[martingordon]

The $260/year plan on AT&T Next is a 30-month installment plan with the ability to trade in after 24 months. Apple's plan allows you to trade in after 12 months.

AT&T Next 12 is $32.50/month + $15 activation, compared to Apple's plan at $32.41/month (including AppleCare). If you never use AppleCare, then the two plans are pretty much the same. If you do use AppleCare, Apple's plan is ~$129/year cheaper (the price of buying AppleCare every year).

The other advantage to Apple's plan is that they give you an unlocked iPhone. AT&T's are locked until you pay the phone off (which is never if you're trading in every 12 months).