It also gives them less incentive to innovate each year. They’ve got a steady stream of income from people on the hamster wheel, as you say. I bet a lot of people with the X are only upgrading because they’re on the upgrade program so they figure it’s not really costing them anything anyway.
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iPhone X all the fuss about iPhone prices...
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It also gives them less incentive to innovate each year. They’ve got a steady stream of income from people on the hamster wheel, as you say. I bet a lot of people with the X are only upgrading because they’re on the upgrade program so they figure it’s not really costing them anything anyway.
Yes, exactly.
But OP appears to have his eyes open to that and simply makes the choice to get a new phone every year. He certainly knows his finances and preferences better than I do.
But you never really “own” anything. If someone pays cash, or 24 months they will own their phone. To some people, that’s important.
You hit the nail on the head. If everyone had to pay cash, or put it on a credit card and pay the monthly interest, these phones wouldn't sell at anywhere near the amount that they do.
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I've read people on these forums say that's exactly why they're upgrading.
Do people buy their houses that the bank has given them a loan for? Technically people doing the carrier or Apple's upgrade programs ARE buying the phones, they are just getting a 0% apr loan to do so. A bank has a lien on the house but you own it as your name is on the deed, and they gave you a mortgage loan for it (and doubtfully at 0% apr). When you lease a car, the dealership or leasing company owns the car...their name is on the title.
Practically, the behavior of using the upgrade program may feel like a lease or look like a lease, but it isn't. I suppose some of you though may also be suggesting all those people buying houses, then selling them and buying another, are just renting.
However, who cares if it meets the definition of a lease or a purchase? Gheesks.
Another question for people who are buying their phones outright is why are you not taking advantage of 0% APR? Say your phone costs $1200, why not stick that amount in an interest-earning account and autopay the $50 per month for 2 years....you won't make much but you will make some. The only reason I could see is if the contract locks you in to a two-year agreement for cell service, but I'm not sure that it does. You can pay the phone off whenever you want.
People who upgrade every year spend way more money than people who only upgrade every 3 or more years, regardless whether they are upgrading every year on the program or buy outright. I'd suggest though that if you are upgrading every 2 years, buying outright every 2 years or not, you may want to look at being on the new phone every year plans. For the price of tax in the off year plus maybe a $30 service fee the cell companies love hooking you for, you get a new phone every year vs buying outright every 2 years.
However, as your financial advisor will tell you, use your phone for 25+ months...maybe even 48 months or more...and you will be "saving" money. In quotes because you cell / data plan is a whole lotta money too. Save money by having a dumb phone, or no phone at all if you really want to.
Practically, the behavior of using the upgrade program may feel like a lease or look like a lease, but it isn't. I suppose some of you though may also be suggesting all those people buying houses, then selling them and buying another, are just renting.
However, who cares if it meets the definition of a lease or a purchase? Gheesks.
Another question for people who are buying their phones outright is why are you not taking advantage of 0% APR? Say your phone costs $1200, why not stick that amount in an interest-earning account and autopay the $50 per month for 2 years....you won't make much but you will make some.
The only reason I could see is if the contract locks you in to a two-year agreement for cell service, but I'm not sure that it does. You can pay the phone off whenever you want. People who upgrade every year spend way more money than people who only upgrade every 3 or more years, regardless whether they are upgrading every year on the program or buy outright. I'd suggest though that if you are upgrading every 2 years, buying outright every 2 years or not, you may want to look at being on the new phone every year plans. For the price of tax in the off year plus maybe a $30 service fee the cell companies love hooking you for, you get a new phone every year vs buying outright every 2 years.
However, as your financial advisor will tell you, use your phone for 25+ months...maybe even 48 months or more...and you will be "saving" money. In quotes because you cell / data plan is a whole lotta money too. Save money by having a dumb phone, or no phone at all if you really want to.
I’ve read this entire thread. I understood OP from the very first post. I get it and agree with him. Why? Because I’m also an ATT next customer. I do the same thing. I’m trading my X in for a XS.
If you intend on getting a new phone every year, it’s far easier and more convienent to just wipe it and mail back your phone to ATT instead of a local sale with some shady buyer in a parking lot or getting taken to the cleaners with eBay fees or some crappy buyer on there who hoses you with a claim or scam.
Everyone has their own opinions on how important their smartphone is in their daily life. That’s why some people don’t have any problems spending more or trading in every year just because hey, they like it so they do.
I see OP’s thread here as an opportunity for someone who may not be an ATT next customer (or Apple’s equivalent) to consider it as an option if they are interested. If not, then move along.
Thanks for sharing.
If you intend on getting a new phone every year, it’s far easier and more convienent to just wipe it and mail back your phone to ATT instead of a local sale with some shady buyer in a parking lot or getting taken to the cleaners with eBay fees or some crappy buyer on there who hoses you with a claim or scam.
Everyone has their own opinions on how important their smartphone is in their daily life. That’s why some people don’t have any problems spending more or trading in every year just because hey, they like it so they do.
I see OP’s thread here as an opportunity for someone who may not be an ATT next customer (or Apple’s equivalent) to consider it as an option if they are interested. If not, then move along.
Thanks for sharing.
You have been arguing with those of us who have told you from the start, that you have been doing nothing more than leasing a phone. And you finally admit such here.
Pretty much. But if you want to get technical, when you lease something , you return it back once the length of the term is complete. On these phone contracts, you don’t have to return the phone. It’s only an “option” through the provider that you can “trade” it in but it’s not mandatory like a lease. So like I said, no, it’s not a lease.
Don’t some leases give you the option to buy at the end, which, again, is basically the same thing as this?
No lease does. The company does after the lease. Understand son. If you lease a car, at the end of the time frame, they have to bring it in. The company records that it was brought in. “Then after”, they ask if they’d like to keep the car, they can pay a fee and whatever the amount is for the car.
“Son”? That’s not condescending at all...
What you’ve describe is for all intents and purposes exactly the same thing. You finish the lease and you end up either giving the item back or paying more and keeping it. The only real difference is that with the upgrade plan you automatically get something new to “lease” when the previous one ends.
Car lease - lease for 36 months. After 36 months, you get the option to keep the car and you pay more.
iPhone payment plan - you signed to pay the phone in 24 or 30 months. In between, you have the option to trade it in for another phone but if not, you keep paying for the phone you have for its original price. You don’t pay more. You bought the phone in payments with the intentions of paying it off. But you do have the option.
No matter what you say or put it, it’s not a lease. So keep trying but it won’t be a lease “son”
I’m sorry, did I offend you somehow? Because you’re intentionally being rude.
Don’t be sorry. You didn’t. You’re just assuming I’m being intentionally rude. That doesn’t mean I am.
Aside from personal preferences (upgrade every 12 months or keep a phone for 3-5 years or longer), the PAYMENT PLAN OPTIONS like the IUP or At&T Next plans are simply alternatives for HOW you choose to pay for your phone. These payment plans are NOT LEASES! They take the full price of the phone and spread the payments over 12/24/30 month period. The longer the pay period, the smaller your monthly payments. You can choose to pay off the phone at any time, then you’d own the phone for the retail price, so what is the big deal?! It’s like buying the phone full price on a credit card.... you just dropped almost 2G’s for your phone, but don’t you still have to pay off your credit card? So guess what? You spent 2G but the BANK actually owns your phone until you pay THEM back.... Does your CC have 0% financing or 14-28% APR?? Ha!
Sometimes I buy phones outright then sell them for about 50% what I paid after 12 months. Other times I use the payment plans because there’s a convenience factor and guaranteed buyback price that I sometimes want. Example: I have an 8 Plus on the IUP and an iPhone X I bought full price. Right now, I have several options with the 8 plus, I can: 1) turn the phone in for a new XS Max, so I only paid 50% of the retail price of the 8 plus and will begin the cycle with a new phone, 2) Decide NOT to upgrade and keep making monthly payments on my 8 Plus until I own it (and I will have paid the SAME PRICE as if I bought it upfront on launch day, 3) Decide to keep the 8 plus and PREPAY the 50% I still owe now all at once, and then I own the phone for the SAME cost as if I bought it upfront, or 4) pay it off to own it and then sell it for 50%, just to get rid of the phone and not have to upgrade to a new one or keep it past 12 months. Whatever I choose, I am not locked into anything. I have FREEDOM!! I love it!! I’m about to sell my iPhone X for a little over 60% what I paid, so I did well there, but I could do the same thing with the 8 Plus even IF I am on the IUP! It’s basically a WASH! So PLEASE stop calling it a “leasing” program, it’s a PAYMENT PLAN that gives you a whole bunch of options to either own the phone outright for the original purchase price and 0% interest, or turn the phone in after paying 50% of the cost and indulge in a new phone. If you want a new phone every year with AppleCare built in, the IUP is awesome. It also made my preorder insanely easy, I don’t think I spent even 2 MINUTES placing my order!!
Sometimes I buy phones outright then sell them for about 50% what I paid after 12 months. Other times I use the payment plans because there’s a convenience factor and guaranteed buyback price that I sometimes want. Example: I have an 8 Plus on the IUP and an iPhone X I bought full price. Right now, I have several options with the 8 plus, I can: 1) turn the phone in for a new XS Max, so I only paid 50% of the retail price of the 8 plus and will begin the cycle with a new phone, 2) Decide NOT to upgrade and keep making monthly payments on my 8 Plus until I own it (and I will have paid the SAME PRICE as if I bought it upfront on launch day, 3) Decide to keep the 8 plus and PREPAY the 50% I still owe now all at once, and then I own the phone for the SAME cost as if I bought it upfront, or 4) pay it off to own it and then sell it for 50%, just to get rid of the phone and not have to upgrade to a new one or keep it past 12 months. Whatever I choose, I am not locked into anything. I have FREEDOM!! I love it!! I’m about to sell my iPhone X for a little over 60% what I paid, so I did well there, but I could do the same thing with the 8 Plus even IF I am on the IUP! It’s basically a WASH! So PLEASE stop calling it a “leasing” program, it’s a PAYMENT PLAN that gives you a whole bunch of options to either own the phone outright for the original purchase price and 0% interest, or turn the phone in after paying 50% of the cost and indulge in a new phone. If you want a new phone every year with AppleCare built in, the IUP is awesome. It also made my preorder insanely easy, I don’t think I spent even 2 MINUTES placing my order!!
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Well, I said that I found being called “son” condescending, and you made a point of doing it again. If you didn’t think that was rude, it’s a genuine shame that no one taught you better manners.
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It’s a genuine shame you get offended so quick. Whatever floats your boat. Let me ask, are you mad because it’s not a lease like you said? I’d like to know if you want to answer if not, good day.
Your rudeness doesn’t offend me. Just pointing it out for what it is. Remember, I apologized because I thought I had offended you, given the snarky response.
What's cute is that you think you're paying less in the end by doing it this way. Hint hint, you're not.
Could you go back to my previous post. I edited and asked you a question. If you’d like.
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never said or implied that. you're projecting.
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are you alright?