breakdown.
 
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Cryates said:
Using the Next plans gives you a $15/$25 line fee discount that you don't get buying full retail or subsidy. That's a savings of $180/$300 a year depending on your data plan.
Click to expand...

Option 2 and option 3 have 0 charges extra. I'm already on a $25 discount because my current lines aren't under subsidy.

Ok to make things sh-simple, Att charges $15 (15gb or more)/$25 per line for all non subsidized lines.. that means you bring your own phone (option 2) OR you use NEXT (option 3). If you use the subsidized price (option 1), that monthly fee for $15/$25 would go up to $40.

TRUST ME. I've been thru this last year with the 6 Plus.
 
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Appl3FTW said:
I'm already on a $25 discount because my current lines aren't under subsidy.

Ok to make things sh-simple, Att charges $15 (15gb or more)/$25 per line for all non subsidized lines.. that means you bring your own phone OR you use NEXT. If you use the subsidized price, that monthly fee would go up to $40.

TRUST ME. I've been thru this last year with the 6 Plus.
Click to expand...
But you said if you resign the contract you lose that $25 discount...

Edit: never mind, I get your point.
 
Att doesn't charge me $25 a month if i do a upgrade with 2 year contract. I just pay the 499 for the iphone 6s plus 128gb. Am i missing something? att? charges monthly if you do the 2 years subsidy?
 
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