RIP Contracts

[Radeon962]

You also forget that on a Family Share Plan like AT&T if you BYOD or do a Next plan you get a $25/line credit so each additional line is $15/mo rather than $40/mo for a contract phone. This only applies to the higher tier data plans 10gb and up if I remember correctly.

I have 8 phones on the 15gb plan but awhile back AT&T doubled your data for free going forward so it's actually 30gb a month to share.

With a 2 year contract (and they are still doing them) you don't get any discount.

I just buy my phones used and sell my previous phone.

 

[NutBucket]

A co-worker of mine who still has unlimited data went into a store for a new phone today and was told he'd be able to keep the unlimited as long has he bought the phone outright and didn't pay in installments. Not sure if we had a solid answer on how that would work yet or not.

AFAIK that is how it works now.

 

[shady28]

It was an easy way to mask the true cost of a handset. That's basically what it comes down to.

Americans love "free" stuff....

Depends on what you buy as to what is cheaper.

On Verizon's old plan - this is what I have
$60/month 6GB/mo unlimited text/voice shared
$40 / mo for phone 1
$40 / mo for phone 2
----
$140 total


iPhone 6 64 GB = $300 up front for 2yr contract vs $750 purchase price
x2
So $600 for $1600 worth of phones subsidized = $1000 "subsidized"


New plan -
$60/mo for 6GB shared plan
$20 / month for phone 1
$20 / month for phone 2
-----
$100 / month

$40/month savings x 24 months = $960
-- This is only if you buy the phone up front

If you do not buy the phone up front but make monthly installments :

New plan -
$60/mo for 6GB shared plan
$20 + $31/ month for phone 1
$20 + $31/ month for phone 2
----
$161/mo = +21 /month over the old plan
$504 more expensive over 2 years


So summary :
Using subsidized plan as a reference -

• Paying up front is $40 more expensive than subsidized 2 year contract
  
  NOTE: This does not include the fact that in my state, you'd also pay an extra $80 in sales tax​
• Paying monthly installments is $504 more expensive.

As always, this new plan is meant to make money for Verizon.

They are not stupid ya know, this is what all those business and marketing majors went to school to learn how to do.

 

[Artdeco]

A co-worker of mine who still has unlimited data went into a store for a new phone today and was told he'd be able to keep the unlimited as long has he bought the phone outright and didn't pay in installments. Not sure if we had a solid answer on how that would work yet or not.

Introduce your friend to Swappa, teach them to buy slightly used phones, and save a ton of $.

 

[Artdeco]

Depends on what you buy as to what is cheaper.

On Verizon's old plan - this is what I have
$60/month 6GB/mo unlimited text/voice shared
$40 / mo for phone 1
$40 / mo for phone 2
----
$140 total


iPhone 6 64 GB = $300 up front for 2yr contract vs $750 purchase price
x2
So $600 for $1600 worth of phones subsidized = $1000 "subsidized"


New plan -
$60/mo for 6GB shared plan
$20 / month for phone 1
$20 / month for phone 2
-----
$100 / month

$40/month savings x 24 months = $960
-- This is only if you buy the phone up front

If you do not buy the phone up front but make monthly installments :

New plan -
$60/mo for 6GB shared plan
$20 + $31/ month for phone 1
$20 + $31/ month for phone 2
----
$161/mo = +21 /month over the old plan
$504 more expensive over 2 years


So summary :
Using subsidized plan as a reference -

• Paying up front is $40 more expensive than subsidized 2 year contract
  
  NOTE: This does not include the fact that in my state, you'd also pay an extra $80 in sales tax​
• Paying monthly installments is $504 more expensive.

As always, this new plan is meant to make money for Verizon.

They are not stupid ya know, this is what all those business and marketing majors went to school to learn how to do.

Yes, that's exactly what they do, I'd bet they have an outside company do the financing and get a % of the sale of a financing plan paid back to them for the referral, they make $, and another company assumes all the risk. It's actually pretty impressive how they do that and still screw us over more.

Read a bit by an analyst, suggesting financed phone sales will be good, because they'll offer creative financing and leasing, like $0 down, or deferred payments for a number of months, just like they do with car loans and leases.

 

[Raghu]

Depends on what you buy as to what is cheaper.

On Verizon's old plan - this is what I have
$60/month 6GB/mo unlimited text/voice shared
$40 / mo for phone 1
$40 / mo for phone 2
----
$140 total


iPhone 6 64 GB = $300 up front for 2yr contract vs $750 purchase price
x2
So $600 for $1600 worth of phones subsidized = $1000 "subsidized"


New plan -
$60/mo for 6GB shared plan
$20 / month for phone 1
$20 / month for phone 2
-----
$100 / month

$40/month savings x 24 months = $960
-- This is only if you buy the phone up front

If you do not buy the phone up front but make monthly installments :

New plan -
$60/mo for 6GB shared plan
$20 + $31/ month for phone 1
$20 + $31/ month for phone 2
----
$161/mo = +21 /month over the old plan
$504 more expensive over 2 years


So summary :
Using subsidized plan as a reference -

• Paying up front is $40 more expensive than subsidized 2 year contract
  
  NOTE: This does not include the fact that in my state, you'd also pay an extra $80 in sales tax​
• Paying monthly installments is $504 more expensive.

As always, this new plan is meant to make money for Verizon.

They are not stupid ya know, this is what all those business and marketing majors went to school to learn how to do.

Upfront payment leaves you with assets that you can sell, for more than $40?

 

[openwheel]

Too many people out there still believing an iPhone costs $199.99. Way too many.

 

[KentState]

A co-worker of mine who still has unlimited data went into a store for a new phone today and was told he'd be able to keep the unlimited as long has he bought the phone outright and didn't pay in installments. Not sure if we had a solid answer on how that would work yet or not.

Still works that way. I actually was able to upgrade another line and just swap the phone to the unlimited one.

 

[shady28]

Upfront payment leaves you with assets that you can sell, for more than $40?

True but then you incur major losses. You could cancel your subsidy plan and sell your cell phone too.

In any case the point is, Verizon subsidy plan mostly screwed people who bought a cheap phone. ie, someone who got a 'free' $300 phone got jerked over. Basically the subsidy was/is only good if you are buying the most expensive phones on the market like SGS6 Edge or iPhone 6 + and at the same time upgrade immediately when your contract is up.

Everyone else did / does get hosed. But then new plan doesn't take money out of Verizon's pocket, it will probably just make people get cheaper phones.

 

[ImpulsE69]

True but then you incur major losses. You could cancel your subsidy plan and sell your cell phone too.

In any case the point is, Verizon subsidy plan mostly screwed people who bought a cheap phone. ie, someone who got a 'free' $300 phone got jerked over. Basically the subsidy was/is only good if you are buying the most expensive phones on the market like SGS6 Edge or iPhone 6 + and at the same time upgrade immediately when your contract is up.

Everyone else did / does get hosed. But then new plan doesn't take money out of Verizon's pocket, it will probably just make people get cheaper phones.

As much as I like progress, I see this as a possibly good thing. The companies need to support their phones longer rather than drop support as soon as they are out the door.

 

[shady28]

As much as I like progress, I see this as a possibly good thing. The companies need to support their phones longer rather than drop support as soon as they are out the door.

Let me see..

So if companies like Samsung, LG, and HTC drop updates for $600 flagship phones after 2-3 years, you think that they or the many ultra-cheap phone makers are going to keep support for a plethora of $150-$300 phones?

If you want support for a phone for its normal lifespan, the best bet is top tier flagship phones from big companies (like Samsung, LG, or Motorola), or a Nexus, or Apple.

 

[NutBucket]

Still works that way. I actually was able to upgrade another line and just swap the phone to the unlimited one.

Did you do that before or after 8/13?

 

[Bman123]

You want support then buy a Motorola x, nexus or iphone. Samsung isn't better then anyone else with updates, especially if you use verizon. I'm over samsung and the shit updates with verizon. Nexus or new moto x for me this year

 

[KentState]

Did you do that before or after 8/13?

Did it yesterday, 8/15.

 

[Midwayman]

Depends on what you buy as to what is cheaper.

On Verizon's old plan - this is what I have
$60/month 6GB/mo unlimited text/voice shared
$40 / mo for phone 1
$40 / mo for phone 2
----
$140 total


iPhone 6 64 GB = $300 up front for 2yr contract vs $750 purchase price
x2
So $600 for $1600 worth of phones subsidized = $1000 "subsidized"

New plan -
$60/mo for 6GB shared plan
$20 / month for phone 1
$20 / month for phone 2
-----
$100 / month

$40/month savings x 24 months = $960
-- This is only if you buy the phone up front

If you do not buy the phone up front but make monthly installments :

New plan -
$60/mo for 6GB shared plan
$20 + $31/ month for phone 1
$20 + $31/ month for phone 2
----
$161/mo = +21 /month over the old plan
$504 more expensive over 2 years


So summary :
Using subsidized plan as a reference -

• Paying up front is $40 more expensive than subsidized 2 year contract
  
  NOTE: This does not include the fact that in my state, you'd also pay an extra $80 in sales tax​
• Paying monthly installments is $504 more expensive.

As always, this new plan is meant to make money for Verizon.

They are not stupid ya know, this is what all those business and marketing majors went to school to learn how to do.

Wait a minute-

Case 1- $3960 over 24mo. own 2 phones.
Case 2- $4000 over 24mo. own 2 phones.
Case 3- $3888 over 24mo. own 2 phones.

Assuming your numbers are accurate installments is the cheapest total. You're only paying $744 per phone vs $800. Unless that's a rounding error on your part. Though you also mention $750 as the purchase price, so that skews the numbers slightly in favor of the contract. In any case your math isn't adding up. You're ignoring the cost of the hardware on some of your cases.

 

[shady28]

Wait a minute-

Case 1- $3960 over 24mo. own 2 phones.
Case 2- $4000 over 24mo. own 2 phones.
Case 3- $3888 over 24mo. own 2 phones.

Assuming your numbers are accurate installments is the cheapest total. You're only paying $744 per phone vs $800. Unless that's a rounding error on your part. Though you also mention $750 as the purchase price, so that skews the numbers slightly in favor of the contract. In any case your math isn't adding up. You're ignoring the cost of the hardware on some of your cases.

You're correct, the error I made was here :
"$600 for $1600 worth of phones"

It's 1500 worth of phones (2x 64GB iPhone 6's).

The up-front purchase is actually the most expensive.

In my state sales tax on the unsub \ up front BYOD plans will make them $66 more expensive vs subsidized than shown below over a 2 year time frame.

That basically brings all 3 plans to within $20 of each other over 2 years.

So the only real difference regards contract terms.

	       Cost per month	x24 months	Up Front Cost  Total		
Subsidized plan	        140	3360	                600	3960	     2yr contract
Unsub / Up Front     	100	2400	                1500	3900	     No contract
Monthly Pay	        161	3888	                0	3888	     contract until paid

 

[NutBucket]

Did it yesterday, 8/15.

Interesting. I read they were doing away with swapping transfers.

 

[s44]

He didn't swap the upgrade, he swapped the phone when the other line had its own upgrade. They can't stop that.

 

[NutBucket]

Ah, you are right. I misread.

 

[GoodEnough]

What's the deal with Verizon?
I was slated to get a phone upgrade in April, 2016.
Is that still going to happen?