Upgrading to a New iPhone Xs, Xs Max, or Xr? Read this first.
Apple’s new iPhone launch was very exciting for Apple and Apple followers.
On September 11, 2018 Apple introduced 3 new state of the art iPhone — Xs, Xs Max, and Xr. Prices range from $749 to $1449. At $1449, you might think about getting a New Macbook instead?
Fee Considerations — AT&T
If you are considering upgrading, make sure you evaluate the cost of the phone and the carrier fees. For example, AT&T charges $40 for iPhone 4G LTE w/Visual Voicemail — if you are under a contract. I contacted AT&T to confirm the word “contract”. They said “contract refers to a finance agreement or any service contract. If you are not under a service contract or finance agreement, the $40 charge drops to $15”.
Savings of $900
I’ve had my iPhone 6s since October 2015. I purchased my phone outright which saved me $900 over 3 years ($25/mo x 36 months) in additional fees for 4G LTE w/Visual Voicemail.
Marketing Fluff iPhone
Apple iPhones have increased in price substantially over the last 5 years. Carriers are no longer subsidizing the cost of the phone. Consumers are having to bear the full cost of an iPhone. However, carriers are offering to spread the cost of the phone over 24 to 30 months to relieve some of the pain – AT&T is one of them. AT&T is offering 0% interest. Sounds great, right?
Actually, it’s a crappy deal. If you purchase an iPhone Xr-64GB at $749 and pay an additional $25 for 4G LTE w/Visual Voicemail over a 24 month period, you are paying an additional $600 plus $749 (Xr) = $1349. The Xs Max-256GB ends up costing you $2049 for the same 24 months. In theory, you are paying 80% interest for the Xr and 41% interest for the Xs Max. Why do you think AT&T is advertising 0% interest?
24 Month Contract
If you are thinking, I don’t need the 4G LTE w/Visual Voicemail, think again. There is no way of getting out of paying for the 4G LTE w/Visual Voicemail, its a mandatory fee. Your choice is whether your prefer paying $15/mo or $40/mo or $360 or $960 over 24 months, a savings of $600.
30 Month Contract
For those who are considering spreading those payments over 30 months — AT&T would love you to do that, because you are still under a contract. Now you would pay $25/mo x 30 months = $750. That is $150 more than the 24 months. Add the additional $150 to the cost of the new iPhone — using the same numbers above $1349 (Xr) + $150 = $1499 and the Xs Max jumps to $2199. So the original iPhone Xr that was advertised for $749, now costs you $1499 over 30 months.
My recommendation is to purchase any of the iPhones outright. Be smart. Do the math. Buyer beware. Don’t let the marketing fluff disturb your thought process. The carriers don’t tell you about the fine print. All they want you to do is sign on the dotted line. Most customers don’t realize they have been “had” until its too late.
Why did my carrier statement increase? Why did my 4G LTE w/Visual Voicemail increase from $15 to $40? Now you know.
I can only imagine the look on your face when you get your first bill and the frustration you will go through contacting AT&T. I hope this helps those considering purchasing a new iPhone and the fees AT&T customers are charged.
What are you going to do?