ATT's iPhone subsidy, new customers only?

Discussion in 'iPhone' started by JPIndustrie, Jun 8, 2008.

  1. macrumors 6502a

    JPIndustrie

    Joined:
    Mar 12, 2008
    Location:
    Queens, NY
    #1
    Guys, I was thinking - that supposed subsidy from ATT, will it be only for new customers and existing customers who are past their 'upgrade' date?
     
  2. macrumors 603

    Joined:
    Jun 30, 2007
    Location:
    Atlanta
    #2
    Unknown, but I would guess that anyone who is past their upgrade date since it would be slightly discriminatory to exclude (us) them.
     
  3. macrumors 68000

    Joined:
    Sep 27, 2004
    Location:
    Knoxville, TN (USA)
    #3
    Wirelessly posted (iPhone: Mozilla/5.0 (iPhone; U; CPU like Mac OS X; en) AppleWebKit/420.1 (KHTML, like Gecko) Version/3.0 Mobile/4A102 Safari/419.3)

    I can see if you have a current iPhone that you will not be able to update until you've had it for at least 1 year. You may have to wait until your contract is up completely though. On the same note, I don't think they will exclude existing AT&T customers that want to upgrade and their contract is up. These are just my thoughts though. No one really knows the answers buy we will find out for sure tomorrow.
     
  4. macrumors 6502

    Joined:
    Jan 9, 2008
    #4
    Please use the search.. i've posted this about 3 times in the past two days... If you began a new contract with the purchase of the original iphone then u will get a subsidy! FOR THE LAST TIME ANYONE WHO WANTS TO KNOW IF THEY ARE ELIGIBLE FOR A SUBSIDY GO TO YOUR ATT ACCOUNT WEBPAGE AND HIT THE CHECK UPGRADE ELIGIBILITY LINK.. IF IT SAYS "This line is eligible for reduced equipment pricing when you sign up for a new 2-year service agreement." THEN YOU CAN UPGRADE TO THE NEW 3G PHONE AT THE SUBSIDIZED PRICE!!!
     
  5. macrumors 6502

    drchipinski

    Joined:
    Jul 12, 2007
    #5
    Wow. Someone is a bit uptight.

    I would have to think they (ATT/Apple) will offer a larger incentive to NEW customers rather than existing ones. They are trying to attract new business, not existing business.
     
  6. macrumors 6502a

    Joined:
    Oct 17, 2007
    Location:
    Camp Snoopy
    #6
    Well, assuming the subsidy works in the form of "Buy the phone for $X00, get a $200 rebate when you activate with AT&T (for US customers)", I'm sure Apple will have worked it out with AT&T to let current iPhone customers upgrade and get the subsidy/rebate.
     
  7. macrumors member

    Joined:
    May 4, 2008
    Location:
    Miami, FL
    #7
    I am not eligible for an upgrade. However, AT&T has been known to be extremely acomidating to those who's monthly bills are rather high. I pay about $325 a month on average for all the phones I have. I had purchased a Blackberry Pearl before the first iPhone came out. When it did come out, and I decided I needed to own that thing, I bought it and called AT&T who had absolutely no problem with me switching over. In essence what they did was just restart my 2 year contract. I found out later that the reason the just restart your contract is that it's illegal for them to sign you to a contract greater than 2 years. So I am sure if you reason with them calmly, they will help you out if you are currently under contract and spend $400 or so dollars on a phone. It benefits them in the long run.
     
  8. macrumors 65816

    Joined:
    Jun 21, 2007
    #8
    Yesterday, I posted this explanation behind my belief that ALL customers signing up for an iPhone contract will be eligible for a subsidy (if one exists):

    Right now, Apple is making about $80 per hardware sale of each iPhone. If that iPhone is then activated with AT&T, they're making an additional $240, for a total of $320 over the next 2 years. If it's unlocked for use on another carrier, they don't gain that extra $240.

    Now, let's say this new iPhone costs Apple $250 to make. They sell it for $500 with a $200 subsidy if activated with AT&T. Now, if a person purchases it and activates with AT&T, they're making $290. If a person purchases it and unlocks if for use with another carrier, they're making $250. Only $40 less, rather than a $240 difference. That huge difference will also persuade more people to switch from T-Mobile or whatever, because it's much less practical to just buy an iPhone and unlock it.

    Because of this, I see the (potential) subsidy being available to all AT&T customers, whether you're up for a new contract or not.
    Anybody see any flaws in my logic, disagree, or agree?
     
  9. macrumors 65816

    Joined:
    Jun 6, 2005
    #9

    This use to be the case, which is why 5 years ago before all the carriers changed their policy, people always went hopping around between carriers to carriers to get bigger subsidies on new phones. But now it is pretty standard (at least in the US) for all subsidies to be 200 bucks whether you are upgrading from an existing plan or as a new customer. Of course there are promotions for only new customers which phones are discounted more, however to get something subsidized it is usually only 200 bucks :)
     
  10. macrumors regular

    Joined:
    Dec 4, 2007
    #10
    This is true for the average cell phone, but the iPhone is a different animal. We don't know if the new iPhone is gong to follow that same price model - I personally doubt it. The iPhone v1 has not followed traditional sales modeling (unique monthly plans, no discounts or subsidies).

    I imagine Apple is especially concerned this time around that iPhones get locked into a contract with a preferred provider (AT&T, o2, etc.). With rumored exchange and push email features, Apple is looking to really take on RIM and steal a chunk of their existing (and growing) revenue sharing with the providers. It makes sense to offer a subsidy to anyone wanting an iPhone if they start a new or renewed 2 year contract - including existing AT&T subscribers. Perhaps Apple and AT&T are jointly financing a subsidy - it is in both of their best interests.
     
  11. macrumors 65816

    woodekm

    Joined:
    Feb 24, 2008
    #11
    Heres what my "upgrade info" looks like on the ATT site for me. I assume "reduced equipment price" means subsidized price for the new iPhone? Not too sure I understand what "subsidized" means.

    info:
    ______________
    If you're eligible for an upgrade, choose the phone that you'd like to upgrade. Depending on your eligibility, you may qualify for additional discounted pricing.

    <iPhone pic> My Name, XXX-XXX-xxxx
    This line is eligible for reduced equipment pricing when you sign up for a new 2-year service agreement. Upgrade Today

    <razr pic> My Name, XXX-XXX-xxxx
    This line is eligible for reduced equipment pricing when you sign up for a new 2-year service agreement. Upgrade Today
     
  12. macrumors regular

    Joined:
    Dec 4, 2007
    #12
    I think it comes down to who "they" are - Apple, AT&T, or both of them?

    While both want more customers, AT&T is happy with customers using a Nokia, Blackberry, or any other phone. Apple wants people to use an iPhone. As AT&T is the largest carrier in the U.S., the lowest hanging fruit for Apple are the existing AT&T customers currently not using an iPhone.
     
  13. macrumors 65816

    Joined:
    Jun 6, 2005
    #13
    pretty much it means the carrier will pay for a part of the handset as long as you agree to stay with them for so many years
     
  14. macrumors 6502a

    citron230

    Joined:
    Dec 17, 2007
    Location:
    San Diego, CA
    #14
    what sucks is when i bought my 16GB iPhone in Feb, it extended my contract. I am hoping that I am eligble for a subsidy even though my account page says I am not. I didnt get a discount in Feb on a phone, but they did extend my contract for two years.
     
  15. macrumors 6502

    Joined:
    Jan 9, 2008
    #15
    Yes they want to get new customers, but they also don't want to piss off their current customers. Therefore it is highly likely at&t will give the same incentive to currently qualified customers as they do to current ones.
     
  16. macrumors 6502

    Joined:
    Jan 9, 2008
    #16
    Yes it looks like both of your lines are eligible for any type of discount at&t gives with buying the new iphone and renewing your contract.
     
  17. macrumors 603

    Joined:
    Feb 4, 2008
    #17
    I just checked my account online. The date I am eligible for a "hardware discount" is still 9/3/2008, just as it was before I got a refurb iPhone.

    Therefore, all of you other iPhone buyers should be eligible for a subsidy, if it happens, if you are two years since your last subsidy from AT&T/Cingular. If your first phone on AT&T was an iPhone, you should be able to get the deal from the release day.

    Me? I'm glad I have to wait. Stupid guvmint hasn't sent me my $600 yet and my 8GB still works pretty well.
     
  18. macrumors 6502a

    citron230

    Joined:
    Dec 17, 2007
    Location:
    San Diego, CA
    #18
    i still don't know. my iphone was purchased in Feb 2008. i haven't used a Subsidy for over 2 years when i bought a blackberry. yet my account online says i am not eligible for an equipment upgrade until Dec 2008.
     
  19. macrumors 68030

    Joined:
    Nov 18, 2006
    #19
    I see no "check for upgrade eligibility" link. Just a link to "upgrade phone" which puts me to a page where I can buy iphones at regular price.

    Does anyone know what the rules are for it then? We bought our phones a few weeks after launch and signed with AT&T also. If I don't get a discount even I will be upset.
     
  20. macrumors 68040

    MBHockey

    Joined:
    Oct 4, 2003
    Location:
    New York
    #20

    I'm curious...when did you buy your iPhone (or start your iPhone contract with AT&T)? I bought mine on launch day 2007 and my ATT page shows that i'm not eligible for the upgrade until December of 2008....making it 18 months from the purchase of my iPhone.

    I did not have AT&T prior to getting the iPhone.

    This is what mine says:

    Upgrade
    You can take advantage of our no-commitment pricing option. This line may be eligible for an equipment discount on 12/01/2008
     
  21. macrumors 65816

    woodekm

    Joined:
    Feb 24, 2008
    #21

    I got my iPhone in Aug 07. 16 days before the iPhone price drop. I've had my razr contract since Dec 04.



    I just needed piece of mind. THANKS ! !
     
  22. macrumors 68030

    Joined:
    Nov 18, 2006
    #22
    Well, we bought our phones and newly switched to AT&T about 3 weeks after the phone came out. It says we are eligible for an upgrade after March 2009.

    This can't be right (or can it?) so I'm going to pretend I didn't see it for now.
     
  23. macrumors 65816

    woodekm

    Joined:
    Feb 24, 2008
    #23
    Guess it is kinda saying that the earlier you get the new phone (after release) the better off you are, if a new one comes out in a year. Something I never thought about.

    I'll bet allot of people bought the 16gB (and signed a new contract) not knowing they would be out of luck when a new phone comes out in a coupla' months. That kinda sucks.

    Wonder if they can open a new additional line and get a discount? At $10.00 per month more, it may be worth it, unless you cant get the iPhone in this situation.
     
  24. macrumors 6502a

    citron230

    Joined:
    Dec 17, 2007
    Location:
    San Diego, CA
    #24
    subsidy or no subsidy, i am buying the iPhone the first day it is available.
     
  25. macrumors 68020

    Joined:
    Apr 2, 2008
    Location:
    LongIsland/NYC
    #25
    Co-Sign!

    I'm willing to pay up to $400 (maybe $450)
     

Share This Page