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

[mikecorp]

Apple!! keep yours iphone.

I'm sorry guys.

but I find all this stuff with iphone ridiculous. Apple is performing like they have unique machine that absolutely everyone should have. Dream on.

I'm tired with their stupid advertisements, MAC is better. Continuing with iphone distribution policy. In Europe the phone is more expensive then in USA and also the plans they offer are over priced. The phone is finally available to most of the countries, but some of them missing like a Luxembourg for example and that is sad. I know that you guys give a ^@&^ about this country. But hold on. In Luxembourg you have head quarters of big firms, like Skype, Ebay, All major Telekomunikation, RTL and so on.

My point is, that the policy of distribution Apples goods are not fair and annoying. Something should be done!!

Apple!! Keep your stuff!! BTW your Leopard is broken too.

MIKE

 

[Dahl]

How about AT&T throws their long time customers a bone?
My wife and I have had AT&T for years, we never left and now we are thinking about the iPhones, it would suck if we can't get the cheaper price.

 

[jbernie]

- AT&T customer for about 7 years now
- never had a bill for less than $70 (current is $125 pm)
- family plans & single user plans
- have a Samsung A737 right now, 7 months old

Moving from the USA back to Australia before end of 2010.

If I need to wait at least one year before being eligable to change phones, I will wait till after I move and get the next gen iPhone or even the generation after that.

If I am eligable for one prior to say mid September then a 2 year agreement doesn't bother me. Will be interesting to see whether I can do a simple upgrade or not.

 

[rols]

I kept wondering why Apple doesn't just do what Nokia and Sony Ericsson and the other phone manufacturers do and just sell the unlocked phone for whatever price they want to get to anyone who wants to buy it and let everyone get on with it. That's pretty much what (it seems) they are now doing with ATT, you pay ATT some price with a contract, they pay Apple whatever Apple sells them for and it's up to ATT to make up the difference with earnings from the contract, or not.

Seems to be the same worldwide, Apple partners with a telco (or many telcos) in a country who sell the phone carrier locked to them.

I wonder if the original tie-up with ATT is what's bound their hands here. Since they gave ATT the exclusive in the US for 3 years, if they started selling phones unlocked anywhere else in the world, that would be a supply of legitimate work-anywhere phones which would potentially get right back to the US. So perhaps giving the first guy the exclusive and locked phones means we're all stuck with carrier locked model that until the agreement runs out.

It's a shame really, I think the phone could compete wonderfully with other phones all on its own merits without having to have special agreements and staged rollouts.

 

[matticus008]

Still seems pretty misleading of Apple if it ends up costing more to people in a current contract with AT&T.

That's an independent contractual relationship they put themselves into. As an AT&T customer under contract, you know that you aren't eligible for upgrades or account changes at any time without consequence. Those terms were part of your agreement. I'm not saying it's not stupid, but that's life.

Apple's statement doesn't include the fees and costs of breaking current contracts to get the new iPhone, whether it's an early termination fee to some other provider or an upgrade penalty for current AT&T subscribers because they haven't repaid their current phone's subsidy. Those are incidental costs, just like the gas used to drive to the Apple store, or that contract you entered into with your friend Phil promising to pay him $50 if you bought an Apple product, effectively raising the price to $249.

You're responsible for putting yourself in a position to enter into a new agreement with AT&T. If that costs you money, that's something to consider, but Apple's not responsible for your prior commitments. It doesn't change the price tag on the box.

It's the same with the cost of the service plans. You should consider it in your buying decision, absolutely, but it's not the price tag on the box, and that's all Apple was ever talking about. They weren't lying when they said it was half the price. It's right there. $399. $199.

 

[mtrctyjoe]

This is a Crap

and I am sorry.. I am ticked at Apple too.... Steve should have made this more clear when he launched the phone. I switched to AT&T for the sole purpose of getting THIS PHONE months ago. Now I am going to be penalized. I can only hope I can BS my why into getting the deal. This type of stuff gets me so hot I may just go with the JINGO/JANGO PrePaid Ghetto phone I saw at the liquor store last week!

 

[.Andy]

and I am sorry.. I am ticked at Apple too.... Steve should have made this more clear when he launched the phone. I switched to AT&T for the sole purpose of getting THIS PHONE months ago. Now I am going to be penalized. I can only hope I can BS my why into getting the deal. This type of stuff gets me so hot I may just go with the JINGO/JANGO PrePaid Ghetto phone I saw at the liquor store last week!

What on earth is going on here?

 

[Sweetbike40]

I really don't understand why people are so angry. Anyone due for a discounted new phone will qualify for an iPhone or any other phone. This was always how it worked. Why would it be any different? Unfortunately the way Steve introduced the new iPhone, it sounded like this deal was truly for anyone. He didn't get into the details of it. When the RAZRs were new and hot, i wanted one but had to wait it out to get the discount price.

 

[HockeyGuy]

Ok here is what I do not understand... many of us have sold out iPhones on eBay prior to the 3G announcement. Now I understand "current" iPhone customers do not have to worry, but what about those of us who have sold our 1st gen. iPhones? And I have even taken it a step further by removing my iPhone data plan from my account since I won't need it until I get the iPhone 3G.

Any answers?

 

[Mackan]

I kept wondering why Apple doesn't just do what Nokia and Sony Ericsson and the other phone manufacturers do and just sell the unlocked phone for whatever price they want to get to anyone who wants to buy it and let everyone get on with it. That's pretty much what (it seems) they are now doing with ATT, you pay ATT some price with a contract, they pay Apple whatever Apple sells them for and it's up to ATT to make up the difference with earnings from the contract, or not.

Seems to be the same worldwide, Apple partners with a telco (or many telcos) in a country who sell the phone carrier locked to them.

I wonder if the original tie-up with ATT is what's bound their hands here. Since they gave ATT the exclusive in the US for 3 years, if they started selling phones unlocked anywhere else in the world, that would be a supply of legitimate work-anywhere phones which would potentially get right back to the US. So perhaps giving the first guy the exclusive and locked phones means we're all stuck with carrier locked model that until the agreement runs out.

It's a shame really, I think the phone could compete wonderfully with other phones all on its own merits without having to have special agreements and staged rollouts.

Right on. But Apple needs "to learn..." what people want. Remember Steve's keynote... "Apple learned that the iPhone was too expensive, Apple learned that people wanted 3G... ", etc.

 

[Sweetbike40]

I switched to ATT for the Iphone, now that I have I really really regret it, dangit I should have never switched....

I think it was a huge risk for anyone to switch to AT&T before the release of the 3g iPhone. Assuming that is what you did. Being that it's always been the case that you have a contract for 2 years with your current phone. I'd imagine anyone that doesn't read these forums wouldn't even think they could get the subsidized iPhone if they weren't due yet.

 

[joemama]

Right on. But Apple needs "to learn..." what people want. Remember Steve's keynote... "Apple learned that the iPhone was too expensive, Apple learned that people wanted 3G... ", etc.

Well, Apple didn't learn people use picture messaging or voice-commands, so are you really that surprised?

My question is this - If I buy the iphone and then pay the termination fee, can I use it with Verizon?

 

[Sweetbike40]

I do not recall during the WWDC keynote address any mention of a subsidy relating to the pricing of the 3G iPhone. The $199 and $299 was presented as the price for the device as I recall with no qualifications mentioned- maybe I missed it. But this could be a pretty serious customer relations nightmare for Apple because I know of a lot of people who are eagerly looking forward to their first iPhone purchase and they are banking on that $199 or $299 price point. I can only imagine the anger and frustration if people find out that that is not the case at the point of sale. I cannot believe AT&T would not greatly simplify this and make it as easy as possible to sell as many iPhones as possible.

I know. It really did sound like that price was the final price. As if Apple reduced the price. So it is very confusing. Did he plan that speech? Didn't he realize everyone was hanging on to every word? Who messed up? This is a nightmare. Either way... if someone purchased a $350 phone for $50 or less with a contract, i would imagine that they want that contract finished.
If anything... if Apple really did drop the price, then if AT&T wants someone to buy one with a contract, then the price should further be reduced.

 

[Island Dog]

The biggest mistake made was Apple going with AT&T.

 

[mtrctyjoe]

What on earth is going on here?

What is going on here.... is that people are sick and tired of dealing with these complex set(s) of T&C's when dealing with Cell Phone companies.

Don't tell me one thing... then spoon feed the detials later... it relates to a little something called FULL DISCLOSURE.

 

[Chupa Chupa]

Well, Apple didn't learn people use picture messaging or voice-commands, so are you really that surprised?

My question is this - If I buy the iphone and then pay the termination fee, can I use it with Verizon?

Nope. The iPhone is GSM. Verizon is CDMA. The only other network you could possibly use the iPhone with in the U.S. is T-Mob.

Ok here is what I do not understand... many of us have sold out iPhones on eBay prior to the 3G announcement. Now I understand "current" iPhone customers do not have to worry, but what about those of us who have sold our 1st gen. iPhones? And I have even taken it a step further by removing my iPhone data plan from my account since I won't need it until I get the iPhone 3G.

Any answers?

Bottomline is: if you do not presently have a subsidized ATT phone then you qualify for a subsidized iPhone. If you do have a subsidized phone then you need to qualify under ATT's rules which have been in place for years.

I don't get why people are getting bent out of shape here. It seems pretty simple to me.

 

[cecemf]

This sort of speculation and information *before* things are finalized only serve to further confuse both existing and future customers. Seriously, just wait until the day it's released -- by then everything will be hammered out.

I agree, I'm very glad that for once we people in the UK have a better deal then you guy's

 

[eastcoastsurfer]

I'm sorry guys.

but I find all this stuff with iphone ridiculous. Apple is performing like they have unique machine that absolutely everyone should have. Dream on.

I'm tired with their stupid advertisements, MAC is better. Continuing with iphone distribution policy. In Europe the phone is more expensive then in USA and also the plans they offer are over priced. The phone is finally available to most of the countries, but some of them missing like a Luxembourg for example and that is sad. I know that you guys give a ^@&^ about this country. But hold on. In Luxembourg you have head quarters of big firms, like Skype, Ebay, All major Telekomunikation, RTL and so on.

My point is, that the policy of distribution Apples goods are not fair and annoying. Something should be done!!

Apple!! Keep your stuff!! BTW your Leopard is broken too.

MIKE

The only way to make apple change their ways is to quit buying their products. The problem is that they have a sizable fan base who will pay nearly anything for whatever they produce. Is anyone really surprised that ATT is doing this given that Apple would do the exact same thing? I'm amazed they don't have special iPhone plans that are more than any other plan they offer. It is an Apple product after all and you have to charge more to keep the normal people from affording them.

 

[LoganT]

What people are forgetting though is if I go into AT&T and buy phone for it's full unsubsidized price then I don't have to extend my contract. That's kind of the whole point of buying it unsubsidized. The fact that I have to sign a new contract and pay a higher price is complete BS.

 

[jmnikricket]

Considering that around 450,000 cell phones are retired in the US alone PER DAY, I think purely from an environmental standpoint that it is about time people start feeling the penalty for upgrading more than once every 2 years for every new little feature (even if they are cool Apple users). Obviously that is not the reason AT&T is doing this, but I am happy with the ends it achieves.

I have had the same cell phone for 6 years now; the paint has almost completely chipped away and the LCD is cracked down the middle, making it so I can't even always identify who is calling me and text messages are out of the question. Combined with the fact that my iPod is also around 5 years old and randomly skips songs and has trouble holding a charge for over 3 hours now, Apple has finally put out a product that I feel can justify an upgrade, and they will be getting my business on July 11th. I have no sympathy for anyone having to pay the unsubsidized price. If you absolutely have to have it now, shell out the extra money, otherwise wait until you need (ed: qualify for) an upgrade; I'm sure Apple won't mind that they don't sell all 10M iPhones on day 1.

Of course I also hope gas prices keep rising to fuel both reduced consumption and alternative innovation. Not to come across as a troll, but here's a little story called "Stop Whining and Suck It Up."

 

[themoonisdown09]

I didn't feel like reading this whole post, so if someone has already posted this, than forgive me.

Why is everyone complaining about the pricing and the subsidizing rules, etc? It has always been like this with every cell phone carrier that I've ever dealt with. I'm currently with Verizon wireless and I am allowed to get a new phone every 2 years with the subsidized price. If I want to get a phone before the 2 years are over, I have to pay more for the phone. So why are people getting upset that they won't be able to get the iPhone for $199 if they still have 1 year left on their contract? This is crazy.

 

[babyj]

I didn't feel like reading this whole post, so if someone has already posted this, than forgive me.

Why is everyone complaining about the pricing and the subsidizing rules, etc? It has always been like this with every cell phone carrier that I've ever dealt with. I'm currently with Verizon wireless and I am allowed to get a new phone every 2 years with the subsidized price. If I want to get a phone before the 2 years are over, I have to pay more for the phone. So why are people getting upset that they won't be able to get the iPhone for $199 if they still have 1 year left on their contract? This is crazy.

Good to see at least someone gets it and is talking some sense.

I think people are looking at the pricing wrong as well. If you've got an existing contract and / or a subsidised phone and the two year (or whatever) period isn't up, then really you will be paying extra to get out of that contract and / or upgrade early - rather than being charged more for the iPhone.

You'd also still be able to buy the iPhone at the main / lower price, provided you sign a new contract - meaning you'd still have to keep paying for the old one as well.

Its not rocket science people, get with the programme.

I bought my iPhone at the discounted price of £169 a couple of months ago. I'm not that bothered about 3G or GPS so I'm happy with my iPhone for the present. I reckon there is a good chance I'll be able to at least get my money back if I sell it as it will probably be the cheapest option for people wanting to get one unlocked in the future. Provided they are selling for as much as a 3G iPhone will cost me then I'll sell it and get one, otherwise I'm happy waiting for the next iPhone or a better deal.

 

[boss1]

....
Siegel states that an "unsubsidized" price for the iPhone has not yet been determined and AT&T will announce that price sometime before the iPhone 3G goes on sale. ....

That's the best news I've heard since the keynote . I'd rather pay the cost up front then get stuck with a monkey on my back.

 

[LoganT]

I didn't feel like reading this whole post, so if someone has already posted this, than forgive me.

Why is everyone complaining about the pricing and the subsidizing rules, etc? It has always been like this with every cell phone carrier that I've ever dealt with. I'm currently with Verizon wireless and I am allowed to get a new phone every 2 years with the subsidized price. If I want to get a phone before the 2 years are over, I have to pay more for the phone. So why are people getting upset that they won't be able to get the iPhone for $199 if they still have 1 year left on their contract? This is crazy.

Yeah but if you buy it at the full price you don't have to sign up for a new contract. Also Apple was being dishonest if they said no one would pay more than 199/299 dollars. It's stupid to get everyone excited about the price to then just knock them down and say "well actually it's a lot more for you". And why do iPhone gen 1 owners get the subsidy? If I buy a Blackberry Pearl 1, 3 months or even month before a new Blackberry Pearl comes out that doesn't mean I get to get the new Blackberry pearl for it's subsidized price.

 

[carrjar]

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?

Correct. You received a subsidized price on your phone when you started as a customer. This is how EVERY provider does it, since cell phones first existed.