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BIG problem with upgrading iPhone

R

RedAbundance

macrumors member
Original poster
Apr 2, 2008
48
0
New York, NY
according to this article on new york times, first gen iphone owners can upgrade to 3G iphone by paying 199 plus extra 10 per month on data plan. however, one then would be "locked in" for 2 years (although it won't extend but replace the current contract), and can't upgrade again next year to the next iphone because of the subsidy.

so i'm just wondering if we like this new iphone enough to own it for 2 more years... or wait and see what next year's version is. and this seems to be a perpetual problem. i know if you wait you end up waiting forever, but i hate the idea of not being able to buy the next one (if there will be a new one next year) even if you don't want the subsidy.
 
RedAbundance said:
according to this article on new york times, first gen iphone owners can upgrade to 3G iphone by paying 199 plus extra 10 per month on data plan. however, one then would be "locked in" for 2 years (although it won't extend but replace the current contract), and can't upgrade again next year to the next iphone because of the subsidy.

so i'm just wondering if we like this new iphone enough to own it for 2 more years... or wait and see what next year's version is. and this seems to be a perpetual problem. i know if you wait you end up waiting forever, but i hate the idea of not being able to buy the next one (if there will be a new one next year) even if you don't want the subsidy.
Click to expand...

The way I see it, since the new iphones will be much harder to obtain by people seeking unlocked phones, because there will be so few given the contract, that when the next model comes out we can unlock and sell the 3G version and whatever money we make off that will easily cover the subsidized price loss if not more.. and then when the 4th version comes out we will once again have the subsidy! Just have to work the system!
 
how are you gonna unlock it when you have to activate it in store?
you can't even buy it online at apple.com and have it shipped anymore
 
It would be a huge faux pas to not let people who buy the 3G iPhone this year buy the next iPhone next year. If it really works out that way, it would be absolutely terrible, but I don't think it's going to happen.
 
Chaszmyr said:
It would be a huge faux pas to not let people who buy the 3G iPhone this year buy the next iPhone next year. If it really works out that way, it would be absolutely terrible, but I don't think it's going to happen.
Click to expand...

that what doesn't make sense for me...
if you read that article, ny times quoted ralph de la vega, ceo of att&t mobility, saying that "Also, they will then be locked into a two-year contract and, as with most subsidized cell phones, they won’t be able to upgrade to a new phone at a subsidized price until their contract nears expiration."
 
RedAbundance said:
that what doesn't make sense for me...
if you read that article, ny times quoted ralph de la vega, ceo of att&t mobility, saying that "Also, they will then be locked into a two-year contract and, as with most subsidized cell phones, they won’t be able to upgrade to a new phone at a subsidized price until their contract nears expiration."
Click to expand...

What is said in that section is not a direct quote, but rather the writer of the article saying what he thinks is going on based on the conversation. It will probably be true that you can't upgrade to any old subsidized iPhone during those two years, but I think they will make an exception for the next iPhone.
 
RedAbundance said:
how are you gonna unlock it when you have to activate it in store?
you can't even buy it online at apple.com and have it shipped anymore
Click to expand...
I plan on buying it on the 11th and activating it and using it for a year. but after i activate it it is my phone to do with as i please, I can unlock it a year later pop out my sim and sell it. Then use that money to buy an unsubsidized version of the next one... but i think at&t has a way to deal with this. they will want people to keep getting the next version...
 
Chaszmyr said:
What is said in that section is not a direct quote, but rather the writer of the article saying what he thinks is going on based on the conversation. It will probably be true that you can't upgrade to any old subsidized iPhone during those two years, but I think they will make an exception for the next iPhone.
Click to expand...
why does it matter whether it's a direct quote?
 
Buying a subsidized phone does not mean you aren't able to upgrade to a new phone before the 2 years is up...

If you buy a subsidized phone and get a new phone, you have to pay retail price for it, so At&t is not losing any money the second time around. You also have to continue your existing contract, so they are still making the subsidy back off of you.

If you cancel your contract, they charge you an early termination fee, and still haven't lost anything.

You can get a subsidized phone, walk into the store the NEXT day and buy another phone at full retail, swap your SIM, and walk out.

The contract is for the PLAN for 2 years, because that is where the carrier makes the money back, not the phone. This is a common misconception...
 
CrazEtooN said:
Buying a subsidized phone does not mean you aren't able to upgrade to a new phone before the 2 years is up...

If you buy a subsidized phone and get a new phone, you have to pay retail price for it, so At&t is not losing any money the second time around. You also have to continue your existing contract, so they are still making the subsidy back off of you.

If you cancel your contract, they charge you an early termination fee, and still haven't lost anything.

You can get a subsidized phone, walk into the store the NEXT day and buy another phone at full retail, swap your SIM, and walk out.

The contract is for the PLAN for 2 years, because that is where the carrier makes the money back, not the phone. This is a common misconception...
Click to expand...

ok people i don't think you're getting the point...

there is no "retail" price for the iphone 3G. the only way to buy it is to enter a 2 year contract and pay 199. the phone and the contract go together.
 
RedAbundance said:
ok people i don't think you're getting the point...

there is no "retail" price for the iphone 3G. the only way to buy it is to enter a 2 year contract and pay 199. the phone and the contract go together.
Click to expand...

Exactly....as far as we know now the only way to get it initially is to buy it in store, activate it in store, and get stuck with the 2 year contract.

For me...I'm fine with that...my AT&T reception is great around here. It sucks for those who wish to take it to another carrier though.

Now who knows...perhaps there will be unsubsidized versions available after launch that people can buy outside of an Apple/AT&T store...and get away without a contract. The way it looks though is if you want it as soon as it's available...you better be prepared to get stuck with the 2 year contract or pay another $175 or whatever to get out of it.
 
RedAbundance said:
ok people i don't think you're getting the point...

there is no "retail" price for the iphone 3G. the only way to buy it is to enter a 2 year contract and pay 199. the phone and the contract go together.
Click to expand...
Of course there is a retail price for it.. read the at&t memo that went out today. They haven't settled on a retail price yet, that's why all the confusion is flustering around. You'll get the retail price in a couple weeks
 
oh...after reading the article and re-reading the OP's post I think I see the assumption they are making.

It's a little confusing I think.

Right now there are people that have iPhones that are under a contract, but they will still be able to buy the new iPhone at the subsidized price. This is different from the normal practice of charging people under contracts the full price to upgrade while still in their contract.

They won't force you into staying with the new iPhone for 2 years...they will make it possible to get whatever new version they will be bringing out. Why wouldn't they...it means they can get more money out of you. You'll probably just have to pay extra to get the upgrade.
 
mtfield said:
Of course there is a retail price for it.. read the at&t memo that went out today. They haven't settled on a retail price yet, that's why all the confusion is flustering around. You'll get the retail price in a couple weeks
Click to expand...

which at&t memo? can you provide a link?
i've read different versions of it, and none is as complete as THIS ONE. and i haven't seen the words "retail price" in any of them... that's why i'm not so sure about upgrading now coz i would hate to not have the option to upgrade again if there's a new version of iphone next year.
 
This is the memo that is mentioned above. It was posted on boygeniusreport.

"iPhone 3G will be activated at point of sale when the device is purchased in store.
Return period has been changed from 14 days to 30 days
$199 and $299 pricing is for new activations or qualified upgrades with a 2-year agreement
2G iPhone data rate plans will remain available for 2G device suntil further notice
The new iPhone 3G data plan is $30/month and includes unlimited data and visual voicemail
There is not a no commitment price. This means you can’t just walk in and bang $500 on your credit card and walk out.
If you are an existing iPhone customer in good standing, you will be able to extend your contract for two years when the iPhone 3G launches and get the ill-na-na $199/$299 price point. Doesn’t matter when you bought an iPhone either.
AT&T and Apple stores “unbrick” the iPhone 3G at time of purchase, but for some reason if that doesn’t happen, you’ll be required to use iTunes at home.
Pre-paid and Pick Your Plan will not be allowed on iPhone 3G
Device purchase limit remains at (3) per customer in AT&T stores.
2G iPhones to remain as demo models in AT&T stores “until further notice”.
AT&T stores will get rate brochures, 22 x 28 posters, and window banners
Launch day will mirror last year’s launch. This includes extended store hours, crowd controls, etc. Security will be provided to stores requesting armed police or guards.
AT&T is working with Apple to roll out GPS-enabled applications.

It then went on to say:

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.

All customers will be required to sign a 2-year agreement. There will not be a “no commitment” price for the iPhone 3G.

Note: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure. (Customers that would not otherwise be eligible due to tenure will be made eligible at launch).
 
Bad Ash said:
Note: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure. (Customers that would not otherwise be eligible due to tenure will be made eligible at launch).
Click to expand...

Ding ding.
 
No changes that I see....

Going off memory here but didn't we have to sign up for a two year contract on the first iphone? I was still under my existing contract with at&t, paid my money and the two year clock started again. I think this phone will be handled in a similar fashion.
 
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