How does upgrading every year with AT&T Next work?

@alpinewhite I do have my phone on Next. Just about to pay it off. Never had any intent to exercise the trade in option. 

@alpinewhite

T-mo, Verizon and ATT do not lease.  It is by definition a retail sales agreement.  You are paying the retail value.  The phone is yours to do as you please as long as you pay for it.  Once the 14 day remorse passes, you cannot return the phone to the carrier unless trading up within the agreed terms.

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@alpinewhite wrote:

 

The question is how much do you save if you purchase retail, sell the used device after 1YR on the grey market, and purchase new at retail again? Quick back of the envelop math shows its south of $200 per device. 

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It depends on the device.  iPhone hold Value more than Android.  

In some cases a phone does better....   I purchased a google Pixel for $650 in October and just sold it for $500.  

I replaced it with a near mint Samsung GS8 for $450.  

I purchase a Samsung GS7 for $360 last year.  Sold it for $200

Purchased a GS6 the year before that for $300 and sold it for $200. 

I decided a long time ago not to buy $700+ carrier phones.  Why should I when I can buy a mint used phone 6 months after release for half price?  

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@alpinewhite wrote:

You own that phone when you do Next. You owe the creditor for the phone, they give you a no-interest loan with strings (must have service, phone is locked).

If you leave AT&T they don't want their phone back (it's NOT their phone), they want the money.

@Gary L don't know if you've ever leased a vehicle but what you describe is identical to a vehicle lease.

I disagree, you OWN the phone and you also OWE the money for the no-interest "loan". 

I'm thinking that leased vehicle is not 100% in your name.

The phone is yours, it's more like you owe a credit card company for a no interest loan.

I'd have to read the fine print on AT&Ts Next program but would be surprised if they hand you a $700 phone with zero strings attached. 

Never said their were no strings.

Like a charge card company, they'll send you to creditors and report you to the credit bureaus. It just depends if you call that strings or not. (Plus the payments are part of your monthly service, it's not a separate bill, so you have repercussions there too)

Semantics...

And that's why what I said was "Next may very well be like a lease, the fact is it is not a lease." Semantics...

there simply isn't a scenario in which paying for Next is better than just buying an unlocked phone at retail... 

If you would rather spread it out, it's a no interest system. Many people would rather pay $27.09 every month than pay $650 up front every two years (where they would have needed to save $27.09 a month). Many many people buy their phones this way and have no desire to unlock their phones, they have no plans to switch carriers, it's better for them; they think "unlocking their phone" means putting their finger not eh canner or typing the pin to unlock the screen...

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who also made the foolish move to swap 2 x iPhone 6s that were almost all paid off for 2 x iPhone 7 Plus. 

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This was an AWESOME deal!!! I traded a paid off iPhone 6s which I owed nothing for, for $650 towards an iPhone 7 Plus, it was a no brainer!! 

Even if I turned it in now (which would be idiotic), I'd still have gotten a year of a newer phone for $325 less in payments than normal! Still ahead, but a poor plan.

If I wanted an iPhone 8/X, the smart thing to do would be to buy it on Apple's plan (or full price), sell the "free' iPhone 7 (as locked to AT&T) and continue to get the monthly credits from AT&T. Anything I got from the sale of the 7 would go in my pocket. 

As desirable as the new phones look, I'll hand on to my 7 for another year (maybe 2) and avoid the monthly payments and keep using that awesome camera...

I stand corrected on Next program being not a lease option but instead a retail sales agreement divided up as an equal payment plan. Here are my numbers for your consideration:

Next Every Year: 24 installments & eligible for upgrade at approx. 50% mark:

2 iPhone 7 Plus at $32.09 each = $641.80 paid to date

13/24 installments left for both phones ($449.09 x 2) = $898.18
2 iPhone 7 Plus Aug-Oct at $32.09 each (until iPhone X pre-oder) = $192.54

Total paid @ Nov will = $834.34

If I understand correctly my options are then to:

Swap the two 7 Plus phones + pay approx. $112 in taxes for 2 iPhone Xs. Move to new Next Every Year plan

OR 

Payout balance due in Nov = $705.64
Total Next payments including balance = $1539.98

Sell both phones used @ $1200 = ($339.98)

Then add the approx. $112 in taxes to get 2 new iPhone Xs = $451.98 

Check my math but sounds like better option is to stay on Next? Understand that monthly payment for iPhone Xs will increase to just over $41.

Of course other option is to purchase a used phone 6 months or so after release; although you may also get less $$ for the device you are selling at that time? 

@alpinewhite  I sold my used GS6 and GS7 for the same price as someone who paid the full $700.  So no matter how you slice it, I get off better.  Not only that, I was able to unlock these phones after the original owner paid them off, but they were sold to me locked, which lowers the price.  Unlocked phones sell for more.

@alpinewhite  I sold my used GS6 and GS7 for the same price as someone who paid the full $700.  So no matter how you slice it, I get off better.  Not only that, I was able to unlock these phones after the original owner paid them off, but they were sold to me locked, which lowers the price.  Unlocked phones sell for more.

@lizdance40 not sure I follow the logic as to how you come out ahead here unless of course you bought the GS6 for less than $700 and paid noting to unlock? We're on different hardware but I'm seeing iPhone 7 Plus on grey market sell for $600 on average for base 32G model; paying $169.99 more to have the phone almost as soon as it gets released (and in warranty that used device may not have) is not that bad. I've had to replace new iPhones almost regularly! Perhaps I should train myself to follow a new post 6-month release upgrade schedule 😉 

@alpinewhite  Go back and read post 32.  

As I wrote in post 35, I didn't pay $700 for either phone.  I purchased them, used, mint from ATT customers, for half or less than the original owner paid.   Unlocking a phone is free.

I also bought a used iPhone 6 Plus about 6 months after release for $500 and sold it a year later for $500.   

Iphone holds its value better than most all other phones.

@lizdance40 any recommendations based on numbers I provided in #34?

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@lizdance40 wrote:

@alpinewhite  Go back and read post 32.  

As I wrote in post 35, I didn't pay $700 for either phone.  I purchased them, used, mint from ATT customers, for half or less than the original owner paid.   Unlocking a phone is free.

I also bought a used iPhone 6 Plus about 6 months after release for $500 and sold it a year later for $500.   

Iphone holds its value better than most all other phones.

 

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Bottom Line it costs to have crapples phones they hold there value because of there name not the value of the tech inside the device.  How long has android had wireless charging?  How about amoled panels that apple makes seem like are such a new thing(samsung is going to pad there pockets on the iphone  x since they are making the screens and its going to cause a choke point in the supply chain)...  I have to say the funnest thing about the keynote was when the face unlock didnt work on the x demo....  Look if you need the latest and greatest its going to cost you...  My kid wanted a iturd last year for her birthday so we got here one on next 24 and guess what I sure in the heck am trading in here 6s for a 8...  Yeah I never own the phone but its the only one in the family that is that way...   I have used 22 different phones this year.  I am using a note 8 right now but I will switch back to my s8+ which is my favorite device right now.