AT&T Subsidizing iPhone 3G for $325?

[ruckus]

Hear ya loud and clear. Dont know everywhere else, but where I live, AT&T/cingular SUCKS!!! And I am pretty sure 3G service is going to suck even more..

I dont mind shelling out more money for iPhone/AT&T if I am happy with what I get and I am convinced that it is worthwhile. But, I hate it when all I get is a $20 worth service for $30 a month. I am sure 99.99% of the time, in my area, the best I am going to get is EDGE, and more often than not, its going to be patchy.

At the risk of being repititive, "AT&T Sucks!!"

In places I've lived in the past few years AT&T has by far had the best service hands down. I started with Verizon and got out of the contract free of charge because they "sucked" so bad. Some areas are better than others for all carriers.

The reason why Apple wants an exclusive carrier is clear. Verizon had their chance and missed out. If the iPhone isn't available for your provider, just wait. All of the handset manufacturers are scrambling to make phones that don't suck now, thank you apple for lighting a fire under their @$$es.

If that doesn't work out, the iPhone will likely be available for all carriers in a couple years

 

[NewtypeCJ]

Sadly, my magic 8 ball didn't warn me that at&t and apple would rework their contract and change the entire way buying an iPhone worked.

So how on earth would I have "known" what I was getting myself into?

You bought into a plan with a subsidized Blackjack. Even if you could get the iPhone for the $199 price you'd have to pay back what they aren't going to get out of you for getting the Blackjack at the reduced price.

 

[Philberttheduck]

I have an iPhone but I unlocked it while under T-Mobile before starting up a new contract with AT&T the beginning of this month and got a free subsidized phone. Do I qualify for the subsidy, owning an iPhone and currently using it for AT&T?

 

[trumpetfool04]

My guess is that the Apple rep you talked to had no idea what they were talking about.

Well I've got that same info from two seperate reps. But no where in the keynote on June 9th did Steve Jobs say that the iPhone was being subsidized by AT&T. Apple dropped the price to $199 and then the carriers in all the countries can do what they want with that price. This is exactly like what happened with the price drop after the iPhone came out $599 to $399 and we all know that AT&T did not "subsidize" it then, and they still haven't now.

 

[Chupa Chupa]

I have an iPhone but I unlocked it while under T-Mobile before starting up a new contract with AT&T the beginning of this month and got a free subsidized phone. Do I qualify for the subsidy, owning an iPhone and currently using it for AT&T?

If you have any subsidized ATT phone, no.

If you do not have a subsidized ATT phone, yes.

So if they gave you a phone when you started your contract you are SOL unless the 30 day return period hasn't expired, in which case you can return it.

 

[arn]

Ok, I talked to an Apple Representative, and they told me that AT&T did not subsidize the iPhone 3G. They couldn't have because Apple dropped the price from $399 to $199 in all the countries that the iPhone will be sold in. I don't know where everyone is getting the information that AT&T subsidized the iPhone because they didn't. If they were cutting the price from $199 to lets say free if you sign a 2 year contract, THEN they have subsidized it but not now.

AT&T's has officially said they are subsidizing the iPhone 3G

http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791

arn

 

[swagi]

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.

Yeah...it's called T-Mobile.

Maybe it's because you don't receive the phone before your contract is signed and activated.

So do me a favor, don't blame Apple for the stupid US prices, blame those unlockers.

 

[twoodcc]

wow, that's more than i thought. at&t still get the money back in the higher data plans

 

[trumpetfool04]

AT&T's has officially said they are subsidizing the iPhone 3G

http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791

arn

Ok then if AT&T is subsidizing the iPhone 3G why do all the other countries sell the non-subsidized iPhone 3G @ the same price as the supposedly discounted iPhone here in the US? What if I want to purchase a non subsidized iPhone in the US and sign a one year contract?

 

[skellener]

Saw this on Engadget....

One thing that is being pointed out that you can buy the phone with a plan.. ($199.99), cancel after one month (ETF = $175) = net $374.99 + 1 months cell phone fees (use the hell out of it!) not TOO much more than the original.. then jailbreak / unlock and you are good to go. a little more work, but may be the best option for some people who don't want to drop 2-3 grand on data / voice plans for 2 years..

 

[trumpetfool04]

Here is my conversation with the Apple Rep. She said that the iPhone's price is set by Apple and not subsidized by AT&T.

Hi, my name is Cheryl. Welcome to Apple!

Cheryl: Good afternoon.

You: Hello, I'm hoping that you can clear up a question that I have?

Cheryl: I'm happy to assist with that.

You: Is the iPhone 3G discounted by Apple, or is it being "subsidized" by AT&T?

Cheryl: We will release this for sale on July 11th.

You: I know what day it comes out, but why are people saying that the $199 price is chosen by AT&T?

Cheryl: The price for the iPhone 3G is an apple price for the iPhone.

You: Ok so AT&T currently has NOT done anything to the price of the iPhone 3G correct

You: It's not subsidized by them yet?

Cheryl: The price is set by apple.

You: Thank You.

Cheryl: You're welcome.

 

[winterspan]

Although the high unsubsidized price is understandable since many other high-end smartphones from Nokia, HTC, etc routinely have retail prices of $500-700 when sold unsubsidized/unlocked, $600 does seem like a large sum when taken in the context of last weeks article about the bill of materials of the iPhone 3G only costing around $100. (iPhone version 1 was estimated costing around $150). Obviously that doesn't even include manufacturing, distribution, marketing, etc etc etc.
I wonder what the normal markup for other smartphones is over their component and manufacturing costs..

 

[winterspan]

seriously though - who is this analyst and what is his basis for these numbers? Some insider tip? Adding the cost of the parts in the phone together? I read the actual article and I just don't understand why what this guys says is taking as Apple Cannon.

A recent article put the component costs of the iPhone 3G at just over $100. Obviously this doesn't even include manufacturing or processing, let alone manufacturing yields, distribution, storage, sales, marketing, etc etc.

 

[lazyrighteye]

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.

That is exactly what that means... tho final figures are still not public.

Remember, plenty (millions) of people (myself included) plopped down US $640 for an 8 GB EDGE iPhone.
The option to pay about the same and get a 3G iPhone seems more than fair - if you think $600 for a handheld device is fair. That is debatable.

 

[mciarlo]

For me, the kicker is one would think AT&T would be doing as much as possible to make money. Eliminating a lot of their potential buyers with the rumored subsidy policy seems to contradict this goal. This is without factoring in that the $199/$299 price appears to be the retail price and not the subsidized price.

 

[lazyrighteye]

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.

And while we don't know final plan pricing, iPhone txt should be unlimited - just like data.
The 250 txt limit is ghey.

 

[eastcoastsurfer]

To all those talking about how much it cost Apple to build an iPhone. It doesn't matter! If they only cost a nickel each to make, but the perceived value allowed Apple to sell them for $200 then they would still sell them for $200. Their cost only matters when the cost to build cost more than the value of product.

On the other side is value for each person. An iPhone might be worth $500 to one person or $200 to another. This value has nothing to do with it's cost to produce.

Economics for the win!

 

[Type121]

I've never seen it reported, I've seen a lot of guessing... but that's it.

Here's directly from the AT&T memo to managers:

Upgrade Eligibility and Qualified Upgrade Pricing
Upgrade eligibility will be determined based on standard upgrade eligibility rules. Customers must be upgrade eligible to receive the qualified upgrade pricing. However, not all customers will be qualified upgrades. AT&T has not determined the price of the 3G device for non-qualified upgrades.

 

[LoganT]

That price seems a little ridiculous. That's the original cost of the iPhone was 600 dollars then it went down to 400 dollars, and that was unsubsidized. Does it really cost 200 dollars to implant a 3G chip and a GPS chip?

 

[HawaiiMacAddict]

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...

I feel 'ya brother. I, myself also a 1st gen iPhone user, am not eligible for an upgrade until 21 August I'm hoping that I can mosey on down to my local Apple store and pick up my 3G iPhone on iDay Take 2 (I'm sorry - I just couldn't resist ). If I have to wait until August, so be it, but it'll be the longest month of my life until then.

HawaiiMacAddict

 

[firewood]

cancel and upgrade?

If I have an AT&T cell phone still under contract, can I just pay the contract cancellation fee now, but keep my AT&T account & phone number, and be completely "upgrade eligible" before the 11th?

 

[ruinfx]

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.

how many times does it need to be said? THE IPHONE 3G's 3G WILL NOT WORK ON T-MOBILE'S 3G NETWORK.

 

[arn]

Here is my conversation with the Apple Rep. She said that the iPhone's price is set by Apple and not subsidized by AT&T.

It's been said time and time again. Apple sales reps at this point know nothing about the sale structure of the iPhone 3G, except what is on Apple's website.

arn

 

[arn]

Ok then if AT&T is subsidizing the iPhone 3G why do all the other countries sell the non-subsidized iPhone 3G @ the same price as the supposedly discounted iPhone here in the US? What if I want to purchase a non subsidized iPhone in the US and sign a one year contract?

I don't know anything about Apple's contracts with other companies. All I know for sure is AT&T has come out and said, with no question, that they are subsidizing the Apple iPhone 3G. Their stock took a hit because of this. They did not say this lightly. This is a fact: AT&T is subsidizing the Apple iPhone 3G.

Beyond that, you can debate whether or not other carriers have the same deal or how much the subsidy is, but the AT&T subsidy is not in question.

arn

 

[know-it-all5]

Good Point

Can't I just go to the apple store and buy it for 199? They don't activate the phone there, so they won't know I am an AT&T customer. Or are they going to start checking the number before you purchase to make sure you are or are not a current AT&T customer? If they don't check, why don't we all just GO to an apple store and buy it there instead of the AT&T store??

If you go and pick it up at an apple store, how should they know what you are and are not eligible for? I 100% believe that the iphone is being subsidized by all the cell companies around the world. What I am struggling with is how apple has made no mention themselves except of the 199 and 299 price points. Essentially, they have said that if you walk into an apple store and buy an iphone, those are the prices, giving no hint to any unsubsidized price.

I mean in all seriousness, are apple stores gonna let everyone buy these phones at 199 and 299, except for people on AT&T that are currently on subsidized phones and are not due for upgrade. I just find it bizarre thinking about average Joe Shmo going to pick up a new iphone. He gets to an Apple Sales clerk, and the clerk asks his name, and phone number. He politely gives it to the clerk. The clerk replies, "Excuse me, but it seems that you are currently an AT&T subscriber that is not eligible for an upgrade, so that will cost you a few hundred dollars more on top of the 199 regular price."

The other problem with this idea of an unsubsidized price, is that apple has spent so much time touting "199 and 299." On the day the new iphone comes out, are they gonna add tiny letters to the bottom of the iphone page stating that if you are currently an AT&T subscriber that is not eligible for an upgrade, it will be 300 dollars more?

There are some serious gaps in what apple has been saying, and what we have been hearing from at&t.