Hopefully the parents will still be parents and tell the kids to be grateful. I know if my 15 year old (Don't have kids yet) complained that a 2 year old iPhone is "not cool", I would say, "you are right." Smash or sell the phone and say: "Now you don't need to worry about it." Here is a brand new Nokia brick phone, it can make calls, that is about it. Go earn your own 650$+ phone.
I don't know if it's better, but the specs are better and all the cool kids are using it. And by cool kids, I mean Steve Ballmer's kids.
I truly want to believe this is true and the carriers will lower prices, at the present, unless I am missing something, AT&T are a non starter at present for anyone wanting to use Apple's plan. I was looking at AT&T's rates for using your own iPhone yesterday. They offer only $300 off the annual bill, not a lot. So something has to change. I understand the iPhone would be owned and able to be sold at the end of the year but I can see this also causing a massive drop in the value of second hand one year old iPhones as the new Apple purchase plan gains traction. I would bet I can kiss my my 'grandfathered in unlimited data' goodbye too.
I wonder if Apple now might consider buying a carrier in the USA and entering that business as a service to Apple users only, since competing isn't an issue with their own purchase plan in place?
Last thought just now, why not the same purchase plan for iPads?
It costs a lot to build, upgrade, and maintain a network. It would also make Apple doubly vulnerable to a disruption in the smartphone market. They'd lose hardware sales, and service subscribers.
It wouldn't make sense for the iPad because people don't buy them as often as iPhones.
That is entirely possible. Our plan sounds nothing like yours but we have had it since the inception of the iPhone, hence the unlimited data and we have a buddy phone on the main account. I'd love it if Apple provide the 4G (or 5G) service too , I'd actually trust Apple.
I can't see how the Apple deal can be good. Not because I don't trust Apple but because I don't trust the carriers. If I pay $35.- per month to Apple over two years interest free it will only be a better deal if the carriers drop the price per month by the same amount for a 2 year package where I bring my own phone, right? Do any carriers in the US drop their prices that much if you bring your own phone? In Canada they drop the price by 15 - 20 bucks.
I don't know, is it? Still I'd be paying $40.75 a month through Apple's plan, when I'm paying $27 or something with T-Mobile. I don't see the point of getting a new phone every year. I had my iPhone 4 for 4+ years before upgrading to my iPhone 6. While I like the new features of the 6S, I can just wait for the iPhone 7 and get that maybe. T-Mobile's Network works the same around here as anyone else with the added benefit of Wifi Calling, which for me is HUGE because at work, the Signal is WEAK for all the Networks. I have a Wifi Router about 2 feet from me in my Office. Now I'm no longer running out the back door from my Office which is in about the middle of the factory to get a better signal, I can just relax and answer and it's nice and clear. That and the free Music streaming now counting against your Data use with many music streaming services is really nice. I steam all my music and in the higher quality. Why not, it's free!!!
If anyone asks, you can pretend you are carrying an iPhone 6S. Whatever color it is, the 6S is also available in that color.
That is entirely possible. Our plan sounds nothing like yours but we have had it since the inception of the iPhone, hence the unlimited data and we have a buddy phone on the main account. I'd love it if Apple provide the 4G (or 5G) service too , I'd actually trust Apple.
I can't see how the Apple deal can be good. Not because I don't trust Apple but because I don't trust the carriers. If I pay $35.- per month to Apple over two years interest free it will only be a better deal if the carriers drop the price per month by the same amount for a 2 year package where I bring my own phone, right? Do any carriers in the US drop their prices that much if you bring your own phone? In Canada they drop the price by 15 - 20 bucks.
Here's what I paid, last year for a new iP 6 128GB (locked to ATT) + AppleCare
$499 ATT Subsidized price 2 years
$99 AppleCare
$598
Here's what An Apple-Financed phone costs for a new iP 6S 128GB Unlocked + AppleCare +
$0 Upfront costs
$539 12 months @ $44.91
$539
So, I would get the same iPhone, unlocked, no upfront costs, pay $59 less over 12 months, and get a new iPhone after 12 months (trade in iP 6S).
Edit:
A simple exercise in time/value of money -- take that $539 that you wouldn't have paid in upfront costs, buy 6 shares of AAPL (then $99) and earn $17 (today's price. $116) x 6 == $102 in appreciation (not counting dividends)
ATT next is a better deal...AppleCare coverage stinks compared to square trade and ST will even reimburse you for the second year if you get another phone. Two claims at 99 each? Terrible. I was still going to do it until I realized "contract free" means little when you have to still get a gsm or cdma phone...you get two to choose from! Thought apple fixed this...crossing fingers for next time!
good luck w your SquareTrade or ST when it comes to repair your phone. Apple Care? Drop it at the store and come back in 30 min.
I don't know, is it? Still I'd be paying $40.75 a month through Apple's plan, when I'm paying $27 or something with T-Mobile. I don't see the point of getting a new phone every year. I had my iPhone 4 for 4+ years before upgrading to my iPhone 6. While I like the new features of the 6S, I can just wait for the iPhone 7 and get that maybe. T-Mobile's Network works the same around here as anyone else with the added benefit of Wifi Calling, which for me is HUGE because at work, the Signal is WEAK for all the Networks. I have a Wifi Router about 2 feet from me in my Office. Now I'm no longer running out the back door from my Office which is in about the middle of the factory to get a better signal, I can just relax and answer and it's nice and clear. That and the free Music streaming now counting against your Data use with many music streaming services is really nice. I steam all my music and in the higher quality. Why not, it's free!!!
Forget about insurance? TMo will charge you the same amount if you lose your phone. Repair cost will come out from your pocket. Apple to orange comparison. Apple plan gives you an option to get new phone every year without the hassle of reselling your old phone. Carrier plan will lock you down until 18-24 mo later. If carriers want to fend off Apple, offer the same 12-mo plan with trade in and kill the stupid activation fees.
OR they walk into the back, and come out and hand you a white box with a new phone in it.
also, look at the fine print in Square Trade or ST: did it say new phone? Hell no... Refurbished or New... 9 out of 10 , we will get the refurbished one without accessories. Been there, done that many times.
They are in a bad place for sure, losing land lines and TV sales as folks cut them out and go 100% internet. They still have leverage there unfortunately. I'd like to see some Apple moves into the internet pipes and cellular service area too in the USA. They no longer have to worry about pissing off the AT&Ts of this world with this purchase plan in place.
Google is working hard in more and more cities to lay in fiber and take over the internet pipes. I'm not sure how they intend to make their money...but then maybe Google doesn't either. They are more inclined to buy the barge first and then figure out where to sail it.
OR they walk into the back, and come out and hand you a white box with a new phone in it.
ETA: I've had that experience twice. Nice job Apple.
Actually with ST instead of send it in, pay cash like I did at apple store and got a check for full amount 3 days later. It was$117, and only if over 120 they just deduct 75 from the check or credit card refund if you want. I've never sent it in...also paid for out of warranty phone before at Apple and square trade just reimbursed me minus 75.
also, look at the fine print in Square Trade or ST: did it say new phone? Hell no... Refurbished or New... 9 out of 10 , we will get the refurbished one without accessories. Been there, done that many times.
I know...so I go to apple store then get reimbursed...I can't be without a phone long enough to send in and don't want a refurb either...
I understand the iPhone would be owned and able to be sold at the end of the year but I can see this also causing a massive drop in the value of second hand one year old iPhones as the new Apple purchase plan gains traction.
If you upgrade your phone at 1 year, you have to return your existing iPhone to Apple after you get your new iPhone. So I am hoping the second hand prices will increase.
If you get a 6S now, through Apple's upgrade plan, in one year, if you want an iPhone 7, you will need to return to Apple your 6S. If you wait until the 7S comes out, then the 6S is yours to keep.
From Apple's Page (link below):
Getting a new iPhone every year is easy.
After 12 installments, you can get a new iPhone and start a new iPhone Upgrade Program. No more waiting for your carrier contract to end. Just trade in your current iPhone for a new one, and your new program begins.
Here's what I paid, last year for a new iP 6 128GB (locked to ATT) + AppleCare
$499 ATT Subsidized price 2 years
$99 AppleCare
$598
Here's what An Apple-Financed phone costs for a new iP 6S 128GB Unlocked + AppleCare +
$0 Upfront costs
$539 12 months @ $44.91
$539
So, I would get the same iPhone, unlocked, no upfront costs, pay $59 less over 12 months, and get a new iPhone after 12 months (trade in iP 6S).
Edit:
A simple exercise in time/value of money -- take that $539 that you wouldn't have paid in upfront costs, buy 6 shares of AAPL (then $99) and earn $17 (today's price. $116) x 6 == $102 in appreciation (not counting dividends)
Sorry if I am being dense here, but in the two scenarios above, how what would the tco be per month inc whatever plan you have? What I was getting at was that even though purchasing a phone may be pretty much the same thing in both cases, once you add the cost of the monthly plan the end user gets screwed.
Here's what I paid, last year for a new iP 6 128GB (locked to ATT) + AppleCare
$499 ATT Subsidized price 2 years
$99 AppleCare
$598
Here's what An Apple-Financed phone costs for a new iP 6S 128GB Unlocked + AppleCare +
$0 Upfront costs
$539 12 months @ $44.91
$539
So, I would get the same iPhone, unlocked, no upfront costs, pay $59 less over 12 months, and get a new iPhone after 12 months (trade in iP 6S).
Edit:
A simple exercise in time/value of money -- take that $539 that you wouldn't have paid in upfront costs, buy 6 shares of AAPL (then $99) and earn $17 (today's price. $116) x 6 == $102 in appreciation (not counting dividends)
Sorry if I am being dense here, but in the two scenarios above, how what would the tco be per month inc whatever plan you have? What I was getting at was that even though purchasing a phone may be pretty much the same thing in both cases, once you add the cost of the monthly plan the end user gets screwed.
I didn't include the cost of the plan because, at least with our shared family plan, the monthly rate is the same. In our case, that's about $40 per iPhone, per month. That includes unlimited voice and messaging and 10 GB of shared data.
.
I didn't include the cost of the plan because, at least with our shared family plan, the monthly rate is the same. In our case, that's about $40 per iPhone, per month. That includes unlimited voice and messaging and 10 GB of shared data.
.
OK, so when you say subsidized iPhone with ATT, the cost of the phone is listed independently on the billing info? In y bills the cost of the phone is not explicitly identified. The only thing I see for certain is how much the carriers will reduce the cost if you bring your own phone and it is nowhere near the Apple monthly cost to purchase.
I didn't include the cost of the plan because, at least with our shared family plan, the monthly rate is the same. In our case, that's about $40 per iPhone, per month. That includes unlimited voice and messaging and 10 GB of shared data.
.
OK, so when you say subsidized iPhone with ATT, the cost of the phone is listed independently on the billing info? In y bills the cost of the phone is not explicitly identified. The only thing I see for certain is how much the carriers will reduce the cost if you bring your own phone and it is nowhere near the Apple monthly cost to purchase.
No, cost of the phone and AppleCare appears on the Apple Online Store bill.
The ATT monthly bill charges an activation fee (AIR, $15) each time you activate a phone -- new phone, older phone to replace a broken phone, etc.
You may get away with no activation fee if you replace (switch SIMs) with an older phone with slower data ...
It's a real mess and difficult to understand -- Like the US Tax code.
I understand the iPhone would be owned and able to be sold at the end of the year but I can see this also causing a massive drop in the value of second hand one year old iPhones as the new Apple purchase plan gains traction.
If you upgrade your phone at 1 year, you have to return your existing iPhone to Apple after you get your new iPhone. So I am hoping the second hand prices will increase.
If more people start getting an iPhone yearly instead of every 2 years than the supply of 1 yr old iPhones is going to be higher, so the price is likely to decrease.
So are they using a third party bank because otherwise accounting standards would mean the "sale" would be stretched over 24 months and earnings would also be divided into 24 small morsels. Because that would crater the next quarter's earning numbers wouldn't it? This way that bank "buys" the phone all at once, then leases it to own to the end user. But Apple's been paid up front.
Comments
I don't know if it's better, but the specs are better and all the cool kids are using it. And by cool kids, I mean Steve Ballmer's kids.
It costs a lot to build, upgrade, and maintain a network. It would also make Apple doubly vulnerable to a disruption in the smartphone market. They'd lose hardware sales, and service subscribers.
It wouldn't make sense for the iPad because people don't buy them as often as iPhones.
I can't see how the Apple deal can be good. Not because I don't trust Apple but because I don't trust the carriers. If I pay $35.- per month to Apple over two years interest free it will only be a better deal if the carriers drop the price per month by the same amount for a 2 year package where I bring my own phone, right? Do any carriers in the US drop their prices that much if you bring your own phone? In Canada they drop the price by 15 - 20 bucks.
If anyone asks, you can pretend you are carrying an iPhone 6S. Whatever color it is, the 6S is also available in that color.
Here's what I paid, last year for a new iP 6 128GB (locked to ATT) + AppleCare
$499 ATT Subsidized price 2 years
$99 AppleCare
$598
Here's what An Apple-Financed phone costs for a new iP 6S 128GB Unlocked + AppleCare +
$0 Upfront costs
$539 12 months @ $44.91
$539
So, I would get the same iPhone, unlocked, no upfront costs, pay $59 less over 12 months, and get a new iPhone after 12 months (trade in iP 6S).
Edit:
A simple exercise in time/value of money -- take that $539 that you wouldn't have paid in upfront costs, buy 6 shares of AAPL (then $99) and earn $17 (today's price. $116) x 6 == $102 in appreciation (not counting dividends)
... Heck, I wouldn't mind a 6s next year that is in great condition for a low cost to take to AT&T or whoever. ...
Well, next year Apple should be selling brand new subsidized 16GB iPhone 6S-es for $99.
But if you want more than 16GB in a 6S next year, you'll need to buy refurbished or privately sold used models.
Interesting that Apple already had a relatively un-hyped iPhone trade-in program, but chose to wait
until now to launch the full-blown Upgrade Program. Why did they wait so long?
good luck w your SquareTrade or ST when it comes to repair your phone. Apple Care? Drop it at the store and come back in 30 min.
OR they walk into the back, and come out and hand you a white box with a new phone in it.
ETA: I've had that experience twice. Nice job Apple.
Google is working hard in more and more cities to lay in fiber and take over the internet pipes. I'm not sure how they intend to make their money...but then maybe Google doesn't either. They are more inclined to buy the barge first and then figure out where to sail it.
Actually with ST instead of send it in, pay cash like I did at apple store and got a check for full amount 3 days later. It was$117, and only if over 120 they just deduct 75 from the check or credit card refund if you want. I've never sent it in...also paid for out of warranty phone before at Apple and square trade just reimbursed me minus 75.
I know...so I go to apple store then get reimbursed...I can't be without a phone long enough to send in and don't want a refurb either...
I understand the iPhone would be owned and able to be sold at the end of the year but I can see this also causing a massive drop in the value of second hand one year old iPhones as the new Apple purchase plan gains traction.
If you upgrade your phone at 1 year, you have to return your existing iPhone to Apple after you get your new iPhone. So I am hoping the second hand prices will increase.
If you get a 6S now, through Apple's upgrade plan, in one year, if you want an iPhone 7, you will need to return to Apple your 6S. If you wait until the 7S comes out, then the 6S is yours to keep.
From Apple's Page (link below):
Getting a new iPhone every year is easy.
After 12 installments, you can get a new iPhone and start a new iPhone Upgrade Program. No more waiting for your carrier contract to end. Just trade in your current iPhone for a new one, and your new program begins.
Link: http://www.apple.com/shop/iphone/iphone-upgrade-program
Sorry if I am being dense here, but in the two scenarios above, how what would the tco be per month inc whatever plan you have? What I was getting at was that even though purchasing a phone may be pretty much the same thing in both cases, once you add the cost of the monthly plan the end user gets screwed.
I didn't include the cost of the plan because, at least with our shared family plan, the monthly rate is the same. In our case, that's about $40 per iPhone, per month. That includes unlimited voice and messaging and 10 GB of shared data.
.
No, cost of the phone and AppleCare appears on the Apple Online Store bill.
The ATT monthly bill charges an activation fee (AIR, $15) each time you activate a phone -- new phone, older phone to replace a broken phone, etc.
You may get away with no activation fee if you replace (switch SIMs) with an older phone with slower data ...
It's a real mess and difficult to understand -- Like the US Tax code.
If more people start getting an iPhone yearly instead of every 2 years than the supply of 1 yr old iPhones is going to be higher, so the price is likely to decrease.
Or something like that?