AT&T iPhone 3G $199/$299 Pricing Policy

[Fahrwahr]

Wow… all this talk surrounding the iPhone, the subsidies, and the early termination fee made me realize that it made more financial sense for me to pay the termination fee and switch to a pay-as-you-go plan rather than to stay with my current plan for the year left in my contract.

I was on the $39.99 / month (really at least $44 with taxes and fees) plan with 450 minutes, and I was only using maybe 50 or 100 of them; completing the contract would total more than $500, and I was unlikely to every touch the rollover minutes before they expire. The prepaid plan that offers unlimited mobile-to-mobile for $1.00 each day I use my phone (maybe five to ten days a month) makes much more sense, and I could end up paying only $100 / year in refills to keep it active; combined with the termination fee, this makes my new phone plan as little as $275 over the next year. What I also appreciate is that when a friend sends an rare, unexpected text message, it's not an added fee -- it comes out of what I've already paid.

When I was living in another state, having a cell phone plan with a number local to my parents and friends was more important, but now I'm back in my old metro area, and my landline takes care of me nicely. The iPhone would be a nice toy, but I got into my last contract because my old phone was stolen, so I'd rather not have something so expensive to lose or break in any way.

 

[SlyMac]

So my argument is this:

If you sign a new contract with AT&T and get a subsidized phone and pay a "padded" 70.00 p/m fee, and possibly a 175.00 cancellation fee, then fine, that was your choice.

BUT why would anyone buy an iPhone (or any other phone for that matter) for full price, and STILL have to pay the same 70.00 p/m and possibly the 175.00 cancellation fee when AT&T has no need to recoup a loss?

That is what my complaint is about, and that is the business practice that we as consumers must recognize as OVERCHARGING, and demand a satisfactory response.

Why should I pay the exact same amount to AT&T monthly and in fees, (having paid full price for my phone), as someone who gets a discount on their phone. Especially if I have already been a loyal AT&T customer for over 7 years.

I'm right there with you. I am willig to pay the Full unsubsidized price if need be for my iphone. I really want one. I am only 9 months in to my current contract and phone (which i bought off Amazon). What I WILL have a problem doing is paying the full price and still being forced into a new contract. Currently, ATT doesnt do that will ANY of their full price phones they offer to ineligible for upgrade customers. If they were to start now, it would show what they really want to do. Exploit as many people as possible and hope noone complains.

I really just want them (ATT) to come forward with the verdict and stop this avoidance crap.

 

[babyj]

On the positive side, UK customers aren't getting screwed over for a change.

I've had my 8Gb iPhone which cost me £159 for a few months. I'll be able to get a 16Gb 3G for £59 on a £45 / month tariff (unlimitted data including 3G and wifi hotspots, 1200 minutes and 500 texts) with no penalties. Then once I get my current iPhone upgraded to v2 software and unlocked I can sell it on eBay and more than cover the cost of the 3G iPhone. Plus I only have to sign an 18 month contract. Bargain.

I was going to wait but as there will most likely by a 3rd gen iPhone released within a year or so, the sooner I get my 2nd gen the sooner my 18 months will be up allowing me to upgrade again.

 

[mac786]

Sell ur old phone and terminate contract

I was a 2 year contract expiriing end of next year. I got stuck with lousy W580i. What i 'm wondering is have unlock code from AT and T which i think you can get easily after 3 months from ATT and sell the phone unlocked on ebay and get 100 bucks. Terminate my contract and sign up for a new contract with iphone. This way only spend about 50-70 bucks extra.

makes everyone happy

 

[matticus008]

Show me in the keynote where Steve Jobs mentioned in the keynote that the $199/299 price point was for only eligible customers.

All service plans are conditioned on being qualified to enter into them. The iPhone requires a service plan and a two-year commitment. Do you expect a list of exceptions at a stage presentation? For adults only, with approved credit, plus fees and taxes, not including any penalties you may otherwise owe, and so on?

Of course not. For one, it's boring. More importantly, though, it's impossible to talk about what particular arrangements any given person might have that interfere. You have to be able to enter a new two-year commitment in order to buy the phone at all. It comes with that obvious limitation. If you have to spend money to put yourself into that position, that's your own problem.

Show me where in your contract it says, "If something better comes out that you want more, your contract no longer counts." Apple can't get you out of your own contractual obligations.

 

[bigjohn]

arn

Holy Crap, I just noticed that my "Join Date" lands before Arn's

You'd think I'd have some better things to say...

my situation:
-Had an iPhone from launch day, just sold it on ebay last week.
-Used my "upgrade" discount from wireless.att.com to get an cheap phone to use for now...
-I still have my iPhone data plan, and it is listed under my account with "expires August 2, 2008" written next to it.
Do you think I'll be able to get the new iPhone at $199/$299?

i think you should've waited before selling your 2G iPhone

Lol. I can't get an iphone until April 2009. Bloody hell with 2-year contracts.

Wow, so an extra $19 a month for 9 mos ($175 early term fee divided by 9 months) isn't enough to get you into a new iPhone.

Sounds worth it to me, although my current contract end-date is October 2009 (15 months or an extra $11.66 pro-rated)

Apple users are used to paying more for a higher grade of hardware & the vertical integration that comes with it. I'm not understanding what the hubub is about. Especially since next time the $175 early term fee declines by $5 for every month of the contract that passes by - ergo, if a new iPhone comes in July 2009 you're only on the hook for $115

 

[rols]

If Apple had come out with the iPhone unlocked for $600, it would have bombed. Only a tiny % of Americans even know what an unlocked phone is, let alone want to buy one.

No it wouldn't. That's what every other single phone company in the whole world does. They put out a phone at some price vaguely related to the actual cost of it plus a nice fat margin and that is the MSRP on it.

Then you got to ATT or T-Mobile or Singtel or wherever it is you want to go to and you buy it from them and depending on where you are in your contract, what you sign up for, where they actually buy them wholesale etc you pay anything from $199 to $600 and many people would pay $199.

However if you want to buy one at an apple store at full $600 price, take it to Indonesia, put a local 3G pay-as-you go chip in it and use it, that would be fine and people would.

It seems to me a lot of people paid $600 for the first gen iPhone *and* signed up for a contract with ATT, that didn't bomb.

I think what apple should have done is exactly that, released the phone unlocked at some $600 MSRP for anyone to buy, sold them to their partner telcos at a nice wholesale price with the agreement that a new customer signing up for 2 years with those partner telcos will pay just $199 for the phone. They could have announced that just that way, "every one of our partner telcos will be offering the iPhone with contract for $199, so now you have many options for owning this new iPhone".

That is what every other phone manufacturer does and they're selling millions of them.

 

[Peruna]

Standard Policy

As frustrating as this is, preventing current AT&T customers from getting the subsidized price is standard industry practice across the board. When you go to get a new cell phone, all of the major carriers require to have had your old cell phone for 18-24 months before you qualify for a subsidized price. On top of that, you extend your contract two years.

Non-customers are treated better since they want their business. And remember, if they are leaving their old carrier early, they'll have to pay the early termination fee.

They do this because the carriers usually sell their cell phones at a loss, usually a substantial one, so they can make it up and a profit by getting your business for two years. The iPhone is not unique here, it is not different than with a garden variety Razr.

This is really a bad PR problem in that Apple and AT&T have not yet made this well known to the public. Everyone is thinking that anyone, current customers included, can buy a $199 iPhone as long as you extend your AT&T contract two years.

 

[TimothyB]

Man, this is driving me mad. I just want the truth. But no matter what, I will still hold some anger at how I was lead to believe $199 to $299 was the new price for everyone during the announcement, and every newspaper and news network around, not a single mention of it being subsidized, and that you'd have to qualify for it. Steve specifically said most counties the maximum price would be $199. keyword is "most," not all.

Only a fraction of us go online to research these things. I don't want to wait in line to be held up by half the people being hit off guard by this upgrade eligibility thing. Most would assume it works the same way as the first iPhone, that you could get it regardless of your upgrade status. Seeing how Steve did not say this, and ATT not doing one ounce of advertising for the phone until maybe launch day, how will people know this besides google search for the iphone page at ATT and read fine print.

What of people who switched to ATT for the iphone and got the cheapest subsidized phone meanwhile and were told they can upgrade anytime. This was not even on my mind when I was searching the net for new data plan info the day the 3G was announced.

This is such an unusual item that it should have the exception to the normal rules, especially with all this exclusive ATT crud. I wish I had just got a good deal on a refurb iPhone and got the EDGE plan for less per month.

3G was around the corner, possibly less, and everyone was like, it has to be 3G, it's so much better. Now that it's here, I find the 3G network, at least with ATT, is so small. I lucked out having it my city, but it's a dead zone around it. What a waste, a huge amount of people are now going to find they don't get the new price, they won't even see the light of 3G data speed, and then top that off, they'll have to pay more per month.

Also, one thing to consider is the future.

So consider this, there are going to be two kinds of iPhone 3G owners this round.

1: $199-$299 subsidized for 2 years. (with full wait on new upgrade)
2: Unsubsidized for 2 years for unknown price.

For the first group, the whole reason current iPhone users get subsidized 3G versions after only a year or less is because the iPhone wasn't considered an upgrade or subsidized phone to begin with. Your upgrade eligibility as an existing customer wasn't reset at that point either, and new users had no wait.

2nd group, buying unsubsidized, their upgrade won't be reset or start again. So like me, I can't upgrade until November. So if I by an unsubsidized iPhone 3G, I still can't get a discount until November, which will be long past by the next upgrade.

Now think whats going to happen during the next all new iPhone, 6-12months away.

The first groups who were lucky and got the subsidized price will now be sore losers, since they will be stuck in the normal 18+ month wait to upgrade again (if they want to). They may have to wait 10-16months or pay full price.

But the 2nd group, they will finally eligible for the new subsidized price. Even more sweet, most likely we could sell our current iphone on ebay for that price, maybe more if some similar unlocked craze thing happens again like now despite applications. (if 3G is ever unlocked or useful outside of ATT 3G network)

So imagine how confusing that will be next round. Instead of all iPhone users being eligible for the upgrade, half will, half won't. Worse, if that chaos and outcry makes them change this, allowing subsidized iphone owners to upgrade early with no penalty, then people are going to want a refund for having to pay full unsubsidized price from before.

Overall, if you plan to upgrade again soon, paying the full price now is going to be rewarded later with the ability to get the subsidized price by the next release, compared to the buyers now who will have to follow the rules of the 2 months before their 2 year contract is up. I know this isn't really something you consider as making it all even out, but it's like looking at the glass half full instead half empty in this odd situation.

 

[btcutter]

Internal memo from ATT

The full memo follows, as posted by Gizmodo.com:

***Confidential AT&T Information. For Internal Distribution Only.***
AT&T and Apple today announced that the iPhone 3G will be available in the U.S on July 11. iPhone 3G combines three products into one small, lightweight device: a revolutionary mobile phone, a widescreen iPod, and it puts the Internet in your pocket with the best e-mail, web browsing, search and maps applications ever on a mobile phone.

The new version of the iPhone harnesses the power of AT&T's broad and powerful 3G mobile broadband network, which offers 3G mobile phones download speeds of up to 1.4 Mbps.

Key Device Features:

Operates on Wi-Fi, EDGE, and 3G networks
New enterprise e-mail capability with support for Microsoft Exchange ActiveSync
New iPhone software development kit (SDK) to support new innovative applications
Note: 2G iPhone customers will be able to download the iPhone 2.0 software from iTunes which enables new features such as access to corporate e-mail via Microsoft ActiveSync.

New Activation Process and BRE:
The iPhone 3G will be activated at point of sale when the device is purchased, in store. The BRE period will change from 14 days to 30 days and will require the device to be returned to place of purchase before service is cancelled.

Pricing and Plans
Device Pricing:
$199 8GB and $299 16GB for new activations and qualified upgrades with 2-year agreement.

Data Plans and Pricing:
The iPhone 3G will be activated on existing AT&T voice rate plans, but new data plans have been created for the 3G device.

All iPhone 3G customers are required to have one of the new data plans and qualifying voice plan.
Customers intending to use the iPhone 3G for access to corporate e-mail, business applications, or access to corporate intranet are required to activate with Enterprise Data Plan for iPhone.
The 2G data rate plans will remain available for 2G devices until further notice.
IRU service discounts for both voice and data pans will apply to iPhone 3G, but not 2G iPhone.
CRU service discounts for voice and data will apply to both 2G and 3G, when on a qualifying data plan.
IRUs will not get a discount on device purchase for 2G or iPhone 3Gs.
Data Pricing will be as follows:
Consumer Data Plan (must be added to qualified voice plan):
$30 - Unlimited Data (E-mail/Web), includes Visual Voicemail

Enterprise Data Plan (must be added to qualified voice plan):
$45 – Unlimited Data with personal and corporate e-mail, web, includes Visual Voicemail

Upgrade Eligibility and Qualified Upgrade Pricing
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.

Note: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure. (Customers that would not otherwise be eligible due to tenure will be made eligible at launch).

Activation Process
The new 3G device will be activated in store in both AT&T and Apple stores. Customers must accept AT&T and Apple Ts & Cs, sign a 2-year agreement, and select the data plan for the iPhone 3G before leaving the store. The current iTunes activation process will no longer be required for iPhone 3Gs, however a short tether process to unbrick the 3G device will be performed in all AT&T stores (tether cords will be provided). Apple stores will also perform this tether process, however in the event that a customer's device is not tethered in the Apple store, their device will be inoperable until they get home and tether through iTunes. Prepaid and Pick Your Plan will not be allowed on the 3G device.

The SSK has been modified to allow customers interested in the iPhone 3G to enter their information, select rate plans and data plans, and print a document that will allow COR reps to quickly access the customer's information in OPUS and save time for data entry in the activation process.

Note: In the interim, 2G iPhones will continue to be activated via iTunes - BAU. This is also true for existing AT&T customers who receive a 2G device as a gift, hand-me-down, etc. and wish to activate the device. Existing AT&T customers who switch to the 2G iPhone must tether through the iTunes process to begin using the device.

Compensation
Because the 3G device will be activated in store, compensation for the 3G device will be BAU. COR reps will receive compensation for upgrades and new activations with a 2-year agreement.

Purchase Limit
The device purchase limit will remain three (3) per customer for iPhone 3G in AT&T stores.

Allocations
If allocations are required at launch, supply chain will allocate based on January-April sales rates applied on a store-by-store basis.

Direct Fulfillment
The DF tool will be available at launch in COR for iPhone 3Gs. Customers will be required to pay for the device when the order is placed and the phone will be shipped to the store in the customer's name.

Existing Stock of 2G Devices
We will continue to sell 2G devices until stock is depleted.

Return Policy
2G Devices
Customers who recently purchased a 2G iPhone may want to return their device once they hear about the 3G model and price point, but the new device will not be available immediately. Since the announcement and launch will be about 30 days apart, we could lose some customers who are within their BRE period and want to return their device before their 14 days expires and wait for the new 3G device. We must acknowledge and address their desire to get the best device for them.

Here's how AT&T will handle 2G iPhone returns:

If a customer purchased before 5/27, we will follow BAU processes – no device returns. However, all postpaid 2G iPhone customers in good standing are upgrade eligible, so these customers will qualify to upgrade to a 3G iPhone when it is available.
If a customer purchased on or after 5/27 (within the 14-day BRE period before the product announcement on 6/9), we will let them exchange their 2G iPhone for an iPhone 3G before August 1. This means that after we launch the 3G model they can return their 2G iPhone, pay the 10% restocking fee, and purchase a new iPhone 3G before August 1.
Note: This modified return policy applies only to customers who purchase from AT&T stores.

3G Devices
The return policy for 3G is changing from 14 days to 30 days for both Apple and AT&T stores.

To cancel service within the first 30 days, the customer must return their equipment to the place of purchase (no exceptions).
If the customer cancels service after 30 days, they will be charged the ETF. The customer is not required to return the device to cancel after 30 days.
Special Notes Regarding 2G Devices

After the iPhone 3G launches, activations of 2G iPhones for new AT&T customers can be performed in COR stores or in the existing iTunes tether process. COR reps will receive compensation for activations of new AT&T customers done in store.
2G upgrades will continue to be activated via the existing iTunes tether process.
Existing 2G data plans will remain available for 2G devices until further notice.
Note: 2G iPhones are out of stock in the DCs, and the Direct Fulfillment tool for 2G is turned off. 2G iPhones have been removed from the "myRewards" incentive catalog.

Merchandising/Marketing

Current 2G iPhones should remain on device fixtures in store. Do not remove 2G demo devices until further notice.
3G demos will be pulled from stock when they arrive following BAU process for display devices.
Video loop content will be pushed to stores when it is available.
New docks and retrofit kits will be provided for existing iPhone fixtures.
The following merchandising elements will be in stores for launch:

Rate brochure and display rate card
22 x 28 poster
Window banner
Duratrans - will be available for markets to order
Coming Soon: Posters and banners are TBD
Training

Device training, including features and functionality, will be available via My CSP by 6/13.
OPUS training will begin no later than 6/20 and will be delivered via the Learning Edge.
Launch preparedness training, including last minute details, will be conducted the week of launch (if needed) via RSM or Centra sessions.
Communications/My CSP
All iPhone-related communications, inclusive of training announcements, will be posted to My CSP. Login and access are via the "Everything iPhone 3G" ad space. Or search on either keyword "iZone" or keyword "iPhone 3G" to locate.

Launch Plans
Support logistics for launch day will mirror last year's iPhone launch:

Letters will be sent to all landlords under VP/GM signature for advance notice of store hours, crowds expected, possible parking issues, etc.
Security will be provided for locations requesting armed police or unarmed, uniformed guards.
Manager checklists will be provided to support RSMs to set expectations and help them be prepared to complete all required actions.
Documents will be posted on iZone to let RSMs know when to expect delivery of launch support materials.
Job descriptions for key launch day functions will be provided for: Back Office Manager/Inventory Runner, Crowd Manager, Greeter, Product Demonstrator, and Security Support.

***Confidential AT&T Information. For Internal Distribution Only.***



Who knows what ATT means. It's extremely confusing.

I was at Apple store today. NO ONE at Apple store know ANYTHING about this "multiteered" pricing by ATT. They are not even being trained on how to activate the iPhone 3G. Seriously, we are 3 weeks from launch and NO ONE at Apple store even know how to get your info in order to activate your iPhone and you expect them to know if you are elgible for upgrade or not? Are you kidding me?

I think all this rumor is for not. Everyone will get it at $199 and $299.

 

[mavis]

Non-customers are treated better since they want their business.

That's a huge oversimplification. Existing customers who haven't completed their existing contracts need to do so before getting another subsidized phone. Remember, they're already on a contract, which means they've already received a subsidized phone once. It's unreasonable and unrealistic to expect any carrier to keep giving out several hundred dollar discounts whenever people get the urge to upgrade. If carriers did that, they'd go out of business REAL quick. Hence the contract termination fees and having to sign two year contracts in the first place.

Seriously, we are 3 weeks from launch and NO ONE at Apple store even know how to get your info in order to activate your iPhone and you expect them to know if you are elgible for upgrade or not? Are you kidding me?

Well, at least you have SOME information. We're looking at a July 11th launch in Japan as well, except we don't any information from our carrier AT ALL. Pricing, contract terms, tariffs - nothing.

So, it could be worse.

 

[DN7335]

Not nearly as many customers as the $199 price will bring in from other carriers.

The only people this affects are already AT&T customers that are locked into a contract with a subsidized phone. Technically, their existing phone isn't paid for until the contract runs out, so it's pretty unreasonable to expect AT&T to eat the cost of the previous subsidy just so people can have the $199 price. That's how the subsidies work on all carriers.

Don't forget that AT&T has something like 65 million subscribers. There is a very sizable group of people that this is going to affect (millions), probably much more than new subscribers will be because they got a ton of new folks when the 1st gen iPhone came out.
Look, the iPhone is a different creature than other phones, so everyone who is saying "this is the way that all companies do and have done it" aren't really getting it. With all the hype and excitement about this new phone, its a disservice to existing loyal AT&T customers to, as somone else said, snatch away the low price that has been so highly publicized. I hope AT&T does the right thing here and takes care of those of us who have taken care of them. I think if they charge more than say $100 more to us "upgrade ineligible" customers there will be a huge backlash.

 

[mavis]

I hope AT&T does the right thing here and takes care of those of us who have taken care of them.

But isn't that the point? If you really have 'taken care of' AT&T then you'll qualify for the discount - they said it was a combination of things, not only how much of your current contract you've fulfilled.

 

[Vanarak19]

What if I didnt get a free phone when I activated my last iphone? (feb08)

I have had ATT since july07, and when I got that 8gb iphone, i didnt buy any other phone, or get any other phone for free...

now if i go onto my att site, it says feb2009 for upgrade eligibility. I think thatll really push me away from att if i get screwed at this point.

then again, i was planning on spending the 480$ i got from my 16GB ebay sell on a new iphone anyways, so what do i have to expect?

a 499$ 16GB phone, with 2yr contract, 30$/month data, and no texting?

before, if you bought the phone from att, and activated within a current contract, itd sign you up for 18months more, not 2yrs!
???

 

[diabolic]

I have had ATT since july07, and when I got that 8gb iphone, i didnt buy any other phone, or get any other phone for free...

now if i go onto my att site, it says feb2009 for upgrade eligibility. I think thatll really push me away from att if i get screwed at this point.

"Note: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure."

If you have an 2G iPhone on AT&T at the time of the 3G launch you automatically qualify for the subsidized price. If you sold the 2G iPhone before launch and switched to a subsidized phone, you'd probably owe an extra fee. If you don't have a subsidized phone, you'll should qualify for the upgrade price anyway, or at least that's what I'd tell them to when I upgrade. I'd expect they can see if you are currently in a plan with a subsidized phone or not.

 

[Vanarak19]

"Note: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure."

If you have an 2G iPhone on AT&T at the time of the 3G launch you automatically qualify for the subsidized price. If you sold the 2G iPhone before launch and switched to a subsidized phone, you'd probably owe an extra fee. If you don't have a subsidized phone, you'll should qualify for the upgrade price anyway, or at least that's what I'd tell them to when I upgrade. I'd expect they can see if you are currently in a plan with a subsidized phone or not.

no 1st gen iphone here since a few months ago. I sold it on ebay, awaiting the 3g stuff.

Im on a postpaid account with a gophone for the time being crappy moto c168

with just the basic 39.99 450min plan.

 

[Apoc112]

for anyone worried about their eligibility, give AT&T 611 a call and talk to someone.

success story: i spoke with a customer service rep about my eligibility because i just recently signed a non-iPhone contract. because my situation is rather *odd* (i just started with AT&T 5 days ago), they transferred me to their manager. he assured me that AT&T had no plans to charge existing customers more for the iPhone, regardless of their contract. i explained to him that my local store said that there *would* be an unsubsidized price, but he flat out said they were wrong and that they did not have the information he had.

he made a lengthy note on my account to the effect of "customer service manager #xxxx approves customer for upgrade eligibility at 199/299 pricing" and told me that if anyone at the store gives me **** about it, to have them get a hold of him using his #.

YMMV, but they've been extremely courteous to me through the whole process.

 

[clubvulgar]

for anyone worried about their eligibility, give AT&T 611 a call and talk to someone.

success story: i spoke with a customer service rep about my eligibility because i just recently signed a non-iPhone contract. because my situation is rather *odd* (i just started with AT&T 5 days ago), they transferred me to their manager. he assured me that AT&T had no plans to charge existing customers more for the iPhone, regardless of their contract. i explained to him that my local store said that there *would* be an unsubsidized price, but he flat out said they were wrong and that they did not have the information he had.

he made a lengthy note on my account to the effect of "customer service manager #xxxx approves customer for upgrade eligibility at 199/299 pricing" and told me that if anyone at the store gives me **** about it, to have them get a hold of him using his #.

YMMV, but they've been extremely courteous to me through the whole process.

I received basically the same information when I spoke with customer service. However, no note was added to my account. I'll have to call back and ask for such treatment.

 

[SlyMac]

for anyone worried about their eligibility, give AT&T 611 a call and talk to someone.

success story: i spoke with a customer service rep about my eligibility because i just recently signed a non-iPhone contract. because my situation is rather *odd* (i just started with AT&T 5 days ago), they transferred me to their manager. he assured me that AT&T had no plans to charge existing customers more for the iPhone, regardless of their contract. i explained to him that my local store said that there *would* be an unsubsidized price, but he flat out said they were wrong and that they did not have the information he had.

he made a lengthy note on my account to the effect of "customer service manager #xxxx approves customer for upgrade eligibility at 199/299 pricing" and told me that if anyone at the store gives me **** about it, to have them get a hold of him using his #.

YMMV, but they've been extremely courteous to me through the whole process.

You have to take all of their promises with a grain of salt. Ive had things said to me and promises. Ive even heard the same "I've made a note on your account" speech just to realize later that no note was made and nothing was done.

Your contract is only 5 days old anyways (I'm assuming it was started on the 15th or 16th). Even if you kept it until the 11th and went back to the ATT store, you could still return it (because your in the 30 day grace period) and buy the iphone @ the subsidized price. So really what he "wrote down" means nothing.

 

[natejohnstone@g]

F*** Apple, F*** the iPhone and F*** AT&T

I've been waiting for an iPhone for 3 years (yes, I said 3). When my Sprint contract was up last year, I switched to AT&T to get an iPhone, but waited until they had a 3G version what would work overseas. At that time, they told me that whenever I wanted an iPhone, I simply had to re-up my 2-year contract and wouldn't be penalized.

Now they're telling me that in order to get one I have to either pay $175 or cancel my current contract and then re-subscribe just to get an iPhone at the decent price?

F*** you, AT&T. That's the worst customer's service ever. And F*** you too, Apple and Steve Jobs for being such a douche and saying "$199 for everybody" when it's not at all the case.

I am not getting an iPhone now, period. And for those who say "it's still a better deal than before" and blah blah, just shut up. I'm not paying $175 more or canceling my contract and re-subscribing because the PRINCIPLE of the thing is so insane.

has lost a customer here, and I can't imagine I"m the only one. Pathetic move.

Oh, and to those who say "AT&T is just doing what they do with any other subsidized phone" the answer is NO THEY AREN'T!!! Why not? It's called a mandatory $30/month data plan. Current customer's should get the subsided iPhone just based on the fact that they have to pay $30 a month more just to own the frickin' phone. That's $720 over the 2-year contract. You're telling me that's not worth a phone subsidy? AT&T is raking in HUGE money from the iPhone just via the data plan.

 

[mavis]

-snip-

It really amazes me that some of are you are so upset about the iPhone 3G's pricing structure.

For starters, complaining about a $175 early termination fee is kind of ridiculous considering that some of us are paying double and triple times that - for example, I'm 13 months into a 24 month contract and I will have to pay $460 to terminate early so that I can get the iPhone. That means that my wife and I will end up paying close to $1000 for the privilege of being able to spend even more money on iPhones and calling/data plans. $175? I WISH.

Second, complaining about a $30 data charge is kind of ridiculous considering that some of us are paying more than three times that amount for unlimited data (here in Japan, unlimited data plans are going for about $100/month, and from what I've read, Canada is about the same) ... $30 a month for unlimited data? I WISH.

I'm not paying $175 more or canceling my contract and re-subscribing because the PRINCIPLE of the thing is so insane.

It's a pity you don't actually understand the 'principle of the thing' but then again, this is the first time for many people that you have had to deal with the way mobile carriers do business. I, OTOH, worked for US West Cellular which became AirTouch Cellular, which became Verizon Wireless - I understand a fair amount about the industry because I worked in it for quite some time. I realize that most people don't have that kind of experience with or knowledge of the industry, but it would be GREAT if people would at least make some effort to understand that what AT&T is doing isn't unfair or unreasonable (and is in fact quite cheap compared with carriers in other countries) ...

 

[Apoc112]

You have to take all of their promises with a grain of salt. Ive had things said to me and promises. Ive even heard the same "I've made a note on your account" speech just to realize later that no note was made and nothing was done.

Your contract is only 5 days old anyways (I'm assuming it was started on the 15th or 16th). Even if you kept it until the 11th and went back to the ATT store, you could still return it (because your in the 30 day grace period) and buy the iphone @ the subsidized price. So really what he "wrote down" means nothing.

i considered that as well... i mainly wanted to make sure i was okay if i couldn't get an iPhone within my 30 days. i'm not in a 3G area, so the at&t stores in my area aren't sure if they'll be getting the iPhones right away. they think it may be a week or two before we get them, which puts me outside of my 30 days. i paraphrased the note for my post, but it specifically mentioned if i was not within my 30 days.

my plan is to, at some point between now and 7/11, go to my at&t store and have them look at the note and verify that it: 1) exists, and 2) that they'll honor it.

personally, if i have to pay full price for the iPhone, so be it. they could have saved themselves major headaches if they'd just left pricing as it was. i guess the hopes of brining in lots of new customers is more important than pissing off current ones ($)

 

[lucky3killer]

I'm only quality for unsubsidized iPhone 3G because I have BB 8820 under att for about 3 month.

I'm predicting that unsubsidized 16 GB iPhone 3G will be roughly about $600.

Don't forget, if you want cancel the service and pay $175 in ETF then you will still pay $36 for activation fee if you want return to att again.

I've been waiting for an iPhone for 3 years (yes, I said 3). When my Sprint contract was up last year, I switched to AT&T to get an iPhone, but waited until they had a 3G version what would work overseas. At that time, they told me that whenever I wanted an iPhone, I simply had to re-up my 2-year contract and wouldn't be penalized.

Now they're telling me that in order to get one I have to either pay $175 or cancel my current contract and then re-subscribe just to get an iPhone at the decent price?

F*** you, AT&T. That's the worst customer's service ever. And F*** you too, Apple and Steve Jobs for being such a douche and saying "$199 for everybody" when it's not at all the case.

I am not getting an iPhone now, period. And for those who say "it's still a better deal than before" and blah blah, just shut up. I'm not paying $175 more or canceling my contract and re-subscribing because the PRINCIPLE of the thing is so insane.

has lost a customer here, and I can't imagine I"m the only one. Pathetic move.

Oh, and to those who say "AT&T is just doing what they do with any other subsidized phone" the answer is NO THEY AREN'T!!! Why not? It's called a mandatory $30/month data plan. Current customer's should get the subsided iPhone just based on the fact that they have to pay $30 a month more just to own the frickin' phone. That's $720 over the 2-year contract. You're telling me that's not worth a phone subsidy? AT&T is raking in HUGE money from the iPhone just via the data plan.

Oh yup, I would love to stay with tmobile but cannot go back to tmobile because of move to far north suburb of Atlanta (40-45 miles) in Sept and tmobie's signal is very poor then I have struck with att or switch to Verizon.

 

[LoganT]

I really wish people would stop saying AT&T is treating the iPhone just like any other phone. If they were, you would be allowed to walk into the store, buy it at it's full price and walk away without extending your contract (if you're a current AT&T customer). While yes the current iPhone owners did pay the "unsubsidized" price for the iPhone, they also did sign up for a two year contract. Technically speaking they shouldn't be allowed to upgrade if their contract doesn't let them. And also if someone bought the original iPhone for it's full price shouldn't they be allowed to sell it considering they payed the full price for it and still get the benefit of the $199/299 price point?

 

[Vanarak19]

after reading through this:

It seems like a lot of people are mad, a lot of people have pricing structure "theories", and a lot of people simply dont care if it cost more this time around.

I think we all can agree that nothing is 100% accurate at this point. Im sure ATT will release the SPECIFIC details very soon, and when they do:

Half of the people in this thread will complain, half will praise ATT. I planned on paying 500$ for a 16gb in the first place, since thats what I paid for g1. If its less, so be it. If its more, Ill buy something else.

But at this point, i cant see it being more than 500$. Apple wouldve greatly missed the mark of "cheaper so everyone can afford one"

price will not go up. PERIOD.