This is an old one. The monthly "dues" to the carrier for providing a phone exclusive to their service.... LOL...
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AT&T iPhone 3G $199/$299 Pricing Policy
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This is an old one. The monthly "dues" to the carrier for providing a phone exclusive to their service.... LOL...
Because consumers of Apple products (esp. iPhones) have an unhealthy sense of entitlement. They are entitled to buy each new version of the iPhone as soon as it comes out for as low a price as possible including all available subsidies and rebates; they are entitled to either unlock these phones for use on other networks or to flip the phones on eBay / CL for a tidy profit; they are entitled to repeat said process indefinitely; they are then entitled to bitch on all available internet message boards about the unfairness of it all.
Well - considering there has been a severe shortage of iPhones for quite a while now AT&T missed out on selling iPhones to people who didn't want to unlock them. So - yeah - AT&T didn't have any stock to sell to people who wanted to play by the rules because of all those people who didn't want to play by the rules.
I think that's a fair argument...
Well, I know there's no sympathy around here for people who happen not to fit into AT&T's preferred credit profile, but think of yourselves as lucky......I am a v1 iPhone owner who is facing possibly not being able to upgrade to the 3G AT ALL for ANY PRICE. Because I was put on the prepaid Pick your Plan that won't be available any longer. Or best case scenario they'll quote me a huge deposit. I won't be eligible for even the unsubsidized price, and I'm a v1 owner, lol.
Because consumers of Apple products (esp. iPhones) have an unhealthy sense of entitlement. They are entitled to buy each new version of the iPhone as soon as it comes out for as low a price as possible including all available subsidies and rebates; they are entitled to either unlock these phones for use on other networks or to flip the phones on eBay / CL for a tidy profit; they are entitled to repeat said process indefinitely; they are then entitled to bitch on all available internet message boards about the unfairness of it all.
Yep, tell me about it....
I think I'm going to use my old Nokia phone - the one with the black LCD screen for a while...
Yeah, probably not gonna find too many allies on here considering people are b!tching about stuff far less than your plight. At least you get the 2.0 software
Actually, it says all previous iPhone users are eligible. But, you will have to go to a standard plan, and also probably put down a downpayment (I think it's $200).
Well, you get more than just the iPhone for that. You get:
1. iPhone
2. Early termination from earlier contract.
If you are a T-mobile customer, to get the same thing you would need to pay:
1. iPhone $199
2. Early termination of contract: $200
I hate to repeat myself (well not really), but...
The only ones that might be treated differently are existing AT&T customers. They might be treated differently for the better as AT&T might release these customers from their contracts for free.
No other carrier will terminate contracts for free just because the customer wants the latest iPhone. It means that, AT&T customer or not, if you have a current contract, you will have to decide if it is worth the termination fee.
Honestly this should be seen as business as usual. All those that want the cheap iPhone 3G price best find themselves an iPhone 2G to activate on their account before July 11.
Now that's a very good point - I hadn't really thought about that. You're still paying $199 for the phone - you're just paying $175 in addition for terminating your contract early. The phone is still $199. I like it - good argument!
Honestly this should be seen as business as usual. All those that want the cheap iPhone 3G price best find themselves an iPhone 2G to activate on their account before July 11.
Exactly... if Apple were the actual carrier or an MVNO, you *might* be able to expect differently.
But what's happening here is normal for the wireless industry. AT&T is part of that industry and is the carrier involved. This isn't any different than usual except in a positive way... those who paid full unsubsidized prices as the first customers of a new flagship product offering whether or not they upgraded the day before they got the gen 1 iphone can still get this one at the subsidized price.
Not only did they lose money due to unlocking (At&T that is,) but people "upgraded" right before they got their 1st gen iPhone and then sold those subsidized phones.... and a year later can upgrade to the 3G version anyway. They are actually being nice in that respect and saying all 1st gen iPhone owners can upgrade.
Why then, can I go to Walmart and buy a $10 disposable phone and pop my SIM in from the iPhone I just sold? If I can buy one with NO STRING ATTACHED for $10 - how is AT&T paying hundreds of dollars for a free phone? I can get a current generation Samsung from Walmart under the Go Phone label for $59 with $20 of airtime! This is the same phone AT&T gives away with an upgrade or new contract.
BS if AT&T is paying $200 for a Razr or other 'free' phones - unless Motorola is adopting the enormous Apple MARK-UP of selling a $200 phone to AT&T for $525 and demanding an additional $100 if they sell THEIR phone in THEIR store! What a crock of crap from both companies.
D
current non-iphone at&t customers better hurry up and buy the first generation iphone if they waht to get the 3G. I'LL SELL MINE FOR 750 SHIPPED!
Exactly
See, that's how I feel, too.
Ok, here is my situation. Tell me if I'm crazy for being upset about having to pay the unsubsidized (whatever it may be) price for the phone. Be honest, please:
Two months ago I decided I was tired of dealing with Sprint's crappy service, and since I was planning on getting the 3G iPhone whenever it came out, I called up AT&T. I told them I was going to switch to them when the iPhone came out, and wondered if there was any advantage to waiting until it came out to switch, or if I should just go ahead and switch then.
The first rep I talked to said (of course) I should just go ahead and switch then. She said when the iPhone came out, all I would have to pay on top of the price of the phone would be an $18 upgrade fee. I thought on it for a while, and called back a few days later and talked to another rep. This rep also said sure, if I switched now I would pay "no penalty" for upgrading to the iPhone 3G when it came out. I asked if there would be additional fees, charges, etc., or if there was ANY REASON I should not switch to AT&T until I was ready to buy the iPhone. Again, I was told no problem, go ahead and switch.
So I did. (I got a crappy LG Shine, too.)
If I hadn't called AT&T -- twice -- and asked for their opinion, I wouldn't care so much. But I was told by two reps that there wouldn't be any fees, penalties, etc. if I went ahead and joined then. I could have waited another couple of months to leave Sprint for AT&T, but I feel like I was assured 100 percent that I would just buy the iPhone like everyone else. I was prepared to pay about $400 for the phone two months ago, but now I realize that joining them early--at their insistence, and giving them two more months of my money--is costing me. Of course, I just don't know what it's costing me yet.
I called AT&T and talked to two different reps last week: One told me I can buy the phone at the $199/299 price because the iPhone 3G is something new and they are making exceptions for it. The second phone support rep told me that I have to suck it up, and they're sorry they gave me wrong info two months ago.
So am I stupid to be upset?
See, that's how I feel, too.
Ok, here is my situation. Tell me if I'm crazy for being upset about having to pay the unsubsidized (whatever it may be) price for the phone. Be honest, please:
Two months ago I decided I was tired of dealing with Sprint's crappy service, and since I was planning on getting the 3G iPhone whenever it came out, I called up AT&T. I told them I was going to switch to them when the iPhone came out, and wondered if there was any advantage to waiting until it came out to switch, or if I should just go ahead and switch then.
The first rep I talked to said (of course) I should just go ahead and switch then. She said when the iPhone came out, all I would have to pay on top of the price of the phone would be an $18 upgrade fee. I thought on it for a while, and called back a few days later and talked to another rep. This rep also said sure, if I switched now I would pay "no penalty" for upgrading to the iPhone 3G when it came out. I asked if there would be additional fees, charges, etc., or if there was ANY REASON I should not switch to AT&T until I was ready to buy the iPhone. Again, I was told no problem, go ahead and switch.
So I did. (I got a crappy LG Shine, too.)
If I hadn't called AT&T -- twice -- and asked for their opinion, I wouldn't care so much. But I was told by two reps that there wouldn't be any fees, penalties, etc. if I went ahead and joined then. I could have waited another couple of months to leave Sprint for AT&T, but I feel like I was assured 100 percent that I would just buy the iPhone like everyone else. I was prepared to pay about $400 for the phone two months ago, but now I realize that joining them early--at their insistence, and giving them two more months of my money--is costing me. Of course, I just don't know what it's costing me yet.
I called AT&T and talked to two different reps last week: One told me I can buy the phone at the $199/299 price because the iPhone 3G is something new and they are making exceptions for it. The second phone support rep told me that I have to suck it up, and they're sorry they gave me wrong info two months ago.
So am I stupid to be upset?
No, you need to get a clear answer from them. If you've got a record of the first two conversations - or know when you made them so you can ask for transcripts of the calls - this well help your case.
I think that is a decent argument. Although did AT&T activate any iPhone 2G in stores? If not then you really can't say they are losing money as there was no contract from the outset obligating you to pay them.
Don't get me wrong, I am paying for my iPhone on AT&T like others. Of course I guess I did somewhat screw over AT&T by getting the free phone then getting the iPhone, but I also don't have any real plans on upgrading either.
I'm going to buy one and jailbreak it and tell AT&T they can come over and pick up their early termination fee. F these guys.
People keep on saying that the iPhone is no different than any other phone. Except it kind of is. The iPhone is AT&T's flagship phone, it's basically their phone. They have a 5 year exclusive on it and they are the only ones in America at the moment that are able to say "the iPhone is exclusive to AT&T". So I think there could be an exception to the rule.
Sorry, not trying to flame anyone. I understand everyone's frustration by this. But this is what all cell phone companies have done since the begining. If you are stuck with the company already and still within a contract and not "upgrade elibible", you will have to pay an unsubsidized price to get that new phone. It would not make good business sense for the company to continue to give out subsidized phones to everyone anytime they wanted it. They would not be able to recoupe enough money if they did that.
That being said however, I am a bit confused. I do not understand why in the world a current iphone user would be able to upgrade for the subsidized price. That is the part that makes no sense to me. If Mr. Smith with his crap clamshell flip phone is stuck and cannot upgrade, why can Mr. Cool with his current iphone....Oh wait, I actually do know. When they bought the first gen iphone, they did not get a "subsidized" phone. They did pay full retail. And so they are still in fact upgrade eligible, provided that they did not in the interem between the time they signed up and now, by another phone other than the iphone at a subsidized price point with ATT.
OK, that should explain it all. Nough said.
Not really. I'm nearly in the exact same situation as you (see my post several posts ago).
Just like you, I made the switch early in anticipation for the new iPhone, and was ready to drop $400+ on the new model. So in that respect, we should have no problems with this situation regardless of what Rep said what.
Nobody knew there would be a subsidy on the new model and everyone assumed it would be sold the same way as the original back when I switched over to ATT.
So much for planning ahead.
Well it all depends on if the phone you bought was subsidized or not. If it wasn't subsidized then you don't owe AT&T anything - if it was then you probably do. However, as stated in AT&T's own verbiage, this all depends on who the person is you're talking to. I'd try one AT&T store when it comes out, explain the situation, if they say no then go to another one. I mean - you're going to be seriously upgrading your monthly package so they shouldn't be too pissed. Ultimately it's at the discretion of the store manager. You could buy your subsidized phone on the 10th of July and if the store manager is nice enough (or you're nice enough to him/her) you could get the subsidized price. That's why AT&T puts that little section in on the end about how none of this is actually 100% cut and dry...
Steve actually said that in "almost" all of the first 22 countries, the maximum price will be $199.00, which seems to release Apple from responsibility for, frankly, misleading its consumer base (assuming all of this comes out and is true, this is still "MacRumors" after all regardless of the "reliable" source).
iPhone ATT Pricing Plan
What the heck? Way to partner with ATT.
Pricing was announced to be $199.
That's what was announced & that's what the signs say in the Apple Stores.
That's what ATT retail stores tell you when you walk into a store.
Yet the ATT 800# tells a variety of price plans. So many in fact that after (literally) 30 minutes they couldn't find the info & then explained it to me in such excruciating detail that it was clear they were clueless.
Why is there so much confusion with the pricing policy.
How about sticking to your word & hand out the phones at $199 and not concern yourselves with contracts, existing customers or new customers.
If your service is good, competitive pricing in place & you have the best phones in the industry, why piss people off with contracts with a penalty.
Come on, Just sell the darn phone by Internet & stop screwing around with all of us. Who at ATT is responsible for this lame strategy?
What the heck? Way to partner with ATT.
Pricing was announced to be $199.
That's what was announced & that's what the signs say in the Apple Stores.
That's what ATT retail stores tell you when you walk into a store.
Yet the ATT 800# tells a variety of price plans. So many in fact that after (literally) 30 minutes they couldn't find the info & then explained it to me in such excruciating detail that it was clear they were clueless.
Why is there so much confusion with the pricing policy.
How about sticking to your word & hand out the phones at $199 and not concern yourselves with contracts, existing customers or new customers.
If your service is good, competitive pricing in place & you have the best phones in the industry, why piss people off with contracts with a penalty.
Come on, Just sell the darn phone by Internet & stop screwing around with all of us. Who at ATT is responsible for this lame strategy?
The idea is that you are pretty much right... The telco companies have worked the same way for years, so why should people who are in the middle of their 2 year contract and subsidized phone, also be able to get an iphone subsidized?
There is a subtle reason... Business. No other individual phone will be able to compare to the sales of the iphone. Thus, it is in the best interest of Att to cut some sort of a deal with people currently in subsidized phone contracts, even if it means losing a little money. For that reason I think there will be two unsubsidized costs.
1 cost will be, say, 50 bucks more that the official price, and will be an "early upgrade" price. This price will lock people into fresh two year contracts.
The second cost will be for people who actually want a contract-less iphone. expect that to cost upwards of 500 and 600 dollars at least.