iPhone 5 Upgrade?

Contributor

iPhone 5 Upgrade?

I have been a customer of AT&T since 1996 (through all the multiple name changes) and have had an iPhone since the original. Now my whole family has iPhones (with separate data plans). I have been able to upgrade my phone to each new iPhone every year at the full discounted price. Now, for the new iPhone 5, I am told that I have to pay an additional $250 in order to upgrade at this time. I think that i have shown quite a bit of loyalty over the last 16 years and I would think I would be able to continue my early upgrades without the $250 penalty.

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Expert

Re: iPhone 5 Upgrade?


tsshawver wrote:

I have been a customer of AT&T since 1996 (through all the multiple name changes) and have had an iPhone since the original. Now my whole family has iPhones (with separate data plans). I have been able to upgrade my phone to each new iPhone every year at the full discounted price. Now, for the new iPhone 5, I am told that I have to pay an additional $250 in order to upgrade at this time. I think that i have shown quite a bit of loyalty over the last 16 years and I would think I would be able to continue my early upgrades without the $250 penalty.


they stopped that on the 4S, this is documented in this forum, probably not going to happen again this year

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Teacher

Re: iPhone 5 Upgrade?

Feel lucky you're getting the "early upgrade" pricing. Some iPhone 4S users (including myself) who have had the phone since the launch are being told we don't qualify for any discount until 11/8. I did the math and it seems like something is wrong in AT&T' system. I would be happy to just get the 649 price.

 

To Purchase  AT&T (9/14)

iPhone 5 64GB  $849.00

Upgrade fee  $36.00

Total   $885.00

 

To Purchase  AT&T (11/8)

iPhone 5 64GB  $649.00

Upgrade fee  $36.00

Total   $685.00

 

To Purchase  Verizon (9/14)

iPhone 5 64GB  $399.00

Early Term Fee (at&t) $215.00

Activation Fee  $35.00

Total   $649.00

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Contributor

Re: iPhone 5 Upgrade?

I have been with every company AT&T has been associated with, or bought since 1995.  I have had all 5 iPhones, including paying $1,200 for two (2) original iPhones in 2007.  I now have one (1) iPhone eligible for an upgrade and the other (4s), because I ordered it on the first day it was availabe, is not full eligible until May of 2013, unless I pay the $250 early upgrade fee.  I also have a third phone Android phone on the account eligible for full upgrade in November 2012.  Becuase of their upgrade policy on the iPhone 5, AT&T just gave me the final push to get THREE NEW iPHONES FROM VERIZON.  I've been leaning that way for a while, this just pushed me over the edge.  I just can't decide whether to buy my contract out now, or wait till May!

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ACE - Expert

Re: iPhone 5 Upgrade?

So when Verizon won't let you upgrade early to the next generation iPhone when it comes out, where are you going to go then?
This is a user to user forum. I am a user, just like almost everyone else on the site.
*The views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
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Contributor

Re: iPhone 5 Upgrade?

What's your point?  I'll finally be in the better network.  Service in the Chicago area, on a good day, sucks!

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Professor

Re: iPhone 5 Upgrade?

The reality is that every cell phone provider gives you a better deal as a new customer if you swap from another carrier. People talk about how much cheaper it is to swap to Verizon from AT&T, but it works exactly the same the other way too. If you are now with Verizon and aren't eligible for an upgrade, it will be cheaper going to AT&T, for the phone at least. People need to decide what's most important to them.
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Voyager

Re: iPhone 5 Upgrade?

I don't understand why AT&T doesn't prorate the penalty. That way the $200 would be more like $20 for the 2 month early upgrade. At least they would make the $20 or whatever it would be. By holding out for the whole $200 they get nothing and might lose a customer.

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Expert

Re: iPhone 5 Upgrade?


mistermet wrote:

I don't understand why AT&T doesn't prorate the penalty. That way the $200 would be more like $20 for the 2 month early upgrade. At least they would make the $20 or whatever it would be. By holding out for the whole $200 they get nothing and might lose a customer.


the etf is pro-rated, but since the upgrade terms are part of a contract there is no reason to have to subsidize another low cost phone until you have completed the commitment on your current phone that you got for a lot less then retail cost of the device. Early upgrade is 249.00 and not 200.00. Even if they threaten to leave becasue of it, they will still be paying - the pri-rated etf charge to at least let the carrier recoup part of the lost funds for the previous device.

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Voyager

Re: iPhone 5 Upgrade?

I understand how it works. My point was very few people will pay the $200, $250 but many would pay a prorated amount. By insisting on the whole amount with a very very short time to go, they get nothing, unless you're considering the new contract expiring 2 moths earlier

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Professor

Re: iPhone 5 Upgrade?

Actually, pro-rating the early upgrade price makes sense. The fee is a flat $250 whether you are 6 or 16 months into a contract. Obviously, at 16 months in, AT&T has recouped a lot more of the subsidized price of the phone than they have at 6 months. In fact, I wouldn't be surprised if the $250 when they first let you early upgrade is enough to pay off the subsidy alone, and anything over that is pure profit. If AT&T can reduce the ETF based on how long you've been in contract, why can't they do it for the early upgrade? It's the exact same concept, paying down the subsidy.
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Expert

Re: iPhone 5 Upgrade?


dwill05 wrote:
Actually, pro-rating the early upgrade price makes sense. The fee is a flat $250 whether you are 6 or 16 months into a contract. Obviously, at 16 months in, AT&T has recouped a lot more of the subsidized price of the phone than they have at 6 months. In fact, I wouldn't be surprised if the $250 when they first let you early upgrade is enough to pay off the subsidy alone, and anything over that is pure profit. If AT&T can reduce the ETF based on how long you've been in contract, why can't they do it for the early upgrade? It's the exact same concept, paying down the subsidy.

It is pro-rated - fulfill you contract and there is no penalty, want it early and there is - they just subtract the early upgrade fee when you hit you upgrade date

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Employee

Re: iPhone 5 Upgrade?

[ Edited ]

I'm very sorry to hear about your issue that you may be interested in AT&T Next allowing eligible customers the ability to purchase a new smartphone every year with no activation fees, no upgrade fees, no financing fees, and $0 down. If that is something you would be interested in please call 611

Employee Contributor*
*I am an AT&T employee and the postings on this site are my own and don't necessarily represent AT&T's position, strategies or opinions.
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ACE - Master

Re: iPhone 5 Upgrade?

[ Edited ]

bboulanger wrote:

I'm very sorry to hear about your issue that you may be interested in AT&T Next allowing eligible customers the ability to purchase a new smartphone every year with no activation fees, no upgrade fees, no financing fees, and $0 down. If that is something you would be interested in please call 611


This thread is over 18 months old, I doubt the OP or the other person who said service in Chicago is bad are still looking to upgrade their phones. I'm sure the second person made good on their promise to switch to Verizon, though I'm wondering how they are feeling about Verizon's pricing now that AT&T has announced the new mobile share prices? I especially don't get their complaint about service in Chicago. My daughter lives there and has no problems and each time I visit, I get great service.

*The views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
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