AT&T Subsidizing iPhone 3G for $325?

[oxeneers]

So I guess this means that for T-Mobile guys like me that want to get the 3G phone even though we don't get 3G, means we have to pay $600 for the 8gb version? What the ****??

T-Mobile is rumored to get 3G nationwide at the end of the year, so, when we do, and I want a 3G phne, I have to pay $600+? No way.

 

[gkarris]

Hum... does anybody catch the change on apples iphone page?

It now saids "Phone, iPod, and Internet in one fast 3G device. Starting at $199.*" Starting...

http://www.apple.com/iphone/

I would not worry about that too much, it says the same or something similar on the NANO page as well and simply refers to the fact that there are multiple models, the cheapest being $199.

Yes, it's the whole "*Qualified customers only." thing on AT&T's page:

www.att.com/iphone

That have people guessing....

 

[Consultant]

So I guess this means that for T-Mobile guys like me that want to get the 3G phone even though we don't get 3G, means we have to pay $600 for the 8gb version? What the ****??

T-Mobile is rumored to get 3G nationwide at the end of the year, so, when we do, and I want a 3G phne, I have to pay $600+? No way.

If you don't know the market, certain Nokia unlocked models are $800 but many would agree that iPhone 3G are vastly superior.

Guess what? People are willing to pay $600 on launch day for the first generation iPhone.

Btw, yes I have sold 4gb iPhones for close to $600. People are definitely willing and able to pay a premium for unlocked iPhones.

 

[mciarlo]

I was waiting to get an iPhone for $400 dollars and with a 20 dollar data plan a few months ago. Not having upgrade eligibility, I can safely say if this is the true value of the unsubsidized phone, no thank you AT&T.

 

[coryetzkorn]

Based on this higher-than-standard subsidy, it is believed that Apple's revenue for the iPhone 3G is comparable to the original iPhone where Apple received a portion of the monthly subscriber fees. This agreement has been modified with the iPhone 3G with the substitution of an upfront subsidy rather than a monthly payment.
Article Link

HAHAHAHA

Looks like even AT&T doesn't like monthly payments (when they're dishing out the cash to Apple). Let us pay up front for the iPhone, screw this $30/ month with no texts BS.

 

[phr34k]

Hmmm, so i wonder how much i could get one for if i just added a line onto my current account, and switched to the family plan. Blah....just announce the freakin details already...lol

 

[pcorrado]

Yes, it's the whole "*Qualified customers only." thing on AT&T's page:

www.att.com/iphone

That have people guessing....

I am really hoping that "qualified customers" thing just refers to 2-year contract and credit check, not necessarily upgrade eligible. The interesting thing is if this thing is settled why not just announce it already...the fact they advertise a defined term without defining it is horrendous and I can't believe we are letting them get away with this. If they advertise a price with qualifications, they need to make those qualifications clear and in print. I believe the advertising laws require this...I am a lawyer, just not the right kind I guess...

 

[phr34k]

I am really hoping that "qualified customers" thing just refers to 2-year contract and credit check, not necessarily upgrade eligible. The interesting thing is if this thing is settled why not just announce it already...the fact they advertise a defined term without defining it is horrendous and I can't believe we are letting them get away with this. If they advertise a price with qualifications, they need to make those qualifications clear and in print. I believe the advertising laws require this...I am a lawyer, just not the right kind I guess...

What would the credit check have to do with anything? Heck i didnt need one when i started my account years ago....just give me the thing at a decent rate... lord knows ive paid for this crappy w810i that they gave me 100 off of in may 07...lol

 

[FoxyKaye]

I really wonder about all the additional qualification requirements for customers under contract - even with the iPhone, the wireless industry is so competitive that I can't really see AT&T turning down immediate sales.

If I walked into an AT&T store and said, "gee, I'd love to buy one of those shiny new 16GB iPhones, and oh look, here's my credit card! *sigh* But it looks like I can't because I'm already under contract with y'all and because of your qualification guidelines, it's just too darn expensive. Guess I'll wait another year before I come back." I don't know if they'd let me walk out without it.

Companies want customers and money now, not the promise of cash later. Plus, every AT&T sales rep is on commission, and an iPhone even with the subsidized price is still a fair lot more than selling, say, a Sony-Ericsson 580i and the commission on that. So there seems to be a lot of incentive to just sell the things and lock folks into a two year contract extension from time of purchase.

 

[ChrisA]

Isn't funny how few people would buy an $800 phone but are happy to sign a $2,400 airtime contract? I think AT&T should take advantage of this and simply give the iPhones away "free". Think of the lines at the stores if the sign outside read "Free iPhone *" where the footnote read "* Free with $100 per month multi-year contract."

Maybe Ford and Chevy should follow this example: "Free car with five year payment contract"

 

[Roy Hobbs]

Hum... does anybody catch the change on apples iphone page?

It now saids "Phone, iPod, and Internet in one fast 3G device. Starting at $199.*" Starting...

http://www.apple.com/iphone/

Since the 8GB is $199 and the 16GB is $299 this makes perfect sense.

I don't see the big deal about the "Starting at $199

 

[arn]

Wirelessly posted (Mozilla/4.0 (compatible; MSIE 6.0; Windows 98; PalmSource/Palm-D062; Blazer/4.5) 16;320x320)

I really wonder about all the additional qualification requirements for customers under contract - even with the iPhone, the wireless industry is so competitive that I can't really see AT&T turning down immediate sales.

If I walked into an AT&T store and said, "gee, I'd love to buy one of those shiny new 16GB iPhones, and oh look, here's my credit card! *sigh* But it looks like I can't because I'm already under contract with y'all and because of your qualification guidelines, it's just too darn expensive. Guess I'll wait another year before I come back." I don't know if they'd let me walk out without it.

Companies want customers and money now, not the promise of cash later. Plus, every AT&T sales rep is on commission, and an iPhone even with the subsidized price is still a fair lot more than selling, say, a Sony-Ericsson 580i and the commission on that. So there seems to be a lot of incentive to just sell the things and lock folks into a two year contract extension from time of purchase.

but you're already paying them a monthly contract. they lose nothing if you walk out the door. and it costs them more to let you buy the phone. this is fine if it brings in new monthly revenue but you're already in contract with them.

 

[Diode]

You'll get them all subsidized, but your family plan is going to be rather high.

Also, AT&T is banking on the $30/month 3G data plan for 2 years on each of those phones to help pay back the $325 subsidy...

On top of the money they were paying to Apple for the 1G iphone.

AT&T will make plenty of money if as many sign up as they think. A lot of people were waiting for 3G ...

 

[FoxyKaye]

Isn't funny how few people would buy an $800 phone but are happy to sign a $2,400 airtime contract? I think AT&T should take advantage of this and simply give the iPhones away "free". Think of the lines at the stores if the sign outside read "Free iPhone *" where the footnote read "* Free with $100 per month multi-year contract."

Maybe Ford and Chevy should follow this example: "Free car with five year payment contract"

Exactly - When folks are locked in to a contract, AT&T can plan for their revenue. It's a smart business move - though I'm not sure how you got to $2400. If I take the low-end wireless package (~$40), add the 3G data plan ($30) and maybe $15 additional for taxes and fees, that's $85/month. Over two years, that's a little over $2K. What plan did you base your estimate on?

 

[FoxyKaye]

but you're already paying them a monthly contract. they lose nothing if you walk out the door. and it costs them more to let you buy the phone. this is fine if it brings in new monthly revenue but you're already in contract with them.

True - but add the cost of the data plan and X months of extended revenue for a new contract renewal for another 24 months on top of however far I am into my current contract, and I think they'd still come out ahead. I'm just saying that folks like AT&T love to set all kinds of qualifications and preconditions for buying phones, and in fact, it's much more like buying a car where almost everything is negotiable. I'd bet that should AT&T go this route, there's going to be lots of room for "discretion" with the subsidized iPhones. And one of the cardinal rules of retail is to never let willing cash walk out the door.

 

[dvdlovr24]

Plus, every AT&T sales rep is on commission, and an iPhone even with the subsidized price is still a fair lot more than selling, say, a Sony-Ericsson 580i and the commission on that. So there seems to be a lot of incentive to just sell the things and lock folks into a two year contract extension from time of purchase.

Actually I don't make more commission on an iPhone than I would on a 580.

 

[txhchman]

I could say for about 75usd more I could get an N95 with more features but I'll just wait till my upgrade is available, July 09 oh well. Maybe by then they'll have mms and cut and paste that my w580 has...lol. Want a iphone but not a big deal in waiting till next year. I will not pay it if it's 624.00. 32 gig ipod touch sounds good right now.

 

[Sky Blue]

Why do people think AT&T are going to increase the price for certain customers? The iPhone is $199 or $299. The qualified customers part is for the credit check.

 

[FoxyKaye]

Actually I don't make more commission on an iPhone than I would on a 580.

Well that's a shame. Since the 580 is like a tinker toy compared to the iPhone.

 

[DN7335]

Why do people think AT&T are going to increase the price for certain customers? The iPhone is $199 or $299. The qualified customers part is for the credit check.

Where are you getting your information from? Its been reported numerous times here and elsewhere that for current subscribers who do not own an iPhone and are not upgrade eligible, there will be a different and as yet unannounced price for the iPhone 3G.

 

[saxamoophone]

I got this from at&t this morning...

Dear Mr. M,

Thank you for taking the time to e-mail AT&T regarding concerning the new Apple iPhone 3G. I am happy to help you with your inquiry.

Mr. M, I understand your concerns regarding the release of the 3G iPhone. I can appreciate you wanting to get the best value on your new phone and I apologize for any frustration that the new equipment or promotion may have caused. After reveiwing your account I see you purchased your Blackjack on 12/20/07 with a two year agreement, however we allow our customer to upgrade to a discounted phone upgrade a few months earlier which you would be eliglbie to upgrade until 08/21/09 .

Accounts are always eligible for equipment upgrades an you can always take advantage of our no-commitment pricing option. Due to recent changes in the guidelines for equipment upgrade price breaks device offers are now made available from time to time based on a number of
factors: service tenure, spending levels, payment history, usage practices and other factors. Previously, customer?s offers were based only on how many months remained on their contract or time since last upgrade.

Mr. M, at this time we do not have details of the full retail price for the Apple iPhone 3G.

The new 3G iPhone, which is scheduled to be available 7/11/2008, will harnesses the power of AT&T's broad and powerful 3G mobile broadband network. Please visit http://www.wireless.att.com/cell-phone-service/specials/iPhone.jsp?
To submit your e-mail address to find out more about the new 3G iPhone as soon as it?s available. You can also check 3G coverage availability for your area by using the 3G Coverage Viewer link or by visiting www.wireless.att.com/coverageviewer. AT&T's 3G network is currently available in 280 leading U.S. metropolitan areas; by year-end, the company plans to offer 3G service in nearly 350 metro areas.

The 3G iPhone will initially only be available for purchase at company owned AT&T retail stores and Apple stores. There is a limit of three per customer for the 3G iPhone in AT&T stores and customers will be required to pay for the device when the order is placed. The phone will be shipped to the store in the customer's name. We will continue to sell 2G devices until they are out of stock. All of our current postpaid 2G iPhone customers that are in good standing are upgrade eligible and will qualify to upgrade to a 3G iPhone when it is available. Customers that do not currently have an iPhone must qualify for an upgrade to the 3G iPhone and can verify upgrade options via myWireless Account or by contacting Customer Service at 1-800-331-0500 when the new device becomes available. No-commitment pricing is unavailable for the 3G iPhone, which will only be available for purchase with a new 2 year service agreement.

The new 3G device will be activated in store in both AT&T and Apple store locations. You must accept AT&T and Apple's Terms and Conditions, as well as select a 3G iPhone Data plan before leaving the store. You can add the $30.00 per month 3G iPhone Unlimited Data (Email-Web) plan that includes Visual Voicemail to your qualifying voice plan. The 3G iPhone $45.00 per month Unlimited Data with personal and Corprorate e-mail, Web, and Visual Voicemail can be added to your qualifying voice plan if you intend on using the 3G iPhone for access to corporate e-mail, business applications, or access to corporate intranet. The activation process for 3G iPhones includes a short tether process to unbrick the 3G device and 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 your device is not tethered in the Apple store, your device will be inoperable until you get home and tether through iTunes. Prepaid and Pick Your Plan service will not be available on the 3G device. Service discounts are available to qualifying customers for individual user accounts for voice and data plans on the 3G iPhone only. The return policy for the new 3G iPhone is 30 days for both Apple and AT&T stores. To cancel service within the first 30 days, you must return your equipment to the place of purchase.
If you cancel after the 30 days, you will be charged the early termination fees and are not required to return the device.

I hope that the information provided has been helpful and has resolved all of your questions. If you need further assistance, feel free to reply to this e-mail or contact customer service at 1-800-331-0500 or
611 from your wireless phone.

I encourage you to visit our web site (www.att.com/wireless) often to view current and previous monthly statements, make payments and to shop for new product and service offerings. Thank you for allowing the new AT&T to serve as your wireless company. We will do our best to ensure that your wireless experience is a success.

Thank you for being part of the AT&T Family, we appreciated your business.

Well I don't know about the rest of you in this boat, but I'm sure as heck not paying $625 for a BETTER (3rd or 4th gen 32GB) VERSION I can get for $199 in just over a year.

If at&t has a refurb 1st gen iphone for $249 again (which is doubtful) i would probably grab that though.

Blah.

Apple needs to stop being a greedy bastard. It costs them < $100 to produce..so even with paying the software people, ads, shipping, etc etc, they make a profit around $200. Throw in the fact that they are going to make a KILLING from the iTunes and App Store (30% profit or so..)....

Guess I'll be stuck with the blackjack for another year. Maybe android will be decent by then too and strike some real competition.

 

[ruckus]

I don't understand what the confusion is about. The iPhone does not cost $200 to buy it off the shelves. Look at the prices of any modern phone if you purchase it without a contract. For example, the HTC Touch diamond. I think I read that will be selling for $750 unsubsidized.

Of course the phone won't be subsidized if you don't subscribe.

This is another way to combat unlocked iphones. Many people would rather just switch networks and pay the $200 than buy one for $500 and try to unlock it.

So I guess this means that for T-Mobile guys like me that want to get the 3G phone even though we don't get 3G, means we have to pay $600 for the 8gb version? What the ****??

T-Mobile is rumored to get 3G nationwide at the end of the year, so, when we do, and I want a 3G phne, I have to pay $600+? No way.

 

[impact_blue]

Wow sucks for you guys that have to buy it retail.

 

[eastcoastsurfer]

Isn't funny how few people would buy an $800 phone but are happy to sign a $2,400 airtime contract? I think AT&T should take advantage of this and simply give the iPhones away "free". Think of the lines at the stores if the sign outside read "Free iPhone *" where the footnote read "* Free with $100 per month multi-year contract."

Maybe Ford and Chevy should follow this example: "Free car with five year payment contract"

There is an EU carrier who has been reported that will do exactly this. If you sign a 2 year contract they'll give you the iPhone for 1 euro.

 

[FoxyKaye]

Guess I'll be stuck with the blackjack for another year. Maybe android will be decent by then too and strike some real competition.

I'd say, wait until the release, go to an AT&T store and then start haggling if you really want the new iPhone. If they start balking, saying that they "don't have the authority to negotiate" make them call the AT&T mother ship using their phone lines and their access phone numbers. Then talk to the person on the phone and haggle some more. It all depends on how persistent you are and how many bases you cover (new contract fee, upgrade fee, etc.).

I personally like the idea of the new iPhone more than the new iPhone itself, so for me to spend even $300 to buy it and then essentially double my monthly plan cost is just not a financial priority right now.