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Contract and Subsidy Issues for iPhone Users Looking to Upgrade to iPhone 3G S

Early Upgrades

For me, i was expecting to get an early upgrade on this product, however, at the end of the day that is not happening. I am actually quite pleased. Where as it means apple will probably see fewer sales for this product initially, My contract runs out in June next year and as a result i am looking forward to getting the next iphone after the iphone 3g (s)....look what they have accomplished inside of a year! give it another year and i expect this product will be refined into something very special!
 
Falling iPhone 3G Prices on eBay

It's interesting to note that, certainly in the UK, eBay prices for the iPhone 3G have started to fall as the number of people wanting to sell their phones increase (could that possibly be due to supply and demand?). No doubt those wanting to upgrade to the iPhone 3Gs are cashing in to fund the ridiculous O2 prices that are being demanded.

I quite fancy buying a new (or nearly new) iPhone 3G from eBay, unlocking it to use on Orange (my current provider) and sitting back until the 2010 launch from Apple before deciding to go on contract. Rumour has it that the iPhone will be available from Orange (amongst others) in the next few months. Once the monopoly of supply has been broken, perhaps the price of plans will fall to more affordable levels.

I know that - whatever the situation - I will never bow down to the monolithic creature that is O2.
 
I blame Apple for this

I really hate AT&T but I wonder if a lot of the blame goes to Apple and the other cell phone manufacturers as well. Why do these phones cost anywhere from $500-$700? They generally cost $150-$200 to make. That is ridiculous! Only in the phone hardware industry can you make a 300% profit. The truth is the phone is not worth the unsubsidized price but the subsidized price. I think phone subsidies actually hurt the consumer because they are tied to a carrier longer than they should and it puts an artificially inflated value on the hardware.
 
str1f3 said:
Why do these phones cost anywhere from $500-$700? They generally cost $150-$200 to make. That is ridiculous! Only in the phone hardware industry can you make a 300% profit. The truth is the phone is not worth the unsubsidized price but the subsidized price. I think phone subsidies actually hurt the consumer because they are tied to a carrier longer than they should and it puts an artificially inflated value on the hardware.
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You shouldn't confuse the material costs with the costs of software and the R&D of bringing the hardware and software together.

Also, I can't count how many software updates my phone has received. I have the 1st gen. iPhone that I originally purchased for $599. Within a week of my purchase Apple dropped the price to $399. I was able to get my $200 refunded but I would still be just as happy with my purchase had it stayed at $599.

Things are only too expensive if people do not make the purchase. People are making the purchase so the market is bearing it out.

And Apple did just fine with the iPhone before the subsidies. The subsidies just allow people a lower entry level price. They end up paying more over time but overall people seem okay with it. Just like their credit cards. Actually, I bet most people put their iPhone purchase on their credit cards. Double whammy!
 
zizo79 said:
and it was sold ,right ?
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It was - I bet the buyer is considering his options.

I once bid on a mobile phone for a friend (whilst sitting in a bar, and having had a few drinks) a few years ago, and put the decimal point in the wrong place and bid hundreds of pounds for a phone worth fifty pounds. Not surprisingly I won the auction but the seller was very understanding. Thank God!
 
theneweyes said:
Well you make a good point. I don't have a solution, I was just pointing out that the iPhone can't be treated like other phones in the market or compared to.
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I do have a solution: They should give iPhone users choices. 1st option, get the iPhone for the $199, and a 2 year contract. 2nd option, give it to the consumer for $399 for a 1 year contract. 3rd option, give it to the consumer for the full $599, with a 2 year contract, but a discounted data package (reminescent of the $20 data plan on the 1st gen iPhone).

The brilliance of this plan is that the vast majority of people buying the iPhone will either go for the cheapest phone or the cheapest plan. Either way, they will be paying AT&T for 2 years. The people who went for the 1 year contract are most likely doing so so that they can upgrade next year, and so you are safe to assume they will be renewing their contracts. In all cases, AT&T is not losing money, and they have satisfied customers.

Additionally, it would be nice if AT&T didn't drop the ball like they did on Teathering and MMS... But I would be happy if they just fixed their buisness model first...
 
alawatsakima said:
2nd option, give it to the consumer for $399 for a 1 year contract.
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Option 2 essentially exists. It's called an early upgrade. For example, I'm only 11 months into my 24 month contract, and I can upgrade from the iPhone 3G to the 3GS for $399.
 
aristobrat said:
Option 2 essentially exists. It's called an early upgrade. For example, I'm only 11 months into my 24 month contract, and I can upgrade from the iPhone 3G to the 3GS for $399.
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It's really option 3 (Pay full price up-front, but get discounted data plan) that I would go for. I can save up to buy a phone, but the unpredictability of my job security dictates that a smaller phone bill would be welcome...
 
aristobrat said:
Option 2 essentially exists. It's called an early upgrade. For example, I'm only 11 months into my 24 month contract, and I can upgrade from the iPhone 3G to the 3GS for $399.
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...and sudedenly you'll see that they've added 2 years to your contract at the time you purchease your 3Gs. ( starting at your 11th month )
 
fluffer said:
iPhone 3G Users : Grow up and quit crying!!!!! You entered a contract, live with it or pay to get out of it.... schimples!! Why should carriers rewrite years of policy to satisfy gadget-hungry geeks?
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I can't stop smiling over the fact that the people who ran out to get the 3G have been making fun of me for still using my 2G, but now they're crying over not getting the upgrade price for the 3GS :p
 
Jamie 360 said:
I can't stop smiling over the fact that the people who ran out to get the 3G have been making fun of me for still using my 2G, but now they're crying over not getting the upgrade price for the 3GS :p
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this is why you have no friends
 
AT&T Premier Discount

Question: I just found out that since I work for a college, I might be eligible for a discount on my monthly bill through AT&T. But I heard that if you are a member of this you can't get Iphones through the Apple Store, only through AT&T directly. Is anyone familiar with this discount?? If that is the case, I'd rather avoid the discount AND dealing with AT&T. There is a link online to see if you are eligible, but I was afraid to go too far with it in fear of them enrolling me and ruining my chances of preordering the new model. :confused: Was also thinking of enrolling AFTER I receive the 3GS and worrying about it next time. Any thoughts?
 
Jamie 360 said:
I can't stop smiling over the fact that the people who ran out to get the 3G have been making fun of me for still using my 2G, but now they're crying over not getting the upgrade price for the 3GS :p
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Agreed. I've been suffering with EDGE for 2 years. Now it's time for me to upgrade, and people are complaining that they have to wait as long as I did? Life's tough, people.
 
Jamie 360 said:
Question: I just found out that since I work for a college, I might be eligible for a discount on my monthly bill through AT&T. But I heard that if you are a member of this you can't get Iphones through the Apple Store, only through AT&T directly. Is anyone familiar with this discount??
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You can buy your phone from an Apple Store, but AT&T does not give Apple direct access to your account, so they couldn't setup the discount on your monthly service for you. You'd have to go to AT&T to get that setup. My local store Apple store has that happen all of the time. The area is a huge military area, and military folks are eligible for a discount on the monthly service. Service folks would buy their phones all the time at Apple, and then swing by the AT&T kiosk on the way out of the mall (to get the monthly discount).
 
Okay... a few things worth clarifying.

1- Yes. You can upgrade. You might have to pay more if you've not fulfilled enough of your contract, but here in the US on AT&T, you CAN upgrade.

2- Yes. I am fine (and so are many others) with waiting for a couple months or so to upgrade (My upgrade date is August 24th, and yes, it is accurate).

3- Yes. The more money you spend on YOUR line with AT&T, the sooner you can upgrade. Those of you who have to wait for 18 months here in the states OR for the full 2 years, are either customers who spend less than 100 dollars a month on service OR customers who are 9.99 add on lines of service on someone else's account. Here's an interesting idea for some of you. If the person whose account you are on doesn't want to upgrade soon, have them switch your number to the primary number on the account. The upgrade eligibility on your account should bump up. Sooo... if you have to wait out the full 2 years (or else you have to pay full price to upgrade), and your mom/dad/whomever is the primary on your acccount, yet has had their phone for at least a year, isn't ready to upgrade AND the bill for the PRIMARY line is more than 100 dollars a month, have'em switch you to primary. I've done it before, it DOES work. I've been an AT&T customer since they were Cingular, and before that, BellSouth Mobility. I also worked for AT&T for a year or so back in 2003, so I'm not just blowing wind up your skirt. Give it a shot. If it doesn't work, you can just switch the other number back to primary. It won't cost anyone any money.

4- Gloating is unbecoming, so knock it off, 1st gen owners.;) You kept your 1st gen iPhone... great. So did my son. He can upgrade now, but since I pay the bills in the house, he won't be. I will probably use the upgrade if I do decide to upgrade early. He's just glad he has AN iPhone. Besides, he likes the retro 1st gen look. ;) Also, it is true that many people who have 1st gen are getting messages saying they have to pay full price to upgrade. I get that when I check his account for upgrade eligibility. It's a glitch. They cannot prevent you from upgrading a phone for which you had no subsidy. Hell, he's had his 1st gen since launch. So, I know it is a glitch, and if I decide to upgrade under his number, I'll get AT&T to fix that one for me. No problem.

5- The corporate discount thing... if you have one, you cannot upgrade at the Apple Store. You have to do it through AT&T... but... there's a catch. If you really want to do it through Apple, just call up AT&T, have them remove your FAN number (discount eligibility number... do this like, the day before you plan to buy, just to make sure it's off the account), then go forth and shop the Apple store, friends. Just make sure to take the proper steps to add the FAN number back to your account after you upgrade your phone. It's a bit of a hassle, but so is shopping at an AT&T store. :)

Finally... Verizon will never sell iPhones, because Apple isn't going to make iPhones that aren't GSM.

Quit going on about it. It's embarrassing. Most of the world is GSM. The US has all these other towers hanging around, that's why we are not fully GSM. Apple isn't gonna start taking backward steps technologically... I mean, they just finally slapped a video camera in a phone that should've had one when it launched in June of '07. ;)

Okay... I know some people will not read that, and will ask the same questions over and over again, but if you need info, there it is.

Happy shopping!
 
bunnicula said:
5- The corporate discount thing... if you have one, you cannot upgrade at the Apple Store. You have to do it through AT&T... but... there's a catch. If you really want to do it through Apple, just call up AT&T, have them remove your FAN number (discount eligibility number... do this like, the day before you plan to buy, just to make sure it's off the account)
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To expand on that:

If you have a corporate discount on your personal line of service (i.e. the bill is in your name), you can upgrade at the Apple Store. (This wasn't the case when the iPhone 3G launched last year, but Apple and AT&T fixed that later that summer).

If you have a corporate discount and the bill is in the name of your company, then you'll have to go to AT&T.
 
i just bought an 8gig 3g on 4/10/2009 because my old phone broke and i couldnt wait (not impatience but necessity). my phone is still in mint condition, does anyone know or have any experience already if att will make an exception (i know everyone needs to stop whining blah) since i just bought it 2 months ago?

i mean i'm fine with the 3g but ill gladly swap back for the 3gs if there is a way
 
I just checked with AT&T to verify as well and it shows my upgrade date as 7/12/09. I only have to wait a month to upgrade. This is only the primary line on my family plan. The other iphone 3G cannot upgrade until 3/17/2010. I bought both of the 3G's on launch day. What a weird structure but the AT&T representative could not answer why that was. Oh well I will wait until 7/12 so I can get the 3Gs 32GB for $299.
 
superscientific said:
I just checked with AT&T to verify as well and it shows my upgrade date as 7/12/09. I only have to wait a month to upgrade. This is only the primary line on my family plan. The other iphone 3G cannot upgrade until 3/17/2010. I bought both of the 3G's on launch day. What a weird structure but the AT&T representative could not answer why that was. Oh well I will wait until 7/12 so I can get the 3Gs 32GB for $299.
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Out of curiosity (since you can upgrade your primary line only one year after your last upgrade), does the monthly service for your primary line cost $100+?
 
Sign The Petition On Twitter!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

MacRumors said:


With the announcement of the iPhone 3G S yesterday, many current iPhone users have been looking to upgrade to the new model. Unfortunately, many users have been surprised and disappointed to find that their carriers are requiring that existing iPhone customers under contract are unable to immediately upgrade at the $199/$299 price point offered to "qualifying" customers.

It appears that many of these users had expected to be "qualified" for the lowest pricing despite being currently locked into a multi-year contract, as carriers such as AT&T permitted original iPhone users to upgrade to the iPhone 3G at the qualified price despite still being under their original two-year contracts. The key difference between last year's situation and this year's is that the original iPhone was unsubsidized by AT&T, and thus the carrier had no upfront subsidy to recoup through the two-year contracts its customers were on.

Customers on iPhone 3G contracts, however, received initial subsidies of several hundred dollars, meaning that carriers will require those customers to fulfill most or all of their contracts prior to qualifying for full subsidized pricing on upgraded models. This policy is not unique to AT&T, as upfront carrier subsidies quickly became the basis of Apple's iPhone business model throughout the world. As TechRadar notes, UK carrier O2 has also been receiving complaints from customers unable to qualify for fully subsidized pricing.Confusion remains, however, over just what requirements are necessary in order for existing customers to qualify for subsidized pricing for a given carrier. Carriers typically permit users to qualify for partial or full subsidized pricing on handset upgrades several months prior to the expiration of their existing contracts in exchange for the customer locking in for an additional multi-year contract.

But AT&T iPhone 3G customers, for example, appear to be receiving varying information about when they will be eligible for subsidized pricing on the iPhone 3G S. One MacRumors forum member reports that an AT&T representative claims that this discrepancy stems from whether the customer purchased an original iPhone prior to purchasing an iPhone 3G, in which case the customer would qualify for subsidized pricing on the iPhone 3G S only 12 months after signing their iPhone 3G contract instead of the 18 months required for customers who had only purchased an iPhone 3G. A number of other forum members, however, claim that the pricing offers they are receiving do not reflect this supposed set of rules.

Because it remains unclear exactly how much of their contracts iPhone 3G users will need to fulfill before becoming eligible for subsidized pricing on the iPhone 3G S, customers looking to upgrade should anticipate additional clarification on this process from their carriers.

Article Link: Contract and Subsidy Issues for iPhone Users Looking to Upgrade to iPhone 3G S
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