Looking to buy a new iPhone 6 or 6 Plus from Apple on AT&T but don’t want to sign up for the carrier’s Next plan? Too damn bad.
Just days after AT&T CEO Ralph de la Vega promised subsidized phones are going away, the company has completely removed subsidized options for the iPhone from the Apple Store as well.
The quick removal stands in contrast with de la Vega’s comments earlier this week that the subsidized option was going to “go away slowly” not because AT&T would insist on it, “but because customers will choose it less often.” Looks like AT&T just couldn’t wait for customers to choose Next more often so they’ve insisted on removing the subsidized option altogether so that it’s your only choice.
iPhone buyers can still pay $199 or $299 for the new model from Verizon and Sprint, or buy a fully unlocked device from T-Mobile, starting at $699. AT&T is still offering subsidized iPhones in retail stores and its own website, but the option is a bit hidden. AT&T’s Next plans allow customers to buy new smartphones for $0 down while spreading the rest of the into equal payments for the next 12 to 24 months.
Here’s a breakdown of the new iPhone pricing:
iPhone 6
- 16GB – $21.64/month
- 64GB – $24.97/month
- 128GB – $28.30/month
iPhone 6 Plus
- 16GB – $24.97/month
- 64GB – $28.30/month
- 128GB – $31.64/month
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
82 responses to “Apple Store customers can kiss subsidized AT&T iPhones goodbye”
I’m confused as to how Next is a ripoff. I’ve got my 6 on the Next plan and decided to go that route after running the numbers. The amount I pay every month for the duration until I stop paying the extra amounts to exactly the retail value of the phone.
I’m paying off the phone interest free. How is that a ripoff?
Kind of what I’m wondering…
Yea I don’t understand the Ripoff either. Thats how I’m paying for mine too. Once you calculate it out you actually pay less with the next plan. No tax either or interest..
There was period of time where ATT was issuing discounts to subsidized subscribers that made it look like it was cheaper to subsidize. I got a level-headed rep on the phone while I was researching plans and they explained that temporary discount. From what it sounded like it was a planned bait and switch where people would run their own numbers, see that their subsidy was cheaper, and then ATT was going to drop the discount at a certain point which would make them pay more over the long run than going with Next.
So, yeah. Subsidies are the ripoff, not Next/buying outright.
Exactly.
I’m sure we will see incentives for upgrading early on Next plans just like we did with subsidized. Remember how AT&T would offer you the ability to upgrade early, sometimes up to 6 months, when the new iPhone would come out. Will we continue to see this with Next?
Another question is what will holiday sales look like? Used to be that you could get about $100-$150 off the subsidized price around xmas. Wonder how this will translate to the Next pricing.
There will be no more phone discounts from here on. There will be phone/tablet promotions, however.
When I did the math last year it ended up costing more and I couldn’t keep the old phone when upgrading. Definitely not worth it if that hasn’t changed. Will be switching carriers as soon as possible.
I think you messed up somewhere. I definitely still have my old phone after switching to next. It’s sitting in my kitchen drawer as backup.
He didn’t say he couldn’t keep his phone when he switched to Next. Of course you can, that’s your phone. The point is once you’re on next the phone is being leased so when you upgrade you have to give back the phone you’ve been paying for. With a subsidized phone, I pay $300 for it, and when I upgrade in two years and pay another $300 for a new phone, I sell my old one for $300.
You are not LEASING your phone with next. A 64 g 6+ costs $849 from Apple or from AT&T. The loan is 0%, no fees and if you don’t trade in early you keep your phone for the exact $849 as if you had paid up front. It’s really the dumbest idea to turn in your phone at 18 months when you are only 6 months from paying it off. Wait 6 months then you have a paid off phone to keep or sell and you can do the Next loan all over again on an iPhone 8+.
But how is that better than getting a $299 subsidized phone every two years?
Next can be better, depending on the price of the phone and how long you use it, because of the difference in monthly line cost and whether there’s an activation fee. Subsidized = $40 per phone per month plus taxes on $40 per month + activation fee. Next = $15 per phone per month plus taxes on $15 per month.
All the carriers do it so good luck.
Don’t upgrade early. Pay your phone off (it’s interest free so that would be unwise too but if you must) and keep it or sell it. Next most definitely does not cost more. Why do you need to upgrade early? Why upgrade at 2 years, even? The 6+ is a phone designed to be great for 4 years.
Major downside is losing the ability to stay on the grandfathered unlimited plan by having to switch to the Next plan in order to upgrade through AT&T. Now, if I decide to upgrade, I’ll need to buy the phone out right using a credit card or cash. So, I won’t be upgrading every two years with my anniversary date.
Sure that’s important to some. I dropped my unlimited to go with next. In doing so I can now FaceTime over cellular and tether without additional cost. Also, without trying I’ve never come close to my cap with 3 shared lines.
I was patient enough to hang on while waiting for the FCC to enforce the new anti-throttling policy. Now, my data usage is truly unlimited. I do agree the tethering option is nice; however, my data usage would exceed that limit every month by default. I’ve been there and done with Verizon with a mobile hot spot and was taken advantage of multiple times for going over my monthly limit. Talk about bill shock! I’m glad it works for you, but doesn’t scale well for me.
i can FaceTime over cellular and i still have the grandfathered unlimited plan. Both of us on the plan use 10-15 gigs a month of data. 4G LTE is a lot quicker than the wifi we have around here. The FCC just forced AT&T to change their throttling rules they can only throttle during congested times and only if your using 3G and exceed 3 gigs a month of data or using 4G LTE and exceed 5 gigs a month.
The unlimited data thing is a relic. AT&T will throttle you at ~3gigs of usage on unlimited. However, if you give up the unlimited and move to the base 10gig you will not get throttled. If you use more than 10gig on mobile, you are looking at too much pr0n while working.
Not anymore. I have unlimited data and I’m no longer being throttled.
If you did get throttled, company policy is to do so at 5GB under LTE (which you should have almost anywhere on the network now). The 3gb limit was imposed under 3G speeds. As of lately, a lot of people are not even getting throttled even at those “limits”
You don’t have to change your plan. You can do NEXT with your old plan. I’m an ATT employee. (P.S. Your plan will be slightly more expensive, however.)
Okay, usually I don’t really comment but have to step in on this one. Gary if you don’t know what you’re talking about, I suggest at least doing even a little bit of research first because everything you said is wrong. With AT&T, you can use next and keep your unlimited. You’re simply adding the monthly installments on to whatever your current bill. If you want to buy the phone outright go ahead but with Next you are literally paying the same exact amount. Put down the sales tax and the rest of it shows up in equal payments over either 30, 24, or 20 months. As to Edge on Verizon, yes, you are forced to give up your unlimited plan.
Juan, Frank’s reply was enough to enlighten me in regards to the Next plan. Your comment was out of line. I’m an AT&T customer and have every right to speculate until AT&T educates their customers.
You do not have to drop your unlimted plan att will let you keep it, you will just have a next payment on top of you current bill
The rip off is when comparing the new Next plans with older plans (unlimited). It will be interesting to see if there will be any difference in how AT&T handles trade ins now.
The older plans can easily be a rip off as well. It truly depends on the customer. I’ve seen several customer come to my store and they were getting ripped off on the legacy plans. But I’ve seen it backwards as well. It truly depends on what the customer has/ had and wants.
Thanks Archie, you’d be surprised the number of people I get in who fight tooth and nail to keep the unlimited plan (even when I tell them they can) but are only using less than 500mb a month. They can easily save upwards of $60 a month but they sit there in their stubborn ways. But whatever, if they want to pay for it, that’s their business.
Exactly.
For me the rip off is not getting to keep the phone after I paid for it if I choose to upgrade.
That’s simply not true.
When the new phone comes out you have three options. 1) Don’t buy it and continue paying off your current phone via the Next installments. 2) Send your current device in and ATT sends you the new phone, you keep paying it same as you were except now you’re paying off the new phone instead of the old one (this is the self-imposed ripoff). 3) You have the option to pay off the remaining balance on the older device. In doing so the device is yours and you pick up the new one and start the process over again.
The only option that’s actually a ripoff insofar as the ownership of the device is concerned is if you choose to send your old device back in exchange for the new one – and even then, it’s only a ripoff if you’re close to having paid it off completely.
1) Doesn’t count since I said ‘if I choose to upgrade’, but I think you’re just being thorough so no harm, no foul.
2) This is my issue. The way the terms are written, I get the new phone and make payments on it while still making the payments on the old phone (or I can pay off the old phone when I trade in). So I’m paying for two phones, but they only let me keep one. And how is this self imposed? This is the system AT&T has set up. Throw me the idol I throw you the whip!
3) Now this is interesting. I just re-read the terms and it’s not clear at all that (as you explain) you can pay off your old phone completely and keep it, then just get a new phone. The closest they get is ‘Trade-in and upgrade after X installments’ without ever saying ‘if you pay all the installments you can just upgrade WITHOUT trading in’ (although they do say in the FAQ that it’s your phone, so that’s odd). Thank you for clarifying this. The Next plan isn’t as bad as I thought and I’ll consider it when my contract is up.
2) I think you’re misunderstanding. If you send back your old phone, your new phone’s payments replace your old one.
3) Yeah, what they mean by “it’s your phone” is that you’re paying to own it. If you don’t want it anymore you stop paying and send it back – consider it a lease. If you want to keep it, finish paying it off and keep it.
2) Ah, found it. ‘After upgrade, unbilled installments are waived.’ Still I’d like the option to pay and keep the phone rather than waive and return the phone.
3) Yeah, that’s still really unclear in thier terms. But that’s the way they play the game right. Thanks again for clairfying.
How is option 3 unclear. It’s on all the placards in the card. If you pay the full 20, 24, or 30 months, the phone is yours and the installment drops off the monthly bill.
That’s it. Plain and simple.
Don’t they make you trade in the phone when you upgrade? You pay the full price of the phone and don’t get to keep, resell, or give it to a family member… That, is a ripoff.
No. And if you actually believe that you’re an idiot.
Its a ripoff because the Iphone is a ripoff and you pay full MSRP thats why ..no discount
Apparently, you haven’t bothered to run the numbers. The AT&T Next plan offers cheaper monthly service, then adds the price of the phone amortized over the same two year period. In fact, if you choose to go beyond two years, your bill is less than it would have been under the previous plan. For most consumers, it’s a wash.
For AT&T, they no longer care if you buy an Android, Windows or Apple phone because they pass on the cost of the device directly to the buyer. This makes sense. It also puts a stop to people trying to upgrade after 18 months as the consumer is no longer has incentive to do so.
Wait ,,no way.
People are going to finally realize their iPhone aint $99 or free… and instead paid for over 24 months at full MSRP of $699-1000.
Wow.
I ran the numbers when I got my BYOD $40 Lumia 520 originally and then as today NEXT is a total ripoff.
For the sole reason you pay MSRP on anydevice..thats a joke.
No one should ever pay MSRP on anything yet Apple successfully duped the public with subsidy pricing and the MSRP is hidden in the contract.
Now people will see extra $50 or 70 added each month added to each device statement, constant reminder of the cost.
No, what most people will focus on is the ability to walk into a store and walk out with the latest and greatest phone without paying anything out of pocket. In that respect, it will attract more people than the subsidized phones where you still had to layout some cash for the higher end phones.
However, at least for AT&T, the subsidized plans are significantly more expensive than the Next plans, unless you truly use a lot of data. For most people, if you do the math, you actually save money on the newer plans. If you actually go the full two years (or more) before upgrading, etc.
Save money? The phone itself ends up costing you $600-$1000 in contract full MSRP and then add in data and you are looking at $2180 or so over 24 months . Where is this save money you speak of and that does not include any Apple music streaming service at $180 a year either
Yes, save money through the Next plan as opposed to the previous plans which had a higher monthly rate. What is that so hard to comprehend?
Also, who said anything about Apple Music streaming service? I wouldn’t pay for any streaming service, Apple or otherwise. What does that have to do with this discussion? Do you always make strawman arguments to make yourself feel better?
So you are ok with spending $2180 every two years on an iphone? Or were you lulled into thinking with a subsidy it was $free or $299
To upgrade the phone at the end you have to turn in the old phone right?
It’s a ripoff because after you make the payments and decide to trade In/up for the next phone, you don’t keep the phone. You’re basically renting the phone.
I was just on the AT&T website and I can get a 6 or 6 plus at the subsidized price, so when is this supposed to take place? I’m actually buying a phone today.
I work for an Apple and AT&T reseller and was told that we are not allowed to offer the 2 year pricing as of June 1st. But it’s still available on AT&T’s website, so I’m confused.
You really ought to wait a few months bud. New iPhone’s coming out soon enough.
Yea, I ran the numbers and Next vs. the subsidized is a wash when you consider the $25/month discount ATT provides you on your Mobile Share plan. if you buy the subsidized phone you do not get the discount. Over the life of the phone payment, it’s a wash – the next plan is basically a 0% interest loan for a phone.
Ever bother to check the “other pricing options” dialog box? If you did, you’d know you’re completely and utterly full of shit and that subsidized prices are still quite available with AT&T.
Hack, misinformed and inaccurate reporting.
Do the Math, and you will find that buying outright or via the Next plan is actually less expensive than the “subsidized” $199 or $299 contact alternatives.
How?
With Next or buying outright, you can get up to a $25/mo credit on the $40/line charge. I have 4 lines, and originally signed up for the 15 GB/mo Mobile Share. With the recent “double your data” offer, and rollover data offer, I’ve got 30 GB/mo to share over my 4 devices, and am actually paying less than my original unlimited data plans I gave up. 30GB is a lot, and I have not gotten even close to consuming that much each month.
When I did the math when I upgraded my wife’s phone from a 5 to a 6+, the buy unlocked outright from Apple and the Next turned out to be the same out-of-pocket cost, while the free phone at $299 turned out to be a lot more over the 2 year period.
I ended up purchasing the unlocked 6+ for her from Apple.
Do the Math.
Next is essentially a 0% loan.
You conveniently leave out the $300 plus you get for trading in your phone after your 2 year contract ends.
You get the same trade in value on Next after the 2 years.
Only if you have a perfect working phone to trade in.
That’s why I invest in an OtterBox for my phone every year, to ensure the phone I trade in is in perfect working order and also scratchless.
Yes, but with a subsidized phone it’s yours to do with as you please when it’s all paid off. Including selling it to get your money back. Or handing it down to someone so they don’t have to buy or subsidize a new phone.
Yes, but with a subsidized phone you get the ‘low monthly cost’ benefit of the Next plan and the ‘owning it when you’re done’ benefit of buying outright. Then you can sell it to get some money back or hand it down to someone so they don’t have to get a new phone.
No. You get the discount on the Mobile Share Value Plans. The phone charge is separate and only applies to the discount. If you upgrade with Next you keep the discount and only add in the installments. When the installments are paid off you keep the phone. If you want to upgrade before the installments are paid off you can pay them off then or trade in the device which will pay off the balance. You also get to keep the plan discount. When you upgrade via subsidy, you take the discount on the phone and forgoe it on the plan. The difference is the subsidy for any iPhone is a $450 discount. The loss of the Plan discount is $600 over that two year period. Add in the money you pay up front for the device and you are paying anywhere from $200-400 more with the subsidy than with the $0 loan on NEXT. You should really stop thinking you know more than the representatives who work for the company and are constantly trained on these issues. Especially if you are coming online with the wrong information.
FYI: The iPhone on next at its lowest price is $21.67 a month for the 16GB iPhone 6 with Next 24. Fix your article Buster Hein. You have many incorrect statements there.
I do not think I know more than the representatives who work for the company. In fact, I am certain they no more than me regarding the Next plan given that I read what AT&T presents to the public and my comments have been corrected repeatedly. They didn’t make much of an effort to make the plan clear to the average consumer.
It’s only in certain parts of the country they are phasing out contracts through certain sale points like stores and online. If it’s not showing you online you can call customer service and request a contract. However eventually all carriers will stop doing discounted phone options.
Buster: Please clarify what the heck you mean in specific terms and numbers. Just saying AT&T’s Next plan is a ripoff without explaining why is sloppy at best. Where’s the rationale, where’s the proof? It’s fine if you have an opinion, but readers go to CoM for information, not just trash talking.
You can’t possibly believe that ATT was going to subsidize at no interest the cost of purchasing a $650 phone indefinitely?
That’s economic insanity. The reason they did it in the first place (I’m guessing here) was because nobody had iPhone/Androids so they wanted to make it easier to purchase one. The initial market was put in place by subsidization. But now that everyone is paying $80 a month (or so) for a phone, they’re raking in their profit. They deserve it to. Considering the amount of upfront cost they put up.
It’s a ripoff because there’s no early termination fee other than paying off the phone. Are you rich? Then, go with the ripoff next plan.
Duh, what took you so long? I left AT&T the *day* my iPhone 4 contract expired and switched to T-Mobile. T is stuck in the 2000’s.
lets start with phone carrier 101. your phone plan is built with extra charges and fee’s for people put on contracts. so you pay that up front number for the phone and they select a plan and that’s what you expect. now remember I did say that your company built those plans with fees to pay for your phone. now the next plan takes away the upfront cost take the total amount of the phone and split that by 24. now since nobody told you that you are paying cost on the device you select is because if they broke that part down you would not buy. now with you paying the same rate plan and 18-24 months plus what your rate plan is see how much you save. now someone may not get that ether. so here is the math 27×24=648 now the average rate plan is about 100 x24=2400+648=. now add your current rate plan plus 199 or the substadize price you select and tell. do your simple math right I front of the sales rep and see how they fill. oh and if it’s not unlimited data then they will tell you whatever data plan you pick is plenty and sharing it is a great thing. now I will agree if all you do is text and check email. now anything else you are gonna burn through the data like no body business… it’s really simple math and stop letting people talk fast pull out your paper or calculator
This article is horribly researched. 1) I just checked both websites and both Apple and Att allow the 2 year contract options. 2) Can you please elaborate on what exactly is a ripoff about Next?
i too have a grandfathered cingular>att unlimited plan, although i rarely go over 2GB, i live in a relatively rural area where my only other choice that has 4G coverage is verizon, so i’ll have to seriously evaluate the options of buying the phone outright at the beginning of the plan versus moving to the big V, neither option sounds fun, but getting suckered into the next plan will NOT happen
I do Next and it’s not a ripoff to me. I can’t afford to throw down $200 or more once a year on a new phone, and it’s helpful to me to keep a new device. Not only is it coming with whatever new features there are but I constantly have a battery that is no more than a year old and therefore I don’t run into battery fade issues.
I thought the RIP of NEXT was constantly enticing you to upgrade phones before you are done paying for it, “because you can”. Take the “Next 18” plan as an example: 24 payments with option to “TRADE IN AND UPGRADE” after 18 installments. If you DON’T upgrade, you are probably fine. If you DO upgrade at 18 months, you still have 6 payments that need to be paid AND you lose the value in the previous phone that you traded in.
What happens to the extra 6 payments you still need to make? If you were paying $25/month, that’s $150. Average that over 18 months and you $25/month payments are really $33.3/month.
What happens to the value of your trade in? I sell 1 or 2g old iphones every time I upgrade, and get an average of $250/each. So figure you are GIVING #ATTfail your old $250 worth of phone for NO BENEFIT TO YOU. Average out that $250 over your 18 months of payments. Now your $33.3 payments have gone up AGAIN to $47.2/month.
So your “worth it” $25/month plan is really almost DOUBLE at $47.2/ Sounds like a rip to me.
I see a couple of you DIDN’T trade in your phones, but CURRENTLY, per #ATTfail website (screenshot attached), the #ATTfail terminology SAYS “trade in and upgrade”. Sounds required to me.
Before I got my iPhone six, I was due for an upgrade(subsidized price). If I was to use it, they were going to add 40$ a month to my line because they were changing how the plans work. But if I got on the Next plan, they would keep my at the same 15$ a month per line + the cost of the phone per month. So they really forced me to choose, because why would I money pay up front and take an increased monthly charge? Either way you went, they were making on average about 30$ more per month per line for everyone who switched. Which I would call a ripoff.
People should be happy about this. Under a two year contract, you pay for the phone as (minus $200) as part of your monthly fees. When the phone is paid off, you still pay the same amount until the end of the contract. With Next, you get a $15.00 discount on your monthly fees, and when its paid for, that monthly amount is taken off your bill. I did this myself. Its a much better deal. They also unlock your device for free when you pay it off.
I can’t believe I’m about to defend ATT’s honor. They do not charge the $20 subsidy fee with Next. The only way you get ripped off is if you exchange your phone as you lose the money you paid already but that’s true for any lease. So not really a ripoff.
It is time for me to move on to Verizon. There really is no reason to stay with AT&T anymore.
I just took a look at the options. What got me is that on the ‘checkout’ screen, i have to pay about $67, and then the monthly listing apparently… just… loses my actual voice plan. (It shows my grandfathered data plan, and the Next cost, but no voice plan at all in the ‘monthly’ cost.)
I’m on hold with AT&T right now to figure this out.
That’s absolutely not true. You can CHOOSE to RETURN the phone in exchange for an upgrade. OR you can PAY IT OFF AND KEEP IT. You should actually try reading the terms of the plan instead of just regurgitating what you heard some idiot say on the Internet once.
Next is not a rip off. Yet again, hyperbole from the cult kids. It’s actually one of the best loans you’ll ever get. There’s no interest or service fee. I plan on keeping my 6+ much longer than 2 years (hell its almost been a year already) and AT&T bill wil drop after the phone’s paid off.
Where are you pulling this information out of?
1) You keep the phone
2) The price is not set by AT&T. It’s the MSRP set by the manufacturer (aka Apple, Samsung, LG, etc) with no interest, finance, or upgrade/activation fees.
Why do I keep hearing you have to drop you unlimited plan for Next? I’m on Next and I have 6 plus 128gb with unlimited data.
So if I purchase with 2 year contract for an iPhone 6plus 16gb, I pay around $365 (includes 8% tax and $40 upgrade fee) to own the phone outright. If I choose the next 12 month installment plan, I will be paying $37.50 for 12 months totaling $450 without including tax (but I don’t own the phone outright, but I can trade this in for a newer model or a different model and then start a new installment plan again). If I want to own the phone outright, I need to pay another 8 months (total of 20 months) which totals to $750, which is the retail price of the phone (doesn’t include tax).
So the next plan isn’t cheaper than the subsidized plan when you are keeping the phone. Essentially, you are paying a premium to upgrade to a new model. It also depends on perspective, if you want the latest and greatest, you are paying the premium to get it sooner than waiting for another year.
Although its advertised as 0% APR, truth is, the interest is already imputed in the monthly fee. There is no such thing as 0% interest (finance and accounting 101). Genius for ATT and Verizon to go with installment plan to advertise lower monthly payments, but essentially having their customers pay full price in the long run.
I’m pretty sure this move is to try to confuse people on the grandfathered unlimited data plan to use Next and therefore relinquishing it. Now that the FCC is on their butts it’s harder for them to cap data speed and this way they’ll get people to switch.
I’ll buy it unlocked and sell my old one when the time comes, it’ll be cheaper since unlocked ones hold their value more.