AT&T has convinced me NOT to buy a 3G ---yet

[seenett]

I'm one of the long time AT&T customers who never got a 2G iPhone. I wanted to wait until Apple introduced an iPhone with

-3G
-32GB (real iPod - not a small capacity ipod lite)
-true PUSH email
-downloadable applications

I waited a year for a new iPhone, and now the new one has 3 of my 4 wishes. But with all the confusion over price/eligibility (I'm not eligible until October) and AT&T apparently wanting to double dip by selling non-subsidized phones requiring a subsidized-type 2 year contract, I feel their lack of a clear sales policy shows fundamental disorganization and a general disregard of current customers. I don't mind signing another 2 year contract - I don't plan on leaving AT&T anyway - but I don't want to be locked into a non-subsidized 16gb iPhone for 2 years if a 32gb model comes out in the next year.

My solution:

Buy a used 2G phone via CL or ebay. They abound for around $200-$250. After July 11th there will be a greater supply of used phones, so maybe they will cost even less. I will activate the iPhone, which should not affect my Oct '08 upgrade eligibility. I will then knock my plan down from 900 minutes to 450 per month. Even with losing most of my rollover minutes I will still have more minutes per month than I will ever use. My current IRU discount is cheaper than the 2G's non-discounted plan - that's why I'd reduce the minutes per month.

With the 2.0 software, I will still get 2 of my 4 iPhone wishes (yes, I already have .mac). When a 32GB model is released, I can just buy that at the subsidized price with a new contract. Hopefully the used 2G iPhone will still be worth $200 or so when I re-sell it.

The irony is that in my case, AT&T's zeal to nickel and dime their current customers will end up costing them money. I will owe them less $$ per month on a lower rate plan, and if they are still revenue sharing the 2G plans with Apple, that is a further reduction. And I will eventually end up with a subsidized iPhone on a new 2 year contract - a time period I will already have been their customer anyway.

 

[slate1]

My solution:

Buy a used 2G phone via CL or ebay. They abound for around $200-$250.

hmmm - have you checked e-bay? I haven't seen a single one under around $500

 

[nickspohn]

Okay, everyone is different, but we don't need to hear countless stories on why you won't be upgrading.

Nothing personal.

 

[danny_w]

hmmm - have you checked e-bay? I haven't seen a single one under around $500

Yeah, the cheapest on CL here is about $300 for 3GB and $400 up for a 16GB. There are a VERY few for less than that. Everybody knows that the first generation can be unlocked, but nobody knows about the 3G, or the availability of them without a contract (at least $525-$600 after 2 months contract and termination fee). I know I'm going to hold onto mine.

 

[seenett]

Yeah, the cheapest on CL here is about $300 for 3GB and $400 up for a 16GB. There are a VERY few for less than that. Everybody knows that the first generation can be unlocked, but nobody knows about the 3G, or the availability of them without a contract (at least $525-$600 after 2 months contract and termination fee). I know I'm going to hold onto mine.

Not everyone knows the dirty details of 2G v 3G - the vast majority of the public doesn't. If you check CL in my state (Oregon), an iPhone pops up every other day in the sub-$200 range.

 

[seenett]

Okay, everyone is different, but we don't need to hear countless stories on why you won't be upgrading.

Nothing personal.

Hey, you clicked the thread!

Just thought others might benefit from my thought process - I know I have benefited greatly reading different scenarios on these boards.

 

[kdarling]

... AT&T apparently wanting to double dip by selling non-subsidized phones requiring a subsidized-type 2 year contract, ...

It is subsidized, hence the two year contract. This is a known fact.

Current guess is that Apple gets around $400 for each phone from the carrier.

What is not known yet, is what the unsubsidized price will be.

 

[Tattoo]

Hey, you clicked the thread!

Just thought others might benefit from my thought process - I know I have benefited greatly reading different scenarios on these boards.

HAHA! Thats true - He did click on your thread!

 

[m-dogg]

I've been kinda thinking about going this route too...picking up a cheap 16 gb 1st generation iPhone as a cheap(er) hold-me-over until more capacity comes along.

not sure tho...

 

[Slip Jigs]

The only thing I can add, is, I don't think it would make a difference in your cost to upgrade by waiting until October. At that time you're eligible for one of the other discounted phones with a new contract, but not the iPhone.

Do you have a 32gig phone/music player now? Probably not, so you're using two devices. So yes, waiting always produces better cheaper options, but then you sacrifice by going without in the short run.

 

[Michael CM1]

Since for some reason this confuses people:

EVERYBODY IS ELIGIBLE FOR UPGRADE PRICING. That has been stated on at least five threads in the past couple of weeks.

 

[MBHockey]

Since for some reason this confuses people:

EVERYBODY IS ELIGIBLE FOR UPGRADE PRICING. That has been stated on at least five threads in the past couple of weeks.

Have you been reading anything? This clearly seems to NOT be the case.

Granted, nothing is official yet...but everything is pointing to the standard upgrade eligibility cycle for current AT&T customers to get the $199 subsidized price (or a new AT&T customer or 1st gen iPhone user since they didn't get to pay a subsidized price with their contract the first time around).

https://www.macrumors.com/iphone/2008/06/16/atandt-iphone-3g-upgrades-and-activation/

 

[pedroistheman]

wait, why don't you just buy the 3G iphone for $199, then sell it and upgrade when the bigger one comes out? By the time the 32 gb is released, 3G will probably be unlockable and you can sell yours for more than you would get from your 1st generation iphone.

just a thought, but to the posts regarding the price of iphones of CL:

They're going for $200 on craigslist easily, $500 is for dumbasses bidders on EBAY who think they're getting a good deal. haha, I just wish I would have sold mine on eBay rather than going local for much cheaper.

 

[danny_w]

wait, why don't you just buy the 3G iphone for $199, then sell it and upgrade when the bigger one comes out? By the time the 32 gb is released, 3G will probably be unlockable and you can sell yours for more than you would get from your 1st generation iphone.

just a thought, but to the posts regarding the price of iphones of CL:

They're going for $200 on craigslist easily, $500 is for dumbasses bidders on EBAY who think they're getting a good deal. haha, I just wish I would have sold mine on eBay rather than going local for much cheaper.

Maybe other markets are different, but I challenge you to find an iPhone for anywhere close to $200 on Austin CL. The closest I have found recently is a 4GB for $275.

 

[seenett]

It is subsidized, hence the two year contract. This is a known fact.

Current guess is that Apple gets around $400 for each phone from the carrier.

What is not known yet, is what the unsubsidized price will be.

That is my point. AT&T has stated they will be selling UNsubsidized phones, at a price yet to be determined, WITH a 2 year mandatory contract, to customers not currently upgrade eligible.

 

[seenett]

wait, why don't you just buy the 3G iphone for $199, then sell it and upgrade when the bigger one comes out? By the time the 32 gb is released, 3G will probably be unlockable and you can sell yours for more than you would get from your 1st generation iphone.

just a thought, but to the posts regarding the price of iphones of CL:

They're going for $200 on craigslist easily, $500 is for dumbasses bidders on EBAY who think they're getting a good deal. haha, I just wish I would have sold mine on eBay rather than going local for much cheaper.

That is still an option, but under the current stated pricing structure, I would have to wait until I'm eligible in October. If I wait those four months after the 3G is released, I might as well wait another four months (January?) for a 32GB and only buy that one.

 

[JBaker122586]

That is my point. AT&T has stated they will be selling UNsubsidized phones, at a price yet to be determined, WITH a 2 year mandatory contract, to customers not currently upgrade eligible.

They have NOT stated that.
People are SPECULATING that.

You'll be able to get an iPhone for $199 on July 11, no matter if your contract doesn't end until October. I guarantee it.

 

[DreamPod]

But with all the confusion over price/eligibility (I'm not eligible until October) and AT&T apparently wanting to double dip by selling non-subsidized phones requiring a subsidized-type 2 year contract, I feel their lack of a clear sales policy shows fundamental disorganization and a general disregard of current customers.

Wait...the phone isn't coming out yet for almost a month, and you are saying that they are disorganized and hateful to current customers because they haven't publicized every little detail of their plans yet??

 

[Deadman64]

I'm sorry, is there proof of a 32GB version coming out later this year?

 

[DreamPod]

No, the technology to do so doesn't exist yet. Not saying it'd be hard, but currently no manufacturer manufactures the flash roms the iPhone is designed to use in a size that would get you 32GB.

 

[Delta608]

Okay, everyone is different, but we don't need to hear countless stories on why you won't be upgrading.

Nothing personal.

But you felt the need to read it, go through the trouble of answering it..

Nothing personel

 

[kdarling]

That is my point. AT&T has stated they will be selling UNsubsidized phones, at a price yet to be determined, WITH a 2 year mandatory contract, to customers not currently upgrade eligible.

Show us a quote where AT&T has stated exactly that.

It seems far more likely that AT&T is now treating it the same as all other phones:

If you're due for an upgrade, or you're creating a new account, or you currently have no subsidized phone, then you get the subsidized price. Otherwise you can buy it at full price and use it on your account.

 

[seenett]

Show us a quote where AT&T has stated exactly that.

It seems far more likely that AT&T is now treating it the same as all other phones:

If you're due for an upgrade, or you're creating a new account, or you currently have no subsidized phone, then you get the subsidized price. Otherwise you can buy it at full price and use it on your account.

From the leaked AT&T memo, confirmed as genuine by AT&T. I believe it is the most official policy that has been put in writing so far:

Upgrade eligibility will be determined based on standard upgrade eligibility rules. Customers must be upgrade eligible to receive the qualified upgrade pricing. However, not all customers will be qualified upgrades. AT&T has not determined the price of the 3G device for non-qualified upgrades.

All customers will be required to sign a 2-year agreement. There will not be a “no commitment” price for the iPhone 3G.

I do wish AT&T were treating it like all other phones; unfortunately they are not.

 

[seenett]

Wait...the phone isn't coming out yet for almost a month, and you are saying that they are disorganized and hateful to current customers because they haven't publicized every little detail of their plans yet??

I don't recall using the word "hateful"....

I do think their plans in the leaked memo are both detailed and confusing - and all the different, contradictory reports of varying explanations from AT&T CS show they are a bit disorganized.

 

[nastebu]

you're making a lot of plans based on one memo which might be real and might be what the policy is on July 11. I asked at the AT&T store if I, a current AT&T customer in a current contract, could upgrade to the iPhone at the $199 price, and was told without qualification that the $199 price was for everyone. I've seen that elsewhere on the net. I wouldn't be shocked if that was wrong, but I wouldn't spend $200 based on this information either.