No more two-year contracts for AT&T branded iPhones sold via the online Apple Store

The other day, AT&T Mobile CEO Ralph de la Vega said that the era of subsidized handsets was coming to an end. As a result, the carrier is no longer offering the iPhone with subsidized pricing via the online Apple Store. Previously, AT&T customers willing to affix their John Hancock to a two-year contract were able to buy the 16GB Apple iPhone 6 for $199.99, and the 16GB Apple iPhone 6 Plus for $299.99. The actual retail price of both models is $649 and $749, respectively...
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35 Comments

1. CAMBODIANPATRIOT

Posts: 226; Member since: May 10, 2015

can't wait for the next generation iPhone

19. guest

Posts: 372; Member since: Jun 13, 2012

I wonder if people are still going to buy the expensive phones if subsidies are going away.

33. Augustine

Posts: 1043; Member since: Sep 28, 2013

Much like people stopped buying McMansions (have they?) after credit was tightened, indicating that they couldn't really afford them or their expensive phones.

37. michaelny2001

Posts: 328; Member since: Aug 01, 2012

i was thinking the same. Guess people will lay off Apple for a while and open their eyes to something else. $750 for a phone? Hahah

23. waddup121 unregistered

wow nice

2. AlikMalix unregistered

Can I still keep my unlimited plan with 2 year contract if I purchase an iPhone at the AT&T store? Will they still subsidize phones? Or will they get rid of subsiding if u want to keep unlimited like Verizon did years ago? This worries me a little.

5. phonehome

Posts: 812; Member since: Dec 19, 2014

I am eligible for an upgrade and can get subsidized pricing (now exclusive to buying directly through ATT). They will probably do away with this as well, but will give some notice and grace time. Even so, I wouldn't wait too long. Seriously doubt if next year's (2016) iPhone will be eligible for subsidized pricing.

7. AlikMalix unregistered

Thanks, I don't mind the NEXT/EDGE programs as extra $30 a month won't hurt me, but I'm more concerned about my unlimited plan - I want to keep it. AT&T has been good to me for years and years, but Verizon is calling with its better spectrum where I live. So if they get rid of my old unlimited plan (or force me to buy the next phone for full price) -- they will probably loose a 15 year old customer. EDIT: not 15-year-old customer, LOL, but a customer who has been with them for more than 15 years!!!

36. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Not subsiding the phone has nothing to do with your plan. It just means you won't be getting a.dis o8nt ehrn you sign a new deal.

10. tedkord

Posts: 17357; Member since: Jun 17, 2009

That's one awesome thing AT&T did that Verizon didn't - letting existing unlimited data customers keep their plans and get subsidized pricing on upgrades. I'm on Verizon, and they removed that immediately - you can either get sub price or keep unlimited, but never both.

18. m.easy

Posts: 2; Member since: Oct 06, 2014

I also have the unlimited data, I have the note 4 you can upgrade. But you might get some sales people that will try to talk you in to switching your data plan to the share plan, tell them na I'm good just want the phone you should be good.

20. PhoenixWright

Posts: 102; Member since: Feb 11, 2013

I worked for AT&T a while back. If you want to keep your unlimited data, just tell them. In the event you lose it accidentally, contact customer care immediately to get it restored as you wont be able to get it back after some time has passed.

3. gaming64 unregistered

Slap to the consumers.

4. phonehome

Posts: 812; Member since: Dec 19, 2014

Seems like a way for ATT to stop subsidy upgrades on lines that still have unlimited data. Just more gradual and less pronounced than Verizon who pretty much announced it outright. At least their new throttling policy is acceptable. 16gb last month with no slowdown. Will push for 100gb this month just to test it.

6. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

This a win for people whom, buy unlocked devices, and don't care for upgrading every year. However, if you like new iPhone or Galaxy every year, you might bulk at this. Maybe, this might help, and put it into better context. http://www.gottabemobile.com/2014/09/16/iphone-6-att-next-vs-att-2-year-contract-price/

31. AlikMalix unregistered

Thanks for the link, very informative. According to this it's costing me an extra $15 a month for staying with unlimited plan instead of switching to NEXT. Which is a small price to pay when you absolutely never have to worry about Running out of data every month. Piece of mind is more valuable than a cheap lunch at a drivethru.

9. Galaxy_Apple

Posts: 129; Member since: May 24, 2015

maybe this will help Apple re-consider their pricing for new phones , iPhone should cost no more than 500$ , for 32 GB ,heck maybe even 64 Gb should be baseline in 2015 the contracts helped them mask the real prices of iPhone , now that more people are moving to new ways of paying for phones, the days of paying 700$ for a phone are getting over. Google n Microsoft are focusing more on low cost and mid-range , nowadays a 400$ phone is enough to get you everything you need. we need more realistic prices for smartphones and a monumental improvement in battery life. other specs are not as important , this is what real innovation is and what everyone expects from Apple, not bigger screens and NFC pay after being late to the game. how about making useful iPhones ,that last 2-3 days on a charge and not following Android every step of the way ? The iPhone 5s was the last iPhone than offered some unique technology and innovation after that it's been copyfest all the way to please investors and boost sales figures rather than improve customer satisfaction.

11. Augustine

Posts: 1043; Member since: Sep 28, 2013

At last this price distortion is coming to an end. Carriers should focus on mobile service, not retail phones.

12. UglyFrank

Posts: 2194; Member since: Jan 23, 2014

It is actually sad how much more expensive phones are outside the U.S.

24. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Really??? I thought "phones" are pricey here in the U.S. How much more are you guys paying for flagship devices, in U.S. dollars? Thx

32. Augustine

Posts: 1043; Member since: Sep 28, 2013

On one hand, people in the US that they are paying just a little for phones while failing to consider how much more a plan contract costs than one without a term. On the other hand, prices in the US are quoted before taxes, while in most other countries the sticker price includes taxes, which, more often than not, are higher than in the US.

13. darkkjedii

Posts: 31058; Member since: Feb 05, 2011

I love the "Next" plan. These carriers are gonna make money off of us one way or the other, but at least that way the money spent is incremental.

15. PapaSmurf

Posts: 10457; Member since: May 14, 2012

I just buy my phones outright. I always get them cheaper than retail and it's officially mine.

16. darkkjedii

Posts: 31058; Member since: Feb 05, 2011

Definitely the best way to go if you got the coin to do it. I could do it that way, but I'm always thinking about rainy days lol. How've you been Smurf?

26. tedkord

Posts: 17357; Member since: Jun 17, 2009

You're paying it either way. I'd just so soon pay it up front. No interest, it's mine right away. But that's just me.

29. darkkjedii

Posts: 31058; Member since: Feb 05, 2011

what I like about the next program, is that u can pay in full at any time. to me that's not a bad deal

28. Scott93274

Posts: 6033; Member since: Aug 06, 2013

I'm thinking that my next phone might be bought off contract, though I don't have hookups that would allow me to buy it less than MSRP. Lucky you.

30. darkkjedii

Posts: 31058; Member since: Feb 05, 2011

So am I

17. cncrim

Posts: 1588; Member since: Aug 15, 2011

So the next question we should be concern is "Will AT&T lower the rate plan since she not pay for our phone anymore?"

21. palmguy

Posts: 982; Member since: Mar 22, 2011

Correct because carriers will have a bigger pile of money if they no subsidized phones.
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