WTF subsidy? look at the fine print!!!

Discussion in 'iPhone' started by Appl3FTW, Sep 11, 2015.

  1. Appl3FTW, Sep 11, 2015
    Last edited: Sep 11, 2015

    Appl3FTW macrumors 601

    Appl3FTW

    Joined:
    Nov 15, 2012
    #1
    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
     
  2. Zwhaler macrumors 603

    Zwhaler

    Joined:
    Jun 10, 2006
    #2
    Yes, they obviously want to dissuade customers from buying subsidized phones. When you buy full price, they don't lose money "up front".
     
  3. CoriG macrumors 6502

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    Jun 7, 2011
    #3
    what is the 25 x 24 you are figuring in?
     
  4. Cryates macrumors 6502a

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  5. Appl3FTW thread starter macrumors 601

    Appl3FTW

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    Nov 15, 2012
    #5
    24 months = 2 years LOL
    $25 charge from ATT if you use subsidy multiply that 24.
     
  6. cambookpro macrumors 603

    cambookpro

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    #6
    Yep. You're essentially financing the phone over two years, so of course it's going to be more expensive.
     
  7. CoriG macrumors 6502

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    Jun 7, 2011
    #7
    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
     
  8. Cryates macrumors 6502a

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    #8
    What is the $25 charge you are figuring? Is this on a mobile share plan?
     
  9. kshen1 macrumors member

    kshen1

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    Oct 7, 2013
    #9
    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+
     
  10. ClemTiger0408 macrumors 6502

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    Jun 30, 2007
    #10
    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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  11. ToroidalZeus macrumors 68020

    ToroidalZeus

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    Dec 8, 2009
    #11
    subsidy only makes sense if you still have an old plan with individual data per lines
     
  12. Appl3FTW thread starter macrumors 601

    Appl3FTW

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    Nov 15, 2012
    #12
    QFT.. quoted for truth.. there you go. the $40 charge vs $15 charge. Thanks for that pic.
     
  13. Cryates macrumors 6502a

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    #13
    So just do Next. Saves in the short term AND the long term.
     
  14. Givmeabrek macrumors 68030

    Givmeabrek

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    Apr 20, 2009
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    NY
    #14
    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.
     
  15. Appl3FTW thread starter macrumors 601

    Appl3FTW

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    Nov 15, 2012
    #15
    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.
     
  16. willmtaylor macrumors G3

    willmtaylor

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    #16
    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.
     
  17. ok3wire macrumors member

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    Jun 15, 2009
    #17
    Can I infer from this that the subsidized price difference between the 64GB model and the 128GB model is $200? :eek:
     
  18. Appl3FTW thread starter macrumors 601

    Appl3FTW

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    Nov 15, 2012
    #18
    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.
     
  19. Cryates macrumors 6502a

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    #19
    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.
     
  20. Appl3FTW thread starter macrumors 601

    Appl3FTW

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    Nov 15, 2012
    #20
    difference price between a subsidized 64 vs subsidized 128 is $100
     
  21. Appl3FTW, Sep 11, 2015
    Last edited: Sep 11, 2015

    Appl3FTW thread starter macrumors 601

    Appl3FTW

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    Nov 15, 2012
    #21
    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.
     
  22. Cryates macrumors 6502a

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    Nov 19, 2013
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    #22
    But you said if you resign the contract you lose that $25 discount...

    Edit: never mind, I get your point.
     
  23. Appl3FTW thread starter macrumors 601

    Appl3FTW

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    #23
    YES... :)
     
  24. mellofello macrumors 65816

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    #24
    The smart money is to buy a phone subsidized then switch to T-Mobile 1 month later.
     
  25. michael31986 macrumors 68030

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    Jul 11, 2008
    #25
    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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