Want to upgrade smartphones early? Prepare to spend Brett Molina, USA TODAY 9:28 a.m. EDT July 17, 2013 at&t store (Photo: Mark Lennihan, AP) SHARECONNECT 28 TWEETCOMMENTEMAILMORE Earlier this month, T-Mobile introduced its Jump plan to let users snag the latest smartphones. After six months, users can drop their old phone and flip to a new device. On Tuesday, AT&T followed with a similar option, AT&T Next. Users make monthly payments on a new device, then can choose to upgrade after 12 months. But how much do you pay for staying on top of smartphones trend? Let's look at a 16 GB Apple iPhone 5 as an example. On AT&T Next, consumers can own one for $32.50 a month for 20 months, with no down payment. That amounts to about $650, the unsubsidized price of the device. So, what happens if, say, you want to trade in that phone 12 months from now? No problem. Just trade in the phone -- so long as it's in good condition -- and all payments stop. However, it also means you've paid $390 for a smartphone you no longer own. And the longer you wait, the more you pay for the device. (Also, as outlets including The Verge note, users still pay the monthly subsidy fee despite owning an unsubsidized device). As for T-Mobile's Jump plan, an iPhone 5 requires a down payment of $145.99 on their website, with payments of $21 a month for 24 months. There's also a $10 monthly fee for Jump. Let's say Apple introduces an iPhone 5S, and you really want it. Again, simply trade in your old phone. But, consumers will have spent about $272 after six months, and about $398 after a year. This doesn't count the $10 monthly Jump fee. Subsidized versions of the iPhone 5 with those two-year contracts cost $199. Once the two years are up, you can choose to pass the phone along to a friend or even trade it in. For example, trading in an iPhone 4S in good condition through outlets such as Gazelle or Amazon can net around $170. Is there any value to these smartphone plans? If you want the flexibility to own the latest and greatest smartphone, then these plans might be worth considering. Just prepare to spend more money.

Want to upgrade smartphones early? Prepare to spend

Brett Molina, USA TODAY 9:28 a.m. EDT July 17, 2013

(Photo: Mark Lennihan, AP)

SHARECONNECT 28 TWEETCOMMENTEMAILMORE

Earlier this month, T-Mobile introduced its Jump plan to let users snag the latest smartphones. After six months, users can drop their old phone and flip to a new device. On Tuesday, AT&T followed with a similar option, AT&T Next. Users make monthly payments on a new device, then can choose to upgrade after 12 months.
But how much do you pay for staying on top of smartphones trend?
Let's look at a 16 GB Apple iPhone 5 as an example. On AT&T Next, consumers can own one for $32.50 a month for 20 months, with no down payment. That amounts to about $650, the unsubsidized price of the device.
So, what happens if, say, you want to trade in that phone 12 months from now? No problem. Just trade in the phone -- so long as it's in good condition -- and all payments stop. However, it also means you've paid $390 for a smartphone you no longer own. And the longer you wait, the more you pay for the device. (Also, as outlets including The Verge note, users still pay the monthly subsidy fee despite owning an unsubsidized device).
As for T-Mobile's Jump plan, an iPhone 5 requires a down payment of $145.99 on their website, with payments of $21 a month for 24 months. There's also a $10 monthly fee for Jump. Let's say Apple introduces an iPhone 5S, and you really want it. Again, simply trade in your old phone. But, consumers will have spent about $272 after six months, and about $398 after a year. This doesn't count the $10 monthly Jump fee.
Subsidized versions of the iPhone 5 with those two-year contracts cost $199. Once the two years are up, you can choose to pass the phone along to a friend or even trade it in. For example, trading in an iPhone 4S in good condition through outlets such as Gazelle or Amazon can net around $170.
Is there any value to these smartphone plans? If you want the flexibility to own the latest and greatest smartphone, then these plans might be worth considering. Just prepare to spend more money.