Price for iPhone 6. AT&T Next vs. 2 year contract?

Just go online and click the No annual contract* at ATT.com and you will be able to buy the phone outright.

$25 discount ONLY for those with a 10GB, or greater, plan. Less than 10 GB, the discount is only $15/month, which makes the total cost (service + device) over two years about even.

It begins to get dicey when, like me, you change data plans several time. Some months, I only need the 1 or 3 GB plan. Some months (using my hotspot), I need 10GB.

Non-the-less, I'm more than happy with my Next plan. The Next plan* doesn't cost any more than the 2 year plan, and in some cases, is considerably less.

*I know Next isn't really a "service plan", but you get the idea.

SUMMARY: If you have a Mobile share plan < 10GB, the 2 year contract cost is a little cheaper than the NEXT 24 plan OR buying it outright , if you plan on upgrading every 2 years.

But if you don't want the hassle of selling your phone in ebay (or give it away to kids or family for free) the NEXT plan is more convenient and better price on the long run.

If you are into calculations , read on to find out why I think that: 

1. Lets say you want to get the iPhone 6s 64GB for $299 2 yr contract.

• Then you pay a penalty of $15 per month on the plan for 24 months = $15x24 = $360.
• Also upgrade fee is $45.
• So total cost before tax = $299 + $360 + $45 = $704

But you own the phone now . So if u sell it on eBay you should get around $150.

So total cost of ownership $704-$150 = $554

1. For the same phone on a Next 24 (30 installments) plan

• if u upgrade after 2 yrs you paid $25 per month for 24 months = $25X24 = $600
• Upgrade fee is $15
• No plan penalty

So Total before Tax = $600 + $15 = $615

So you can save $61 on the 2 yr contract if u can sell the phone in ebay for $150 which is possible if u sell quickly. So if u are a savvy selling, use the $299 2 year contract price.

1. On NEXT 24 if you wait to upgrade and pay off your phone in 30 months

• Then installment cost will be ful price of $25x30 = $750
• upgrade fee is $15
• total $750 + $15 = $765

If you sell it on ebay (now the phone is older so u will get less) $100

So you cost of ownership is $765 - $100 = $665.

But if u plan to sell the phone yourself you are better off paying off the 6 remaning months after 2 years ($25x6 =$150) and sell the phone since u will get a better price. OR get the NEXT 18 plan instead.

But both options on NEXT 24 or NEXT 18 cost more than 2 yr contract. So Clearly if want to own the phone and sell it yourself or keep using it or give it away then NEXT24 is not for you. You are better off with the 2 year contract price or outright buy.

1. If you buy the phone outright from Apple or ATT

• then you pay $750 + $45 upgrade fee = $795. A
• After 2 years you sell it for $100

Total cost before tax = $795 - $150 = $645 

This is more expensive option than 2 yr commitment but gives u the most flexibility and freedom.

So in ALL cases buying the phone on 2 year contract price is a LITTLE better but comes with the hassel of selling it on ebay and assuming you will get the best price. For me I don;t want the hassle , so I went for the NEXT 24 with plan to upgrade in 24 months.