Hello, all! I am getting the new iPhone 5s when it comes out on the 20th. I am not under an AT&T contract, and am eligible for AT&T Next or a 2 year contract. See, I get the new iPhone every year, and here my choices: either performing an AT&T Early Upgrade every year for $449 (I would sell the older iPhone to offset the cost) or do the AT&T Next program which is basically paying $27 a month and then at the end of the year I trade the phone in and pay $27 a month again for the new iPhone. What is the better plan? Thanks.
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Carrier AT&T Next for iPhone 5s or 2 year contract?
- Thread starter nickprete11
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I was going to do ATT Next but found a cheaper option. I will take my $200 upgrade every other year but in the off year sell my iPhone for $250 and buy it outright for $400 giving me an average cost of $300 a year. It is cheaper than Next, gives me more flexibility, and is cheaper than the early upgrade which they do not always approve for everyone.
We're paying high monthly bills for a subsidized phone. Now we're going to pay $25 to $35 a month extra on top of that? Pass.
The criticism of ATT Next does not make any sense either. It is for people who want a new phone every year. While ATT is adding the cost of a subsidized phone in the contract, ATT Next is considerably cheaper than breaking a contract every other year. It is also less money every other year when you would need to buy a phone outright.
The criticism does make sense.
http://www.theverge.com/2013/7/16/4528404/att-next-phone-upgrade-plans-a-huge-ripoff
To the OP, there isn't really a debate. You said yourself that you can sell the phone to make up the cost every year, for a net expenditure of $0, or you can pay your "Next" payments of $27/month in perpetuity and then have to give the phone back every year.
http://www.theverge.com/2013/7/16/4528404/att-next-phone-upgrade-plans-a-huge-ripoff
To the OP, there isn't really a debate. You said yourself that you can sell the phone to make up the cost every year, for a net expenditure of $0, or you can pay your "Next" payments of $27/month in perpetuity and then have to give the phone back every year.
What I suggest is getting the 5S on 2 yr and then when the next one releases (if you want it) pay the early upgrade fee of 250 by trading in your old iPhone which will most likely resell for 300+ then pay for the rest of a new subsidy. It's just one of the ways to go about it. You might also use the 5S to get up to half off a retail priced one.
You save $74 in activation fees in a 13 month period actually making it cheaper in the medium term. However, ATT is being coy about being able to switch back to a 2 year contract without having to pay the extra 8 months off. It could actually be cheaper it is just unknown at this time. Much of the equation depends on how much you can sell your iPhone back for in a years time.
I also may be a bit underestimating the fact that I do not pay upgrade fees so you'd need to add that in there if your required to pay them.
Exactly.
The phone still does come out to less than full price, but with the service charge it's not worth it to me.
NEXT is all about convenience, not saving money for consumers. ATT isn't going to offer a plan that would make them less profit.
Usually I am against government intervention and class action lawsuits.
But these next and edge programs by att and Verizon are predatory and sales associates can easily trick even average intelligence customers about the true cost of the plans.
I find next or edge to be of value to less than 1% of att or verizons customers.
This along with uping the upgrade date to full 24 months are part of master plan to decrease subsidies.
While many may claim apple to be evil. At least in the USA. Apple is soley responsible for the $199 subsidize pricing of smartphones. We all remember the days of $399 subsidized prices.
But these next and edge programs by att and Verizon are predatory and sales associates can easily trick even average intelligence customers about the true cost of the plans.
I find next or edge to be of value to less than 1% of att or verizons customers.
This along with uping the upgrade date to full 24 months are part of master plan to decrease subsidies.
While many may claim apple to be evil. At least in the USA. Apple is soley responsible for the $199 subsidize pricing of smartphones. We all remember the days of $399 subsidized prices.
I had to come back to this thread just to ask you what phones where sold at $399 subsidized before the iPhone?
I can't remember one....
At launch in 2004, the Motorola RAZR sold for $499 on a 2 year contract from Cingular (AT&T).
Wow, how soon we forget
I was sporting a Treo 650 in those days.... Can't remember what I paid for it....http://reviews.cnet.com/smartphones/rim-blackberry-7280-cingular/4505-6452_7-30723843-2.html
The iPhone really did change the contract pricing model of "high end" smartphones.
Like I said post paid carriers used to make a killing with profit margins with cell phones in general. But a smartphone being sold in the (3) hundred plus price range was too much for the American consumer on contract.
$199 sounds good to the American public on contract.
But carriers are their own worst enemy by the race to the number of subscribers. Most are on family plans. And subsidizing lines 2-5 isn't as profitable as line 1 which generates the most revenue.
Wow, how soon we forget
Back in that time period I remember buying a Treo 650 on eBay for about $600 lol... I think I used to change phones once a month before the iPhone.
Wow, how soon we forget
Ikr I forgot how much phones were those days and they did 1/1000000 of the things they do now