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Comments on news posted 2013-01-28 07:53:09: AT&T CEO Randall Stephenson has hinted that the company could follow T-Mobile's lead and offer handsets under a finance plan. ..

page: 1 · 2

saratoga66

join:2002-08-22
Saratoga, CA
reply to flycuban

Re: What a bad idea

Your math is a little off. You are not getting that $800 phone free if you upgrade under the current plan. You still have to pay part of it at the time of upgrade.

A 32G I5 at AT&T is $750 retail. If you get it under the current plan you will have to pay $300 at the time of upgrade. That means you are financing $450 of the phone. If AT&T lowers the price plans by $20/mo and you pay the full retail for the phone you could upgrade every 22 months for about the same price.


desarollo

join:2011-10-01
Monroe, MI
reply to TWCcdman

Re: Will the bill actually be lower?

said by TWCcdman:

It would make upgrading to the latest phone cost prohibitive for many. I was in the habit of upgrading my iPhone with each new generation. That may no longer be possible. In the end thought its still the consumer that gets the shaft and the corporations still take in profits.

The costs of the handsets would then be set by a real market, not what the handset manufacturers and cellular phone companies collude & determine to be mutually beneficial to themselves, not the consumer.

Apple and Samsung sure seem to sell a lot of phones in countries without handset subsidies...I think we'll be fine here once it happens.

jagged

join:2003-07-01
Boynton Beach, FL

1 recommendation

reply to sharksfan3

Re: It's a great change

tell me about it

I know people working retail and we chat almost every day. And it's the same thing, people buying the iPhone 4s then coming to the store when the iPhone 5 come out and ask for it and act all surprised when they learn that the phone's cost is not $199


jagged

join:2003-07-01
Boynton Beach, FL

1 recommendation

reply to DaveDude

Re: rather it this way

yeah, will have to pry that control out of AT&T and Verizon's cold dead hands first



cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7
reply to Telco

Re: Will the bill actually be lower?

said by Telco:

My plans cost half as much when I BYOD overseas

I've often have heard such claims, and I'm curious as to the exact details. Can you please specifically state what carrier/plan you have here in the US (along with the number of minutes/text/data you get each month, as well as the corresponding plan in whatever country you went to where the plan was 1/2 the price when you BYOD.

BiggA

join:2005-11-23
EARTH

1 recommendation

reply to Skippy25

Agreed. If AT&T goes ahead with this, Apple will either be substantially re-thinking the way they price their devices, or their marketshare in the US will start free-falling. In the Android world, if the bigger, more established players don't want to start lowing prices, ZTE, Hauwei, and others will do it for them.



Dummy

@comcast.net

No more contracts?

Question..currently if your contract is up and you decide to purchase a phone full retail they will not put you on a new 2-yr contract. Will this eliminate contracts all together?


kerya666

join:2002-12-20
Valrico, FL
reply to mocycler

Re: Will the bill actually be lower?

said by mocycler:

said by TWCcdman:

It would make upgrading to the latest phone cost prohibitive for many. I was in the habit of upgrading my iPhone with each new generation. That may no longer be possible.

Or to put it another way, you upgraded when you normally would not have just because you could...the cell provider ate a big chunk of the cost of the new phone. So why not?

Now that they are taking away your free ride and, you know, expecting you to pay full fare for your ticket, you're pissing and whining about "getting the shaft", as if not getting the latest and best the moment it hits the market makes one abused and mistreated by the Big Bad Cell Company.

It's funny how people are ok with sucking others dry but suddenly become soooo conservative about money when it involves their own wallet.

Actually it was the other way around. ATT's monthly bill already included the cost for assumed phone that you got "subsidized" form them. Whether you upgraded phones every 2-year contract or not they still charged you for it as you did.
i.e. if you brought your own phone you will get 0 discount unlike some European carriers.

So the only person getting shafted is the customer who did not use something they already paid for in the original obscene bill.

Besides they get these phones in bulk for fractions of what retail price is so they get positives form the whole deal either way.


SHoTTa35

@optonline.net
reply to Dummy

Re: No more contracts?

You can always sign up with AT&T without a contract, this was the case as always. THere wasn't a benefit however because you paid the same price as if you had a contract.

With T-Mobile - you pay less per month than people that have a contract if you buy your phone full price.

For me, i save so much money per year ($700-900) that I can afford to buy a new phone every year without even thinking about it. My plan on AT&T used to cost my $110/month (+ taxes/fees), now I pay $50 (taxes included) for MORE than I had before (get international calls now included ).



Derek32880

@newwavecomm.net

what some of you don't realize is you are being lied too by the cellphone carriers in order to get more money out of you lets look @ the reality of it first..

1) The companies say that have to have such high prices to cover the cost of the phone.. OK then why are the prices STILL the same if you buy the phone at full price up front?

2) why is there a $350 ETF that only subtracts $10 a month that you stay in the contract? if you go a full year you've only knocked off $120 there is still $230 you'd have to pay.

3) why do you have to pay $300 for a phone under the subsidy when well go back and read #1

now here i'm gonna do guess work these are not actual facts but considering the fact that it is a fact how business works then even if i'm not exactly accurate you get the idea

Companies PROBABLY spend $100 for 1,000,000 mins and probably about the same or less for text/pic messages and probably $100 for 1,000 GB of data (as i said these are just guesses and are not facts)

so basically each consumer pays MORE for each of these since unlimited talk, text is now something that many consumers are using less of the companies lowered these charges so basically we now probably pay $25-$30 for unlimited talk, and text and (with verizon) $10 for 1GB of data and the rest is paying for that smart phone.

IF this is the case that would put $300 down +$60x24 for that phone for a total of $1740 over a course of 2 years for a smartphone that is worth what? $200-$300? (this is some not all i dunno about Samsung but the HTC Thunderbolt definitely was worth about $200 and that's it)

now I ask you would u rather pay $700 for a phone or $1740?


negritude

join:2006-04-06
Oakland, CA
reply to BiggA

Re: Will the bill actually be lower?

said by BiggA:

If AT&T goes ahead with this, Apple will either be substantially re-thinking the way they price their devices...

»www.macrumors.com/2013/01/28/app···-curves/

tanzam75

join:2012-07-19
reply to jagged

Re: Hate to say it but...

said by jagged:

And if AT&T is planning on doing it, guess what Verizon is thinking about? Yep, same thing. It's just a matter of time, to let the mathematicians figure out the pricing so ARPU and EBITDA don't drop take a it.

But it's interesting that AT&T is first to follow along. Are they seeing a lot of iPhones defections over to T-Mobile? Because they're a GSM/SIM-based carrier, it's easy for someone to take their old AT&T phone over to T-Mobile. And as the most iPhone-heavy carrier (80% iPhones), AT&T is also paying the most in subsidies.

Verizon doesn't feel quite as much pressure from T-Mobile, because they're a CDMA/ESN-based carrier. You have to buy a new phone to switch to T-Mobile, and that's a barrier.

Sprint has already given its pound of flesh to Apple. They're stuck.

BiggA

join:2005-11-23
EARTH
reply to negritude

Re: Will the bill actually be lower?

Or they could just take $350 off their current pricing model and be all set. Oh wait, that would eat up much of their massive, bloated margins.