At&t will give in and kill early upgrade fee - opinion

Discussion in 'iPhone' started by eezing, Jun 11, 2009.

  1. eezing macrumors 6502

    eezing

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    Oct 29, 2008
    #1
    After reading multiple articles on this topic it seems there's a good chance At&t will do away with the iPhone specific early upgrade policy.

    Factors:

    Changing their policy...

    - Will win the hearts of the loyal iPhone community and users. The best advertising is by word of mouth. The iPhone 3G community is quite large as well as quite passionate... You see where I'm going with this.

    - Will strengthen\not destroy their relationship with Apple which in return will help extend their exclusive U.S. iPhone contract. See, Apple reacts quickly to their customer complaints/suggestions; they wan't At&t to do the same. When it comes to the iPhone, Apple and At&t are a team, but Apple has the upper hand.

    - I'm just throwing this out there... Even with the 3G being subsidized, I don't think the profit margins are so small that At&t will take a significant hit by allowing free upgrades, or at least get hurt.


    WELL WELL, LOOK IT HERE GUYS. DID I CALL IT OR DID I CALL IT? BOOM!
     
  2. citron230 macrumors 6502a

    citron230

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  3. nfl46 macrumors 603

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    #3
    I mean, I don't think they should make people pay 599/699 for it, BUT 399/499 is REASONABLE if you aren't eligible for an upgrade.

    They should do away with the 599/699. That's WAY too much. 399/499 is pushing it, itself. 399 is my MAX, as this is what I'll be paying next week.
     
  4. eyefoniac macrumors 6502

    eyefoniac

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    #4
    Would be nice, but I highly doubt it. Us 3Gers did sign a 2 year contract that we are bound to hold. Would I like to be given the option of a cheaper phone, yes, but do we deserve it, not really.
     
  5. mrtune macrumors 6502a

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    #5
    Don't bet on it. AT&T isn't that nice.

    And neither is any other American cellphone company for that matter. They would rather lose you as a customer than to give you a free phone every time you complain you should receive the latest and greatest model.

    If you give to one, you have to give to all.
     
  6. anjinha macrumors 604

    anjinha

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    #6
    The iPhone's real price is 599/699. They subsidize it so people pay 199/299 up front. You pay the other 400 over a two year contract. By letting you upgrade to another subsidized phone half-way through your contract they are losing 200 with every iPhone they sell. You think that's not much?

    And what about next year, when another iPhone is released? Should they let people upgrade again and lose more money again? And why should the iPhone be different than any other subsidized phone?

    I agree that 399/499 is a reasonable price to let people upgrade if they are halfway through their contract. Don't hold your breath for anything better than that.
     
  7. gr8tfly macrumors 603

    gr8tfly

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    #7
    Doubtful. The contract works just like any other subsidized phone has for last 5+ years.
     
  8. bndoarn macrumors 6502a

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    #8
    i don't think this will happened because if they don't charge for early upgraders for the iPhone, then AT&T will just hear even more complaints from people who are being charged for upgrading early with other phones.
     
  9. labman macrumors 604

    labman

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    #9
    you signed the contract

    just as I am agreeing to a 2 year with my 3GS now so if they come out with a 3GS+ or 4G it will be me that has to wait. you contr5act does not say you get a new phone every time Apple comes out with a new model. Get over it already. next year you will have the new model and I will be sad.
     
  10. Cloudane macrumors 65816

    Cloudane

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    #10
    I doubt it for the same reason as with O2 - they can't give an inch without making a loss, because of Apple's supply pricing, so they are going to hold you to the contract you are legally bound to this time.

    Will Apple give in and drop the price, so that it's at least half reasonably attractive to upgrade? Quite possibly if there's not enough uptake, just like they did with the original iPhone.
    Will they repeat their goodwill gesture of a $100 voucher to those who bit the bullet and paid full whack then cried when they dropped the prices? I very much doubt it (it was a one off, their customers were supposed to accept this and learn for the future).
     
  11. Eddyisgreat macrumors 601

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    Oct 24, 2007
    #11
    Yup. The real stupidity is that alot of 3g owners feel they are entitled to the new phones. Some are trying to say that ATT is wronging them because they are willing to sign another 2 year contract on top of the additional year, but they don't realize how stupid of a proposition this is. Apple will keep releasing phones, and if ATT is still an exclusive provider than you can see how that would snowball into 3, 5, 7, 9 year contracts where ATT CANNOT change the terms as they see fit. Others are saying that ATT set a "tradition" of subsidizing new phones for existing users at the same rate as new users, even though that was only half the story and it only happened ONCE!

    I seriously doubt ATT will cave for a little less than 10,000 users (the number of twits that signed that twitition). If they do, backlash will be swift and great from blackberry users who want the same type of treatment. New customers, such as myself, will probably shy away from ATT because of their willingness to take part in such foolishness, unless they can offer me the 32gb 3gs FREE OF CHARGE. its only fair, right?

    ATT can either piss off 10000 users and stick to standard provider policies or they can open the floodgates and take a beating from all sides.

    If you don't believe how stupid some people are you should check out the official ATT 74 page thread on this.

     
  12. dagomike macrumors 65816

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    #12
    If Apple is opening up to Verizon, etc in the next 12 months, then yes I agree they'll probably change their tune. Better to lock people in an extra year than watch them take off when their contract is over next summer. Otherwise, they're losing money and I wouldn't count on it.
     
  13. eezing thread starter macrumors 6502

    eezing

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    #13
    Those 10,000 twits represent more like 50,000+ users. I don't twitter. Although, I really don't care that much about the whole issue to begin with. But, I would probably upgrade If there was no upgrade charge... so yea, I guess I am one of those 50,000 users.
     
  14. Primejimbo macrumors 68040

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    #14
    I agree, and we get to hear this all over next year... I can't wait :rolleyes:
    Again it's all at&t's fault for not letting you upgrade every year :rolleyes: Do Blackberry users do this when a new phone comes out?
     
  15. Badandy macrumors 68040

    Badandy

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    #15
    Then you just don't understand business. ATT is paying $600 for each iPhone from Apple, you expect them to subsidize you $300 every year just because you want a phone before the contract that ATT expects you to pay them back for the subsidy with is over? You're nuts.

    This has nothing to do with alienating customers. This has to do with average Americans having no clue what business model ATT operates with.
     
  16. anjinha macrumors 604

    anjinha

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    #16
    What people don't seem to realize is that the 2G iPhone wasn't subsidized, people payed full price for it upfront, so AT&T wasn't losing any money by letting people upgrade early to the 3G.
     
  17. mrtune macrumors 6502a

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    #17

    No they won't. Verizon is just as bad as AT&T. I think they are worse. Look how they treat their smartphones. Blackberry's have their GPS crippled so that the only thing that works is Verizon's navigation service. They also don't allow phones with wifi capabilities. They demand that phones only go through their data network. These requirements would cripple the iPhone. Who would switch then?
     
  18. AiralynRose macrumors 6502a

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    #18
    I hope they don't. Those who are complaining really make us all look like a bunch of elitist *******s when you whine and complain because AT&T is treating you like they do all their other non-iPhone customers.

    Having an iPhone doesn't make you better than everyone else. You do not have to get a new iPhone every year just because there is a new one. iPhone users don't pay anymore monthly than blackberry users and other smartphone users (all data plans for smartphones are $30!)
     
  19. eezing thread starter macrumors 6502

    eezing

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    #19
    I side with you here, but you need to understand that the iPhone user base is different than that of any other phone user. They just down right care more.

    Here's the other truth, subsidized or not, paying more than $400 for a handheld device feels dumb. See, Apple advertises the price of the phone at $200 and $300, not $600... if they did, I'd laugh right in front of their faces.

    Please tell me you really don't think the overhead is barley covered by a $90 a month plan.

    Again though, we all signed a contract and as far as I'm concerned we're bound by it.
     
  20. joro macrumors 68020

    joro

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    #20
    Do I hope they reverse the policy? Of course; however, I don't think it will happen and I wouldn't expect them too. Coming from a business background, it makes no sense for them to allow users to upgrade every year when Apple releases a new version, especially considering they are in 2 year contracts. I am one of the loyal iPhone users who was standing in line for both of the launches thus far - pre-ordering this time - and I do understand how people feel they have been "screwed" by AT&T. But I believe if you don't want to pay the "ridiculous" price, then don't, there is nothing mandating you have the latest and greatest iPhone.
     
  21. joro macrumors 68020

    joro

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    #21
    Amen! I think this is something which most people have overlooked based on their experience moving from the original iPhone to the 3G. The fact is AT&T didn't subsidize the original iPhone which is why all of us got the subsidized price on the 3G.
     
  22. eezing thread starter macrumors 6502

    eezing

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    #22
    I understand completely, but that still doesn't change the fact that there are 10,000 twitters going crazy. As I said, I really don't care either way.
     
  23. Eddyisgreat macrumors 601

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    #23
    50,000 users? Proof?

    Right now its just a very vocal minority. 50,000 iphone users roughly equals 5 million dollars in revenue, which, if this was a legitimate issue, would be 5 million dollars in lost revenue. ATT Mobility (wireless) made 10.5 Billion dollars in just DATA services revenue in FY08, and on top of that, sold like what 20 million iPhone 3g's also in 08 (but I can't get a firm number, someone correct me if they find a figure).

    "50 thousand" users accounts for about 1/400 of sold 3g's. 5 million accounts for 1/2100 of the overall revenue from data.

    Considering these users probably won't jump ship, I'd say ATT has better things to worry about.
     
  24. anjinha macrumors 604

    anjinha

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    #24
    How much did the original iPhone cost again? :rolleyes:

    If people think this is too expensive for a phone they should complain to Apple, not AT&T (not that it would do any good).

    Also, a lot of other smartphones cost the same, people just don't realize it because they're used to the subsidized price. The iPhone is no different.
     
  25. tasset macrumors 6502a

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    #25
    I have come to despise the contract/subsidy model that America has become addicted to. Yes I agree most people do not understand the monthly service fee they pay has built in their subsidy over the contract. I wish those hidden costs were EXACTLY laid out to the customers.
    An equal amount of blame lies with the carriers I believe. For instance, AT&T covers $400 of the iPhone price for us that is "supposedly" spread out over 24 months - roughly $15/month. Sooo what we're saying is data should be $15/month right? And AT&T adds in the extra $15 to recoup the phone. So then, when the 24 months is up and I chose to continue using the same phone then my data price will drop to $15? Nooooo?? Well why not if AT&T has now covered their cost? Because the carriers are trying to have their cake both ways, that's why.
    Let the equip manufacturers compete with each other head to head on hardware and the carriers on service/price. THEN and only THEN will us consumers win. FCC, hello, anyone home?
     

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