After looking online and talking to many people, I was sure that there was no way I was eligible to upgrade to the 3GS for a discounted price because I have only been in contract with ATT with my iPhone 3G for 7 months.
But after comparing my 3G's performance against a friends 3GS I was very upset with the sluggishness of my iPhone compared to the new one. So on my lunch break today I decided to swing by the AT&T store to see what it would cost me. The girl brings up my account and takes a double take. She says, "I don't understand why, but you are eligible for the 3GS upgrade for $199 if you want it." She said that it must be an error in the system because there is no way I should be eligible for the discounted upgrade after only 7 months in a 24 month contract to qualify. And she said I wouldn't even have to sign a new 2 year contract. The manager confirmed that I was eligible but also didn't understand how it was possible. He said, "I've never seen this before."
So, of course I decide that this is a deal I cannot pass up. So I upgrade to the 16GB 3GS. Happy with my purchase I go back to work. When I get back and tell a coworker what happened he freaks out and says, "dude you realize you can sell your old 3G for like $300 on craigslist right??"
So I throw the old phone up on craigslist for $300. Within 20 minutes I had 21 e-mails from potential buyers. Within 1 hour I had someone come to my office, hand me $300 and walk away with my old 3G.
So, long story short. I started the day with an iPhone 3G and ended the day with a new 3GS and $100 extra in my pocket.
All-in-all I will call today a success.

But after comparing my 3G's performance against a friends 3GS I was very upset with the sluggishness of my iPhone compared to the new one. So on my lunch break today I decided to swing by the AT&T store to see what it would cost me. The girl brings up my account and takes a double take. She says, "I don't understand why, but you are eligible for the 3GS upgrade for $199 if you want it." She said that it must be an error in the system because there is no way I should be eligible for the discounted upgrade after only 7 months in a 24 month contract to qualify. And she said I wouldn't even have to sign a new 2 year contract. The manager confirmed that I was eligible but also didn't understand how it was possible. He said, "I've never seen this before."
So, of course I decide that this is a deal I cannot pass up. So I upgrade to the 16GB 3GS. Happy with my purchase I go back to work. When I get back and tell a coworker what happened he freaks out and says, "dude you realize you can sell your old 3G for like $300 on craigslist right??"
So I throw the old phone up on craigslist for $300. Within 20 minutes I had 21 e-mails from potential buyers. Within 1 hour I had someone come to my office, hand me $300 and walk away with my old 3G.
So, long story short. I started the day with an iPhone 3G and ended the day with a new 3GS and $100 extra in my pocket.
All-in-all I will call today a success.