Here's a 4 year scenario with two options, the first one is someone who upgrades every year selling their old device and paying full price when not elegible, the second is someone who uses AT&T Next every year to upgrade.
The following example assumes that :
- Both users have an iphone 5 and are not elegible for an upgrade this year.
- Resale value of previous iphone of about 450 dollars ( 16gb ).
- Full price of 16gb : $650
- Im not considering the subsidy since at&t charges you regardless of what option you go with.
- That at&t Next will use $650 as the base price ( $ 32.5 a month ), yeah right !!!! , but for the sake of it.
User 1 : Full Price
Year 1 : sells for 450, buys 650 = -200
Year 2: sells 450 , buys 199. = + 251
Year 3: sells 450 - buys 650 = -200
Year 4 : sells 450 - buys 199 = +251
At the end of the 4th year this user has an iPhone that is fully paid and $102 in cash.
User 2 : Next - $390 a year ( 32.5 *12)
Year 1: sells 450,pays 390 = +60
Year 2: pays 390
Year 3: pays 390
Year 4: pays 390
At the end of the 4th year User 2 has spent $1.110 dollars and owns no equipment.
RIP OFF !!!!