Just thought I'd share my experience, as I know there has been a lot of discussion and confusion over the $499/$699 price points. Anyway, I replaced my original iPhone with an iPhone 3G on launch day, July 11, last year.
Today, I decided to stop by the AT&T store on the way home from work and pre-order the new iPhone 3G S, so that I could have it when it releases next Friday. After waiting a while at the store, I was finally helped, at which time I was informed that I could get the new iPhone if I paid $599 or $699. I told the woman that I was willing to extend my contract for another two years and pay the early-upgrade price, but she told me that I was ineligible, and wouldn't be eligible for the early upgrade price until July 11. I told her forget it, and left the store.
I then decided to call AT&T Customer Support, because it didn't make sense that I'd extend my contract for 2 years and pay the same price as someone buying the phone outright. The CSR told me that I was eligible for the $399/$499 early-upgrade pricing, but that I couldn't do it online, because it required some sort of manager override that could be done in a corporate store.
After the bad experience I had just dealt with, I decided to stop by another AT&T store closer to my home. I told the employee what I wanted, and within minutes I had paid $499 for the new 32GB iPhone.
So it seems clear that there are some mistakes in the AT&T system with regards to the pricing of this phone, and that at least one customer service representative had no idea that it was incorrect. If you are being quoted the $599/$699, just argue and work your way up the chain until you're given the $399/$499 pricing, and you'll be able to get it done.
Today, I decided to stop by the AT&T store on the way home from work and pre-order the new iPhone 3G S, so that I could have it when it releases next Friday. After waiting a while at the store, I was finally helped, at which time I was informed that I could get the new iPhone if I paid $599 or $699. I told the woman that I was willing to extend my contract for another two years and pay the early-upgrade price, but she told me that I was ineligible, and wouldn't be eligible for the early upgrade price until July 11. I told her forget it, and left the store.
I then decided to call AT&T Customer Support, because it didn't make sense that I'd extend my contract for 2 years and pay the same price as someone buying the phone outright. The CSR told me that I was eligible for the $399/$499 early-upgrade pricing, but that I couldn't do it online, because it required some sort of manager override that could be done in a corporate store.
After the bad experience I had just dealt with, I decided to stop by another AT&T store closer to my home. I told the employee what I wanted, and within minutes I had paid $499 for the new 32GB iPhone.
So it seems clear that there are some mistakes in the AT&T system with regards to the pricing of this phone, and that at least one customer service representative had no idea that it was incorrect. If you are being quoted the $599/$699, just argue and work your way up the chain until you're given the $399/$499 pricing, and you'll be able to get it done.