Questions about ATT NEXT and if it's right for my situation...

[RavenSword]

Right now im looking to purchase the new iPhone whenever it comes out. However, I don't have a upgrade until November of 2014. Which means I'm stuck either buying the phone from the Apple store or using one of my family members upgrade. I'm on a family plan and my parents don't charge me for my line while I'm in school.

The problem is none of my family members have a upgrade except for one who has att next eligibility starting Oct 3rd of this year.

So, assuming I get his permission, I was going to do that with the upcoming iPhone 5s because I can't afford to pay 750 dollars at once.

So I thought that the incremental payment of att next might be good for me. But is there anything hidden I need to worry about? The thing is, I'm probaly not going to upgrade the phone within a year, I'll do it closer to two probably. It's just that since I can't get a subsidized price, I figured this was the next best thing.

 

[jburke82]

I am not 100% sure, but from what I have read it seems as if the NEXT program will actually cost more in the long run. At the same time, maybe it is better for you. You may have more luck posting in the Carrier Discussion Lounge: http://forums.imore.com/carrier-discussion-lounge/

 

[anon(4698833)]

The "Next" program is essentially a lease program...you pay a monthly charge instead of a large lump sum up front, but you don't own the phone, and when you're ready to upgrade the phone again (probably the next year), you have a choice to either pay a lump sum to cover the "in between" cost, or you give them the phone back and start all over again with the newest iPhone iteration.

You will not be saving any money using this program, and the only real advantage to it is that you don't have to come out of pocket with a big sum of money to have a new iPhone, only the normal upgrade price of $199/299/399. If you plan to keep this phone under the next program over the duration of your contract, after two years time you will not save any money vs. buying the phone, but some people may not be able to save up the money to buy it outright.

 

[RavenSword]

The "Next" program is essentially a lease program...you pay a monthly charge instead of a large lump sum up front, but you don't own the phone, and when you're ready to upgrade the phone again (probably the next year), you have a choice to either pay a lump sum to cover the "in between" cost, or you give them the phone back and start all over again with the newest iPhone iteration.

You will not be saving any money using this program, and the only real advantage to it is that you don't have to come out of pocket with a big sum of money to have a new iPhone, only the normal upgrade price of $199/299/399.

Doesn't the monthly installment get taken off the total cost of the phone retail price then after you pay it off its yours? What happens after the first year and I want to not upgrade and I just want to keep it?

Also, I don't really care about saving money compared to paying full retail price. I just don't want to spend retail price upfront and also I don't want those monthly payments to be MORE than the 750 dollar price.

And like I said, I don't mind having this phone for our a year.

 

[Guacho]

http://forums.imore.com/carrier-discussion-lounge/259146-ts-next-plan.html

 

[anon(4698833)]

Doesn't the monthly installment get taken off the total cost of the phone retail price then after you pay it off its yours? What happens after the first year and I want to not upgrade and I just want to keep it?

I added that information to the end of my post (i was editing it while you responded)...essentially yes, but they charge a minimum of $20/month...so figured up.

$199 (16GB) + $20 x 24 months ($480) = $679

...normal pricing for the iPhone is $649 for the 16GB. This is all assuming they only charge $20/month on the Next plan, they will almost ASSUREDLY charge a good bit MORE for the Next plan per month.

 

[RavenSword]

I added that information to the end of my post (i was editing it while you responded)...essentially yes, but they charge a minimum of $20/month...so figured up.

$199 (16GB) + $20 x 24 months ($480) = $679

...normal pricing for the iPhone is $649 for the 16GB. This is all assuming they only charge $20/month on the Next plan, they will almost ASSUREDLY charge a good bit MORE for the Next plan per month.

But I only need to pay off the retail cost of the phone. Meaning if I got a 32gb iPhone that retails for 749, once that 749 is paid off, I'm done aren't I? And I can always pay it all off at once anytime, no?

 

[kch50428]

I am not 100% sure, but from what I have read it seems as if the NEXT program will actually cost more in the long run. At the same time, maybe it is better for you. You may have more luck posting in the Carrier Discussion Lounge: http://forums.imore.com/carrier-discussion-lounge/

Moved to Carrier Discussion Lounge...

 

[RavenSword]

Oh, and the installment plan is 20 months, not 24 months. So let's say the 32gb iPhone 5s is the same 32.00 a month that the current 32gb iPhone 5 is, that's only 640 dollars, which isn't even the full retail price of a iPhone (which is 749)

 

[RavenSword]

So I'm still totally confused: after I pat off the phone #either through the 20 month payments or just buying it outright at a different time, is the phone STILL not mine to keep, sell, and do what I wish with? I'm hearing very conflicting things. I could have sworn this was just a way to spread out payments for the phone, then once it's value is pad off its like I bought it outright?

 

[Fausty82]

So I'm still totally confused: after I pat off the phone #either through the 20 month payments or just buying it outright at a different time, is the phone STILL not mine to keep, sell, and do what I wish with? I'm hearing very conflicting things. I could have sworn this was just a way to spread out payments for the phone, then once it's value is pad off its like I bought it outright?

From AT&T's website:

Now you can get a new smartphone or tablet every 12 months. It's easy!

Step 1: Choose any one of our latest smartphones or tablets. You only pay taxes up front and there's no down payment or activation fee.

Step 2: A low monthly installment plan is added to your bill.

Step 3: Any time after 12 months, you may trade in your device for a brand new one! Or choose to keep the device and, after 20 months, no more installment payments are required.

As I understand it, you can get a new device every year... with "perpetual pay" (my words)... but to do so, you must turn the previous device in... if you want to keep it, you can?t upgrade at the 12 month point... you have to finish the "deal"...

 

[RavenSword]

From AT&T's website:


As I understand it, you can get a new device every year... with "perpetual pay" (my words)... but to do so, you must turn the previous device in... if you want to keep it, you can?t upgrade at the 12 month point... you have to finish the "deal"...

Then why do people keep complaining of them double dipping you?

 

[Fausty82]

Then why do people keep complaining of them double dipping you?

There are a couple of reasons.

First, IF you do get a new device at the 12 month point, you will continue to pay for a device - possibly forever... Secondly, since you are not getting a subsidized phone (the carrier offsets part of the cost of the device and charges you back for it each month on your contract), you are already paying that "subsidy offset" in your monthly service fee AND paying for the phone on top of that. They argue (rightly so), that IF you are already paying for the device with the add-on fee, shouldn’t the monthly service fee be lowered by the amount of the "subsidy offset" because you aren’t getting a subsidized price on your device.

 

[RavenSword]

There are a couple of reasons.

First, IF you do get a new device at the 12 month point, you will continue to pay for a device - possibly forever... Secondly, since you are not getting a subsidized phone (the carrier offsets part of the cost of the device and charges you back for it each month on your contract), you are already paying that "subsidy offset" in your monthly service fee AND paying for the phone on top of that. They argue (rightly so), that IF you are already paying for the device with the add-on fee, shouldn?t the monthly service fee be lowered by the amount of the "subsidy offset" because you aren?t getting a subsidized price on your device.

How much is that monthly service fee usually? My parents pay the phone bill, so I'm not aware of how much that might be. Is it just whatever the rest of the phone is after the subsidized price? Like they will tag on 10 bucks a month or something?

So there really isn't a difference though if I plan to keep the phone for 24 months, right? Figured I'd just upgrade again when the 6S hits in two years.

But does anyone know if then it'll just be a subsidized upgrade or I have to do another NEXT plan?

 

[Fausty82]

How much is that monthly service fee usually? My parents pay the phone bill, so I'm not aware of how much that might be. Is it just whatever the rest of the phone is after the subsidized price? Like they will tag on 10 bucks a month or something?

So there really isn't a difference though if I plan to keep the phone for 24 months, right? Figured I'd just upgrade again when the 6S hits in two years.

But does anyone know if then it'll just be a subsidized upgrade or I have to do another NEXT plan?

The issue is that no one knows. It's just built into the pricing model. And THAT is where the problem lies. It's a matter of the cellular providers control it all and keep that info secret. You and I can pay the same amount for our service, and I have a subsidized phone bit you don't. How is that fair?

 

[RavenSword]

The issue is that no one knows. It's just built into the pricing model. And THAT is where the problem lies. It's a matter of the cellular providers control it all and keep that info secret. You and I can pay the same amount for our service, and I have a subsidized phone bit you don't. How is that fair?

But since I would have had to buy a full price retail iPhone from Apple anyway, is their any difference doing att next instead?

 

[Trees]

Curious about this, I researched around and read one perspective T-Mobile JUMP! vs AT&T Next vs Verizon Edge

Agree with the advice shared by others - it's ultimately up to you to determine if NEXT is right for you.

Since you've shared that your a student, perhaps if your schedule and situation allow, you could go for a job like this. Could be a great way to gain real-world experience and earn some $ for a new iPhone, etc. Apple - Jobs at Apple - Students (us)

 

[RavenSword]

Curious about this, I researched around and read one perspective T-Mobile JUMP! vs AT&T Next vs Verizon Edge

Agree with the advice shared by others - it's ultimately up to you to determine if NEXT is right for you.

Since you've shared that your a student, perhaps if your schedule and situation allow, you could go for a job like this. Could be a great way to gain real-world experience and earn some $ for a new iPhone, etc. Apple - Jobs at Apple - Students (us)

Took your advice and applied for a position at my local apple store as a apple expert. Here's hoping

 

[bxnextel86]

Took your advice and applied for a position at my local apple store as a apple expert. Here's hoping

Good luck. Hope u get the job


Sent from my iPhone using iMore Forums mobile app

 

[Eileen89]

Took your advice and applied for a position at my local apple store as a apple expert. Here's hoping

Good luck RavenSword. Let us know how you make out with this.