or Connect
AppleInsider › Forums › Mobile › iPhone › AT&T's offers new smartphone, tablet upgrade every 12 months with 'Next' plan
New Posts  All Forums:Forum Nav:

AT&T's offers new smartphone, tablet upgrade every 12 months with 'Next' plan

post #1 of 34
Thread Starter 
AT&T on Tuesday announced "AT&T Next," a comprehensive smartphone and tablet upgrade program that allows customers to purchase a new device every 12 months with no down payment, and no activation or upgrade fees.

AT&T Next


Following rumors of a smartphone upgrade program from Verizon, and on the heels of T-Mobile's "Jump" initiative, AT&T said it will launch its own hardware upgrade plan in "AT&T Next."

Starting July 26, customers can purchase a smartphone or tablet with no down payment, pay a monthly fee for 20 months as part of their wireless bill, and have the option trade in the device after one year to upgrade to a new hardware. Upon trading in their device, the installment cycle for that unit ends, and a new 20 months starts based on the price of the new smartphone or tablet.

Alternatively, customers can opt out of upgrading and pay out the full 20 months of fees, which vary from $15 to $50, depending on make and model.

?With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment," said Ralph de la Vega, president and CEO of AT&T Mobility. "That?s hard to beat, and it?s an incredible value for customers who want the latest and greatest every year."

The cost of the handset is broken down into 20 parts, thus existing or new AT&T customers can purchase a 16GB iPhone 5 and pay $32.50 per month for 12 months and trade in the unit for a next-gen iPhone model, with no further fees required beyond voice and data charges. Those who opt to pay out the 20 months' worth of fees will be able to keep the device, and there is no charge for paying off the entire amount early.
post #2 of 34
Geez, ATT and Verizon took a page our of Samesung's book and flat out copied T-Mobile (only made it more expensive). Yawn.
post #3 of 34
This will most likely keep me from switching. Smart move on their part.
post #4 of 34
If I'm reading this right they are basically splitting device and fees into separate lines, refiguring the device part based on 20 months not 24 and giving you the option at 12 months to pay off the rest via either cash or trading in your device.

Which doesn't really seem like that much better than the old system other than the separate line issue. Might even be worse if she service fees don't go down. Something like $19 of each month was to pay back the subsidy in your iPhone. Imagine if you are still paying that AND the $32.50 a month. That's around $600 in 'device' costs during that year plus you have to turn in your old iPhone. AT&T are so greedy I could see them doing that kind of move since that $19 has always been part of the voice costs

But how does that change things for those of us that bring our own device or pay full price from the top so our phone is unlocked (cause I work internationally), do we get a break on our bill or are we still paying at the rates that include device payoff as part of the service fees

And do we have to buy at AT&T for this.
Edited by charlituna - 7/15/13 at 9:53pm

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #5 of 34

Actually renting the phone, thats what it comes down to. And if you break the phone or lose it your screwed. No big advantage other than breaking down the payments.

post #6 of 34
Quote:
Originally Posted by charlituna View Post

But how does that change things for those of us that bring our own device or pay full price from the top so our phone is unlocked (cause I work internationally), do we get a break on our bill or are we still paying at the rates that include device payoff as part of the service fees
AT&T does not (currently) give a break on service price now, even if you bring your own phone.
I added an iPhone 3GS in Oct for my daughter and they even tried to tell me it was a 2 year commitment!
post #7 of 34

The early upgrade fee for me to go from the iPhone 4S to the 5 was an extra $250.

So they're offering me a free phone for an extra $32.50/mo over 20 months.

That's $650 after 20 months or $390 after 12 months (assuming I upgrade ASAP).

Take away $200 for the phone and that makes my early upgrade fee just $190.

Win, right?

 

Well, not if Apple takes too long to release the next iPhone...

If they take 1 year and 2 months (Nov 2013) then my effective upgrade fee is $255.

What if Apple takes a year and a half?

Then it's suddenly $385!

What if I'm not an obsessed Apple addict and just forget that I can upgrade every year?

That's clearly the scenario they're counting on and it's likely the majority.

 

So I have to admit, there is a chance to save some cash on this deal.

But it counts on assuming that Apple will release their phones like clockwork.

I'm a manufacturing engineer.

Deadlines are hard; sh!t happens.

On top of that, we're talking about saving money on an entirely extravagant expense.

Nobody needs a new phone every year when Apple's phones are as good as they are.

post #8 of 34

Whoa, hold up.

I just caught this: you have to trade in the old device?!

 

Nevermind.

This is unbelievably ridiculous.

Please, nobody do this.

Tell your friends.

This is terrible.

Atrocious.

They should be ashamed.

People working there should cry themselves to sleep if they cannot bring themselves to quit within TOMORROW.

post #9 of 34
So at the rate they charge, you're paying 719 dollars over 20 months for a phone that retails for 599? Yeah, no. Sorry AT&T, I'm just going to wait until you go back to the early upgrade offer for longtime customers you used to have as soon as you realize market saturation means lower sales year over year.
post #10 of 34
Are they going to lower service costs then? Because otherwise this is double dipping.
post #11 of 34
Quote:
Originally Posted by genovelle View Post

This will most likely keep me from switching. Smart move on their part.

 

 

Think twice, because in reality you'll be paying the equivalent of $1,298 for an iPhone.

 

How...

 

Subsidized plan pricing + monthly phone payment plan.

 

AKA Double Dipping customers.

 

T-Mobile's Jump is much better.

post #12 of 34
Yeah, if the service plan cost doesn't go down, then AT&T is definitely double-dipping. And T-Mobile will probably call them out for it in their advertising. They've been in an "AT&T bashing" mood lately anyways. Just one more thing to beat them over the head with.
post #13 of 34
Quote:
Originally Posted by charlituna View Post

If I'm reading this right they are basically splitting device and fees into separate lines, refiguring the device part based on 20 months not 24 and giving you the option at 12 months to pay off the rest via either cash or trading in your device.

Which doesn't really seem like that much better than the old system other than the separate line issue. Might even be worse if she service fees don't go down. Something like $19 of each month was to pay back the subsidy in your iPhone. Imagine if you are still paying that AND the $32.50 a month. That's around $600 in 'device' costs during that year plus you have to turn in your old iPhone. AT&T are so greedy I could see them doing that kind of move since that $19 has always been part of the voice costs

Breaking out the phone cost has a HUGE benefit. When you've paid off the phone, your monthly payment drops. As it is, you continue paying the subsidy fee even after you've completed your contract commitment. This is far better.

Yes, you're right that if they simply add on a new fee without reducing the base fee that it would be worse, but that's unlikely. AT&T is already the most expensive - if they suddenly added $20-50 per month to their charge, there would be a mass exodus.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #14 of 34
Quote:
Originally Posted by brutus009 View Post

The early upgrade fee for me to go from the iPhone 4S to the 5 was an extra $250.

So they're offering me a free phone for an extra $32.50/mo over 20 months.

That's $650 after 20 months or $390 after 12 months (assuming I upgrade ASAP).

Take away $200 for the phone and that makes my early upgrade fee just $190.

Win, right?

...

...Nobody needs a new phone every year when Apple's phones are as good as they are.

 

Don't forget, with the new plan, you have to trade in your phone instead of keep it.  Factor that into your figures.

 

I need a new phone this year..the 3GS is slowing down...

post #15 of 34
So you pay the subsidy, AND you pay full retail (or more) for the phone.

No wonder AT&T likes this deal.
post #16 of 34
Quote:
Originally Posted by icoco3 View Post

 

Don't forget, with the new plan, you have to trade in your phone instead of keep it.  Factor that into your figures.

 

I need a new phone this year..the 3GS is slowing down...


I think it says that if you keep the payments through 20 months, the phone is yours to keep.  I also think you can keep it after 12 months if you choose to pay off the remaining 8 months owed.

post #17 of 34
Quote:
Originally Posted by Hudson1 View Post


I think it says that if you keep the payments through 20 months, the phone is yours to keep.  I also think you can keep it after 12 months if you choose to pay off the remaining 8 months owed.

 

I was only referencing his analogy.

post #18 of 34
I like the idea, but the price seemed geared toward someone who can't come up with the $200, and needs an overpriced monthly payment plan.
post #19 of 34
Hey. Telecoms. At least make it LOOK like you imbeciles aren't paying people off...

And yet users here actually question me when I say this will happen. It's people like that who allow this collusion to happen the first place.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #20 of 34
Quote:
Originally Posted by jkichline View Post

Geez, ATT and Verizon took a page our of Samesung's book and flat out copied T-Mobile (only made it more expensive). Yawn.

From what I can tell, this is nothing like T-Mobile's offering. First, T-Mobile's service plans are a lot less expensive than AT&T. Second, T-Mobile has no contract on the service part. Third, the $10 extra month on T-Mobile's plan also covers damage and loss of device insurance. Fourth, T-Mobile allows you to trade in twice a year, not once.
post #21 of 34
Seems like the only people who will buy are either Samsung or apple fanatics, problem with Samsung is there releases are 9 or 6 mounts or so.
post #22 of 34
Quote:
Originally Posted by ifij775 View Post

I like the idea, but the price seemed geared toward someone who can't come up with the $200, and needs an overpriced monthly payment plan.

On T-Mobile, the plan is not so bad because 1) you have no contract, and 2) the service plan is cheaper. You pay no money down for the phone, $10 a month extra on your bill, this includes insurance, and you can upgrade twice a year. You have to give the phone up when yu upgrade, but if you upgrade only twice a year, you only paid $180 for the phone after 6 months (including the $20 a month phone fee and $10 a month service fee). On AT&T this plan likely makes little sense because the fee for service seems to not drop.
post #23 of 34
Quote:
Originally Posted by Pendergast View Post

Are they going to lower service costs then? Because otherwise this is double dipping.

 

This.

 

 

Quote:
Originally Posted by TBell View Post

On T-Mobile, the plan is not so bad because 1) you have no contract, and 2) the service plan is cheaper. You pay no money down for the phone, $10 a month extra on your bill, this includes insurance, and you can upgrade twice a year. You have to give the phone up when yu upgrade, but if you upgrade only twice a year, you only paid $180 for the phone after 6 months (including the $20 a month phone fee and $10 a month service fee). On AT&T this plan likely makes little sense because the fee for service seems to not drop.

 

Too bad T-Mobile LTE service is so spotty.

   Apple develops an improved programming language.  Google copied Java.  Everything you need to know, right there.

 

  MA497LL/A FB463LL/A MC572LL/A FC060LL/A MD481LL/A MD388LL/A ME344LL/A

Reply

   Apple develops an improved programming language.  Google copied Java.  Everything you need to know, right there.

 

  MA497LL/A FB463LL/A MC572LL/A FC060LL/A MD481LL/A MD388LL/A ME344LL/A

Reply
post #24 of 34

  1. Buy a new smartphone on a Simple Choice Plan using our Equipment Installment Program.
  2. Enroll in JUMP! for $10 a month when you add Services to your order.
  3. Upgrade as soon as six months after enrollment.
  4. Trade in your phone each time you upgrade so you can get the same great price as new customers for new phones.

And with JUMP!, you can upgrade two times every 12 months after your first upgrade. So you can upgrade when you want, not when you’re told.

T-Mobile's plan while good, DOES REQUIRE an upfront cost of either the ENTIRE cost of the phone or $99 upfront with the remainder of the full retail cost spread over 24 months.  This new JUMP plan just allows you to trade in TWICE a year at no additional cost beyond the initial plan or at least that is how is SEEMS to read.

post #25 of 34
Quote:
Originally Posted by jkichline View Post

Geez, ATT and Verizon took a page our of Samesung's book and flat out copied T-Mobile (only made it more expensive). Yawn.

I guess T-Mobile had more of an impact than first realized, just not in regards to pricing.
post #26 of 34

Looking at the ATT NEXT plan it seems that the "carrot" they are dangling is the elimination of the $199/$299/$399 upfront upgrade cost, PLUS the activation fee (you typically can get them to waive those anyway),  the upgrade fee (whatever the hell that was for)  and the ability to upgrade at 12 months.

 

Is this a GOOD deal or NOT?  Since they state that there is NO penalty for early payoff, at the time you wished to upgrade, you could either hand them your phone, and get a new one, OR pay off the phone, sell it on the open market and walk into ATT and get a new phone at NO cost on the NEXT plan.  It would all come down to convenience and the fair market value of the phone.  

 

I don't look for them to lower their base rate plan cost.  It does NOT appear that Verizon is planning on doing it either.  Yes, T-Mobile did lower their base rate plan when they rolled out their UNCARRIER plans, but that does NOT mean that ATT or Verizon is going to follow suit.  

 

If ATT is really wanting to attract MORE customers in a BIG way, they SHOULD lower their base rate plan sufficiently to look attractive as part of the NEXT plan, but again, I don't see that anywhere in what they have announced NOR do I expect it will be part of the plan.  

post #27 of 34
So you're basically financing the full price of the phone over 20 months. If you don't pay it off you can't keep it. Sortof 12 month leasing.
post #28 of 34

Exactly! Except ATT is hiding the finance "costs" inside the old base rate subsidy so as to allow them to state that there is NO finance charge.  

 

Verizon is charging you $120 (ie $10 a month for 12 months before upgrade eligible), T-Mobile is charging you $60 ($10 a month for 6 months before upgrade eligible) and ATT is charging NO additional fees.  Verizon and T-Mobile BOTH require you to purchase your equipment, either upfront or in the form of subsidized financing (ie Verizon), upfront or Equipment Installment Plan on T-Mobile, in addition to the cost of the "early upgrade" plan. ATT is throwing IN the equipment at NO additional cost as part of the early upgrade plan.

 

Verizon has not yet stated if they are going to eliminate associated upgrade fees like ATT has done.

 

Verizon and ATT reset your 2 year base contract when using the upgrade, T-Mobile does not change any base rate plan contract (ie NO contract requirement), but you can't leave them unless you pay off your phone up front or at time you terminate, which assuming that you used their equipment installment plan has you locked into 2 years unless you do the payoff.

 

It is NOT clear if T-Mobile resets the two year equipment installment plan when you upgrade, but Verizon and ATT both indicate that any remaining payments on equipment being traded in as part of the 12 month upgrade option are forgiven and a new two year payment plan based on the full retail price of the new phone takes effect.

 

ATT, while guilty of some double dipping in the new NEXT plan, it is NOT as bad as it might seem on the surface.  First off they have eliminated ALL upgrade costs, which have previously been $199/$299/$399 + activation +upgrade fee.  They are NOT charging any additional month fee for the plan other than the retail cost of the phone spread over 20 months.  They are allowing upgrade at NO cost at 12 months.  You can payoff the phone and sell it with no penalty if that is a better deal (ie pocket the difference between the payoff and the sale of the equipment) and STILL walk out with a new iPhone every 12 months with NO out of pocket costs.  YES, it does appear that they are still charging for subsidy in the base rate, but there is a cost associated for them run the program and finance the cost of the phones.  Is ATT coming out ahead on this, OF COURSE they ARE, but again, it is not as bad as some are making it out to be.  

 

A mixed bag to say the least!

post #29 of 34
I'm guessing this won't be a favorable option when compared to simply utilizing subsidies every two years, and upgrading at full price in years when you don't qualify. iPhones have tremendous resale value so you can typically recoup a large portion of the upgrade cost, even without the subsidy. (on subsidy years, you typically come out ahead after selling your 1-year old phone)
post #30 of 34
Family plan "trickle down" is a much better deal.
I, who pays the monthly plan, gets the new phone each year. Mine goes to the next person in line, their's goes down to the next, and the person at the bottom (4 on the plan) get the next-to-oldest phone. The phone rotating out the bottom (a 3GS this year) winds up becoming an iPod or (as will be the case this year) unlocked and used for international travel.

It would still be nice to have the TMobile plan were you get lower-cost plans and buy the phones outright; but I like AT&T so the trickle down plan works best for us.
post #31 of 34
Quote:
Originally Posted by Pendergast View Post

Are they going to lower service costs then? Because otherwise this is double dipping.

I will give you a hint and three guesses but you will only need one guess. The hint is in the title of the article, "AT&T."
post #32 of 34
Quote:
Originally Posted by rhyde View Post

Family plan "trickle down" is a much better deal.
I, who pays the monthly plan, gets the new phone each year. Mine goes to the next person in line, their's goes down to the next, and the person at the bottom (4 on the plan) get the next-to-oldest phone. The phone rotating out the bottom (a 3GS this year) winds up becoming an iPod or (as will be the case this year) unlocked and used for international travel.

It would still be nice to have the TMobile plan were you get lower-cost plans and buy the phones outright; but I like AT&T so the trickle down plan works best for us.
The top two should get new phones every year and "trickle down" those annually. You should have 2 5s and 2 4S. By not taking advantage of the subsidy every opportunity you get to upgrade, you're just paying ATT a subsidized price.
When the 5S- or whatever- comes out this year, top two get those, bottom two get 5s, and the 4Ss get sold on Craigslist for essentially what you paid for the 5Ss (~$200 apiece). You'll never pay an upgrade fee again. If everyone has iPhones, why do they want to use an old iPhone as an iPod? Sell the 4S and buy a 16gb new iPod for the same cost if you really need an iPod- it's better anyway.
Or spend the same money for inferior equipment- it's your dollar. 1smile.gif

2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

Reply

2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

Reply
post #33 of 34
In America, where everyone thinks they need a new phone every year.

~Cliff
(**Treo 650 -- 8 years**)
Always remember..wherever you go, there you are.
Reply
Always remember..wherever you go, there you are.
Reply
post #34 of 34
There's really no reason to do this unless someone is incredibly impatient and not that good with money. $32.50 a month, but you don't actually own the phone...that's what it sounds like to me. I'll take the old way. I'll buy the phone with a two year commitment for $200. In two years, I'll get a new one...getting around $150 or more for my old phone via private sale. After the first phone, it's really only $50 to get a new phone, plus their stupid upgrade fee.

What really gets me here is the use of the term "downpayment." Jesus..its a phone, not a car.
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
Reply
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
  • AT&T's offers new smartphone, tablet upgrade every 12 months with 'Next' plan
AppleInsider › Forums › Mobile › iPhone › AT&T's offers new smartphone, tablet upgrade every 12 months with 'Next' plan