Upgrade???

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@MichiCat333 wrote:
Before an upgrade meant that you had been loyal to AT&T long enough to be able to get a newer model phone for free.

Loyalty isn't the correct work, completed your 2 year contract is more accurate.

Most of the newer models weren't "free" generally a newer iPhone was $199.

Where then is my upgrade if I'm paying, in payments, the total cost of a newer phone?

Now upgrade just means you've paid enough of your old phone off and we'll loan you money for your Next one.

That said, Mobile Share plans generally work out cheaper than the old minute/individual data plans, some people save between $15 - $20 a line which pretty much covers the phone payments. ($199 down pretty much works out to $8 a month). I think there is definitely more savings with a family plan.

When solved / helped, please mark your question as solved by clicking "Accept solution". This helps other people to find an answer more quickly.

The wholesale cost of phones is far more than it used to be.  Back in the basic phone days and early smartphones, the actual cost of phones to the carrier was less than half of the retail cost.  So the markup was 100% or more.   When smartphones came out the profit margin started getting smaller.   By the time 2013 rolled around the markup was more like  20-30%.  That markup is based on a carrier preordering in bulk, And selling all phones at full price.   That isn't happening.  

Phone sales are down.  Prices are also falling.  

Competition is forcing manufacturers to up their game, but cut or at least stabilize price.  

Score for the customers.

As for the carriers: With the small profit margin on phones, carriers could not afford to provide discounted upgrades on $700 phones without substantial increase in cost of service. So it meant raising all line fees on all plans $25 a month. That wouldn't be fair to those who keep their phones a long time, or buy cheaper phones.

T-mobile jumped off the contract train almost 4 years ago.  Good move.  One of the reasons that network has expanded and improved, but kept their service prices low.  ATT and Verizon should have followed suit much faster.

Your options:  Shop smarter!

What worked for me is buying phones elsewhere at full price.  Sometimes waiting a few months for the phones to drop in price.  Best Buy has some great unlocked phones for 1/4 to half what new flagships sell for through carriers.  Our family now has 3 Moto pure editions, 2 Nexus 6, 2 Nexus 6p.  I also bought a Samsung GS7 off eBay for $380, that's half what it cost new from ATT in March.

@sandblaster wrote:

It is probably time carriers quit using the term upgrade. That term used to be synonymous with getting a discounted phone in exchange for a 2 year contract and too many customers still think of it that way. 

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AGREED! Hate the term as it has gained those implications.

They're just upseting their customers when they find out it's not "free". Even though their last "free" phone was really $199!

If you use Next then AT&T could say "You are ready for your NEXT phone" or "NEXT UP!" or "Eligible for a Next phone".