Personal example of buying a new iPhone every 2 years through AT&T at the subsidized price:
iPhone 6s $199
+ AppleCare+ $129
= $328 at time of purchase
Monthly service $80
x 24 months
= $1,920 over two years
So, it costs me $2,248 per two year contract period. Assuming I sell the phone for $199 after two years, the total cost would be $2,049.
If I use Apple's iPhone upgrade program:
iPhone 6s and AppleCare+ $32.41 per month
x 24 months
= $777.84
Monthly service $80
x 24 months
= $1,920 over two years
So it costs me $2,697.84 per two year period. Assuming I sell the phone for $199 after two years, the total cost would be $2,498.84 - about $450 more than buying it through AT&T at their subsidized price. What am I getting for this extra $450? A new iPhone halfway through that two year period and another year added on to the loan.
I see this as a win-win for the carrier and Apple, but NOT for the consumer.
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
I will have to check, but I don't see that Apple really cares who my carrier is. Apple is not giving me any discount to buy the phone. I am just getting interest-free loan. Actually Apple is getting an AppleCare+ customer (so it is a plus for them, which could be additional earnings for them). I think they are just calling it Apple iPhone Upgrade plans because for ability of doing upgrade for next-phone (iPhone 7 or letter). Matter of fact, they might I just called it Apple iPhone Purchase Plan.
Don't forget Apple is doing this for their own benefit. They want people to keep upgrading to their phone and not other phone, especially when the mobile carriers are trying to push other phones, especially the whole subsidy model is no longer being offered.
They still say they require carrier activation.
"
The iPhone Upgrade Program is available to qualified customers only with a valid U.S. personal credit card. Requires a 24-month installment loan with Citizens Bank, N.A. and iPhone activation with a national carrier — AT&T, Sprint, T-Mobile, or Verizon. Full terms apply.
"
I agree with you that it shouldn't, but for some reason they do.
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
With the $199 subsidized you DO own the phone at the end of the 2 year. The difference is that your monthly plan charges are higher (coincidentally to a total amount equal to about the full cost of the phone minus $199).
Personal example of buying a new iPhone every 2 years through AT&T at the subsidized price:
iPhone 6s $199
+ AppleCare+ $129
= $328 at time of purchase
Monthly service $80
x 24 months
= $1,920 over two years
So, it costs me $2,248 per two year contract period. Assuming I sell the phone for $199 after two years, the total cost would be $2,049.
If I use Apple's iPhone upgrade program:
iPhone 6s and AppleCare+ $32.41 per month
x 24 months
= $777.84
Monthly service $80
x 24 months
= $1,920 over two years
So it costs me $2,697.84 per two year period. Assuming I sell the phone for $199 after two years, the total cost would be $2,498.84 - about $450 more than buying it through AT&T at their subsidized price. What am I getting for this extra $450? A new iPhone halfway through that two year period and another year added on to the loan.
I see this as a win-win for the carrier and Apple, but NOT for the consumer.
The problem is that you have the same per month plan charges for the 2 year contract and the plan you would have under a Next or with an Apple supplied phone. This is not the case. For data plans less than 10GB you monthly plan is $15 per month less without the contract (i.e. through installment plan) and for 10GB or higher plans it is $25 per month less.
That is where that $450 came from btw. That and an activation fee you pay with the 2 year contract.
Ok, here is my personal example of buying an iPhone 6 through AT&T Next 30
64GB iPhone 6 $0
+ AppleCare+ $129
= $129 at time of purchase
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
Monthly Phone Payment $25
x 24 months (assume selling phone for the $150 needed to buy out remaining 6 months of payments)
= $600
So, it costs me $2,409 every two years through AT&T Next
If I use Apple's iPhone upgrade program:
64GB iPhone 6s and AppleCare+ $36.58 per month
x 24 months
= $877.92
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
+ $40 Activation Fee for bring an unlocked iphone to my plan
So, it costs me $2,597.92 every two years through the Apple Upgrade Plan.
It ends up costing me $188 dollars more to use Apple's plan every two years. But that 188 dollars gives me a new iPhone every year instead of every two years.
(And the 70 dollar cell phone service includes the 15 dollars a month discount they're giving me with my 3GB plan)
Ok, here is my personal example of buying an iPhone 6 through AT&T Next 30
64GB iPhone 6 $0
+ AppleCare+ $129
= $129 at time of purchase
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
Monthly Phone Payment $25
x 24 months (assume selling phone for the $150 needed to buy out remaining 6 months of payments)
= $600
So, it costs me $2,409 every two years through AT&T Next
If I use Apple's iPhone upgrade program:
64GB iPhone 6s and AppleCare+ $36.58 per month
x 24 months
= $877.92
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
+ $40 Activation Fee for bring an unlocked iphone to my plan
So, it costs me $2,597.92 every two years through the Apple Upgrade Plan.
It ends up costing me $188 dollars more to use Apple's plan every two years. But that 188 dollars gives me a new iPhone every year instead of every two years.
Well, the Apple one also gives you AppleCare+. Also, Next24 has 30 months of payments, not 24 (you mentioned Next 30 which does not exist but I assume, given the low $25 / month phone payment, you are doing Next24 which is 30 months of payments).
Well, the Apple one also gives you AppleCare+. Also, Next24 has 30 months of payments, not 24 (you mentioned Next 30 which does not exist but I assume, given the low $25 / month phone payment, you are doing Next24 which is 30 months of payments).
True, but I included the cost of AppleCare+ in my cost breakdown. And yes, I'm on Next24/30 (the graphic AI used in the article calls it Next30). But I'm just assuming I'll sell my phone after 24 months for 150 dollars to pay off the remaining 6 payments.
Basically, it's looking to me like this Apple Upgrade plan is a fantastic bargain. It is a tad bit pricier every two years, but not a lot, and you can upgrade more frequently.
True, but I included the cost of AppleCare+ in my cost breakdown. And yes, I'm on Next24/30 (the graphic AI used in the article calls it Next30). But I'm just assuming I'll sell my phone after 24 months for 150 dollars to pay off the remaining 6 payments.
Basically, it's looking to me like this Apple Upgrade plan is a fantastic bargain. It is a tad bit pricier every two years, but not a lot, and you can upgrade more frequently.
Sorry I missed the $129. I looked but not hard enough.
If you compare it against Next18 (24 months) it is about the same price once you include AppleCare+. The only real difference money wise, when I did back of napkin calculations yesterday, was the activation.
Why? It's 2015, not 1915. It has been decades since I signed a tax return with my signature. Three years ago, I obtained a construction loan and permanent financing for my new home in Texas through a bank in Alabama without every seeing a human or picking up a pen.
Haha. True, but I do think it is some kind of anti-fraud measure. Since a credit card payment isn't involved, Apple (or its lease partner) may want to assure that someone signing up for the plan is legit.
The problem is that you have the same per month plan charges for the 2 year contract and the plan you would have under a Next or with an Apple supplied phone. This is not the case. For data plans less than 10GB you monthly plan is $15 per month less without the contract (i.e. through installment plan) and for 10GB or higher plans it is $25 per month less.
That is where that $450 came from btw. That and an activation fee you pay with the 2 year contract.
I see. I had a suspicion my AT&T monthly rate might be lower without a contract, but I didn't know off hand exactly how much. So, $15 x 24 = $360, so that brings it down to $110 more if I utilized Apple's plan. Still, it's more. And, when you factor taxes in the difference grows even higher.
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
"Conventional" two-year contracts with subsidized pricing are still alive and kicking at AT&T. Also, you do own the phone at the end of the contract. I've been selling previous iPhones for more than I've paid for them for about 8 years now.
You need to pay off the phone first, there is an option to do that on your account on att.com
Where? I don't see such an option.
Edit: I just called AT&T. There is only one way out of a contract: Disconnect service and pay the ETF. According to both the chat and voice agents I just spoke with, there is no amount of money that will "let you out of the contract" without also disconnecting service. You can disconnect and pay the ETF, but your service will be interrupted and you'll lose your number. You'd have to turn around a sign up a new account with a new credit check and get a new phone number.
"Requires a 24-month installment loan with Citizens Bank, N.A. and iPhone activation with a national carrier — AT&T, Sprint, T-Mobile, or Verizon."
Much of the attraction of owning an unlocked phone is being able to use with it any carrier, including MVNOs, which often offer better value.
Being restricted to the four major carriers only leaves a choice of lesser evils among those four.
Pending the final terms, and how they actually implement the program, it seems to completely ignore the MVNO and prepaid market.
Even if there is a loophole, such as signing up with one of the four, activating, and then cancelling, it's not worth the hassle, and credit pull, just to get an interest-free loan.
I am betting that you will have to pay the $35-$40 activation fee if you buy through Apple vs buying through AT&T Next. So $129 plus say $40 = $169 which is about the difference. If you upgrade through AT&T with a 2 year contract they charge you the activation fee. If you are on the Next plan they don't charge you the activation fee. All in all they all come out to about the same price as what they are really doing is an installment plan to cover the price and the end price basically is the same for everyone.
Quote:
Originally Posted by bscooper547
i think the numbers are incorrect. I called AT&T to see how their Next plan prices out compared to the Apple Upgrade program. The iPhone 6s Plus with 128 GB is $44.95 on the Apple upgrade site over 24 months. AT&T says the Next 20 plan price for the same model is $2.00 less per month and can be traded every year.If you want to own it outright, it is yours in 20 months, so there are 4 less payments. So that is roughly a $180 savings.The phone is locked with AT&T, but if you want to change carriers, you can pay the remaining installments.
The AT&T Next 12 is amortized over 20 months, and that is the plan I was referring to. Apple Upgrade is amortized over 24 months. The AT&T plan does not include the Apple Care, so that would have to be paid for upfront. When the Apple Care is factored in, the two plans are about the same price. AT&T does not require a new credit check if you are upgrading. According to Apple, you have to go into the store to do a credit check for their upgrade plan. If you don't plan to change carriers, the AT&T plan sounds easier.
Sorry I missed the $129. I looked but not hard enough.
If you compare it against Next18 (24 months) it is about the same price once you include AppleCare+. The only real difference money wise, when I did back of napkin calculations yesterday, was the activation.
Very interesting. So it's the same Value as Next12 but is equivalent in cost to Next18.
Well my wife and I currently pay 147.36 a month for both of our phones which are on Next24. Once our phones are paid off our bill will be 100.72 a month. If we both add on the cheapest 16GB iPhones at $32.41 each that raises the bill to 165.54. About 18 dollars more per month. Realistically I want the 64GB model so that's 22 dollars more per month than what we're paying. About 10 dollars of that is the added Value of having AppleCare+, but that still means an increase in our bill of 8-12 dollars when all is said and done. And it doesn't count the 80 dollars in activation fees we'll have to pay every year come upgrade time.
I think we'll very likely just stick with AT&T Next24 for now, simply to avoid the activation fees and to keep the lower monthly cost. We don't *need* to upgrade every year. The 6S looks great, but the 6 is pretty great too. I can wait a year and enjoy the iPhone 7
The Next 12 is the 20 month plan I believe. Next 18 is 24 month plan. Next 24 is 30 month plan. IIRC
So there is no plan called "Next 20" but there is a 20 month plan. I think the terminology was just messed up
Next 24 is upgradable at 20th mo with trade-in phone. That's a fcked up plan. Your 64GB 6+ at $850 after 20 months will only have $140 left to pay. If you upgrade, you have to give ATT that phone. Hell No. My 20-mo 6+ will be at least $350.
Next 24 is upgradable at 20th mo with trade-in phone. That's a fcked up plan. Your 64GB 6+ at $850 after 20 months will only have $140 left to pay. If you upgrade, you have to give ATT that phone. Hell No. My 20-mo 6+ will be at least $350.
So just sell your phone for 350 and pay off the remaining $140 in Next Installments with that money instead of trading it in.
I see. I had a suspicion my AT&T monthly rate might be lower without a contract, but I didn't know off hand exactly how much. So, $15 x 24 = $360, so that brings it down to $110 more if I utilized Apple's plan. Still, it's more. And, when you factor taxes in the difference grows even higher.
Quote:
Originally Posted by fallenjt
Next 24 is upgradable at 20th mo with trade-in phone. That's a fcked up plan. Your 64GB 6+ at $850 after 20 months will only have $140 left to pay. If you upgrade, you have to give ATT that phone. Hell No. My 20-mo 6+ will be at least $350.
yes it is screwed up but your numbers are wrong (see below)
(as of right now)
Next12 is a 20 month plan, you can upgrade at 12 months
Next18 is a 24 month plan, you can upgrade at 18 months
Next24 is a 30 month plan, you can upgrade at 24 months
Plus there is one called "Next with downpayment" which requires 30% down, 28 months to pay off, upgrade after 12
so on a Next18 plan your $850 6plus has had $637.50 paid on it and you still own $212.50 when you trade it in. Its sell value, in good shape, is more than that so you should just finish paying it off at 18, sell it, and start again...
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
People keep using the term "subsidy" to refer to a partial upfront payment with the rest bundled into one's monthly payment over a 24-month contract.
It is just a useless marketing term. You are/were paying for it one way or another.
Comments
Personal example of buying a new iPhone every 2 years through AT&T at the subsidized price:
iPhone 6s $199
+ AppleCare+ $129
= $328 at time of purchase
Monthly service $80
x 24 months
= $1,920 over two years
So, it costs me $2,248 per two year contract period. Assuming I sell the phone for $199 after two years, the total cost would be $2,049.
If I use Apple's iPhone upgrade program:
iPhone 6s and AppleCare+ $32.41 per month
x 24 months
= $777.84
Monthly service $80
x 24 months
= $1,920 over two years
So it costs me $2,697.84 per two year period. Assuming I sell the phone for $199 after two years, the total cost would be $2,498.84 - about $450 more than buying it through AT&T at their subsidized price. What am I getting for this extra $450? A new iPhone halfway through that two year period and another year added on to the loan.
I see this as a win-win for the carrier and Apple, but NOT for the consumer.
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
I will have to check, but I don't see that Apple really cares who my carrier is. Apple is not giving me any discount to buy the phone. I am just getting interest-free loan. Actually Apple is getting an AppleCare+ customer (so it is a plus for them, which could be additional earnings for them). I think they are just calling it Apple iPhone Upgrade plans because for ability of doing upgrade for next-phone (iPhone 7 or letter). Matter of fact, they might I just called it Apple iPhone Purchase Plan.
Don't forget Apple is doing this for their own benefit. They want people to keep upgrading to their phone and not other phone, especially when the mobile carriers are trying to push other phones, especially the whole subsidy model is no longer being offered.
They still say they require carrier activation.
"
"
I agree with you that it shouldn't, but for some reason they do.
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
With the $199 subsidized you DO own the phone at the end of the 2 year. The difference is that your monthly plan charges are higher (coincidentally to a total amount equal to about the full cost of the phone minus $199).
Personal example of buying a new iPhone every 2 years through AT&T at the subsidized price:
iPhone 6s $199
+ AppleCare+ $129
= $328 at time of purchase
Monthly service $80
x 24 months
= $1,920 over two years
So, it costs me $2,248 per two year contract period. Assuming I sell the phone for $199 after two years, the total cost would be $2,049.
If I use Apple's iPhone upgrade program:
iPhone 6s and AppleCare+ $32.41 per month
x 24 months
= $777.84
Monthly service $80
x 24 months
= $1,920 over two years
So it costs me $2,697.84 per two year period. Assuming I sell the phone for $199 after two years, the total cost would be $2,498.84 - about $450 more than buying it through AT&T at their subsidized price. What am I getting for this extra $450? A new iPhone halfway through that two year period and another year added on to the loan.
I see this as a win-win for the carrier and Apple, but NOT for the consumer.
The problem is that you have the same per month plan charges for the 2 year contract and the plan you would have under a Next or with an Apple supplied phone. This is not the case. For data plans less than 10GB you monthly plan is $15 per month less without the contract (i.e. through installment plan) and for 10GB or higher plans it is $25 per month less.
That is where that $450 came from btw. That and an activation fee you pay with the 2 year contract.
Ok, here is my personal example of buying an iPhone 6 through AT&T Next 30
64GB iPhone 6 $0
+ AppleCare+ $129
= $129 at time of purchase
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
Monthly Phone Payment $25
x 24 months (assume selling phone for the $150 needed to buy out remaining 6 months of payments)
= $600
So, it costs me $2,409 every two years through AT&T Next
If I use Apple's iPhone upgrade program:
64GB iPhone 6s and AppleCare+ $36.58 per month
x 24 months
= $877.92
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
+ $40 Activation Fee for bring an unlocked iphone to my plan
So, it costs me $2,597.92 every two years through the Apple Upgrade Plan.
It ends up costing me $188 dollars more to use Apple's plan every two years. But that 188 dollars gives me a new iPhone every year instead of every two years.
(And the 70 dollar cell phone service includes the 15 dollars a month discount they're giving me with my 3GB plan)
Ok, here is my personal example of buying an iPhone 6 through AT&T Next 30
64GB iPhone 6 $0
+ AppleCare+ $129
= $129 at time of purchase
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
Monthly Phone Payment $25
x 24 months (assume selling phone for the $150 needed to buy out remaining 6 months of payments)
= $600
So, it costs me $2,409 every two years through AT&T Next
If I use Apple's iPhone upgrade program:
64GB iPhone 6s and AppleCare+ $36.58 per month
x 24 months
= $877.92
Monthly service Cell Phone $70
x 24 months
= $1680 over two years
+ $40 Activation Fee for bring an unlocked iphone to my plan
So, it costs me $2,597.92 every two years through the Apple Upgrade Plan.
It ends up costing me $188 dollars more to use Apple's plan every two years. But that 188 dollars gives me a new iPhone every year instead of every two years.
Well, the Apple one also gives you AppleCare+. Also, Next24 has 30 months of payments, not 24 (you mentioned Next 30 which does not exist but I assume, given the low $25 / month phone payment, you are doing Next24 which is 30 months of payments).
Well, the Apple one also gives you AppleCare+. Also, Next24 has 30 months of payments, not 24 (you mentioned Next 30 which does not exist but I assume, given the low $25 / month phone payment, you are doing Next24 which is 30 months of payments).
True, but I included the cost of AppleCare+ in my cost breakdown. And yes, I'm on Next24/30 (the graphic AI used in the article calls it Next30). But I'm just assuming I'll sell my phone after 24 months for 150 dollars to pay off the remaining 6 payments.
Basically, it's looking to me like this Apple Upgrade plan is a fantastic bargain. It is a tad bit pricier every two years, but not a lot, and you can upgrade more frequently.
True, but I included the cost of AppleCare+ in my cost breakdown. And yes, I'm on Next24/30 (the graphic AI used in the article calls it Next30). But I'm just assuming I'll sell my phone after 24 months for 150 dollars to pay off the remaining 6 payments.
Basically, it's looking to me like this Apple Upgrade plan is a fantastic bargain. It is a tad bit pricier every two years, but not a lot, and you can upgrade more frequently.
Sorry I missed the $129. I looked but not hard enough.
If you compare it against Next18 (24 months) it is about the same price once you include AppleCare+. The only real difference money wise, when I did back of napkin calculations yesterday, was the activation.
Why? It's 2015, not 1915. It has been decades since I signed a tax return with my signature. Three years ago, I obtained a construction loan and permanent financing for my new home in Texas through a bank in Alabama without every seeing a human or picking up a pen.
Haha. True, but I do think it is some kind of anti-fraud measure. Since a credit card payment isn't involved, Apple (or its lease partner) may want to assure that someone signing up for the plan is legit.
The problem is that you have the same per month plan charges for the 2 year contract and the plan you would have under a Next or with an Apple supplied phone. This is not the case. For data plans less than 10GB you monthly plan is $15 per month less without the contract (i.e. through installment plan) and for 10GB or higher plans it is $25 per month less.
That is where that $450 came from btw. That and an activation fee you pay with the 2 year contract.
I see. I had a suspicion my AT&T monthly rate might be lower without a contract, but I didn't know off hand exactly how much. So, $15 x 24 = $360, so that brings it down to $110 more if I utilized Apple's plan. Still, it's more. And, when you factor taxes in the difference grows even higher.
What if you are still on the AT&T 2-year Contract? Can you purchase this Apple's Upgrade program?
You need to pay off the phone first, there is an option to do that on your account on att.com
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
"Conventional" two-year contracts with subsidized pricing are still alive and kicking at AT&T. Also, you do own the phone at the end of the contract. I've been selling previous iPhones for more than I've paid for them for about 8 years now.
You need to pay off the phone first, there is an option to do that on your account on att.com
Where? I don't see such an option.
Edit: I just called AT&T. There is only one way out of a contract: Disconnect service and pay the ETF. According to both the chat and voice agents I just spoke with, there is no amount of money that will "let you out of the contract" without also disconnecting service. You can disconnect and pay the ETF, but your service will be interrupted and you'll lose your number. You'd have to turn around a sign up a new account with a new credit check and get a new phone number.
Ah, but there is a catch.
"Requires a 24-month installment loan with Citizens Bank, N.A. and iPhone activation with a national carrier — AT&T, Sprint, T-Mobile, or Verizon."
Much of the attraction of owning an unlocked phone is being able to use with it any carrier, including MVNOs, which often offer better value.
Being restricted to the four major carriers only leaves a choice of lesser evils among those four.
Pending the final terms, and how they actually implement the program, it seems to completely ignore the MVNO and prepaid market.
Even if there is a loophole, such as signing up with one of the four, activating, and then cancelling, it's not worth the hassle, and credit pull, just to get an interest-free loan.
I am betting that you will have to pay the $35-$40 activation fee if you buy through Apple vs buying through AT&T Next. So $129 plus say $40 = $169 which is about the difference. If you upgrade through AT&T with a 2 year contract they charge you the activation fee. If you are on the Next plan they don't charge you the activation fee. All in all they all come out to about the same price as what they are really doing is an installment plan to cover the price and the end price basically is the same for everyone.
i think the numbers are incorrect. I called AT&T to see how their Next plan prices out compared to the Apple Upgrade program. The iPhone 6s Plus with 128 GB is $44.95 on the Apple upgrade site over 24 months. AT&T says the Next 20 plan price for the same model is $2.00 less per month and can be traded every year.If you want to own it outright, it is yours in 20 months, so there are 4 less payments. So that is roughly a $180 savings.The phone is locked with AT&T, but if you want to change carriers, you can pay the remaining installments.
The AT&T Next 12 is amortized over 20 months, and that is the plan I was referring to. Apple Upgrade is amortized over 24 months. The AT&T plan does not include the Apple Care, so that would have to be paid for upfront. When the Apple Care is factored in, the two plans are about the same price. AT&T does not require a new credit check if you are upgrading. According to Apple, you have to go into the store to do a credit check for their upgrade plan. If you don't plan to change carriers, the AT&T plan sounds easier.
Sorry I missed the $129. I looked but not hard enough.
If you compare it against Next18 (24 months) it is about the same price once you include AppleCare+. The only real difference money wise, when I did back of napkin calculations yesterday, was the activation.
Very interesting. So it's the same Value as Next12 but is equivalent in cost to Next18.
Well my wife and I currently pay 147.36 a month for both of our phones which are on Next24. Once our phones are paid off our bill will be 100.72 a month. If we both add on the cheapest 16GB iPhones at $32.41 each that raises the bill to 165.54. About 18 dollars more per month. Realistically I want the 64GB model so that's 22 dollars more per month than what we're paying. About 10 dollars of that is the added Value of having AppleCare+, but that still means an increase in our bill of 8-12 dollars when all is said and done. And it doesn't count the 80 dollars in activation fees we'll have to pay every year come upgrade time.
I think we'll very likely just stick with AT&T Next24 for now, simply to avoid the activation fees and to keep the lower monthly cost. We don't *need* to upgrade every year. The 6S looks great, but the 6 is pretty great too. I can wait a year and enjoy the iPhone 7
Next 24 is upgradable at 20th mo with trade-in phone. That's a fcked up plan. Your 64GB 6+ at $850 after 20 months will only have $140 left to pay. If you upgrade, you have to give ATT that phone. Hell No. My 20-mo 6+ will be at least $350.
So just sell your phone for 350 and pay off the remaining $140 in Next Installments with that money instead of trading it in.
I see. I had a suspicion my AT&T monthly rate might be lower without a contract, but I didn't know off hand exactly how much. So, $15 x 24 = $360, so that brings it down to $110 more if I utilized Apple's plan. Still, it's more. And, when you factor taxes in the difference grows even higher.
Next 24 is upgradable at 20th mo with trade-in phone. That's a fcked up plan. Your 64GB 6+ at $850 after 20 months will only have $140 left to pay. If you upgrade, you have to give ATT that phone. Hell No. My 20-mo 6+ will be at least $350.
yes it is screwed up but your numbers are wrong (see below)
(as of right now)
Next12 is a 20 month plan, you can upgrade at 12 months
Next18 is a 24 month plan, you can upgrade at 18 months
Next24 is a 30 month plan, you can upgrade at 24 months
Plus there is one called "Next with downpayment" which requires 30% down, 28 months to pay off, upgrade after 12
see the fine print at the bottom of this page:
https://www.att.com/shop/wireless/next.html
so on a Next18 plan your $850 6plus has had $637.50 paid on it and you still own $212.50 when you trade it in. Its sell value, in good shape, is more than that so you should just finish paying it off at 18, sell it, and start again...
I think there is something wrong in your example. Your AT&T $199 is a subsidized phone is no longer valid (those subsidy days are gone). And if it is, you don't own the phone at end of two-year. So you will never be able to sell it at $199 as you claim.
People keep using the term "subsidy" to refer to a partial upfront payment with the rest bundled into one's monthly payment over a 24-month contract.
It is just a useless marketing term. You are/were paying for it one way or another.