AppleInsider Staff
Apple on Thursday quietly added a new payment option to its online storefront, giving AT&T subscribers who are in the market for a new iPhone the ability to make their purchase using installments through the carrier's AT&T Next program.
The initiative will allow consumers to spread the unsubsidized cost of the iPhone out over either 12 or 18 months, without the necessity of signing a fixed service contract. They are then eligible to upgrade to a new device at the end of the term.
Consumers can cancel their subscription at any time, but they will be on the hook for the balance of the handset's cost.
Though there is no required down payment, Apple says they will collect sales tax at the time of purchase. Those living in states that do not levy a sales tax could find themselves going through the purchase process without paying anything.
AT&T announced Next last July, on the heels of T-Mobile's introduction of the similar Jump program.
"With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment," AT&T Mobility CEO Ralph de la Vega said at the time. "That's hard to beat, and it's an incredible value for customers who want the latest and greatest every year."
Christine McKee
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17 Comments
Is there a cost of financing the installment payment? (Just checked, and it's 0% APR -- i.e., the monthly payment is simply the upfront cost of the unlocked phone divided by 12 or 18, as the case may be. That's impressive).
The initiative will allow consumers to spread the unsubsidized cost of the iPhone out over either 12 or 18 months, without the necessity of signing a fixed service contract. They are then eligible to upgrade to a new device at the end of the term.
12 or 18 payments. For a locked GSM phone. With questionable coverage. For the privilege of buying an "unsubsidized" phone on payments, you are allowing AT&T to lock it to their network...
Last "Thursday" or today (Wednesday)?
[quote name="John.B" url="/t/181999/apple-adds-at-t-next-as-online-payment-option-for-iphone-buyers#post_2585107"] 12 or 18 payments. For a locked GSM phone. With questionable coverage. For the privilege of buying an "unsubsidized" phone on payments, you are allowing AT&T to lock it to their network... [/quote] Who's 'you'?
1. Did you not expect AT&T to lock the phone if they are financing it? If you gave someone a loan, would you not use collateral to secure the loan? It is my understanding if you pay off the remainder of the loan, you can have it unlocked, should you want to do that early.
2. Questionable coverage is debatable. T-mobile & Sprint are terrible in the Colorado front range. Verizon and AT&T are similar but vary depending on location.
3. Here are how these payment plans work:
a. pay the sales tax up-front
b. pick the 12 or 18 month upgrade plan
c. For the 12 month plan, you have a 0% loan spread equally over 20 payments. After 20 payments you own the phone and the payments stop. Or after 12 months, you can turn in the phone (back to AT&T) and start over again with a new payment plan (i.e. early upgrade, but they get the phone back).
d. For the 18 month plan, you have a 0% loan spread equally over 24 payments. After 24 payments you own the phone and the payments stop. Or after 18 months, you can turn in the phone (back to AT&T) and start over again with a new payment plan (i.e. early upgrade, but they get the phone back).
?As usual, if you do the math, one is almost always better off selling the phone and purchasing another rather than participating in a trade-in program.