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No, you can't leave the store without activation which means they transfer your number/account to the new phone and you must get the newer 3G plans with it.

Well in the UK they are offering pay as you go phones (unsubsidized) and therefore this could be the same practice happening out here in the US.

basically is there anyway they would detect you are using 3G and not edge ?
 
No this isn't how every phone operator works

Those of you who keep saying that subsidized phones in exchange for a 2 yr contract is how it works for every company apparently have no clue how it worked for the 1 gen phone.

ATT has always allowed current customers to purchase an iphone, change to the $20 data plan and go on their way with their existing contract. I asked that question specifically and was told twice that there would be no penalty for upgrading my phones back in January if I wanted to add an iphone later. Just upgrade the data plan and it wouldn't have any impact on the term of my contract.

So that is what has caught a lot of us by surprise. If Steve Jobs had not told the world that the price would be no more then $199 anywhere in the world they wouldn't have this potential disaster.

My guess is that ATT is going to have to do something for existing customers who were led to believe that they would be able to pay the going price and add a data plan when ver2 came out. I don't see how they lose by selling for $199 and in exchange ask the current customer to renew for 2 years. They still make the additional $30 a month in the data plan and I don't buy the idea that they are paying $199 + 325 for each phone from Apple when they have been selling them for $399. The biggest gain for ver2 is the software. The gps and 3g components are not big cost items. And the rest of the phone is pretty much the same as 1G
 
Those of you who keep saying that subsidized phones in exchange for a 2 yr contract is how it works for every company apparently have no clue how it worked for the 1 gen phone.

ATT has always allowed current customers to purchase an iphone, change to the $20 data plan and go on their way with their existing contract. I asked that question specifically and was told twice that there would be no penalty for upgrading my phones back in January if I wanted to add an iphone later. Just upgrade the data plan and it wouldn't have any impact on the term of my contract.

So that is what has caught a lot of us by surprise. If Steve Jobs had not told the world that the price would be no more then $199 anywhere in the world they wouldn't have this potential disaster.

My guess is that ATT is going to have to do something for existing customers who were led to believe that they would be able to pay the going price and add a data plan when ver2 came out. I don't see how they lose by selling for $199 and in exchange ask the current customer to renew for 2 years. They still make the additional $30 a month in the data plan and I don't buy the idea that they are paying $199 + 325 for each phone from Apple when they have been selling them for $399. The biggest gain for ver2 is the software. The gps and 3g components are not big cost items. And the rest of the phone is pretty much the same as 1G

I paid full unsubsidized price AND had to sign a 2 year contract.

Now I can pay a subsidized price and sign a contract. This is better.
 
My guess is that ATT is going to have to do something for existing customers who were led to believe that they would be able to pay the going price and add a data plan when ver2 came out. I don't see how they lose by selling for $199 and in exchange ask the current customer to renew for 2 years. They still make the additional $30 a month in the data plan and I don't buy the idea that they are paying $199 + 325 for each phone from Apple when they have been selling them for $399. The biggest gain for ver2 is the software. The gps and 3g components are not big cost items. And the rest of the phone is pretty much the same as 1G

What is so hard about understanding how a contract works? People who are current AT&T customers only get a subsidized phone in the beginning of their two year contract because they agree to honor that contract for the next two years.

You don't see what AT&T would lose by selling it for $199 to people who are not upgrade eligible? They'd lose the money they were already promised for the backend of the contract since they offered the handset for so cheap up front. Not rocket science.

Simply put, the iPhone is now just like every other cell phone AT&T sells. You have to be upgrade eligible to get the cheap price (either by owning a 1st gen iPhone, by being far enough into your 2 year contract to be able to upgrade, or the other exceptions that were posted in this story).
 
You are forgetting advertising/marketing, design, R&D, and engineering costs including Software Development.

Hardware and manufacturing costs are only a small part of a good product.

Actually I haven't forgot any of that. But everyone has that for their products and 100% is well about the average for the industry.

In any case the real development costs are in the ver2.0 software. And they are giving that away for free to existing iphone users.
 
Those of you who keep saying that subsidized phones in exchange for a 2 yr contract is how it works for every company apparently have no clue how it worked for the 1 gen phone.

ATT has always allowed current customers to purchase an iphone, change to the $20 data plan and go on their way with their existing contract. I asked that question specifically and was told twice that there would be no penalty for upgrading my phones back in January if I wanted to add an iphone later. Just upgrade the data plan and it wouldn't have any impact on the term of my contract.

So that is what has caught a lot of us by surprise. If Steve Jobs had not told the world that the price would be no more then $199 anywhere in the world they wouldn't have this potential disaster.

My guess is that ATT is going to have to do something for existing customers who were led to believe that they would be able to pay the going price and add a data plan when ver2 came out. I don't see how they lose by selling for $199 and in exchange ask the current customer to renew for 2 years. They still make the additional $30 a month in the data plan and I don't buy the idea that they are paying $199 + 325 for each phone from Apple when they have been selling them for $399. The biggest gain for ver2 is the software. The gps and 3g components are not big cost items. And the rest of the phone is pretty much the same as 1G

The iPhone was a very special situation. They offered the phone w/ no subsidy but because of their agreement with Apple they wanted to make money on it since they were going to devote a lot of floor space, staffing, and upgrades to their network to support the iPhone. They let you upgrade with no big deal because iPhone V1 *wasn't* subsidized. As far as I can tell/remember it's the only phone that didn't offer a subsidized option.

People are saying that this is how it works for every *other* phone that's not a V1 iPhone and that is 100% true.
 
How long did these people wait in line to get the slave contract, does anyone know?

Also, for the ones that were not able to get their hands on a slave contract, how much did they have to pay for it on the black market?

:D

I am pretty sure it was open to anyone who wanted one (which was mostly the poor or desperate). As far as line length, I don't know.:)
 
What is so hard about understanding how a contract works? People who are current AT&T customers only get a subsidized phone in the beginning of their two year contract because they agree to honor that contract for the next two years.

You don't see what AT&T would lose by selling it for $199 to people who are not upgrade eligible? They'd lose the money they were already promised for the backend of the contract since they offered the handset for so cheap up front. Not rocket science.

Simply put, the iPhone is now just like every other cell phone AT&T sells. You have to be upgrade eligible to get the cheap price (either by owning a 1st gen iPhone, by being far enough into your 2 year contract to be able to upgrade, or the other exceptions that were posted in this story).

Oh, I understand the contract. No problem. But that doesn't mean it is good customer service. It wouldn't be the first time I've switched carriers. lol Iphone ver1 purchasers signed a contract also and ATT is letting them off the hook with a free upgrade or a subsidized price. So why do they get the good deal is ATT was sold them the first phone "at cost" If it appears in the end they making exceptions for some existing customers but not for other then I'll weigh my options like everyone else. The last time around they waived my upgrade and made it available at 18 months even thought the contract was 24 months. So they do this stuff all the time.
 
People keep on saying that the iPhone is no different than any other phone. Except it kind of is. The iPhone is AT&T's flagship phone, it's basically their phone. They have a 5 year exclusive on it and they are the only ones in America at the moment that are able to say "the iPhone is exclusive to AT&T". So I think there could be an exception to the rule.

That is precisely the point I have been trying to make all along... Positively brilliant!

Like I was saying about that sense of entitlement ... :rolleyes:

BTW, AT&T also sells Blackberry / HTC / Palm / Moto PDA phones, and I'm not sure that these other companies would give the "flagship" moniker to the iPhone.
 
Like I was saying about that sense of entitlement ... :rolleyes:

It's not a sense of entitlement. It's that everyone was used to paying the same price for the phone for over a year and Apple told us all 199/299 for the iPhone for everybody. So is Steve Jobs a liar now?
 
SJ stated that the maximum price for MOST of the 22 countries at launch. Meaning he made sure he covered his assets with that statement.
 
It's easy to say when you aren't the one losing money on sales.

Let's see some hard numbers that prove AT&T will make more by giving everyone subsidies.

Hows about we use a little common sense... The more people that buy the iphone, the higher the profits that come in from data plans etc. over time. Unlike many subsidized phones, the iphone requires people to get at least a 30$ data plan. Att is said to be making a killing on these plans.

So think about this one... Assuming that everyone doesn't get subsidies thats currently under att contract with a subsidized phone... thats tons of potential iphone buyers that may not be able to afford to upgrade. I do think that people in that situation will have to succumb to some penalty or charge to upgrade early to a subsidized iphone, but it wouldnt be in the best interests of att to make that charge more than 50 or so dollars.

The idea to just extend their contract even longer, was a good one. That would guarantee that att makes up all the money lost on the subsidies, while also coming out with a good profit.
 
It's not a sense of entitlement. It's that everyone was used to paying the same price for the phone for over a year and Apple told us all 199/299 for the iPhone for everybody. So is Steve Jobs a liar now?

Unfortunately, EVERYTHING increases in price as time moves forward. Look at the price of milk, gas, bread, etc. What makes the iPhone any different? It's a cell phone that's a luxury not a necessity :rolleyes:
 
I suspect people who think the unsbusidized price will be around $175+$199 will find out that they are wrong.

Much more likely are the $500-$600 prices we have seen, which is onpar for the unsubsidized prices other countries are offering.

I also think if people think they are going to terminate their current contract and jump back in they might find that path not as easy going as expected.

I could easily see $524 and $624 being the unsubsidized prices.
 
*sigh* Guess we'll all have to WAIT to find out the DETAILS from AT&T regarding what the pricing will be for CURRENT AT&T customers who do NOT have an iPhone.

Everything else looks pretty clear to me.

Don't know why folks sold their 1st gen iPhones in the first place - how's life without your iPhone been so far?

I got my iPhone day one, 2 year contract, voice $39.95 and data 20 bucks, including 200 SMS texts. EDGE coverage is fine where I live, and I'm on Wi-Fi a lot anyway. The next gen iPhone (3G) doesn't appeal to me enough to want to ditch what I have, pay 2 or 300 bucks for, nor up my data plan from 20 bucks to 30 bucks + 5 bucks more for those formally "free" 200 SMS texts. I'd be out of pocket 300 bucks plus 15 bucks more a month for 2 years. Why bother?

iPhone 2.0 update will rock, and it's free. So I'm not missing out on anything except 3G and GPS - I have GPS in the car, so I don't care.

Sure, I'll be FORCED into this switch next year at this time when my current, cheaper contract expires - but by then, Apple would have come out with iPhone 3G ver.2, and I would expect it would be WAY worth the wait.;)

This 3G phone isn't so much iPhone ver. 2 - rather, it's iPhone 3G ver. 1.0 Think about iPhone 3G ver. 2.0 - THAT'S what I'd rather wait for.

(And I know all this only speaks to current iPhone owners who have been in their contracts for a while already - which is more than a few of us, I'd surmise.)

I would certainly agree with you. My wife loves her iPhone and does not want to pay more just for 3G. I should have bought an iPhone before they "ran out," but I waited too long and it was too late. Now I am stuck, which is strangely good and bad!?! It seems a little odd to me that Apple would quit making the original iPhone and go with exclusive 3G support. It is apparent that many people don't have access to a 3G network yet and will be paying for service that is literally not usable. I am not in that situation personally but can understand the frustrations of those who are. I am sure Apple has good reason (feel free to continue speculation), and it is true that Apple does not generally keep several generations of any of its products around, but still frustrating none the less.
 
I am also annoyed that Jobs gets up there and says it's a lower price at 199 and 299 with no qualifications

I would be annoyed by that too, if Jobs ever said that. He never said anything about qualifications, one way or the other.

I suggest everyone who does not have a crystal clear path to upgrade do NOT go to an Apple store to get their phone, but go to an AT&T store. They are likely going to be much more capable in making the decision to get you going.

If you had an iPhone and sold it, or if you bought another phone right before you got your iPhone, or you are an AT&T customer under contract, and not upgrade eligible, go to an AT&T store. Going to an Apple store will likely be a mistake.
 
I also think if people think they are going to terminate their current contract and jump back in they might find that path not as easy going as expected.

How So? I've done that a couple times in the past and have never had a problem. Once you terminate your contract and pay the 175 or whatever + your remaining balance, you are no longer considered an AT&T customer and are eligible for any specials they may have. Granted, you will lose your number, but for some that isn't a problem. I personally wouldnt do that now that i've had my number for 8 years, and getting my new number out to everyone that needs it wouldnt be worth the 100-200 I'd be saving.
 
The speculation needs to start shifting from if there will be an unsubsidized price, to what that price will be. Assuming that it may be inevitable, though I have no idea of how the logistics could possibly work, I feel like it would be a penalty, rather than an unsubsidized price. I feel like att will let ineligible users upgrade to a new iphone for maybe 25-50bucks extra. That addition would be sort of like a penalty for killing their old contract, but at the same time, they arent leaving att, and they are starting a new contract. Thus I think an additional 25-5o$ would be realistic. Anything over that would be inconceivable, and deplorable on apple and att's part.


Again, considering the pricing in the rest of the world, 2x-3x the current price would not be out of the realm of possibility.
 
Exchange Active Sync

Any idea if Exchange Active Sync will be disabled for those who don't sign up for ATT's Business Data Plan?

I'm planning on upgrading to the 3G phone and would like to use the Active Sync feature to get my work contacts and calendar updated. I was planning on keeping my account on the $30 3G Data plan.

Since previous threads have suggested that Exchange support will be enabled for both iPhones and iPod Touches, does it make sense to suppose that if one is connected via WiFi that Active Sync will work, but if on the Personal Data Plan over 3G it won't?
 
How So? I've done that a couple times in the past and have never had a problem. Once you terminate your contract and pay the 175 or whatever + your remaining balance, you are no longer considered an AT&T customer and are eligible for any specials they may have. Granted, you will lose your number, but for some that isn't a problem. I personally wouldnt do that now that i've had my number for 8 years, and getting my new number out to everyone that needs it wouldnt be worth the 100-200 I'd be saving.

In my past experience, most companies require that you wait 90 days before they consider you a NEW customer after terminating your services, but stranger things have happened :rolleyes:
 
Again, considering the pricing in the rest of the world, 2x-3x the current price would not be out of the realm of possibility.

True. I'd say were looking @ 400-500 dollar range for the 8gb. You also have to look at other phones overseas compared to the price we pay (subsidized or not). A new blackberry across the pond runs @ about 250 more that the full price here when you look @ current exchange rates. It's all relative (other places even more). I definately dont see the price going above the 599 price we saw at launch for the 8gb model.

In my past experience, most companies require that you wait 90 days before they consider you a NEW customer after terminating your services, but stranger things have happened :rolleyes:

Thats the first time I've heard that, what companies did you do that with?
 
Unfortunately, EVERYTHING increases in price as time moves forward. Look at the price of milk, gas, bread, etc. What makes the iPhone any different? It's a cell phone that's a luxury not a necessity :rolleyes:

I have to disagree with you that everything increases in price, particularly when it comes to technology. Case in point: My first home computer was an Apple IIc+ in 1989. Price? $1600. 128k of internal memory right there! :) If your theory is true, how is it I am typing this post on an $1100 iBook in 2008 that has the features it does, and why is my iMac from 2006 also less than $1200?

Apple has historically been great at keeping prices where they are or even lowering them while increasing the features. I don't see them charging more than last year's iPhone.
 
Unfortunately, EVERYTHING increases in price as time moves forward. Look at the price of milk, gas, bread, etc. What makes the iPhone any different? It's a cell phone that's a luxury not a necessity :rolleyes:

Thats not really the case with electronics. All those you mention as examples are items that change very little and their price is a direct reflection of supply and will show a rise over the lifetime of those products. Electronics on the other hand DECREASE in cost in relation to the technology inside them. Examples are cost of RAM, hard drives, CPUs, etc...

The iphone is diffrent because, just like with mose new electronic products, cost is higher at the beginning, but as production rises and the technology inside becomes less expensive to produce, there is usually a decrease in cost.
 
I suspect people who think the unsbusidized price will be around $175+$199 will find out that they are wrong.

Much more likely are the $500-$600 prices we have seen, which is onpar for the unsubsidized prices other countries are offering.

I also think if people think they are going to terminate their current contract and jump back in they might find that path not as easy going as expected.

I could easily see $524 and $624 being the unsubsidized prices.

Not really - those would be non-contract prices.

You still have to sign up for the 2 year contract, even if you buy an unsubsidized phone.

Other countries allow you to purchase the phone with no contract and possibly even unlocked.
 
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