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

[Wayner83]

Solution to gettinga 3GS

If you have a family plan, there is a good chance that one of the other phones on the plan is ready or soon to be ready to upgrade. Upgrade that phone and then swap the sim cards. I have 3 phones on my plan and I have it set up to where there is one phone this june and one next june that will be ready to upgrade, as well as one in december of this year. That way no matter when they new phone/s come out. I am able to get it. The other option is to pay 10 dollars more a month and add a line, and give that line to someone you may have been thinking about giving a phone to anyway, (grandparent, parent, chile. etc.)

 

[fabianjj]

This is why I prefer the way we buy cellphones in Sweden. We simply buy the phones from the manufacturers(full price unsubsidized) and separately sign contracts with the service providers, this way we can change phones whenever we please. OR we can buy the phones from the service provider (although not a lot of people do this) and but then the phones are usually subsidized to 0,1$.

Except for the iPhone, because of apples policies we haven't up until recently been able to buy and pay for it upfront.

 

[OllyW]

I predicted this would happen back in January and again in March.

It's a subsidised phone on a 18 (or 24) month contract. Why should it be treated any different to phones from other manufacturers?

 

[Orng]

bottom line , ATT let us upgrade at the discounted price last year, so they should do it again

"You let me sleep with you before, so you have to let me sleep with you now!"

Let us know how that logic works out for ya!

 

[nemaslov]

Well - I fully expected that my iPhone 3G would be upgraded at a price over the $199/299 that was announced - just didnt expect to see how much over. I understand the subsidized pricing argument - but check out this chain of events:

• Shortly after original iPhone launch, bought a full-price iPhone. This had a two year contract, but was $599 I believe at the time, and the pricing was not subsidized. I have been an AT&T Customer since the Cingular / Cellular one days.
• Shortly after 3G launch, upgraded to a 16GB White iPhone for $299. Price is subsidized, of course. 2 year contract renewal.
• Within 10 days, my white 16GB phone was stolen. Went back to the store and purchased a 16GB black iPhone 3G at FULL PRICE (ouch - but expected). This was 8/7/07.

According to everyone I spoke with when purchasing the replacement 3G phone, since it was FULL price, my original contract (7/26/07 I believe) was in effect, and the new phone wouldn't change a thing.

Enter yesterday - iPhone 3GS announced. Being an iPhone developer I fully expected to pay for the phone and upgrade. I was expecting the "early termination" $399/499 rate as I understand my contract is not up. Additionally, a couple of friends who upgraded from 1G to 3G on the same day that I did were being quoted that rate. We all have the basic plan, all have the same features and same bill, living in the same city.

What do I see? Guess what - I'm not eligible for upgrade until 1/8/2010 - and my price, today, would be $599 for the 16GB and $699 for the 32GB. Called AT&T - apparently the person who sold me the phone for FULL price back on 8/7/07 actually renewed my 2-year agreement signed on 7/26/07 - knowing full well I was buying a replacement iPhone at full price, which shouldn't be affecting the contract terms.

So now, I am also assuming the fact that I bought 2 3G phones given that I lost one is also screwing up the upgrade path. Everything else with my account is identical to two other friends who followed the same exact path - yet my price is $200 higher???

*THIS* is the problem that people are complaining about. I am half tempted to suck it up and pay the full retail price on the new phone now, but guess what - I bet that despite it being the FULL RETAIL NO CONTRACT price, they'll renew my contract - meaning that I'll be f**ked on the next upgrade as well.

What the hell?

Deniolan.

I would fight this one. They screwed you. Take it up the chain to a supervisor. Really. Everyoneelse is just too bitchy

 

[uberamd]

It is simple: no current iPhone 3G customer (other than those who spent hefty amounts on PAYG pricing) are eligible for a new iPhone 3G S.

Luckily, I bought mine on launch day last year and so have only 5.5 months to wait!

I got my 3G in January and I was eligible. (AT&T)

I purchased an iPhone 3g in November of 09, so I'm not even at the 1 year mark yet.

You got your phone from the future??

 

[RestlessCaviar]

Unlimited WiFi is not the same as Unlimited WiFi/3G/Edge/GPRS. That's what the £15 is!

Sorry, I meant unlimited web 'bolt on', so my point stands.

http://shop.o2.co.uk/sim-only-simplicity

 

[ugp]

On a side note.. "Find My Phone" feature is up and working now.

 

[pj rage]

I bought the 3G on day 1.

I didn't expect to have a cheap upgrade, but I'd be lying if I said I wasn't hoping that there would be a more affordable option. I thought they might figure out a business model that worked where I could just donk off $300/year to have the latest iphone. It would get a lot more people buying iphones every year than essentially making everyone get one every other year instead. Oh well, I'm not that worried about it anyway.

FWIW, I was looking at the early termination fees and it looks like it's $175 - $5/month completed, so if I've completed a year, that's $175 - $60 = $115. Add $115 to a new contract makes the prices $314 and $414 to upgrade. The only thing I'm not sure is if they wouldn't want to give you a new contract right away. I didn't see anything that said they wouldn't, but I didn't dig all that deep and I wouldn't be surprised if they denied you starting a new one. Anyone have any experience with this? It seems like a cheaper alternative.

 

[imwoblin]

This whole non clarification and arbitrary renewal date inconsistency has really given me a bad taste in my mouth. As a long time (25 years +) Apple evangelist, I think I'm going to ween myself off the iPhone bandwagon and go back to the cheapest, most basic phone from the cheapest most basic carrier. My irritation level of all things AT&T has finally pissed me off for the last time. I've been with AT&T since 1997, was a sheep and waited in line for both generations on launch day, paid $600 for the 1st gen iPhone ( -$100 Apple store credit) and it's over. I'm gonna pull out my old unlocked GSM Razor and wipe my hands clean of this horsesh*t.
I'm done.

 

[Pwned]

Question

Last year I got the 3g on release day and paid the full, un-subsidized price of $499. So would that qualify me for an upgrade at the subsidized price this time?

 

[Chaos123x]

Look at what other smartphones cost unsubsidized. Some have been over $1000 not long ago at all! MANY are over $500 and have less storage and far less functionality.

Being small doesn't make something cheap to make. It can even make it more expensive.

And parts (which ARE more advanced than a PSP or DS--or a plain phone) don't equal the cost. There's also assembly, marketing (including store rental), software, customer support, the huge R&D budget, and all the salaries, insurance, power, etc. that go into the above. Buying a bag of raw parts does not get you an iPhone.

Please tell me how the hardware is so advanced over portable game systems. I bet they actually trounce the iphone in pure calculations.

 

[HailToTheVictor]

Some CLARITY from AT&T would be nice.

My dad and I both bought original iPhones on opening day 2007 (same store), then we both upgraded to 3G last September (same store). We have identical (but unconnected) contracts: same text, voice & data plans.

My price for 32gig 3GS: $499

His price for 32gig 3GS: $699

Are they just flipping a coin? Pulling numbers out of a hat?

Sure, AT&T are well within their rights to do this, but I say it's a bad business decision. Treat your existing customers really well, and they'll really want to stay around. AT&T's combination of terrible coverage and mystery fees makes me very anxious to jump ship the moment Verizon gets an iPhone.

This is the million..err...$299 question. ATT can do it, that's fine, just let us know why one guy is different than the next when all factors are equal

 

[RyanFromQA]

Based on my situation, I believe the following to be true about AT&T customers:

iPhone AND iPhone 3G owners on Individual Plans: $199/299 on/after 1 year anniversary of their 3G purchase

iPhone 3G owners as primary line on Family plans: $199/299 on/after 1 year anniversary of their 3G purchase

iPhone 3G (original iPhone irrelevant) owners as secondary line on Family Plans: $399/499 from launch day to 20th-month anniversary of iPhone 3G contract. $199/299 after that.

Here's my source. I'm an AT&T customer with a Family Plan (2 iPhone 3G's). We bought original iPhones in November 2007, and qualified for $299 16GB iPhone 3G's. We purchased them the day after launch (July 12, 2008).

Currently, when I log onto my ATT account, I show as NOT being qualified for a full upgrade on either line. My line (the primary) says that I MAY be qualified for a full qualified upgrade on July 13, 2009 (which I will likely take advantage of).

My wife's line (the secondary), says that she may be qualified for a full upgrade on March 10, 2010. Which she's pretty pissed about.

 

[cmufan]

I'm not mad one bit at ATT or Apple. Its the business, but I sure aint gonna be paying $799 on a new 32 gig iPhone. The only problem I see here is, how many people bought the iPhone 3G so far? Most of those people don't want to pay more too, sales aren't going to be as great as the iPhone 3G. Heck, I bet there won't even be any lines for the iPhone 3G S. And the Pre is going to get more press.

 

[Tonezorz]

I bought the 3G on day 1.

I didn't expect to have a cheap upgrade, but I'd be lying if I said I wasn't hoping that there would be a more affordable option. I thought they might figure out a business model that worked where I could just donk off $300/year to have the latest iphone. It would get a lot more people buying iphones every year than essentially making everyone get one every other year instead. Oh well, I'm not that worried about it anyway.

FWIW, I was looking at the early termination fees and it looks like it's $175 - $5/month completed, so if I've completed a year, that's $175 - $60 = $115. Add $115 to a new contract makes the prices $314 and $414 to upgrade. The only thing I'm not sure is if they wouldn't want to give you a new contract right away. I didn't see anything that said they wouldn't, but I didn't dig all that deep and I wouldn't be surprised if they denied you starting a new one. Anyone have any experience with this? It seems like a cheaper alternative.

Start the new one first.

 

[bpatters]

noticed someone posted exactly what i said afterwards so ignore this.

 

[hard-case]

It's a subsidised phone on a 18 (or 24) month contract. Why should it be treated any different to phones from other manufacturers?

I think that is the point....it is being treated differently...

Why are some iPhone 3G owners eligible for $199/$299 at 12 months? Why are some iPhone 3G owners not eligible for the $399/$499 reduced price and being forced to pay the full $599/$699 price? Why are some iPhone 3G owners not eligible for an upgrade until 18 months when others meet the 12 month criteria?

For all that everyone is "whining at the whining" so to speak, those are legitimate questions that so far AT&T has been unable and unwilling to answer. The contract leaves enough wiggle-room that AT&T can use almost whatever standard they wish to determine the status.....many people think it only fair that they be up front with it.

Contracting practices are a huge issue within the cellular service world, and I must admit to being rather surprised that many people seem so zealous in ripping anyone down who dares question the almighty AT&T when at least some of them do have both a legitimate question and a legitimate right to question!

 

[Chaos123x]

If you have a family plan, there is a good chance that one of the other phones on the plan is ready or soon to be ready to upgrade. Upgrade that phone and then swap the sim cards. I have 3 phones on my plan and I have it set up to where there is one phone this june and one next june that will be ready to upgrade, as well as one in december of this year. That way no matter when they new phone/s come out. I am able to get it. The other option is to pay 10 dollars more a month and add a line, and give that line to someone you may have been thinking about giving a phone to anyway, (grandparent, parent, chile. etc.)

Not true I have another line that NEVER received a discount or free phone and it it is not eligible. I have my old used original iPhone on it and they won't let me upgrade it.

 

[optophobia]

I purchased an iPhone 3g in November of 08, so I'm not even at the 1 year mark yet.

However, I qualify for the $399 for 16gb and $499 for 32gb prices.

THIS MIGHT BE DUE TO ON MY PLAN RIGHT NOW I'M NOT USING MY IPHONE
You only have to have it for >6 months to get that price. You have the same discount as the people who got 3G on launch.

I got it wet a few weeks ago and had to change out to a backup phone. Apple wouldn't fix my iPhone, so I figured I'd wait till they announced the new one and buy into it.

Can someone with the $599/$699 pricing swap their sim into another phone and see if it brings the price down?

[/end]

 

[Greg]

I did buy the original iPhone at $600 (and $100 back from SJ). Last year I upgraded to the 3G. I just checked and they want me to pay $499 for the 32 GB 3GS or else wait until 12/18/2009 (18 month after I got my 3G). No way Jose I am gonna pay that!!!!

 

[Deniolan]

LOL - here is the best part...

I would fight this one. They screwed you. Take it up the chain to a supervisor. Really. Everyoneelse is just too bitchy

The best part is that according to AT&T's website, the early termination fee is $175 minus $5 per month fulfilled in the 2 year contract.

Since Apple is quoting me $699 for the 32GB phone, here is yet another example of why the hell this doesnt make sense:

* I go to apple's website, sign up for a BRAND NEW phone and account, pay $299 for the 32GB.
* I receive my shiny new phone (and of course, a new number and new 2 year contract).
* I call and cancel my existing contract. Since the contract date is showing 8/7/07, that's 10 months at $5 per month, which is $50 off of the $175 termination fee - so $125 termination fee.

Guess what - I just paid $299 + tax + activation + 125 for the new phone. So instead of $699 + tax + activation....

Looks like I get out the door for $462.18 instead of $764.18 (using the tax rate of 6.75% here in Ohio plus the $18 activation fee).

Does this make sense, AT&T?

 

[OllyW]

I think that is the point....it is being treated differently...

Why are some iPhone 3G owners eligible for $199/$299 at 12 months? Why are some iPhone 3G owners not eligible for the $399/$499 reduced price and being forced to pay the full $599/$699 price? Why are some iPhone 3G owners not eligible for an upgrade until 18 months when others meet the 12 month criteria?

For all that everyone is "whining at the whining" so to speak, those are legitimate questions that so far AT&T has been unable and unwilling to answer. The contract leaves enough wiggle-room that AT&T can use almost whatever standard they wish to determine the status.....many people think it only fair that they be up front with it.

Contracting practices are a huge issue within the cellular service world, and I must admit to being rather surprised that many people seem so zealous in ripping anyone down who dares question the almighty AT&T when at least some of them do have both a legitimate question and a legitimate right to question!

Sorry, I was commenting as a UK iPhone owner. I'm not really clued up on the US phone market.

 

[hard-case]

Sorry, I was commenting as a UK iPhone owner. I'm not really clued up on the US phone market.

Sorry. With all the stuff flowing around in the other thread, I jumped. Then again, with a lot of the hate I hear coming from some O2 users, the situations might not be so different!

 

[liketom]

boils down to loyalty - and Apple know's we all made the iPhone a success like the iPod before it, it's the networks with the 18 month contacts that are messing this up

£45 is what i pay - £45 is what my wife pay's every month maybe o2 should try and keep us ?

that Palm Pre is looking better right about now