Purchasing iphone 7

Simple answer. Those offers from competitors are designed to get new customers, just like ATT's current iPhone 7 BOGO: https://www.att.com/deals/apple-iphone-bogo.html. If you do decide to switch to another carrier, just make sure they provide the coverage you need where you need it. You won't care about getting a free phone if the service is bad.

Hmmm.... I disagree with this. I am a longstanding customer with AT&T. I shouldn't have to pay more for a phone than a new customer. That does not equate to good customer service for your existing customers. 

Big promotions are designed to steal customers or add business to make a profit, not to save you money.  

If I change to Verizon to get a free phone, ($25 value per month) but it would cost me $50 a month more as I would lose my plan and discount.  I would spend $25 more a month.  Not a bargain.

@A-Zane wrote:

Hmmm.... I disagree with this. I am a longstanding customer with AT&T. I shouldn't have to pay more for a phone than a new customer. That does not equate to good customer service for your existing customers. 

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 Think of it as marketing budget.  That $500 Million a year on advertising costs you money, your plan could be cheaper but they charge more so they can advertise. It's just another way to get more customers.

You need more customers for better future upgrades...

@lizdance40

This is an AT&T promotion. As well, multiple other carriers are giving free iPhone 7's at the moment.

So by saying" 

Big promotions are designed to steal customers or add business to make a profit, not to save you money.  

If I change to Verizon to get a free phone, ($25 value per month) but it would cost me $50 a month more as I would lose my plan and discount.  I would spend $25 more a month.  Not a bargain."

This is exactly what AT&T is doing as well.

AT&T is following suit with other carriers, and in the interim disenfranchising their existing customers. If they can afford to give away free phones to new customers, they should show the same gratitude to their loyal customers.

@Gary L I don't accept that AT&T is willing to provide new customers with better services and offers than existing, loyal customers. Your notion of 'that's just the way it is' doesn't fly with me. I find it shocking that so many are willing to accept higher costs when we are the everyday foundation that companies build their business on. 

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A-Zane wrote:

 

AT&T is following suit with other carriers, and in the interim disenfranchising their existing customers. If they can afford to give away free phones to new customers, they should show the same gratitude to their loyal customers.

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@A-Zane I don't disagree but that is just not the way the wireless industry works. None of those other carriers offer free phones to their existing customers either. The same thing is true for TV service providers. Great deals for new customers, not so much for existing. 

@A-Zane  Yes, ATT is doing the same.  But you miss the point again.    It is to either get you to add a line (costs you another $25 per month for a new line, plus taxes). That's a break even unless you needed the new line.  Of course adding a line might mean you need more data, this might force you onto a bigger and newer, more expensive plan.  

Or get you to switch from another carrier which may mean you give up a cheaper plan.  These deals also tie you to a carrier for 2 plus years, until the phone is paid off because the credit is not given in a lump sum.  That's when a carrier makes their money off you.

Take a deep breath and smell the Java....it's not to save you money.   

@A-Zanewrote:

@Gary L I don't accept that AT&T is willing to provide new customers with better services and offers than existing, loyal customers. Your notion of 'that's just the way it is' doesn't fly with me. I find it shocking that so many are willing to accept higher costs when we are the everyday foundation that companies build their business on. 

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You don't have to accept it. You can try another carrier that does it differently. Let me know if you find one.

I'm not accepting higher costs, I've got the lowest price I've ever had with AT&T with more features than ever. Through the years, features like A-list, Mobile-to-Mobile calling and unlimited texting price drops reduced my plan cost $10 ever few years ever since I started AT&T 9 years ago. On top of that, dumping the old subsidized plans, lowered my cost even more. I now pay less (than the discounts listed above), can tether data on my phone (couldn't with the old unlimited), roam in Canada/Mexico and have unlimited in my car for $20 a month. I have to pay for my phones now, but if I do the math, I'm still coming out a couple of dollars ahead on that. Plus if I update every three years, I can save even more.

Your actual higher costs will come when you get your "free" phone, if you want a free $649 phone every two years, that $27.09 a month has to come from somewhere, they're just going to up your rate to pay for it.