5 ms·

What does $27/month mean? Surely no one would pay $27/month instead of $199 up front.

nathos 12y ago
The $27/month via AT&T Next doesn't lock you into a 2-year service contract. Actually, the current AT&T Next offering isn't bad, they simply take the full price of the phone and divide by 20 or 24 months. If you cancel service before the end of the period, you owe the balance of the price of the phone. It's essentially a 0% loan for the phone. (BTW, the $27/month installment price means the Fire Phone's real price is ~$650)
- smackfu 12y ago
  And the second important thing is that if you are on a 10 GB or higher Mobile Share Value plan, an off-contract smart phone costs you $15 instead of $40. https://www.att.com/shop/wireless/data-plans.html https://www.att.com/shop/wireless/data-plans.html So, on Next, you pay $27 per month for the phone, but $25 less for the plan, so $2 more a month or a total of $48. And you need to pay sales tax on the phone, so that's another $50 or so. But the contract plan had to pay $199 up front. So you come out about $100 ahead over the life of the contract.
- chrisBob 12y ago
  Thanks. Its the no-contract feature that I missed. That makes perfect sense and lines up with the way T-mobile prices everything right now.
twrkit 12y ago
There are a lot of people who live paycheck to paycheck.
guywithabike 12y ago
A lot of cell phone purchasers can't front the $199 up front. The amount of money you need to plonk down on day one is a big factor for a lot of people (usually people with low incomes). Of course, generally these "0-down" types of pricing models are basically scams that prey on people who can't pay large sums up-front. It's a shady business model that, unfortunately, works well for the businesses that use it.
maxsilver 12y ago
Lots of people pay the $27/month. It's often more convenient and slightly cheaper. Doing the math : $0 up front + $27/month (phone) + $0 activation (free on AT&T Next) + $65/month (service, 2GB data) * 18 months = $1656 total cost (without taxes) $199 up front + $40 (one time activation fee, required) + $80/month (phone subsidy + identical 2GB plan) * 18 months = $1679 total cost (without taxes). If you paid the $199 upfront, then after 18 months, your still on contract and can't upgrade for another four months and you paid $20 extra. If you paid $0 down and $27 a month, you saved (an admittedly tiny amount) of money, and you can also upgrade six months earlier at no extra cost.

The $27/month via AT&T Next doesn't lock you into a 2-year service contract. Actually, the current AT&T Next offering isn't bad, they simply take the full price of the phone and divide by 20 or 24 months. If you cancel service before the end of the period, you owe the balance of the price of the phone. It's essentially a 0% loan for the phone. (BTW, the $27/month installment price means the Fire Phone's real price is ~$650)

smackfu 12y ago
And the second important thing is that if you are on a 10 GB or higher Mobile Share Value plan, an off-contract smart phone costs you $15 instead of $40. https://www.att.com/shop/wireless/data-plans.html https://www.att.com/shop/wireless/data-plans.html So, on Next, you pay $27 per month for the phone, but $25 less for the plan, so $2 more a month or a total of $48. And you need to pay sales tax on the phone, so that's another $50 or so. But the contract plan had to pay $199 up front. So you come out about $100 ahead over the life of the contract.
chrisBob 12y ago
Thanks. Its the no-contract feature that I missed. That makes perfect sense and lines up with the way T-mobile prices everything right now.

twrkit 12y ago

There are a lot of people who live paycheck to paycheck.

guywithabike 12y ago

A lot of cell phone purchasers can't front the $199 up front. The amount of money you need to plonk down on day one is a big factor for a lot of people (usually people with low incomes). Of course, generally these "0-down" types of pricing models are basically scams that prey on people who can't pay large sums up-front. It's a shady business model that, unfortunately, works well for the businesses that use it.

maxsilver 12y ago

Lots of people pay the $27/month. It's often more convenient and slightly cheaper. Doing the math : $0 up front + $27/month (phone) + $0 activation (free on AT&T Next) + $65/month (service, 2GB data) * 18 months = $1656 total cost (without taxes) $199 up front + $40 (one time activation fee, required) + $80/month (phone subsidy + identical 2GB plan) * 18 months = $1679 total cost (without taxes). If you paid the $199 upfront, then after 18 months, your still on contract and can't upgrade for another four months and you paid $20 extra. If you paid $0 down and $27 a month, you saved (an admittedly tiny amount) of money, and you can also upgrade six months earlier at no extra cost.