Apple Online Store iPhone ATT financing

As reported earlier this week, Apple has stopped selling new iPhones to customers on a two-year contract with AT&T as of today.

As first noted by MacRumors, subsidized $199/$299 prices for new iPhones on a two-year AT&T contract have been removed overnight and replaced with the carrier’s financing program called AT&T Next.

AT&T Next has now become an exclusive financing option for new AT&T iPhone purchases through Apple. With Next, you can purchase a new iPhone for $0 down with installment payments spanning 20, 24 or 30 months.

Once the full retail price of your iPhone has been paid through AT&T Next after 12, 18 or 24 installments, the carrier will let you trade in your phone for a new one.

AT&T iPhone subsidies should remain in effect for business purchases through Apple’s stores. MacRumors provided the following price breakdown for latest iPhones on AT&T Next:

iPhone 6

  • 16GB: From $21.64 per month
  • 64GB: From $24.97 per month
  • 128GB: From $28.30 per month

iPhone 6 Plus

  • 16GB: From $24.97 per month
  • 64GB: From $28.30 per month
  • 128GB: From $31.64 per month

These financing options are available through both Apple’s online and brick-and-mortar stores. For what it’s worth, two-year contracts through Verizon and Sprint remain available on the Apple Online Store.

Separately, the rumor-mill has indicated AT&T would kill subsidies for all smartphones, not just iPhones. According to Droid-Life last month, two-year contracts will remain available through AT&T’s website, company-owned retail stores and customer service.

It was reported earlier this week that Verizon will be killing two-year contract subsidies by the end of this summer. As a result, those purchasing an iPhone via Verizon’s Edge program will no longer be eligible for the connected Edge Up feature.

This also means that Verizon customers who became eligible for early hardware upgrades after 18 months will move back to 24 months for the standard Edge program.

Ralph de la Vega, AT&T’s CEO, said three days ago that the two-year contract and the subsidized cellphone, like unlimited data plans, are on the endangered species list.

“I think it is one of those options that is going to go away slowly,” he told Re/code on Tuesday. The shift will happen, de la Vega said, “not because we insist on it but because customers will choose it less often.”

Source: MacRumors

  • Jon20

    OH NOOOOO!!!!

  • BooBee

    Why? I much rather pay the $200 up front and be done with it. I think most people don’t upgrade that often and the whole idea of early upgrades is for a population that is well under 50%. Ugh! If this happens to Verizon I might as well get a pre-paid phone where I pay full price for device and cheaper phone bill.

    • Rowan09

      I went to T-mobile and just buy my phones full price and sell my old phone. In return it’s like I’m paying a subsidized price

    • Jon20

      For real. I got a 6+ 64GB only because I was able to sell my old phone and the rest of the money for it came from my family as a birthday gift and that was at the subsidized price. There is no way in hell I would able to afford that phone paying almost $900 upfront. They must be out of their f%#king minds. Then again we all kind of did it to ourselves in a sense if we upgraded every time a new iPhone came out. Not that I did but for those that, you knew It was eventually going to happen anyway since they saw the profit value in that.

  • Jamessmooth

    “not because we insist on it but because customers will choose it less often.”
    What kind of mind blank is that? Of course customers will choose it less often if those options are slowly taken away from them!

  • Lets see how many phones sell this time around then. Probably won’t be nearly as much. ATT just dug themselves a nice hole with this garbage. The NEXT program is such a joke.

    • Manuel Molina

      I don’t think att dug themselves a hole, as they and their plans tend to dig holes in the pockets of the customers instead (see what I did there?).

      • I can tell you this news has my whole family switching this weekend. I am not going to pay outright for an iPhone that I can afford to just pay the $200 today to get from someone else. Man I hate AT&T! They have done nothing but harass the chit out of iPhone users. First all the bs around the unlimted plan and then with teethering (even though I wasn’t). They are scumbags!

  • Zach

    I fully intend on calling AT&T to let them know that as soon as our contracts are up, they have lost the business of my entire family. I can afford to pay for a phone upfront, don’t insult me by suggesting I would prefer to pay you more money, in installments, over time.

    • Tommy Gumbs

      1. You can still buy the phone up front.

      2. You are paying the cost of the phone in installment payments. You are not paying more than the cost of the phone.

      3. The upgrade cycle is shorter, meaning you won’t have to wait two years to upgrade.

      4. Learn before you bitch.

      • Zach

        When I upgraded to iPhone 6 in November, refusing the NEXT program meant the price of my service plan increased by $50 per month. Also, the 128 GB iPhone 6 starts at $28.30/month, which comes out to a total of $566 – FAR more than the $399 you pay when purchasing the phone upfront. But good points, my frustration is with the company overall not so much the NEXT plan.

      • Tommy Gumbs

        You can still pay for the phone upfront, or you can put 200 down at time of purchase.

        I personally love the NEXT. I used it for my iPad air and 6+.

        It is free true 0% financing. I got my 6+ on NEXT, and paid I have paid it off already, my phone is unlocked, and I HAVE NO CONTRACT! Think about it!!!

      • Zach

        I wonder… did you just change my mind?!? Thank you kind citizen of the internet!

      • Tommy Gumbs

        Plus, when you use the NEXT, they give you a discount on the service to make up for the monthly payments of the device.

      • Only works for some people. I’ve talked 3 times to ATT about NEXT. It will cost 400.00 more a year to switch to it. So I’ll keep my 2 unlimited phones plus 2 other iphones on 2 year contracts. Once they dump the contracts I’ll move to a different company. NEXT program is a joke, it suppose to save money but all it really does is move people off unlimited and limit them from selling their devices.

      • Tommy Gumbs

        I was like you too….when I had grandfathered unlimited plans. Then I realized I was only using 8 to 10 gigs a month. So I went to the 10g plan, which is now the 15G plan, and then they added rollover. Plus I no longer have to be jailbroken to tether. Unlimited plans are not worth it.

      • Minnesota Fats

        Yes they are. I used 17 GB last month on my unlimited AT&T plan. My bill is only $65 a month.

      • Tommy Gumbs

        My bill is about the same(discount), except I can tether.

      • Yeah idk what the heck he is talking about. I use a ton of data each month and have loved always being on the unlimited plan and not having to worry about it. I mean besides the constant harassment to get me off the plan…

      • Tommy Gumbs

        And how does it limit them from selling their devices? I love the NEXT pros that have never even had the service.

      • I’ve already looked thoroughly into the Next program and it is garbage for anyone with more than 1 line. I’ve never met an AT&T fanboy until today but JFC chill out on the defense of this crap.

      • Austin

        In my case i have 4 lines and two of them are children so i use their upgrades on my off years.. so the next program just doesn’t make sense for me. i get the phones cheaper when i sign the contract.

      • Same way we have always used our family plan. Now it sounds like we will be going to Verizon.

    • Minnesota Fats

      Don’t do it. The reps don’t give a damn. So save a breath. They will just be annoyed and laugh at you after the call is done.
      I know, I use to be a T-Mobile rep. It’s the same in every call center. Crappiest job ever.

      • I used to work for them and Nextel too and it definitely is a horrible job. Nextel had it beat though because I worked at a service center, back in the early 2000s, and would have fools coming in complaining about no service in BFE and want me to “look at their phone”.
        Or when someone would walk in, hand you their phone and say, “I dropped this in the toilet.” Well thanks for handing it to me!! lol

  • 

    Can someone please explain this “NEXT” program to me? It’s a little confusing. Thanks!

    • Gary le

      Same here. So Next is good for peps whos wanted to upgrade every year? So what if you dont pay off your phone but the newer phone is out?

  • f96lrs

    I have had unlimited for 10 years if they take that away f””k u ATT

  • emmanuel fernandez

    I’m on Att next program. When they were first doing it, they offered discounts on your bill per Att next phone. I did the math, and I ended up saving money in the long run.

  • The cellphone business is just like the music business. They didn’t plan appropriately and so they backtrack thinking of only themselves.. not the base that made their companies. This is also why the music business is declining in sales every year. Eventually cellphone companies will have the same issue.

    • Carlos Medina

      Highly unlikely. The music industry is going down but then again you can torrent the shit out of every album/song that comes out. Its obtained free so there’s a way to get around that to cause the decline. A cellphone companies is kinda hard to get around especially when its an essential for everyday life now a days. There is no way around it without a third party or purchased outside of contract. This is just my thought on this but i could be wrong.

      • therealjjohnson

        Only way around it would be if there were internet available everywhere you went. Then you could use iMessage, Facetime Audio/Video (or alternatives) instead of a cellular connection. For places like work, home, friends house etc that can work for me now. But in the car and random other places you would be without “service”. If there was internet everywhere (that you could access) then it would be great. I wish…

  • The Afroman

    FYI you can’t keep your grandfathered unlimited data with Next.. This is what KILLS ME. 🙁

    • Nicholas Oldroyd

      Yes you can.

      • igorsky

        Can you keep unlimited if payout full price for the phone up front? They haven’t really been clear about options for unlimited customers with the new pricing.

      • Nicholas Oldroyd

        You can keep unlimited if you bring your own phone (pay full) or use the Next payment plan.

        When you start the new payment contract there is still an unlimited option if are currently on unlimited.

      • igorsky

        Got it…thanks for the info!

      • You sure about this? You are definitely in the minority with this statement but I sure hope you’re right.

      • Nicholas Oldroyd

        Well it’s what the ATT rep told me. He said I could keep my unlimited data on Next.

  • Max

    Did he just say “most costumes will choose unlimited data less often”!!??

  • Jon20

    They are trying to weed out unlimited plans altogether. That’s why they are offering all of these huge family data plans. If there is a family of 5 and 2 of them have unlimited data plans, but they can get a good deal for all 5 lines, they will convert the entire family to a large data plan and it will cause the 2 unlimited plans to lose their unlimited status. That’s how they get you. That’s what they’re trying to do to my brother, his fiancée and her daughter. He has unlimited but his fiancée and her daughter do not. They were trying to offer him a family plan for all of them which means he would lose his unlimited status. He was like screw that!!

  • ChiefSpecialK

    This disappoints me. I just looked at every two years as time to upgrade since even off contract my plan was the same price. Subsidies are supposed to be figured into the monthly rates based on the 2 years you’ll have the device. Well once contact is up that price should lower but it never did. So now I’ll have to pay more overall than I did on my subsidized phone. Smh.

  • mplsdude

    So if I go to NEXT, I pay ~$21 a month, so it takes about 10 months to pay what the subsidized 16GB phone costs on a typical 2-year contract plan. Then I just keep having to pay the $21 a month? Dafuq?! That makes no sense. Why don’t they just come out clearly and say we don’t want to subsidize phones anymore?