New AT&T policy may restrict Apple Stores from selling iPhone with two-year contract, reports say

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Comments

  • Reply 21 of 75
    anantksundaramanantksundaram Posts: 20,403member
    Leaving aside the issue of ATT taking away -- or not, since this is a rumor -- the opportunity to buy from Apple (which I doubt will ever happen), I really don't understand the implication in the article that the 'subsidized' model is actually subsidized (compared to the Next model).

    On what planet?
  • Reply 22 of 75
    kpomkpom Posts: 660member
    My guess is that AT&T will drop 2 year contracts entirely, and this is the first step.
  • Reply 23 of 75
    sdw2001sdw2001 Posts: 18,015member
    When I bought my iPhone 5, I nearly switched to Verizon, which I had years ago. I almost did the same again with the 6. This is just one more reason I'm done with AT&T when I get my next iPhone. Their network is a total pile of crap. I drop calls and data transfers all the time. Coverage is inconsistent across the western Philly suburbs and exurbs. There are spots at the end of the Main Line (Paoli, Malvern) that have had dead zones for a decade. Come on.
  • Reply 24 of 75
    mike1mike1 Posts: 3,275member

    Never had a problem with AT&T and generally the network is strong where I live. However, they even sent me a micro cell when I told them that the signal was particularly poor at my house (generally fine most other places). However, my last two upgrades for my wife and myself were done at the Apple Store. The experience there was much better than at the company owned AT&T store where we each picked up our phones previously. Not sure I'd switch carriers over this, but since neither of us are day 1 customers for upgrades, I'll probably just suck it up and do it at an AT&T store or online. I also don't want to give up my unlimited data.

  • Reply 25 of 75
    fudentfudent Posts: 4member
    Paid full price for my 6plus and went to cricket. They on the att network and I pay $60 for 20g of data
  • Reply 26 of 75
    davidwdavidw Posts: 2,036member
    Quote:
    Originally Posted by whatisgoingon View Post

     



    This isn't AT&T's fault.  This is ENTIRELY on Apple.  Apple has been doing this for probably about 15-20 years, even before they had physical stores.  They will keep inventory for themselves and only give resellers a very small amount of product, particularly for newly updated hardware.

     

    It's why lots of independent Apple resellers have gone out of business, because anybody walking into their store could get the hardware they wanted faster on their own than if they tried to buy it from the store.


     

    No, the resellers also had a lot to do with it. For years, they would get some one that came in to buy an Apple, to buy the cheaper Apple clone. They made more money selling the clone than selling an Apple. And Apple only got the license fee for every clone they sold. This almost put Apple out of business. So when Jobs returned and stop licensing Mac OS to the clone makers and all these Apple resellers ended up competing for a limited amount Apple true customers. And even then, resellers like Comp USA,  were actually getting customers coming in to buy an Apple, to switch to a more profitable PC. This was one of the reason why Apple opened their own stores.

     

    The same with ATT. I've read stories of how ATT sales people would try to get iPhone customers get an Android phone because it cost ATT less to subsidize, as they charge the same $199 fee for a phone that cost them less. But this was back when Apple had some sort of contract with ATT and they got a percentage of the contract cost. Not sure if this is still true today. But I'm pretty sure ATT would still rather have customers get a Android phone because they still make more money from selling or subsiding them. I think that's one of the reason why Apple would rather have iPhone buyers buy from an Apple Store. No one there is going to try to convince them how much better an Android phone is.

     

    A little OT.

     

    Do these carriers still pay third party mobile phone stores a "finders fee"? I remember back in the early 2000, before true smart phones and data plans, there were mobile phone stores all over that offer free or cheap phones for signing a contract to any one of the half dozen carriers available in the area. They would supply the free or cheap phones and get either the first 3 months of the subscription for getting some one to sign a 1 year contract or the first 6 months of a 2 year contract. I remember signing a contract with one of these stores, where if I quit before the 6 months, they, not the carrier, would charge me for the Motorola flip phone I got for free. After 6 months they didn't care. It was between me and the carrier. (It was MCI at the time.)

     

    So my question is, when some one like BestBuy, Apple, WalMart, etc., sell a 2 year contract with a subsidized plan …….. who pays for the phone that was given away for free or $99 or $199. Do the carrier reimburse them for the subsidized phone because they are one collecting the monthly payments? Or is it still like the old days where the carrier still pay some sort of "finders fee" to these companies for signing up a customer and they get certain percentage of the contract cost to cover the cost of the subsidized phone and to make a profit? I'm sure that if I walk into BestBuy, with my own phone and sign a contract with one of the numbers of  carriers they have to offer, that BestBuy would still make money for their effort, even if I didn't get a plan with a subsidized phone and they charge no more than what it would cost if I walked into the carrier store and sign up there.    

  • Reply 27 of 75
    inklinginkling Posts: 768member
    Probably a bad move. I think Apple-brokered contracts are a bad deal, but there are quite a few people who think they're the only way to go. If AT&T shuns those customers, they'll either go with Verizon and get better coverage or T-Mobile and get lower prices.
  • Reply 28 of 75
    tundraboytundraboy Posts: 1,884member

    I am puzzled by all the fuss.  From the smartphone purchaser's point of view, there's not much difference between a contract with an implicit installment payment and an explicit installment plan.  In fact the latter would be preferable because the installment payments do not go on forever.

  • Reply 29 of 75
    airnerdairnerd Posts: 693member
    AT&T still has me by the short and curlies because of the unlimited data. When the 6 came out, that saved me. The wifi on my 6 wasn't working so I was on LTE exclusively and racked up almost 10GB of data that month. Then the patch fixed wifi and I'm back down to 3-4GB per month so I could benefit from a set rate plan, but I like the cushion of being able to use LTE whenever I want.
  • Reply 30 of 75
    bubbaonebubbaone Posts: 11member

    Wow.  It looks like further evidence that EVERYONE is out to get Apple:

     

    1) Neo cons

    2) Free market folks

    3) FCC and FTC

    4) EU, China, Russians, 

    5) The Illuminati, Freemasons, Mormons, Scientologists, The Catholic Church, Muslims (Shiites and Sunnis), Jews, Buddhists

    6) Liberals, Environmentalists, Socialists, Communists, Animal rights activists,

    7) Microsoft, Google, cell phone carriers, cable companies, Broadcast companies, Cable Networks

    8) Patent trolls

    9) NSA

     

    In fact it is so bad, I can't believe that Apple was ever able to get started, and has managed to survive -- let alone prosper.  Nor can I understand that collectively the United States has proven to be the most successful economic engine that mankind has ever seen (though it has it's problems).

     

    It appears to me that only solution is to return to the stone ages.  After all -- everyone knows that the hunter/gatherer/caveman days were a utopian paradise.

  • Reply 31 of 75
    I was once with VoiceStream and dropped it after T-Mobile picked it up in order to get the superior signal coverage offered by AT&T. That ceased to be sufficient reason to stay with those high-priced clowns after a few years, so I've been really happy to be back with T-Mobile and there's enough wi-fi around that the coverage thing is nowhere near the issue it used to be.
  • Reply 32 of 75
    zviprzvipr Posts: 1member
    The bigger issue here is that if you are grandfathered into an unlimited data plan you'll no longer have an option to continue that unless you buy directly from AT&T or pay the total cost upfront at an Apple Store.
  • Reply 33 of 75
    cornchipcornchip Posts: 1,945member
    Switched ATT to TMobile never looked back. ATT was arrogant and penny pinching for me and my pops. In Los Angeles TM coverage is good, customer service as weLl, though not had a reason to use it often. I don't know ATT"'s current policy, but TM only has surcharge until phone is paid off,, then it's only your plan. ATT and most other carriers kept the higher charge for ever. Maybe others have now stopped the. Inflated fee once the phone is paid off. They have forced change in other carriers..
    Also went to Europe on a film shoot and called TM to unlock my phone, which they set up within five minutes or less.

    Came here to say this, only not as well, thanks. Well, except I didn't get to go to Europe on a film shoot, but I was tired of getting shafted by overages at AT&T. When I switched (back, after however many years - for iPhone) a couple years ago it was cheaper to have two iPhones on T-mob than it was to have one on ATT. And now I've got rollover data as well. I realize things have changed since then, but ATT I would have to bust a pretty big move to get me back.
  • Reply 34 of 75
    icoco3icoco3 Posts: 1,474member

    iPhone Launch Event...

     

    Apple:  The new phones will be available on XX except for ATT which, because of some technical issues, will not be available until Jan 2016.

  • Reply 35 of 75
    freediverxfreediverx Posts: 1,423member
    Quote:
    Originally Posted by chadbag View Post

     

    Depending on your data plan, the 2 year contract price can end up costing you a lot more than the AT&T Next plan total prices (HW plus service for 24 months).   Once you pay the device off on AT&T Next your bill goes down as well (in answer to someone earlier who posted about T-Mobile).

     

    I moved from T-Mobile to AT&T when the original iPhone came out and have not had a problem.  Never had cramming from AT&T and never had an issue with their Customer Service (CS).   Had my sister and her husband on my family plan and they went overseas for a year, the first month of which was his military duty, and got them on military deferal the whole year thanks to helpful AT&T CS.

     

    All the service providers can do bad and good.  They all have their warts as well as the good things they do.  Since Dec 2007 my AT&T service has been good without issues and the CS has always been responsive.

     

    I realize there are people who have had bad experiences with AT&T.  Same goes for all the carriers.   I had more issues with T-Mobile CS when I was with them beforehand for many years (I had various accounts with them since they were Voicestream and Omnipoint [read T-Mobile USA history -- I moved form Utah with a Voicestream account, to New England, where Omnipoint had the GSM service, where I also kept the Voicestream account active for a long while, and Voicestream became T-Mobile USA and eventually bought out Omnipoint) but overall the experience there was not that bad and was pre-John Legere.

     

    But, to follow up with this, if you are still buying phones on a 2 year contract with the subsidized phone price, do the math to see if the cost is really better.   Depending on your data plan you can actually pay less over 24 months using AT&T Next since the per month charge for service is less if you own your device (or paying an installment contract on it with AT&T Next) than if you get a contract subsidized phone.




    I have a grandfathered unlimited data plan, which I'm not about to give up - especially since the FCC's net neutrality ruling now forbids AT&T from throttling my connection.

     

    And for those urging me to "do the math," I already did that a couple of years ago when they first announced these crappy new plans.

    Here you go:

     

     

     

     

    That's an extra $25/month ($300/year) to downgrade from my unlimited plan to 5GB of data.

     

    T-Mobile's tempting, but their network just isn't up to par with AT&T's when you stray from major metropolitan areas. Also, their 5GB plan is $70/month, and a $15/month savings is not enough for me to give up better coverage and unlimited data.

     

     

    Having said that, I still HATE AT&T.

  • Reply 36 of 75
    damonfdamonf Posts: 229member
    Quote:

    Originally Posted by tundraboy View Post

     

    I am puzzled by all the fuss.  From the smartphone purchaser's point of view, there's not much difference between a contract with an implicit installment payment and an explicit installment plan.  In fact the latter would be preferable because the installment payments do not go on forever.


     

    Next is a rip-off compared to old plans.  I currently pay AT&T a little over $80 (would be a little over $90 without company discount) for 450 minutes (with Rollover), unlimited texting, unlimited data.  That's on a 2-year contract.  Looking at AT&T Next / Mobile Share, its $70 for 6 GB of data (I'd lose my unlimited data for sure), plus $25 to connect my iPhone.  That's $95/month for gaining unlimited talk (which I don't need) and less data (I prefer to keep my unlimited), and before the phone payments.  So yeah, my old 2-year contract is a heck of a lot better than AT&T Next.

     

    I've been considering switching to T-Mobile when my current contract is up.  This move by AT&T nearly guarantees it.  Hopefully they'll reconsider in the remaining 15 months of my contract, but it seems like their goal is to kill off 2-year contracts in favor of their more expensive Next plan. 

     

     

    If you're a 2-year contract person who gets a new phone as soon as the old contract expires, then you're likely to do the same under AT&T Next installment plan.  Therefore, the installment plans would continue to go on forever. 

  • Reply 37 of 75
    freediverxfreediverx Posts: 1,423member
    Quote:

    Originally Posted by DamonF View Post

     

    I've been considering switching to T-Mobile when my current contract is up.  This move by AT&T nearly guarantees it.  Hopefully they'll reconsider in the remaining 15 months of my contract, but it seems like their goal is to kill off 2-year contracts in favor of their more expensive Next plan. 

     


     

    AT&T seems to be betting that people will give up their grandfathered, unlimited data 2 year plans in exchange for being able to buy the new iPhone directly from Apple the moment it goes on sale. I can't think of anyone dumb enough to pay an extra $300/year and lose unlimited data just for the privilege of getting their iPhone a little sooner.

     

    Having said that, if AT&T takes this to the next level and makes it difficult for me to get a new phone or if they try to mess with my plan options, then I will immediately cancel my contract and they will lose a customer they've had for over 8 years. That sounds like a dumb business move.

  • Reply 38 of 75
    mstonemstone Posts: 11,510member
    Quote:

    Originally Posted by AppleInsider View Post





    Unlike two-year contracts, which come with an up front fee for subsidized hardware, Next's installment program spreads the full unsubsidized cost over a term of 12, 18 or 24 months, at the end of which customers can trade in the device for a new one. 



    We don't want to trade in our old phones at the end of the contract. Every two years when we upgrade our iPhones, AT&T has always unlocked our off contract phones so we can use them with a local SIM when we travel internationally. I wouldn't mind buying the phones outright but the monthly fee is the same regardless. We have five devices on AT&T at the moment. This news sucks.

  • Reply 39 of 75
    freediverxfreediverx Posts: 1,423member
    Quote:
    Originally Posted by mstone View Post

     

    We don't want to trade in our old phones at the end of the contract. Every two years when we upgrade our iPhones, AT&T has always unlocked our off contract phones so we can use them with a local SIM when we travel internationally. I wouldn't mind buying the phones outright but the monthly fee is the same regardless. We have five devices on AT&T at the moment. This news sucks.


     

    Also why would you trade in your phone when you can sell it for a premium on eBay and offset the purchase price for its replacement? When you trade in your phone at Apple or AT&T, or sell it to crappy companies like Gazelle, you're throwing money away.

     

    I sold my iPhone 5s 64GB on eBay last October for $425. At the time, Gazelle was offering "up to" $275. Apple was offering even less for trade-ins.

  • Reply 40 of 75
    pfisherpfisher Posts: 758member
    Quote:

    Originally Posted by formosa View Post

     
    Quote:
    Originally Posted by razormaid View Post



    Anyone have recommendations on which carriers to switch to? I'd like to hear from people who were with ATT for years then switched to...??

     

    I switched from AT&T to T-Mobile and never looked back. My bill was cut nearly in half, even more so with international roaming. Coverage is slightly better with AT&T (YMMV). I did catch AT&T "cramming" an extra $9.99 unsolicited monthly charge on my bill; luckily, they removed it when I confronted them.

     

    And to avoid issues with carrier lock (when you switch around, especially for international SIM's), I buy unlocked from Apple, although new policies make unlocking a lot easier today than a few years ago.




    AT&T will always be one of these former monopolies that's really bad for consumers - I don't think they will ever change. God forbid you even try to see how much a plan would cost you on AT&T. I've tried and you have to enter in your phone number for porting and so on and even then you can't get the price lists for family plans and whatnot. With T-Mo they are very upfront about cost and you can actually read and understand the bills. We used to be with AT&T and the ONLY thing I missed was coverage, which is not even an issue for an urban person 99.9% of the time. We don't miss paying $100 a month and dealing with trying to read the bills and fixing billing issues. And with streaming free music on T-Mo, you can't go wrong. I really like them.

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