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

[elistan]

But what about my situation?

I have an iPhone. BUT I bought it only a few months after getting a different phone that was subsidized.

According to this, I have an iphone, so I can upgrade. Or do I need to wait until my upgrade cycle is up?

The AT&T memos I've read haven't put any conditions on qualifying for the subsidized price if you have a first-gen iPhone. So based on a strict reading, yeah, if you have a first-gen iPhone you can do something like get a free subsidized phone from them on July 1, get a subsidized 3G iPhone, then sell your free phone on eBay for some nice cash back.

I have two thoughts on this. First, it's deliberate on AT&T's part and they realize they might lose some money in such transactions but figure its worth moving more 3G iPhones. Second, their real intention was to say that owning a first-gen iPhone, even if you bought it two days ago, has no impact on upgrade eligibility since it was unsubsidized - but if you're not upgrade eligible for some other reason, like getting a free phone two days ago, you're SOL for the subsidized 3G iPhone prices.

Personally, I'd imagine that the second is more likely, but who knows. That means if somebody got a subsidized phone from AT&T two weeks before getting a first-gen iPhone on launch day, they'll be in for a shock when they can't get a 3G iPhone for $199 or $299. We'll see.

 

[Darkroom]

all i can say is that I'M SO GLAD i got rid of my cell phone years ago and now pay $25/month for unlimited talk time, 24/7 with my landline... after having a cell for years i though it would kill me to switch back, but it didn't even pinch... took about a week to get use to... was the smartest financial decision i think i ever made.

seriously... Canadians who sign up for a Rogers iPhone will be signing a $3500+ commitment over 3 years... so good luck to everyone signing up...

i'd rather buy a Mac Pro for $3500 thanks.

 

[twoodcc]

well, better than $325 extra

 

[fenixx]

All of this confusion, and the fact multiple summarization's have been posted to clarify to the masses marks a sign of the downfall of the iPhone 3G.

Apple needs to shake AT&T before this gets any worse.

 

[Fluffy Bunny]

I'm a bit confused as to when the subsidy came about, also. After I saw the keynote I assumed it was going to be the same sale method as iPhone 1, just cheaper.

This time around, AT&T is paying Apple a set amount up front for each iPhone sold as opposed to Apple receiving a cut of the monthly fees. For some reason, Apple does not like to call this upfront fee a phone subsidy.

If AT&T is truly paying Apple $325 per phone, I would guess that the unsubsidized price would be the 199/299 plus something very close to the 325. Apple stores and AT&T stores will have to price the phones the same, and Apple will need to know if a customer qualifies for the subsidized phone. They do have these things called computers and networks so it should not be too hard to figure out.

 

[mavis]

Wait, so current AT&T customers who have been with AT&T for less than 2 years get treated worse than people who have never been with AT&T?

That's some bulls***.

How is it BS? That's how the industry works! Carriers subsidize phones to attract new customers, and then lock them into a contract to guarantee that they'll be able to recoup their losses and actually make a profit. Or did you think that phone you got a year ago had an actual value of $50?

I don't know why people are so upset about this. Expecting to be able to get a new phone at a subsidized price without having first fulfilled your existing contract is kind of ridiculous. The exception is of course original iPhone owners - since AT&T didn't subsidize that phone, instead paying Apple a month revenue sharing sum, I'm sure they're anxious to get people off of that contract and on to one that doesn't require monthly payments to Apple.

 

[macduke]

Unlockers won't be as prevalent this time around because all of the countries iPhone will be in. They will get them from countries closer to their own. T-mobile doesn't have a 3g network worth a crap either.

Apple said the price will not be more than $199 or $299 for the 8gb or 16gb. This will be simplified soon enough. If it doesn't get sorted out, perhaps Apple could use it as a breach of contract and break off ties with AT&T as an exclusive carrier. If they do go with unsubsidized prices, I bet they will be $349 / $449.

The main reason that existing iPhone users get the unsubsidized price is because we paid the full price for the original. Consider my situation. I bought a Moto Rokr E1 in October 2005. Then I bought a full price iPhone for $599 in June 2007. My 2 year upgrade was available in October 2007. I qualify for an upgrade. It might not be true for all upgraders, especially ones who bought an iPhone in the Spring who might still have over a year left on their upgrade schedule, but its even harder to discriminate in this situation, and perhaps since they paid twice as much they get the cheaper price? It is just such a hairy, convoluted situation. Such is the cellular industry. Yuck!

Like I said though, I bet this will be simplified and laid out clearly in the next few weeks. I also fully expect the 200 texts to be added to the $30 3g data plan. That's the only thing that really pisses me off, besides the fact that I have to have a 3g plan until they upgrade my smaller college town to 3g. I guess I could always wait to upgrade, but I want to try to sell my current iPhone while I can and I really want the black, GPS and better battery. I also go home a lot, which has 3g. I just wish I could wait to upgrade the plan until I have 3g service on a regular basis.

 

[latestmonkey]

How is it BS? That's how the industry works! Carriers subsidize phones to attract new customers, and then lock them into a contract to guarantee that they'll be able to recoup their losses and actually make a profit. Or did you think that phone you got a year ago had an actual value of $50?

I don't know why people are so upset about this. Expecting to be able to get a new phone at a subsidized price without having first fulfilled your existing contract is kind of ridiculous. The exception is of course original iPhone owners - since AT&T didn't subsidize that phone, instead paying Apple a month revenue sharing sum, I'm sure they're anxious to get people off of that contract and on to one that doesn't require monthly payments to Apple.

It never ceases to amaze me how people never take into account how certain industries work before pissing and moaning about their own pocketbooks.

I just got a new phone in Jan from AT&T while waiting for the new iphone. Now I am not eligible for it but that'd be the case with ANY other phone. Why is this so hard to understand for people? At&T is not in business to give you money.

As for them paying anyones early termination fee to get them to switch to AT&T.. jesus h christ that's funny.

 

[macduke]

The exception is of course original iPhone owners - since AT&T didn't subsidize that phone, instead paying Apple a month revenue sharing sum, I'm sure they're anxious to get people off of that contract and on to one that doesn't require monthly payments to Apple.

That really does make a whole lot of sense, because they would have to sign a new contract under the new subsidized terms. They still have to pay Apple the difference in price though. I bet the payments to Apple end up being more over 2 years than the subsidy payments since they are letting existing iPhone customers upgrade.

 

[importluva]

As usual people bitch no matter what companies do. The iPhone is now under a system just like any other phone, except maybe the subsidized pricing for v1. iPhone users. Apple and AT&T made the right move together IMO. We can't blame them for trying to stop people from unlocking/jailbreaking and total cost of buying and using the phone on AT&T is hardly different from v1 and you more features. Not much to complain aboutb as far as US users should be concerned.

 

[Alucardx03]

I sold my first gen. iPhone on eBay a week ago so I could afford the 3G version.

I haven't canceled my iPhone data or minute plan. Should I have a problem qualifying for the upgrade?

 

[Darkroom]

I don't know why people are so upset about this.

i believe it's just a reminder to everyone about how sleazy telecom companies are, and it's kinda sad to see (the new) Apple INC. jumping aboard... honestly, everyone knows someone who had a problem with their mac computer in the past year - dying macbook HDDs, iMac screens that look worse than budget sPCs, MacBook Pro stripes, etc., but is (the new) Apple INC. addressing these issues? no... is (the new) Apple INC. making a killing on iPhone sales, $100 iPhone development fees and 30% revenue from iPhone apps sold? yes.

 

[zync]

Wait, so current AT&T customers who have been with AT&T for less than 2 years get treated worse than people who have never been with AT&T?

That's some bulls***.

Have you had a cell phone in America yet? That's how it always works. At least until you tell them you're canceling your plan then they get a little bit nicer, especially Sprint.

 

[SirOmega]

Good job on the debunking/coalescing information articles arn.

Also speculation: Its possible that the unsubsidized price could be slightly higher, just because if its really high ($199+325) word spreads quickly about the ETF trick. However if its marginal, only the hardcore cheapskates will use it to save a few bucks, therefore I suggest the unsubsidized price will be 399/499.

 

[berkleeboy210]

I sold my first gen. iPhone on eBay a week ago so I could afford the 3G version.

I haven't canceled my iPhone data or minute plan. Should I have a problem qualifying for the upgrade?

I did the same thing.

I'm currently using a Samsung Go phone with my old iPhone's sim.

On my main account page on ATT it shows my device as the Samsung, but when I click on account details it still shows the iPhone Data Plan.

So I'm hoping i'm all set.

 

[pcorrado]

I suggest that everyone go an read the article cited to...all this guy has said is really two things:

1. iPhone users get the subsidized price (which makes sense since you signed a 2 year contract at full price).

2. That he has no clue about other customers - he states ""It really varies from person to person...There's a whole lot of variables, and I would hate to give specific criteria." - Why is it so complicated? Pass the credit check and be upgrade eligible - he didn't say that though, instead he said that it is determined on an individual basis...in other words they have no criteria yet! Although it does seem like its tied to credit - perhaps in determine that you will pay your bill for the next 2 years.

In other words, everyone relax and what for all the pricing details to come out...

like arn suggested I can't imagine them charging more for the phone unsubsidized than they would for you to break your contract and I am willing to guess at this point that the price for existing customers will start at 199/299 plus whatever their prorated termination fee -/+ some other based on their credit rating/customer history (i.e. some sort of deposit or credit).

I can imagine that most customer will end up paying $100.00 or so more, this seems like a logical approach to me...although i am completely in the dark as to how much profit they make on a monthly plan and that is where the real determine factor is...who knows maybe they will get $20 of profit from the data plan alone. Although, the more people paying for data, the cheaper it will cost, and the more money they will make.

I did the same thing.

I'm currently using a Samsung Go phone with my old iPhone's sim.

On my main account page on ATT it shows my device as the Samsung, but when I click on account details it still shows the iPhone Data Plan.

So I'm hoping i'm all set.

I just sold mine yesterday...made like $200 more than what I paid for it too! (I had a refurb...later exchanged for a new model about a month ago) My argument will be that while I am using an old razr, the contract I am now was created by my purchase of an unsubsidized iphone that i paid for every month and still continue you to pay for...Furthermore, I received no subsidized deal for my contract so I should be able to extend it like every other iPhone user.

It that doesn't work I can always drop the "I'm an attorney" bomb on the manager and shout out some legal doctrines that he won't understand and won't really be applicable, but it usually works...

 

[iPhonedHome]

I planned on getting my wife a 3G iPhone and upgrading myself from current iPhone. What pisses me off is that my wife got a Samsung phone just to get her by a year ago after her other phone died. It had a $50 - 75 dollar mail in rebate with it.

I might understand if she had gotten 150 or more off a PDA, but some POS phone and they want to possibly say 'No your not eligible for the subsidy price because you bought that POS phone last year and we saved you 50 bucks'.

I really hope they're not going play this chicken chit tactic.

 

[zync]

I won that one.

It's subsidized according to AT&T, not Apple Or at least not that I've seen. Besides, we came into accord on that argument. We were really arguing whether it was stupid for AT&T to subsidize it or not. We have yet to see the outcome of that.

I still think AT&T would have been smarter to not subsidize the iPhone. If they had kept the price high but the plan the same, they'd probably get the same people. It costs about the same anyway.

All I know is that I'm in either way. If I get screwed I get screwed, but at least I'll have the best phone in existence.

 

[supmango]

I think AT&T''s spokesperson probably does know.

arn

If you go to the original "source" and look at the actual quote (that would be the part in quotation marks, not the other information inserted in between), he doesn't claim to really know any details except that it is complicated and I think everyone expects that. All of the information posted indicating a price difference is all just speculation based on current models of AT&T's upgrade policy (which may or may not apply in this case). So, as I said before, no one really knows (or at least those who do aren't saying).

 

[jayray]

I think I'll jump on the bitch and complain bandwagon. I still feel like I was somehow ripped off. I was promised a cheaper iPhone by Jobs himself. He lied. I'm a principled man, out of principle I'm not going to get one because I was lied to.

 

[know-it-all5]

According to AT&T, not Apple Or at least not that I've seen.

Haha, touche (hoping that was a "touche moment")

I will tell you one thing mate... we had one hell of a "back and forth." The truth is we won't know for a good while how good the subsidy was for att and apple. The reality is we may never know because, no matter what, this generation of iphone will sell better than its predecessor, due to world wide availability, and the added features of the 2.0 firmware.

It is funny how apple has kept their mouth quiet about it. I feel like there is a bomb to be dropped somewhere, by apple or att, that we will either love or hate. I'm sure these forums will be filled with whiners, whether its a good thing or bad thing.

 

[Type121]

I might understand if she had gotten 150 or more off a PDA, but some POS phone and they want to possibly say 'No your not eligible for the subsidy price because you bought that POS phone last year and we saved you 50 bucks'.

I really hope they're not going play this chicken chit tactic.

That $50 dollar rebate was on top of the subsidy already figured into the price. Even the 'free' phones cost AT&T a couple hundred bucks.

 

[know-it-all5]

I think I'll jump on the bitch and complain bandwagon. I still feel like I was somehow ripped off. I was promised a cheaper iPhone by Jobs himself. He lied. I'm a principled man, out of principle I'm not going to get one because I was lied to.

See... Thats exactly the issue. We have no definitive proof of anything. For you to say that you were lied to is BS, cause nobody has any idea. We shouldn't be bitching about getting ripped off (we still don't know yet). We should be bitching that there is a whole bunch of info that we, as consumers, deserve to know.

 

[zync]

Giving subsidies to everyone is important, even if it means att loses a few bucks that they will end up getting in the long run.

Yep. If I decided that it was too expensive (as that scenario would up the price by $200 in addition to the extra cost of the plan) I wouldn't be getting a data plan for at least a year, possibly more. Lucky for them I really want the phone. There are many others that aren't going to make that decision.

 

[Type121]

I suggest that everyone go an read the article cited to...all this guy has said is really two things:

2. That he has no clue about other customers - he states ""It really varies from person to person...There's a whole lot of variables, and I would hate to give specific criteria." - Why is it so complicated? Pass the credit check and be upgrade eligible - he didn't say that though, instead he said that it is determined on an individual basis...in other words they have no criteria yet! Although it does seem like its tied to credit - perhaps in determine that you will pay your bill for the next 2 years.

In his defense, the current formula is both complex, and at least in part, secret. What he said has been the policy all along.

There's all this shock and outrage about these policies as if they're something new when in fact it's how things have always been done, for good or ill. I wonder if some of the posters have ever bought a cell phone before? Or thought about what it means to voluntarily sign a contract?

Not all Cingular/AT&T customers may qualify for a cell phone upgrade. At this time, AT&T Mobility allows these customers to upgrade with no upgrade fee when they commit to a new 2-year contract:
AT&T customers who have had 24 months of cell phone service since activation of their cell phone or since their last phone upgrade.
Certain AT&T customers may be eligible for a cell phone upgrade even if they have been in their current plan for less than two years (24 months), if they commit to a new 2-year contract and meet these eligibility requirements:
Customer has had a standard calling plan plus data services costing at least $68.99 a month but no more than $98.99 a month, and who has been in contract (and not had a phone upgrade) for 21 months or more,
or
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.
A customer with a calling plan and data services of less than $69 who is 21 to 23 months into contract may upgrade for a fee and a commitment of an additional two-year service contract extension. No upgrade fee is assessed for any customers who are on a month-to-month agreement.
Note that AT&T upgrade eligibility may be further limited based on customer’s usage history, payment record, previous phone replacement, etc. Upgrade eligibility is solely determined by AT&T Mobility at its discretion.