AT&T's offers new smartphone, tablet upgrade every 12 months with 'Next' plan
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.
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.
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.
Comments
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.
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.
I added an iPhone 3GS in Oct for my daughter and they even tried to tell me it was a 2 year commitment!
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.
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.
Quote:
Originally Posted by genovelle
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.
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.
Quote:
Originally Posted by brutus009
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...
No wonder AT&T likes this deal.
Quote:
Originally Posted by icoco3
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.
Quote:
Originally Posted by Hudson1
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.
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.
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.