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

[DVNIEL]

I still think it's a bit silly that a device such as the iPhone, which has a product cycle of 12 months, requires you to sign up to an 18- or 24-month contract in order to be able to use it to its fullest. It'll lead to people skipping an iPhone generation.

So you're saying that Apple should not release a new product until 2+ years from when they released their last one?

If by now you guys still aren't used to Apple's product refreshing tactics, then you guys are just looking to get your feelings hurt to the point of slashing your wrists.

 

[polaris20]

i really dont understand why this is such an issue. With any other subsidized phone...if a newer model came out....you wouldnt just go to att and say...oh i have the old version of that...i would like the new one...please give it to me at that subsidized rate....

why are people all of a sudden shocked at this practice?

I don't get it either. While I think the terms as to when they can upgrade and at what pro-rated cost should be clearly outlined, it's not at all unusual to have to ride out a contract.

My wife has a subsidized T-Mobile Sidekick (I know, ew) and wanted the Google G1. Despite it selling for $150 to new customers, she was told it would cost her the full retail cost of $399. Not even a pro-rated discount was offered.

She understood, since she understands what a contract means.

 

[xerenthar]

Alright go get your palm pre then with your measly 8 gb of ram, crappy keyboard, all of 18 applications and an OS that does not work for 200 dollars.

better than $599.

 

[macslayer118]

Since when did the first gen iphone come out in 16gb? Ouch!

February 5, 2008 they released the 16GB 1st Gen

 

[dyler]

That makes sense

Yes I did buy an original iphone and then the 3g so they are giving me the 499 for the 32 gb iphone 3gs. If you did not get the iphone 2g and got the 3g at the discount price you pay 699 until you have had it for 18 months.


If you do not want the iphone then go to another provider. To comment on the post that ATT is losing 2,000 dollars if you leave at the end of the contract, how does ATT know that you are not going to buy the iphone for 299 and then early terminate your contract for 150 and then jailbreak your phone for T-mobile. Then they have lost 400 dollars on you, they cannot take that chance as a business looking to make a profit, if you run your own business as I do then you understand this, I am in business to make a profit and so is ATT and Apple. They are not non-profit companies to help people save money when they want to buy a new Iphone every year. you can buy the phone now for 599 or 699 with no contract and then you should be happy.

 

[DVNIEL]

Maybe you should stop posting baby pictures and worry about your signature. Since when did the first gen iphone come out in 16gb? Ouch!

HAHAHAHHAHAHAHAHA!!!!! Show's how much you know. January 2008, Apple released a 16GB 1st Generation iPhone. Oh you're one of those people that think that iPhone 3G meant "iPhone 3rd Generation"..


OUCH!!!!!!

EDIT: Wow... and just seeing your named is Pwned... just made that even sweeter

 

[polaris20]

No because Nokia = ass

Oh I see. Because the iPhone is more desirable, they should allow people to break contracts so they can upgrade, despite having their original phones subsidized by the carrier?

 

[bumfilter]

Can someone explain this? The first iPhone that came out in the UK was unsubbed. It was £275 odd.

To buy the iPhone 3GS PAYG in the UK is £540 odd. Why has the price of the device doubled? I know it has more memory and better internals but still, double the price?

Furthermore, presumably as the subbed price of the current 3G iPhone has dropped, the price of the ubsubbed PAYG one would drop but it hasn't. It's still the same and still way more than the original iPhone price of £275.

I got the 3G on launch day and have 7 months of my contract left. Apple probably won't release a new iPhone in 7 months time. Having a device cycle of 12 months and contract cycles of 18 months doesn't work out. Especially when it comes to Apple, where people are used to buying their devices when they want to, not when they are told they can.

 

[NightCastle]

I don't know why people don't understand. It's simple, really.

AT&T doesn't WANT us to have the new iPhone.
They don't WANT us to give them more money.
They don't WANT us to renew our contracts for an additional 2 years...

It's really simple.


Give them what they want...

Quoted for truth!

Amen!

 

[jtimbre]

I just gotta say this whole thing is ridiculous. Look at all the snarky comments.
I've always purchased the iphones when they came out within the first week or so... am I pissed I have to pay a lot more to upgrade? You bet.

But its AT&Ts choice. Best we can do is wait until the release and see if AT&T posts anything new as there is clearly some issues going on-- not just general anger, but actual problems with exceptions, etc.

Half these posts are so redundant. Go post on the AT&T forum if you're so upset... Seems to be creating quite a stir over there.

 

[csmitty]

People love to blame others for their failures. In this case, not thinking ahead. This is SOP in the industry, love it or hate it. AT&T deserves no more ire than every other carrier. Apple deserve none of it.

If you stand on the tracks, don’t complain when the train hits you.

Just because thats how it is doesn't make it right. No wonder this country is going down the tubes.

If you want something changed, then do something about it. Complain to AT&T to hell and back. Maybe they'll change their practices, maybe not.

 

[Macinva]

I bought the 16gb 1st gen iPhone for $499.00 when it came out. I completely skipped the 3G version and just got done with the pre-order on AT&T's site. I was offered the fully subsidized price of $299.00.

The site claims I'll have it the day of launch with free FedEx overnight. I assume they'll send it to me on the 18th.

I'm glad I skipped the first 3G phone because I will never spend $500+ on a phone again. I love the iPhone but these things are becoming ridiculously costly.

 

[thestaton]

I really can't read any more ******** or praise towards AT&T. We are talking about a company, that let the NSA just plug right into the backbone. A company such as AT&T doesn't care a damn thing about you, me, or anyone else on macrumors. They care about being a monopoly and which senator needs paying off.

To think they would fall into immediate bankruptcy or suffer any other financial set backs, to help out a few thousand iPhone users is laughable. The minimum anyone with a 3G iphone is paying a month is no lower than $70 dollars. If I had anything else in the world that would work where I live I would have said **** the iPhone & AT&T along time ago.

I really don't see a reason to upgrade to the new hardware myself, or OS 3.0.

 

[chr1s60]

Did you ever think that AT&T just maybe has some internal data, or even better--ran some statistical modeling, and sees that the amount of people who are going to leave them because of this, versus the amount of NEW subscribers they can potentially lure, is infinitesimal. So it behooves them to attract new customers; the vast majority of whom will stick with AT&T and provide recurring revenue far into the future....?

Exactly what is wrong with the picture. AT&T is worrying more about taking care of the customers they don't have yet than they are about the customers they already have. I'm not saying that in the large scale picture it doesn't make sense to not give the subsidy, but rather pointing out that for myself and a lot of other people that will be doing the same as me, ATT loses money on that individual level. For every customer they lose, they may gain one and end up even or gain two and make money.

Perhaps they should also consider the possibility that they may no longer be the exclusive iPhone carrier in another year. This would take away a huge number of possibilities of new customers and at that time the customers they lost would be a big deal.

 

[DAMAC3]

I bought my 1st Generation iPhone unsubsidized and signed a 2 year contract with AT&T in February 2008. Do you guys think I am eligible for an upgrade to the iPhone 3GS when it comes out June 19th? I feel like I should be considering I paid full price for the original iPhone. On my AT&T online account it says i am eligible for an upgrade but when I try to upgrade it doesnt show the iPhone 3GS for me to buy. Where else would you be able to check if you were eligible for an upgrade? Is there anyway you can check through Apple site?

I bought my iPhone in Nov of 2007 (so 3 months before you). We should be in the same boat as far as upgrade eligibility. I went on the AT&T site just like you did. I am eligible for an upgrade, but the 3GS wasn't a given option.

If you go to the Apple Store you can purchase the 3GS. You should only pay the subsidized price. I ordered mine today, and it says I should receive it on the 19th, although I expect it to ship on the 19th.

I don't feel sorry WHATSOEVER for the complainers with the 3G. I deliberately waited for this new phone to come along and did not upgrade to the 3G because I thought it would be worth waiting for a phone that offered more of an upgrade than just 3G. AT&T doesn't owe you a darn thing until your contract is up (or the few months prior to that). Then, they will offer you some incentive to keep your business. You made your choice last summer. You didn't have to upgrade then. Many of us didn't. You can justify being disappointed or mad that you chose to upgrade last year, but you can't really blame anyone else. Someone made a good suggestion. Sell your 3G. That'll pay for the difference in subsidy.

 

[Darth.Titan]

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

Not Quite.

Not to mention portable game systems are usually sold for minimal profit and make the majority of their money on game sales.

 

[macslayer118]

Just because thats how it is doesn't make it right. No wonder this country is going down the tubes.

If you want something changed, then do something about it. Complain to AT&T to hell and back. Maybe they'll change their practices, maybe not.

Yes! Exactaly!

 

[jlseattle]

Cost/Benefit Analysis

Quoted for truth!

Amen!

I think they did a cost/benefit analysis and decided that it would cost them too much in revenue loss versus the benefit of happy customers.

 

[RBilRamZ]

Wow

What is AT&T subsidizing. From different quotes it costs $220 per unit. So if Apple is selling the units for 699 a unit wholesale (without a contract) than there is lots of money to be made. Apple must be making an ton from AT&T if they are charging the $699 per unit (which they are not).... The math doesn't add up here.

You abviously know nothing about business. OK, so the parts in the phone cost ~$220. They must be making $379 per phone, right? NO Have you ever seen those nicely made commercials on TV? Or thought about the thousands of man hours in research and development needed to come up with the hardware and software? Or the cost of owning/opperating a store? Or the costa ssociated with employing reapir or help staff? Or the cost of healthcare for all of those employees.

Please. All of the above reasons contribute as to why one phone that hsa $200 in parts can merit a higher cost than one with $250 in parts. The amount of investment necessary to make the phone, plus the cost of selling/marketing it.

Honestly people, you all come across looking like fools.

 

[Shin3r]

Ok, so here is what I get. We signed a contract so we should know better. Got it. Their reasoning for the contract is so they can recoup their cost on the hardware. Got it. If that is the case, then what I don't get is why I paid full price for the original iPhone and STILL had to sign a two year contract!! They get to screw us no matter what, all we ask for is a six month grace period and they freak out. Here's an idea, extend the damn contract to 2 years and six months!!! And don't tell me you didn't make your money after the first year, I don't buy it.

P.S. For those that don't understand the six month part. I've been on current contract for one year. I'm eligible for an upgrade at eighteen months. The difference is, well, 6.

So here it is, I paid full price for the first edge phone and was stuck in contract, but was subsidized a year later and still stuck in contract. If their whole concept is that it takes to years to cover their subsidized pricing, then I have met that goal. I have already been in contract for two years and only subsidized one device. So because they got to change the rules on the first phone, I am still screwed because I am stuck in a new contract after they so graciously let me out of the first one because I paid full price. Whoa, thank you AT&T. You suck donkey balls. If you all don't get that, then have a nice life. Seriously, I do understand the concept of a contract to help recover subsidizing, but you all need to remember, the reason the iphone IS different is because AT&T changed the damn rules, not me. I should not have had to have a contract AT ALL with my first iphone.

 

[macjonny1]

OMG I cannot believe the number of losers crying over not being able to get the latest phone without paying for it. Get....a....life

 

[krye]

I'm looking at 12/14/09 for the full subsidized price, which is 18 months from when I bought my 3G. I never had a 1G iPhone.

 

[ParishYoung]

I totally understand the subsudy thing, and I think the networks are well within their rights to ask people to adhere to their contracts or buy out of them. But i do think they could have been a bit more open / honest out it, during the build up to yesterday rather than cause this situation. But hey.

This is the quote I find most intersting:

"Much as we understand the desire of many customers to have the latest version, this would be a loss making deal for O2 and would be a distinct set of business terms for iPhone customers that don't apply to our other customers."

With this in mind then, why is it fair to charge iPhone users more to use their phone as a modem, when if I bought say and Nokia N96, I would be able to bluetooth my phone to my laptop and then connect to the internet via my 3G connection and just pay my normal data rate (approx £3 per Mb)

Yes the iPhone is expensive.
But Yes it is the best phone in it's class

Its the extra charges (tethering) and customer tariff's I disagree with.

 

[bumfilter]

If that is the case, then what I don't get is why I paid full price for the original iPhone and STILL had to sign a two year contract!!

Exactly, they made it seem like, aren't we so nice to let you upgrade early to the 3G, whereas people had paid for the damn first one any way. I didn't even take a contract out on the first one because it was a piss take. You paid the same contract price as everyone else even though you had bought the phone out right.

 

[DaBrain]

Would everybody be happier if the iPhone were still unsubsidized and you shell out $699 every year?

That's the way it should of been all along. That way it would have eliminated this FREE Welfare Subsidized mentality that some possess!

It's been said for a long time here that one needs to consider the 2 year contract also! But, nope, many will whine now cause they will be held to the contract they freely signed up for! --))) Amazing!