Early upgrade program costs

[Craig]

Not much of a surprise here. 

 

http://lifehacker.com/are-early-upgrade-plans-worth-it-1369868915

 

Discuss. 

[Yuhfhrh]

Excellent article on the price comparison. Sprint is offering a great deal!

[The Dave]

Almost makes you feel sorry for the Verizon and AT&T fans. Almost.

[koiulpoi]

I actually find it both fitting and hilarious that AT&T's program is in no possible way good for the consumer. It's just straight-up terrible. And VZW's is almost as bad.

[utiz4321]

I actually find it both fitting and hilarious that AT&T's program is in no possible way good for the consumer. It's just straight-up terrible. And VZW's is almost as bad.

That is not true. Customers do pay a premium on both vzw plan and ATT but they do get benefits. For example on Att next a traditional upgrade to an iPhone 5s (or most high end phones) 236 (200+36 upgrade fee). Under next at the 12 month mark a customer would have paid 27*12=324 for the same phone, that is an 88 dollar difference over a year. So the customer pays 7.33 a month so they can upgrade once a year vs every 24 months and don't have to come up with the money up front. Now we can talk about the benefits of sell you current device and buy retail all we want but for some customers that is something worth paying a little bit more so they won't have to do that, else carrier trade in programs wouldn't be so popular. Now sprint one up plan is better, a lot better as you are still getting a subsidy and the phone works out to be cheaper but now that their are not really (at least for large family plans, 1-2 lines they still are) they need something to show customers they are a value option.

[koiulpoi]

That is not true. Customers do pay a premium on both vzw plan and ATT but they do get benefits. For example on Att next a traditional upgrade to an iPhone 5s (or most high end phones) 236 (200+36 upgrade fee). Under next at the 12 month mark a customer would have paid 27*12=324 for the same phone, that is an 88 dollar difference over a year. So the customer pays 7.33 a month so they can upgrade once a year vs every 24 months and don't have to come up with the money up front. Now we can talk about the benefits of sell you current device and buy retail all we want but for some customers that is something worth paying a little bit more so they won't have to do that, else carrier trade in programs wouldn't be so popular. Now sprint one up plan is better, a lot better as you are still getting a subsidy and the phone works out to be cheaper but now that their are not really (at least for large family plans, 1-2 lines they still are) they need something to show customers they are a value option.

 

Did you... even read the article?

 

 

AT&T Next: No. That's it. There is no situation in which AT&T Next can be viewed as anything but a huge rip off. AT&T only spreads monthly payments out over 20 months instead of 24. Because of this, you're actually paying more than half of the phone's cost every year. If you never upgrade, you'll pay exactly the same amount as you would if you bought your handset off contract (on top of your regular service that normally includes a subsidized phone).

 

However, if you upgrade after one year, you'll end up paying more in handset payments by the end of two years than either phone is actually worth. Keep in mind, if you didn't use AT&T Next, you'd get one phone on contract. You could then buy a second phone with the money you'd save and still have some leftover. Don't do this. AT&T Next is universally bad.

You're literally spending more money than the phone. This isn't even taking in to account selling your old one. This is just you giving money to the death star.

[utiz4321]

 

Did you... even read the article?

 

 

 

You're literally spending more money than the phone. This isn't even taking in to account selling your old one. This is just you giving money to the death star.

Yes I read the article. But nothing in it changes what I said. You do spend more with ATT and vzw, you are paying a premium. The author is comparing the cost over two years in that time frame a next, jump, edge or one up customer would have had two phones and be able to get their third. For ATT 324+324=648 which is the difference. A tradition customer would only had one or if he want two it would be 236+650-what ever he could sell the old phone for or it's trade in value. My comment was directed towards your claim that ATT and Verizon plans don't offer anything good for the customer. That is not true a customer pays a premium to upgrade early but they get to with out having to participate on the secondary phone market and when you compare other avenues to getting a phone every year the premium is not all that high. If you want to make you cell phone bill as cheap as possible don't get a smart phone, text and never upgrade your phone. It is another service, just like smart phone data and texting there is a cost to it, that doesn't mean there is no value in it.

[dnicekid]

I thought vzw was $80 bucks a month... what is $100? .... also do we still have to pay $11 for tep?

at the end of everyones bill I bet the price is a lot closer than what we think

[uh60james]

I thought vzw was $80 bucks a month... what is $100? .... also do we still have to pay $11 for tep?

at the end of everyones bill I bet the price is a lot closer than what we think

Smartphone line access is $60.

2GB Data, with unlimited voice and SMS is $40.

That is the $100 figure.

 

The $80 plan would be line access $60 and 500mb data $20.

 

Even being stuck on Sprint's craptastic 3G I would use up 500mb in about a week.  So unless you really use your phone for data very lightly I don't think that is much of an option hence why they used the 2GB plan for the chart.  I assume the AT&T plan is 2GB of data as well but I haven't looked into it.  T-Mobile is 2.5GB at full speed and throttled after for $60.

 

As far as the insurance I believe the only one that includes it in the pricing is T-Mobile.

[Rocket87]

If you don't get insurance on sprint one up you are crazy. The only way to upgrade at 12 months is turn in the working phone. If it's broke or lost you aren't upgrading and you are making all 24payments on it.

 

Sent from my HTCONE using Tapatalk 4

 

 

[Destroyallcubes]

Isn't the graph missing the usual $200 smartphone price you pay with regular contract? And the estimated $540 minus the estimated $250 you would get back from selling the phone to get the new one? Still paying more for the new phone every year plan, but it is convenience charge and For some people the time it takes to sell a phone and all of that it could technically cost more in my opinion. It honestly can be very useful for people who want a new phone every year, and want the best of the best. Of course for some it will be more expensive. But for me time is limited so selling a phone every year and taking a chance of the price of the phone falling drastically or something and makes it even more expensive.

[Moropo]

My opinion is the following:

 

Sprint's program is a good one, going in the right direction with the $15 discount. However, the fact the $15 discount stops once you finish paying off the device makes no sense! It should be that the discount applies indefinitely as long as you bought your phone through monthly payments (and hence they didnt subsidize your phone purchase)

 

Also, Rocket87 raises a good point about obtaining insurance. This is what's amazing about T-Mobile's version, it includes insurance!

[Yuhfhrh]

However, the fact the $15 discount stops once you finish paying off the device makes no sense! It should be that the discount applies indefinitely as long as you bought your phone through monthly payments (and hence they didnt subsidize your phone purchase)

 

Their goal is for you to keep getting new devices though, so that you are effectively locked in a never ending contract. If they kept giving you the $15 off then you might not buy a new device, which would make it easier for you to jump ship.

[Destroyallcubes]

Their goal is for you to keep getting new devices though, so that you are effectively locked in a never ending contract. If they kept giving you the $15 off then you might not buy a new device, which would make it easier for you to jump ship.

So is the $15 discount only good on the first phone you "rent out"? or is it every time you rent out a phone?

[Yuhfhrh]

So is the $15 discount only good on the first phone you "rent out"? or is it every time you rent out a phone?

 

From what I understand, as long as you are currently making payments on a phone, you will receive the $15/month discount.

[Destroyallcubes]

From what I understand, as long as you are currently making payments on a phone, you will receive the $15/month discount.

ok, I heard if you are someone with a spending limit of any kind, you can not use this program. 

[koiulpoi]

jeremyvbk, on 24 Sept 2013 - 4:45 PM, said:

ok, I heard if you are someone with a spending limit of any kind, you can not use this program.

You must be prime credit class. Being ASL (account spending limit) class means, unfortunately, no.

[Destroyallcubes]

You must be prime credit class. Being ASL (account spending limit) class means, unfortunately, no.

yeah which sucks for some people that this could benefit, can not use it

[Fraydog]

Sorry. I don't see any situation where these plans help out. At least Sprint's offers a discount on the plan. Frankly it's less bad than the others. US mobile consumers should be pushing carriers to provide better off-contract plans. If I could get a cheaper non-contract shared plan, that would be more attractive to me. Look at what 3 UK does for their plans. I wish Sprint would look at that model.

[halcyoncmdr]

Sorry. I don't see any situation where these plans help out. At least Sprint's offers a discount on the plan. Frankly it's less bad than the others. US mobile consumers should be pushing carriers to provide better off-contract plans. If I could get a cheaper non-contract shared plan, that would be more attractive to me. Look at what 3 UK does for their plans. I wish Sprint would look at that model.

 

One Up is off-contract... depending on how you view off-contract.

 

You have to agree to make the installment payments, but there is no contract with an early termination fee. You simply pay the remainder of the installments and final bill if you cancel before your installment agreement is up.

 

The simple fact is that US consumers don't like paying for a phone up front. 90% of the market goes for the cheapest option they have. There is a reason people buy 8GB and 16GB iPhones instead of the 32GB and 64GB models, it's not because they wouldn't use the space in most cases. The "free" phone idea has ingrained into people's minds that phones are cheap and easily replaceable, that is exactly what these programs work from. You essentially lease your device from your carrier, and are responsible for all maintenance and care of that device until it is fully paid for.

 

Buying a phone at retail and then having no contract in the long run is cheaper, but it does not work with the mindset of the average US consumer (especially not with this terrible economy we've created for ourselves in the last 50 years by letting corporations do what they want with very little regulation).

 

On the bright side, at least Sprint has pretty consistently been one of the most pro-consumer carriers in the country. They are still a for-profit business and will make decisions based on that, but they definitely don't overtly try to rape every customer while telling them it's all good (Verizon, AT&T).

[The Dave]

... but they definitely don't overtly try to rape every customer while telling them it's all good (Verizon, AT&T).

Please sir, I want some more.

[utiz4321]

My opinion is the following:

 

Sprint's program is a good one, going in the right direction with the $15 discount. However, the fact the $15 discount stops once you finish paying off the device makes no sense! It should be that the discount applies indefinitely as long as you bought your phone through monthly payments (and hence they didnt subsidize your phone purchase)

 

Also, Rocket87 raises a good point about obtaining insurance. This is what's amazing about T-Mobile's version, it includes insurance!

Insurance makes slightly less sense on one up at least after 8 months or so. Since you are paying down the phone the risk you are hedging is less as the months go on. So if some thing happen to you phone at the 8 month mark for the insurance and deductible you would have paid 288. With no insurance you could pay off the phone and do the next again for 434. Your hedging a risk of 145. For me I wouldn't carry insurance past the 6 month mark but then again I never do insurance any way.