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Can someone explain cell phone upgrades?

Posted on 12/25/17 at 1:41 pm
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 1:41 pm
I have cell service with AT&T. I currently have a Samsung galaxy s6 and was thinking of getting a new phone. (galaxy s7)

For years previous, I would simply, use my "free upgrade", pay $200 for my new phone and be on my way.

Now however, AT&T tells me I have a free upgrade and offers me a new phone at $20 per month for 30 months.

Wtf?!? A "free upgrade" means paying $600 for a new phone?

If they want to hose me, and sell the phone for $600 across the board, at least tell me. Don't tell me I'm getting a "free upgrade" then charge me what you'd charge anyone else for the same phone.

Am I misunderstanding something?
Posted by bluebarracuda
Member since Oct 2011
19160 posts
Posted on 12/25/17 at 1:57 pm to
Welcome to 2015.

They let you buy that $200 upgrade and then stretch the rest of the payment over the 2 years of your bill
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 2:00 pm to
I mean I was fine with doing the two year contract with a $200 phone. Whatever.

I just can't fathom paying $600 for a phone. Especially since they had no issues selling it for $200 not even a few years ago
This post was edited on 12/25/17 at 2:02 pm
Posted by Big Saint
Houston
Member since May 2009
1463 posts
Posted on 12/25/17 at 2:10 pm to
Business model changed. No more subsidized phones. iPhones are pushing $1000 now so could be worse for you. Like the previous poster said... This has been the case since 2015.
Posted by BACONisMEATcandy
Member since Dec 2007
46680 posts
Posted on 12/25/17 at 2:11 pm to
You used to pay $40 per line and now pay $25 per line. Our cell phone bill is as cheap as it’s ever been and we all have unlimited.

Overall you are paying the same just in different ways
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 2:19 pm to
I am paying the same for my phone bill as I have been for years.

I'll stick with my s6 until it stops working before I pay $600+ for a phone. That's insane.

Posted by BACONisMEATcandy
Member since Dec 2007
46680 posts
Posted on 12/25/17 at 2:32 pm to
That’s on you for not changing your plan
Posted by kengel2
Team Gun
Member since Mar 2004
33537 posts
Posted on 12/25/17 at 2:33 pm to
It's a financing plan. The old way when you paid your $200 and left you were still financing it only your payments never ended and your bill never went down.

The new way, once the phone is paid for your bill goes down.
Posted by bluebarracuda
Member since Oct 2011
19160 posts
Posted on 12/25/17 at 2:34 pm to
quote:

I'll stick with my s6 until it stops working before I pay $600+ for a phone


Look for one cheaper then? Is it that hard?
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 2:36 pm to
My bill goes down the equivalent of the difference?

I have unlimited text and unlimited data.

I find it difficult to believe they are gonna charge me $25 per line (as a previous poster mentioned) with all that just bc I buy a $600 phone.
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 2:37 pm to
That is the cheapest.

Unless I go refurbished on Amazon for $300-$400.

$600 for a standard smart phone is too much.
This post was edited on 12/25/17 at 2:39 pm
Posted by Big Saint
Houston
Member since May 2009
1463 posts
Posted on 12/25/17 at 2:44 pm to
quote:

I find it difficult to believe they are gonna charge me $25 per line (as a previous poster mentioned) with all that just bc I buy a $600 phone.


That's on you then... Verizon or AT&T it doesn't matter. That is the standard pricing model now plus your phone payment. Once phone is paid off then it's just $25 hence your bill dropping. Go look at your carrier's website instead of asking on here since you think everyone's opinion on here is incorrect.
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 2:49 pm to
Not saying it's incorrect, I just feel like I'm misunderstanding.

I pay roughly $100 per month, no phone payment.

I can't imagine att foregoing the $75 per month for two years, because I'm paying an extra $400 for the phone.

I will research further. Thanks.
Posted by Big Saint
Houston
Member since May 2009
1463 posts
Posted on 12/25/17 at 2:52 pm to
They still get their money those first two years in the form of the monthly phone payment and the monthly usage payment.

The perk is after the phone is paid off that payment is gone leaving you with a lower monthly bill. It does actually work out better for most folks once you get your head around it. It's just a different pricing model to allow the phone companies to make a killing on the crazies that change their phone out every year for some reason.
Posted by jcole4lsu
The Kwisatz Haderach
Member since Nov 2007
31843 posts
Posted on 12/25/17 at 5:24 pm to
quote:

If they want to hose me, and sell the phone for $600 across the board, at least tell me. Don't tell me I'm getting a "free upgrade" then charge me what you'd charge anyone else for the same phone.

you are getting an interest free loan to purchase your new phone
at least this way, now people understand how expensive flagship phones really are instead of thinking the mini computer in your hand is only $200.
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 5:29 pm to
quote:

at least this way, now people understand how expensive flagship phones really are instead of thinking the mini computer in your hand is only $200.


I always saw the "market price" (for lack of a better term) of the phones I was purchasing. I thought they were simply bloated to allow for these "free upgrades" and the $200 replacement costs.

I was fine with $200 and paying my phone bill every month.

I'm going to head to the AT&T store tomorrow to see what I can do.

I never changed my plan because I was grandfathered in with unlimited data whenever unlimited data was no longer offered. Now it seems that is not the case.

If I can get the same pricing outcome over the 24 months I pay for the phone, I'm okay with that. But it wouldn't make sense, in my mind, to pay the extra $400 for the phone and still pay the same amount for my bill.

Their website doesn't do a great job of explaining the transition for my current plan to the new ones with the monthly phone payments.

Good news is, I tend to keep phones for a while before I switch, so I won't take the hit there by having to give the phone back any time soon.
Posted by Big Saint
Houston
Member since May 2009
1463 posts
Posted on 12/25/17 at 5:32 pm to
quote:

If I can get the same pricing outcome over the 24 months I pay for the phone, I'm okay with that. But it wouldn't make sense, in my mind, to pay the extra $400 for the phone and still pay the same amount for my bill.


I think you'll be in for a very pleasant surprise after you speak with AT&T. You definitely won't be paying $400 more than you currently are so don't fret there. Also, unlimited data is available again so you can change your plan to the new version without fear of losing your grandfathered unlimited data plan.
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 12/25/17 at 5:36 pm to
quote:

Also, unlimited data is available again so you can change your plan to the new version without fear of losing your grandfathered unlimited data plan.


This was the entire reason I never changed my plan on my last phone purchase 2-3 years ago.

I'm glad I brought this question up. I had no reason to keep up with what was going (concerning their business model) as I was satisfied with what I had.

Thanks for everyone's help
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