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AT&T iPhone 3G $199/$299 Pricing Policy
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For some people (myself included) its not about the price. Its losing your number. Whenever you cancel your contract, you lose your number (unless you already switched it to a NEW carrier). By canceling your contract and signing a new one, you lose your number. ATT doest allow you to transfer your number from one contract to another when canceling. Ive tried. For me, its too much of a hassle to get a new number out to everyone that is used to my current number. You have to think about that when you cancel your service just for a new phone.
After having followed this post I must say that I am amazed that many people do not seem understand the simple (and fair) principles behind this.
So many people should not, not be able to understand thus my conclusion is that these people DO NOT WANT to understand. If you're one of them, move on to the next post, but it you truly WANT TO UNDERSTAND, stay with me for a while and I will explain.
Basic concepts we need to be able to understand and distinguish between:
If you sign up for a new AT&T 2-year contract, you will be allowed to buy the iPhone for $199.
Let's be clear about that this deal is for EVERYONE including "non-customers", "other provider customers" and "AT&T customers".
Everyone that signs up for a new AT&T 2-year contract will be allowed to buy the iPhone for $199.
Buying the iPhone will give you a new phone (for $199) and a new contract but it will not change that you have other prior agreements in your life including maybe:
The sweet deal for existing AT&T customers:
If you are a good AT&T customer, AT&T will relieve you from one of your prior contracts namely the "old AT&T contract". You will keep what they gave you (maybe a free/cheap phone) without you having to keep your agreements. We call this the "free upgrade".
This deal is sadly not valid for other committments so
ps. When SJ in the keynote said that everyone would get to buy the iPhone for $199 he was referring to the global release of the iPhone. Even so, it still holds true since:
Everyone that signs up for a new AT&T 2-year contract will be allowed to buy the iPhone for $199.
That would suck, but I doubt that is the case. You will neeed to fulfil your financial obligations of your old contract (pay termination fee) but I am sure they will manage to let you keep your number.
So many people should not, not be able to understand thus my conclusion is that these people DO NOT WANT to understand. If you're one of them, move on to the next post, but it you truly WANT TO UNDERSTAND, stay with me for a while and I will explain.
Basic concepts we need to be able to understand and distinguish between:
- Phone: In this case the new or old iPhone or another phone such as a Samsung phone or Motorola
- Contract: An agreement with your provider, which might be AT&T, t-mobile or other. If you have a current contract, you also need to make a distinction between your old and new contract.
If you sign up for a new AT&T 2-year contract, you will be allowed to buy the iPhone for $199.
Let's be clear about that this deal is for EVERYONE including "non-customers", "other provider customers" and "AT&T customers".
Everyone that signs up for a new AT&T 2-year contract will be allowed to buy the iPhone for $199.
Buying the iPhone will give you a new phone (for $199) and a new contract but it will not change that you have other prior agreements in your life including maybe:
- Car loans
- Unfavorable subprime loans
- Subscriptions on magazines that you have signed up for a fixed term (maybe they gave you something if you promised to stay with them for a year)
- Prior committments with other phone providers (maybe they gave you something if you promised to stay with them for 2 years)
- Prior committments with AT&T (maybe they gave you something if you promised to stay with them for 2 years)
The sweet deal for existing AT&T customers:
If you are a good AT&T customer, AT&T will relieve you from one of your prior contracts namely the "old AT&T contract". You will keep what they gave you (maybe a free/cheap phone) without you having to keep your agreements. We call this the "free upgrade".
This deal is sadly not valid for other committments so
- You can't keep your t-mobile-subsidized phone while AT&T releases you from your t-mobile contract
- You can't keep your house while AT&T pays off your debts
- Everyone that signs up for a new AT&T 2-year contract will be allowed to buy the iPhone for $199.
- This does not make AT&T bad (if they did not trick one to get into a contract which seems to be not the case)
- This does not make Apple bad
- Everyone is eligebale to get a subsidized phone with the same agreement
- People will need to figure out what to do with their old contracts if AT&T will not offer them a free way out
ps. When SJ in the keynote said that everyone would get to buy the iPhone for $199 he was referring to the global release of the iPhone. Even so, it still holds true since:
Everyone that signs up for a new AT&T 2-year contract will be allowed to buy the iPhone for $199.
That would suck, but I doubt that is the case. You will neeed to fulfil your financial obligations of your old contract (pay termination fee) but I am sure they will manage to let you keep your number.
Will be???
Actually, unless you're part of the current administration, the government IS currently one of them!!!
Actually, unless you're part of the current administration, the government IS currently one of them!!!
People are complaining on all sides of this thing. I want to pinpoint why, exactly, people are upset over the new price situation.
People aren't stupid. People understand how phone pricing schemes work, with subsidizing, fancy T&Cs, upgrade eligibility, contracts, etc. They are not complaining because the new iPhone should, a priori, be different.
Instead, they are complaining because the iPhone has, since its inception, gone out of its way to be different. I'm not a fanboy to say that the iPhone is different than other phones. Just look at every piece of Apple's bloody marketing! Since the 1st gen iPhone was announced, Apple has stressed its uniqueness, both in terms of software, hardware, and, crucially, delivery to the consumer. With the 1st gen phone, we didn't have to deal with subsidies, in-store activation requirements, etc. It was very simple: buy the iPhone like any other Apple product, iPod, iMac, etc.. You just need to buy cell phone service to use it, and you can do that in the comfort of your home.
Now the 3G comes along. I completely understand that the new pricing structure is reasonable, and matches every other phone. But when Apple's web site (and Steve) announced "half the price" without saying ANYTHING about the new pricing/upgrade/subsidy situation, people's very reasonable assumption was that things would work as before. Apple is a unique company, they do things differently, etc. The fact that it's still being sold in Apple Stores on its own reiterates that. When you walk into the Apple Store, do you expect to need upgrade eligible to buy the new iPod or iMac, or the first iPhone? It's not unreasonable, it's just incredibly misleading.
In other words, as I understand it, people aren't upset that Apple is selling the new phone just like every other phone. People are upset because Apple does so while STILL hiding under the pretension of uniqueness. It would have been very easy to Steve (or Apple's website!) to mention that although the price is lower, it is now part of the usual pricing/upgrade/subsidy rules. That would have been clear. They didn't say that. Because they want people to think they're still doing it differently. But they're not. That's annoying.
People aren't stupid. People understand how phone pricing schemes work, with subsidizing, fancy T&Cs, upgrade eligibility, contracts, etc. They are not complaining because the new iPhone should, a priori, be different.
Instead, they are complaining because the iPhone has, since its inception, gone out of its way to be different. I'm not a fanboy to say that the iPhone is different than other phones. Just look at every piece of Apple's bloody marketing! Since the 1st gen iPhone was announced, Apple has stressed its uniqueness, both in terms of software, hardware, and, crucially, delivery to the consumer. With the 1st gen phone, we didn't have to deal with subsidies, in-store activation requirements, etc. It was very simple: buy the iPhone like any other Apple product, iPod, iMac, etc.. You just need to buy cell phone service to use it, and you can do that in the comfort of your home.
Now the 3G comes along. I completely understand that the new pricing structure is reasonable, and matches every other phone. But when Apple's web site (and Steve) announced "half the price" without saying ANYTHING about the new pricing/upgrade/subsidy situation, people's very reasonable assumption was that things would work as before. Apple is a unique company, they do things differently, etc. The fact that it's still being sold in Apple Stores on its own reiterates that. When you walk into the Apple Store, do you expect to need upgrade eligible to buy the new iPod or iMac, or the first iPhone? It's not unreasonable, it's just incredibly misleading.
In other words, as I understand it, people aren't upset that Apple is selling the new phone just like every other phone. People are upset because Apple does so while STILL hiding under the pretension of uniqueness. It would have been very easy to Steve (or Apple's website!) to mention that although the price is lower, it is now part of the usual pricing/upgrade/subsidy rules. That would have been clear. They didn't say that. Because they want people to think they're still doing it differently. But they're not. That's annoying.
*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 was one of those that sold my 1st gen iPhone! Now I'm not sure why??? I should have given it to my daughter, but what's done is done!
Anyway, I didn't realize I'd miss it like I do! I've gotten so used to it's features, that my temp phone (RAZR) suucks!
I just wish the new iPhone had a voice recorder, as that would come in so handy for the spontaneous thoughts that pop up in my head faster than I have time to jot notes down.
Maybe the next gen iPhone will have that feature (or maybe an app will be developed since iPhones have mics built-in) as well as the missing link features...video recorder, mms, copy/paste, etc!!!
I bought an iPhone on day 1 (6-29-07), and my contract expires in April 09 also. Why do we have to wait???
I'll say it again. ATT DOES NOT ALLOW CUSTOMERS WHO CURRENTLY HAVE A CONTRACT TO CANCEL THEIR CURRENT ONE (EVEN WHEN PAYING THE EARLY TERMINATION FEE) AND SENDING THEIR NUMBER TO A NEW ATT PLAN.
I would imagine they do that to avoid people doing this very thing to take advantage of a deal. I have spoken to several reps and store managers and they all said the same thing.
I bought an iPhone on day 1 (6-29-07), and my contract expires in April 09 also. Why do we have to wait???
Man, what is it with people not understanding the rules for current iphone owners?
If you have an iphone, it doesn't mater how far you are in your contract, you can buy the new one at the subsidized price. (Now if you sold your iphone an have a different plan, thats a whole different monster)
THANK YOU! This is exactly my problem. Everyone is saying how "fair" AT&T is being with this proposed pricing scheme. But there are 2 HUGE reasons why this is terribly unfair. Both relate to how the iPhone has historically been different than other phones.
1) Mandatory $30/month data plan. That is not done with any other phone that I know of (accept sometimes Blackberries. Other PDA phones' data plans can be canceled, at least with AT&T). To tell me--a current AT&T customer--that I'm not yet worth giving a "free upgrade" to when they at the same time expect me to pay $720 over 2 years on a mandatory data plan is quite ridiculous and is in NO WAY the "fair" and "normal" way of doing it. This is not what the do with every other phone--stop saying that--because every other phone does not require the $30/month.
2) The iPhone2G had a very open policy--If you want one, buy it and sign up for a 2-year contract. Period. I joined AT&T a year ago in anticipation of buying an iPhone sometime during the year. What sold me on joining when I did was that I was told that whenever I wanted to I could simply buy an iPhone at whatever the price and sign up for another 2 years--as if I was a new customer. Now AT&T seems to be saying that this is no longer the case, now the iPhone is all of the sudden going to be treated like "every other phone," accept of course for the mandatory $30/month data plan!
So if I want one, I need to pay the unsubsidized price, but STILL sign up for 2 more years and STILL pay the $30/month? That's insane, and NO IT"S NOT like every other phone they sell! Right now I can buy any unsubsidized phone that I want and put my sim card in it and I'm good-to-go, no new 2-year contract.
On the one hand, AT&T wants to treat the iPhone like every other phone (subsidies and upgrades), but on the other hand, they want to treat it like a unique item (no option for a "no commitment" unsubsidized phone, mandatory $30/month data plan). They can't have it both ways, that's not fair, and I won't buy into it.
This is what I and many other are upset about. The iPhone has always been different--not like every other phone, etc. Now SJ and
say that "Everyone will get the iPhone at $199." But if that turns out NOT to be the case, and that now AT&T is treating the iPhone like every other subsidized phone, then the rules have been changed in the middle of the game while is pretending that their amazing device has just miraculously become "Twice as fast at half the price." That would be not only frustrating, but down right misleading and dishonest. That's why people are upset.
When some say the iPhone is now being treated like an ordinary phone, how can you say that? Like someone said in another thread, you are forced into the $30 data plan in order to even get the phone, and that if there is an unsubsidized price, you still have to sign up for 2 years.
Now, if you could get the the iPhone for $199 2-years with only the voice plan, or unsubsidized with a month to month plan, then I'd say it's being treated like a normal phone.
So being forced into a 2 year contract and $30 data plan no matter what doesn't sound normal to me. Just that mandatory data plan should allow you the subsidized price. Who know, maybe that's why they are doing it if they have to sell it to $199 to everyone.
Now, if you could get the the iPhone for $199 2-years with only the voice plan, or unsubsidized with a month to month plan, then I'd say it's being treated like a normal phone.
So being forced into a 2 year contract and $30 data plan no matter what doesn't sound normal to me. Just that mandatory data plan should allow you the subsidized price. Who know, maybe that's why they are doing it if they have to sell it to $199 to everyone.
Where are you getting your information? If what you say is true, there wouldn't be 16 pages of complaints on this thread. The AT&T spokesman clearly stated that there would be a different price (i.e. NOT 199/299) for existing AT&T customers that weren't "upgrade eligible". That is why people on this thread are upset. If you have some different information that is from a reliable source (NOT some AT&T rep on the phone or in a store) then I'd love to believe you.
There is also a web site quoting Mark Siegel, the executive director of AT&T Mobility Media Relations, as saying any iPhone owner or current AT&T customer in a contract can upgrade in July for the $199 price with a 2 year commitment. A later article on another site had the same Mr. Siegel saying anyone in a contract who wanted to upgrade for $199 in July could do so if meeting certain qualifications, such as meeting certain credit criteria. Same guy, two slightly different claims within a week, so I don't know if AT&T even has the details hammered out yet.
Nobody knows what the truth is, so nobody has any place to claim to know the truth. There is no reliable source except for Apple's and AT&T's web sites, IMO, and nothing specific has come out on those other than requiring a 2 year contract for the $199 price.
Yes, there would be.
The price is $199 with a new two year agreement. If you're not eligible to sign a new, two-year agreement, you might have to do other things to get there. That might cost you money. AT&T might even be one of the entities you have to pay.
That doesn't change the price or terms of getting the iPhone, that changes your personal situation. The "16 pages of complaints" don't seem to understand that Apple isn't going to buy you out of your current contract because you want the new iPhone--what does that earn them? The cost of doing so would mean that they'd be giving you the iPhone for $25. That doesn't even begin to make sense.
Sure. You can cancel your current contract and pay the ETF. Presumably, the "different price" you speak of will allow you to avoid cancelling your outstanding obligations, and thus keep your current plan (which might not be offered any more, and which you might prefer to the 39.99 plan that is the default selection).
Paying the higher price simply automates that procedure and allows you to keep the benefits of your existing contract. It doesn't mean you can't exercise your cancellation option, and after doing so, enter into a second transaction involving a $199 iPhone and new two-year commitment, like everyone else "gets to".
Yeah they do, it is really easy. Get an iPhone added to your plan as a new line, have ATT switch the number you want to the iPhone, and then cancel the other line. It will cost you the ETF + the cost of an extra line for a month, but it can definitely be done.
from ATT rep
Talked with one seemingly knowledgeable rep who looked it up in his "bible" If you have a G! iPhone and are in good standing you can upgrade, regardless if a subsidized phone (or specifically a free phone) was received like a Nokia. If e.g as in my case my wife on the family plan gets the G1 iphone she will get the $20 data plan as it is not capable of 3G.
Talked with one seemingly knowledgeable rep who looked it up in his "bible" If you have a G! iPhone and are in good standing you can upgrade, regardless if a subsidized phone (or specifically a free phone) was received like a Nokia. If e.g as in my case my wife on the family plan gets the G1 iphone she will get the $20 data plan as it is not capable of 3G.
Weird
Well something weird to report....
When the fist official news about the3g iphone came out, I called up ATT and asked them would I be eligible for the 199/299 deal. The rep checked it out and said no, since you are not eligible for an upgrade until 04-09. Today when I went to check out my upgrade status it changed This line is eligible for equipment discount pricing when you sign up for a 2-year service agreement. You can also take advantage of our no-commitment pricing option. I have no idea why this changed, my only explanation is allowing all current iphone costumers to upgrade to the 3g iphone at the 199-299 price.
Currently I am an iphone costumer and do plan on purchasing the 3g on July 11.
Well something weird to report....
When the fist official news about the3g iphone came out, I called up ATT and asked them would I be eligible for the 199/299 deal. The rep checked it out and said no, since you are not eligible for an upgrade until 04-09. Today when I went to check out my upgrade status it changed This line is eligible for equipment discount pricing when you sign up for a 2-year service agreement. You can also take advantage of our no-commitment pricing option. I have no idea why this changed, my only explanation is allowing all current iphone costumers to upgrade to the 3g iphone at the 199-299 price.
Currently I am an iphone costumer and do plan on purchasing the 3g on July 11.
that's your answer right there. Numerous statements released by AT&T have mentioned that current iPhone owners are going to be allowed to upgrade at those prices. It's the current customer, non-iPhone owners that MIGHT be getting screwed.
Wow so all those people who sold their iphones befor the release of the 3g are gettting screwed... Sucks to be them, I am just glad that I didnt sell mine on ebay
depends on the situation that they left themselves in. if they picked up an unsubsidized phone when they got rid of the old iPhone, they should be okay. as far as AT&T explained it to me, anyone with an unsubsidized phone is eligible for an upgrade at subsidized pricing (because you have no outstanding commitment on the phone). Granted, this may just be one of my local store's criteria, since all eligibility is ultimately subject to their decision based on any number of factors.
Does anyone know if AT&T's ETF applies to ALL the lines on an account? I have a family plan with 2 lines, and I'm wondering if the ETF applies to EACH of those lines or if I'd just have to pay the $175 once.
That likely changed for the reason I mentioned in one of my earlier posts. The upgrade policy clearly states that if you are taking advantage of a "no-commitment" pricing option, you are not extending or renewing your contract. Since no iPhone's will be distributed without a new 2-year contract, they cannot offer a no-commitment option under their current policy. Therefore, this indicates they are allowing those of us in contract to get the iPhone at the subsidized price if we renew our contracts (perhaps under a new plan). Obviously speculation, but may explain all of the spotty information we have already. I would also assume (under this new policy) that the unsubsidized price will be rather great since they don't want anyone getting the new iPhone without a new 2 year contract.
Do I qualify for subsidized price?
In regard to AT&T's specialized credit qualification system as posted by BestBuy, among other iPhone articles:
"Customer has had a standard calling plan plus data services costing $99 a month or more, and who has been in contract (and not upgraded) in the last 12 months. "
This line, specifically, seems rather confusing and convoluted. I switched to AT&T in March in light of the much-rumored upcoming iPhone 3g release. I bought a refurb Blackberry with the intention of buying the iPhone in a few months. Also, my plan totaled ~$115 for the months of Mar, Apr, and May.. however, I downgraded my plan a bit in June so that it now totals ~$95/month.
Thus, I've had a plan costing $99+ a month or more. I have not upgraded since I've been in my contract. And I've been in the contract w/ this $99+ price point (at some point) in the last 12 months.
The wording seems very unusual.. I haven't been in a contract FOR the last 12 months, but I have been in a contract @ $99+ IN the last 12 months... and I've HAD a plan costing $99+ w/o upgrading.
Am I eligible..... ?
In regard to AT&T's specialized credit qualification system as posted by BestBuy, among other iPhone articles:
"Customer has had a standard calling plan plus data services costing $99 a month or more, and who has been in contract (and not upgraded) in the last 12 months. "
This line, specifically, seems rather confusing and convoluted. I switched to AT&T in March in light of the much-rumored upcoming iPhone 3g release. I bought a refurb Blackberry with the intention of buying the iPhone in a few months. Also, my plan totaled ~$115 for the months of Mar, Apr, and May.. however, I downgraded my plan a bit in June so that it now totals ~$95/month.
Thus, I've had a plan costing $99+ a month or more. I have not upgraded since I've been in my contract. And I've been in the contract w/ this $99+ price point (at some point) in the last 12 months.
The wording seems very unusual.. I haven't been in a contract FOR the last 12 months, but I have been in a contract @ $99+ IN the last 12 months... and I've HAD a plan costing $99+ w/o upgrading.
Am I eligible..... ?
In regard to AT&T's specialized credit qualification system as posted by BestBuy, among other iPhone articles:
"Customer has had a standard calling plan plus data services costing $99 a month or more, and who has been in contract (and not upgraded) in the last 12 months. "
This line, specifically, seems rather confusing and convoluted. I switched to AT&T in March in light of the much-rumored upcoming iPhone 3g release. I bought a refurb Blackberry with the intention of buying the iPhone in a few months. Also, my plan totaled ~$115 for the months of Mar, Apr, and May.. however, I downgraded my plan a bit in June so that it now totals ~$95/month.
Thus, I've had a plan costing $99+ a month or more. I have not upgraded since I've been in my contract. And I've been in the contract w/ this $99+ price point (at some point) in the last 12 months.
The wording seems very unusual.. I haven't been in a contract FOR the last 12 months, but I have been in a contract @ $99+ IN the last 12 months... and I've HAD a plan costing $99+ w/o upgrading.
Am I eligible..... ?
You bought the phone right out, right? If so, it doesn't matter. You didn't get a subsidy so you'll get it now.
I'm not exactly sure. I bought it on the AT&T website and the price they gave me was $29.99 for the refurb curve. I'm not sure what refurb phones would go for w/o a subsidy... but something tells me that price was subsidized? I don't really remember..