Do you suffer from phone envy? I can admit that cell phones are my weak spot and it drives me crazy when I don’t have the latest gadget. I usually count down my eligibility for a phone upgrade like one would a prison sentence. Only 4 months, three days, and five hours until I can trade in this outdated phone…
The two-year upgrade cycle has been the standard, but AT&T just changed all that with a new program called AT&T Next. In a nutshell, if you sign up for AT&T Next you can upgrade your phone (or tablet) as frequently as once a year. There is no down payment, no activation fee, no upgrade fee, and no financing fee. It is a pretty sweet deal, especially if you are always lusting after the latest phone.
Here’s how it works. Just divide the full, no-contract price of whatever phone or tablet you want by 20. This will be your monthly price for a new smartphone or tablet under the AT&T Next program. For example, an iPhone 5 (16 GB) would be $32.50/mo, the Lumia 1020 would be $33/mo, and the Galaxy S 4 would be $32/mo. AT&T Next is available with all of their smartphones and tablets, so it makes getting the latest device really affordable.
After 12 months, you can either trade in your phone or tablet for something new, or you can keep using it and have no more installment payments after 20 months. You can read all the fine print on the AT&T Next site, but overall it is a great deal. Just the fact that you don’t have to pay a financing, activation or upgrade fee puts it a step ahead of plans offered by other carriers. I’ve included a video below, which gives a nice overview of how AT&T Next works.
Update (Nov 2013): If you are looking at the new iPad Air, you can pay $629 for the WiFi + cellular model, or use AT&T Next to break that down into monthly installments of $31.50. It works out to be the same cost for the tablet either way, but the monthly installments are easier on the family budget.
Update (Dec 2013): For those who wanted to see a lower monthly rate after paying off the cost of the phone, AT&T now has Mobile Share Value Plans. When you combine the Mobile Share Value Plans with AT&T Next, you get a way to reduce your monthly cell phone bill and you can avoid paying a large, lump sum for a new phone or tablet. When you pay off your phone (you choose if you want a 12 or 18 month payment plan), your monthly bill will then go down. It is a great deal worth checking out.
Image via AT&T
That sounds like a neat program. Thanks for sharing this.
Is this good for iPads as well?
It is good for tablets as well. It is actually a great way to finance an iPad without paying interest.
Doesn’t it always seem like they come out with a new phone a week after you buy one? I’m glad they finally have something like this where you can get the newer phone quicker.
I bought my iPhone 5 in September 2012. It took them a year to come out with a new one.
I’d rather wait the two years, not pay full price for the phone and have no monthly installments. Yeah I would love the ability to get a Phone every year, but would rather take the discount, thank you. Other providers, including Pre-pay providers have the same deal, if you really NEED that new device you can buy it outright and not have any additional monthly fees and NO CONTRACT. AT&Ts plan only shortens the contract by a year and makes you pay full price for a phone albeit in installments. Its a rip off, don’t fall for it! No technological advancement is worth being so impatient that you are paying around 600 dollars a year for a phone that you could get for less than half that if you just wait. You are basically renting the phone if you decide to trade it in, add up the numbers. You don’t make out on the deal any way you slice it.
The AT&T Next program might not be for everyone, but it is a nice option for those who want to upgrade more often or who might not be able to shell out full retail price for a phone. I personally think AT&T Next is a great option for a tablet, which can usually cost upwards of $800 – $1000 at full cost.
The average phone costs around $500 at full retail price, so depending on how much is in your bank account it could be worth purchasing the phone outright (like you suggested) or going with a monthly installment plan if paying the full retail price would break the bank.
Thanks for stopping by the blog and for sharing your thoughts. It is very much appreciated.
What about us folks that have had our IPhone 4s for 18 months? Do we have to wait the fuil 24 months to upgrade or can we do it now ? And if we do it now, what is the deal ?
If you are an existing AT&T customer, you need to be upgrade eligible to sign up for this program. If you originally signed up for a standard 2-year contract, then it would seem like you will be eligible for this within a few more months.
I highly recommend galaxy than iphone
What do you like about the Samsung Galaxy line of phones? I’ve heard good things about them from friends. What features do you think make the Galaxy a better choice than an iPhone?
Samsungs go outdated a lot faster than iPhones. The OS you buy a samsung with is mostlikely the OS it will die with. Sometimes there will be one OS Upgrade. You can generally get the latest OS on an iPhone for about 3 years or so.
Galaxy S3 Android 4.3 upgrade rolling out as of yesterday on AT&T.
Are you kidding? This is a terrible deal. You are, in effect, paying for the cost of the phone twice (it’s built into the cost of the cell/data plan these days). Not only are you paying double, but you *don’t get to keep the device* until you pay well over MSRP for it. Unless AT&T drops the price of the plans (doubtful), you are getting ripped off.
If you have gear lust that bad, you might want to pony up and do the typical “off contract and sell” runaround.
Paying the full cost of a phone outright is one option, but isn’t practical for many people. If I were to buy new phones at full retail price for each member of my family, I would need to pay about $1,800 out of pocket today. The thing I like about AT&T Next is that it gives you the option of making small payments over time, which makes getting the latest smartphone a more affordable luxury.
Thank you for visiting the blog and for sharing your thoughts.
Good point. My main issue is the fact that these numbers are basically hidden from you (math wise). It’s arguably tricking the consumer into thinking it’s a better deal than it is. However, your math also assumes your entire family is upgrading yearly? I just think having the option of a “3rd party market” such as Swappa/Craigslist/Ebay offers some vital options- even companies with cell phone trade in rebates are popping up now.
But, different strokes for different folks (as you mentioned). Sorry if I came across as harsh- definitely not my intention.
I think it goes to show that it is important to read the terms of your contract carefully to make sure it is the right deal for you. AT&T Next isn’t a free phone deal or a loophole for getting a discount phone. It is just a new way to upgrade your phone more often and, of course, there is an associated cost for that luxury. It might not be right for everyone, but it is nice to have the option in addition to all the other plans out there.
From personal experience, I have also found that third party markets are great sources for used phones. I haven’t been able to find many deals on new phones however. Maybe I’m just looking in the wrong place.
Thanks again for visiting the site and for the insight. I didn’t realize there was this much interest in cell phone plans when I wrote the article. I just thought it was a nice way to finally get a new tablet for my son and felt it was worth sharing. I appreciate the added perspective you’ve shared.
totally agree with you. I upgrade only on the big ones (3 to 4, 4 to 5) and every two years works great. Unless you churn your phone constantly, this doesn’t make sense
If you sign up for a 2-year contract you’ll most likely get the phone at a discount. When I signed up for my wireless and bought my iPhone, it was a $600 difference than if I had bought my phone outright. My carrier is not AT&T, but they had the same deal, give or take.
I suppose if you’re really that unable to wait this plan makes sense and you’ll save half the cost of a full price phone. I’m a use it up, wear it out, make it do, or do without sort of person and the economical effect of a new phone every year is much too high.
yes need a new phone and number
You can’t take advantage of this program until you are eligible for a regular upgrade anyway! How stupid is that?!!! I thought this “Next” program was my answer to getting the latest phone today!! NOT!! It’s a rip-off!!
I don’t think the program was designed to get you out of your existing 2-year contract. That’s why you have to either be a new customer or upgrade eligible to sign up for AT&T Next. But if you are the type who likes to upgrade frequently, the plan is something worth considering the next time you’re up for renewal.