If you already have an iPhone 3g, upgrading to the 3gs is $599/16gb and $699/32gb

[dawizard]

The logical solution to all of this BS is that AT&T and Apple need to get the subsidy amount to more closely correspond to the interval between phone releases. Why should we have a two-year contract (who made up that number, anyway?) and a two-year subsidy when the release schedule for the phones is expected to be ONE year? This same situation is going to happen EVERY SINGLE YEAR until they get the two items in sync with each other.

There are a lot of us out here (raises hand) who will pretty much buy every single new, improved model of iPhone as soon as they are released, as long as the pricing is reasonable. I've owned the original 8 GB iPhone, the upgraded 16 GB iPhone, and the 16 GB iPhone 3G, and I've bought them all on THE DAY THAT THEY WERE RELEASED -- there is no more loyal iPhone customer than me. But given AT&T/Apple's unreasonable demand that I fork over $699 for the new 32 GB iPhone 3GS, that streak is going to come to an end muy pronto... and in the process, they have turned my previous good will toward AT&T into loathing. They can't even explain WHY I'm being told I'm not upgrade-eligible until April 2010.

When did your contract start? I have been reading somewhere that they have a 18 month clause...for me, I started July 2008 and my eligibility is shown as March 2010....

 

[Farplaner]

According to Apple's web site as of 15 minutes ago, yes, the $699 price also requires rolling your account over into a new 2-year contract.

According to Gizmodo, who claims to have received their information direct from AT&T, no, the $699 price is commitment-free, which would imply that you could just use the phone on your existing plan without affecting your contract expiry date or any future upgrade eligibility.

I hope Gizmodo's right and apple's wrong then... Right now we don't really have a definite answer.

 

[hard-case]

One thing I think bears pointing out....while the original iPhone can be considered to be "unsubsidized" that isn't "entirely" true, for two reasons. The first being that even if one purchased day one from an Apple store, the activation of the phone automatically brought with it a 2 year contract upgrade. This is not how unsubsidized phones normally work, as when I had upgraded both of my lines to unsubsidized V3 Razrs (one purchased from AT&T, one purchased from an authorized Motorola vendor online) I did not incur any extentions or penalties to my accounts. Second, with a truly unsubsidized phone, one would be able to have near open choice of their plans and rates. This however, is not the case with the iPhone, nor has it ever been. You are required to maintain a certain level of cost (59.99, but I think it changed now) to the voice plan, and access a specific data plan in order to purchase the phone ($20 for the original, $30 for the 3G). So even though the first was "unsubsidized", AT&T never treated it as such. I only point these out as they might be why there is at least some issue to the whole "subsidized/unsubsidized" kerfuffle.

I'd also point out, that it wasn't until the past few months, almost 2 years since the release of the iPhone, that one could actually get a new iPhone without a contract, and even now we have no confirmation (that being direct from AT&T and not third party) that the 3GS will be purchasable without contract at the $599/$699 pricing.

Regardless, right or wrong, AT&T's handling of the whole situation (I refer to the fumbles of MMS, tethering, and lacking any kind of plan/logic/response to this little fiasco) is doing them no favors from a customer relations standpoint....not that AT&T has ever much cared about that! If anything, what I hope would happen is that they come up with a way to address the issue and clear up the discrepancies regarding the whole eligibility process (note, I said nothing about giving people the subsidized pricing there!), so that at least those who are so upset can have something concrete and logical from and explanation standpoint. And sadly, those few who seem to take a perverse joy in taunting them can have something direct to cite.

I do have to admit, there is a certain bit of comedic irony regarding just how unusual it is to hear such vociferous outcry in defense of a cell provider. Very, very outside of the norm.

 

[dawizard]

I do have to admit, there is a certain bit of comedic irony regarding just how unusual it is to hear such vociferous outcry in defense of a cell provider. Very, very outside of the norm.

Must be paid trolls from AT&T lol!

 

[Goona]

Please read this, to all the whiners:

http://i.gizmodo.com/5284318/whiners-of-the-world-shut-up-about-the-iphone-3gs-upgrade-price

 

[clayj]

When did your contract start? I have been reading somewhere that they have a 18 month clause...for me, I started July 2008 and my eligibility is shown as March 2010....

My contract SHOULD have started on 7/11/2008 (iPhone 3G Launch Day). But because my phone was defective, I had to exchange it on 8/7/2008... and that's what they have down as my contract start date. So a big fat "BS!" to AT&T/Apple for resetting my contract just because I had to exchange the phone. That's presumably why my upgrade date is 4/2010; but it still doesn't explain why the AT&T rep I spoke to this AM said she couldn't find any reason why I should not be able to buy the phone for $499. (Apple's site still quotes me $699.) Her suggestion was for me to go to the Apple Store next Friday and see if they can give me the $499 price at that time.

 

[MacDaddy901]

Thank you for posting that Goona. We all signed a CONTRACT for two years. We all knew, or should have known, that a new iPhone was going to come out the next year.

Stop your whining. A contract is a contract.

 

[kas23]

Whatever, AT&T are a bunch thieves and they are holding back on basic features. I would love the new iPhone. But, I hate AT&T more than I love the new iPhone. No way in hell am I signing on for another 2 years! I would rather pay the $699 with no contract than to pay the $299 subs price with the 2 yr contract.

Please read this, to all the whiners:

http://i.gizmodo.com/5284318/whiners-of-the-world-shut-up-about-the-iphone-3gs-upgrade-price

This should be stickied. I don't know what world of entitlement these people are living in.

 

[dawizard]

I spoke to this AM said she couldn't find any reason why I should not be able to buy the phone for $499. (Apple's site still quotes me $699.) Her suggestion was for me to go to the Apple Store next Friday and see if they can give me the $499 price at that time.

That is good to know, maybe I will try that out as well once it is out in the stores.

 

[yg17]

The logical solution to all of this BS is that AT&T and Apple need to get the subsidy amount to more closely correspond to the interval between phone releases. Why should we have a two-year contract (who made up that number, anyway?) and a two-year subsidy when the release schedule for the phones is expected to be ONE year? This same situation is going to happen EVERY SINGLE YEAR until they get the two items in sync with each other.

There are a lot of us out here (raises hand) who will pretty much buy every single new, improved model of iPhone as soon as they are released, as long as the pricing is reasonable. I've owned the original 8 GB iPhone, the upgraded 16 GB iPhone, and the 16 GB iPhone 3G, and I've bought them all on THE DAY THAT THEY WERE RELEASED -- there is no more loyal iPhone customer than me. But given AT&T/Apple's unreasonable demand that I fork over $699 for the new 32 GB iPhone 3GS, that streak is going to come to an end muy pronto... and in the process, they have turned my previous good will toward AT&T into loathing. They can't even explain WHY I'm being told I'm not upgrade-eligible until April 2010.

Why the hell should Apple delay the release of new iPhones by a year because people don't understand what a contract is? That's not fair to the people who ARE eligible for the full subsidy and were waiting for the new iPhone to come out before upgrading. Now you're saying that Apple ought to delay it by a year because some people are incapable of abiding by a contract they signed? That is ridiculous. Their demands are not unreasonable. They're just demanding that you hold up your end of a contract that you signed. And then if Apple did delay the 3GS by a year to please the whiners, sometime around next month the same people would be whining about how it's been a year since the last iPhone update and Apple needs to keep with it and update the iPhone. There's no winning scenario for Apple and the carriers, people are going to bitch and complain no matter what.

Besides, none of the other cell phone manufacturers delay the release of their phones to appease the people who whine about the legally binding contract they signed, why should Apple be any different?

 

[dawizard]

Why the hell should Apple delay the release of new iPhones by a year because people don't understand what a contract is? That's not fair to the people who ARE eligible for the full subsidy and were waiting for the new iPhone to come out before upgrading.

Maybe the contracts ought to be less demanding than a 2 year commitment. Someone who is on the network for a year should be able to switch to a different provider without having to pay so much $ for breaking a contract. If someone is with a service for a year, they are probably going to stick around as long the as the service is going well.

If the government allow the whole cell-number porting (for customer convenience), they should be passing a bill regulating the contractual rip-off's from these cellular companies as well.

 

[yg17]

Maybe the contracts ought to be less demanding than a 2 year commitment. Someone who is on the network for a year should be able to switch to a different provider without having to pay so much $ for breaking a contract. If someone is with a service for a year, they are probably going to stick around as long the as the service is going well.

If the government allow the whole cell-number porting (for customer convenience), they should be passing a bill regulating the contractual rip-off's from these cellular companies as well.

If the contracts were a year, the subsidy wouldn't be as much, you'd be paying more for your iPhone, and people would be whining about that.

The entire point of a contract is for the carrier to give you a discount on the phone knowing they can recoup that discount over a period of time. If they shorten the contract they have to increase the price.

 

[clayj]

If the contracts were a year, the subsidy wouldn't be as much, you'd be paying more for your iPhone, and people would be whining about that.

The entire point of a contract is for the carrier to give you a discount on the phone knowing they can recoup that discount over a period of time. If they shorten the contract they have to increase the price.

To answer your question, I never said that Apple should only release a new phone every two years -- you inferred that. The solution to this problem needs to come from AT&T: The contracts SHOULD be a year (even if only for iPhone users -- they can stick with two-year contracts for everyone else), and the subsidies SHOULD reflect that. I don't care that it means I only get $100 off the price of the phone, versus $200; what I care about is being able to upgrade to the latest tech as soon as it is available, without getting "gouged".

AT&T is crapping all over a lot of previously-loyal customers with this ill-advised decision. Between this and the possibility that AT&T will lose their iPhone exclusivity deal, the most likely scenario for me right now will be to stick with my iPhone 3G for now and then jump to Verizon (or whoever) when the iPhone 4G comes out on their network. And then AT&T can enjoy NOT getting $70 a month from me, 12 times a year.

 

[hard-case]

Their demands are not unreasonable. They're just demanding that you hold up your end of a contract that you signed.

Would it also be unreasonable whining to demand that they at least address the situation (even if to acknowledge its existence)? Would it be unreasonable whining to demand that they clarify all the discrepancies that have occurred in the eligibility process? Not everyone on this thread is demanding an exemption, and I just want to point out that it is somewhat marginalizing to lump those just looking for a response/clarification in that category.

There's no winning scenario for Apple and the carriers, people are going to bitch and complain no matter what.

Actually, it would be more beneficial to Apple if they were to offer an exemption. Apple would experience increased sales of their product, and increased payments from AT&T due to the subsidy. If they don't...Apple will still sell the 3GS, and still get subsidy payments from AT&T...their only stake is the size of the win. The only tangible loser would be AT&T....if they do offer an exemption they will be taking a pretty decent financial hit in the short term. If they don't, they get a small heap of negative PR and probably a few service cancellations.

 

[dawizard]

If the contracts were a year, the subsidy wouldn't be as much, you'd be paying more for your iPhone, and people would be whining about that.

The entire point of a contract is for the carrier to give you a discount on the phone knowing they can recoup that discount over a period of time. If they shorten the contract they have to increase the price.

Even with shorter contract, atleast people will have the choice to move around at will. I got a shoddy Motorola for like 50$ with a 2 year contract earlier. But then I am bound to this phone unless I go about finding an unlocked phone elsewhere and using that or paying up big time for an 'early upgrade' just because I need to stick to this provider.

I am not trying to say that this is necessarily the right way (having shorter contracts) but atleast other options should be looked into knowing that longer contracts give customers a hard time to switch to better services. Maybe the charges for breaking the contract should be dropped significantly. Just thinking out loud.

I just hate to see an exciting announcement like the new iphone is just $199!!!!! Only to come with a clause that this is only if you are a new customer to AT&T or ugprade eligible. So technically it is not for 199 anymore at that point, it is 199 for a specific audience and much more expensive for the other.

Regarding the other nuance of releasing new products in a short cycle, cell phone technology has been changing rapidly and cell providers need to adjust to that environment to come up with a better business model so that users can conveniently stay up with the technology without emptying their pockets because of the mandatory 2 year contracts.

I understand it is just a business, but it is not fair on those who want to keep up with the time to be limited to the 2 years they are stuck into. You almost have to miss a cycle of technology (iphone in this case) unless you can afford something at this price in this economy.

 

[tony2979]

Isn't this just really "iPhone 3G part II"?

When the 3G came out, this same outcry happened. Everyone was upset that the price advertised was....ok, can't remember....and then it broke that you had to be a new customer or upgrade eligible to get that price.

I kind of understood everyone being upset that time around. It was new, the first iPhone had one price and that was that so it was a bit of a suprise to everyone.

My question is.....why is everyone suprised this time around? I guess I am in the same camp of those who think that this is just another phone. You get a better price if you are upgrade eligible than you do if you are not. I have a Blackberry (my wife and kids are part of the iPhone faithful ). It never even occured to me to be upset when the Bold came out and I was not upgrade eligible. Why do some of you folks feel that you are different?

 

[clayj]

I guess I am in the same camp of those who think that this is just another phone.

Obviously, you do not live on the bleeding edge of technology like some of us do. The main reasons I want the new 3GS is for the doubled storage capacity and the increased speed. The video camera will be nice, the compass is sort of an "eh" feature.

But I can live without these things if Apple and AT&T are going to make the price too high.

 

[SeanZy]

For me, the eligible upgrade is valid as of 7/12/09 which means one day after one year of buying my iPhone 3G (bought it on release date).

I also had the original iPhone, which leads me to believe the theory if you had the original iphone the upgrade eligible time is 12 months rather than the normal 18 months.

 

[clayj]

For me, the eligible upgrade is valid as of 7/12/09 which means one day after one year of buying my iPhone 3G (bought it on release date).

I also had the original iPhone, which leads me to believe the theory if you had the original iphone the upgrade eligible time is 12 months rather than the normal 18 months.

Hopefully you are correct.

However, in my case I am slightly screwed by Apple (or AT&T) because when I exchanged my defective phone in August 2008, they reset my contract. That means I'll probably have to wait until August to get any sort of discount.

 

[dawizard]

Here is an interesting approach, giving the users an option between 1 year and 2 year contracts and subsidizing accordingly:

http://www.businessweek.com/globalb...op+news_top+news+index+-+temp_global+business


O2 (TEF) has announced its UK pricing for the upcoming version of the Apple (AAPL) iPhone, the 3G S.

The iPhone 3G S will go on sale on 19 June, costing much more than the iPhone 3G did when that model was launched a year ago.

On an 18-month contract, the 16GB version of the 3G S will cost between £184.98 (with a service plan at £29.38 per month) and free (with a service plan at £73.41 per month), while the 32GB model will cost between £274.23 (at £29.38 per month) and £96.89 (at £73.41 per month).

Those opting for a longer, 24-month contract can get the 16GB handset for £87.11 if they pay £34.26 per month, or for free on higher tariffs. The 32GB model will cost between £175.19 (at £34.26 per month) and free (at £73.41 per month) on a two-year contract.

 

[FSUSem1noles]

For me, the eligible upgrade is valid as of 7/12/09 which means one day after one year of buying my iPhone 3G (bought it on release date).

I also had the original iPhone, which leads me to believe the theory if you had the original iphone the upgrade eligible time is 12 months rather than the normal 18 months.

I don't think that's 100% correct, because I also have the V1 iPhone, then got the subsidized price on release day for the iPhone 3G and my upgrade price was 399/499. With a standard upgrade date of, 3/10/2010.

Now, I did have to exchange my iPhone 3G because of technical difficulties in March, so they may have extended my date from March 09 to March 10'.

Which if they did, is just down right.. well, down right sucks!

 

[SeanZy]

I don't think that's 100% correct, because I also have the V1 iPhone, then got the subsidized price on release day for the iPhone 3G and my upgrade price was 399/499. With a standard upgrade date of, 3/10/2010.

Now, I did have to exchange my iPhone 3G because of technical difficulties in March, so they may have extended my date from March 09 to March 10'.

Which if they did, is just down right.. well, down right sucks!

Well then this would still prove my point.

From what I understand, the contract is sort of "reset" when you activate a new phone that is replaced, because it is like going through activation all over again. Which is BS. But I did have this issue with my first iPhone when I replaced it in September and it said I had purchased it in september even though I really did in June or whatever it was.

I do think that the eligibility goes down to 12 months having prior owned an iPhone 2G

 

[iPhoneFreak17]

this video explains it all

http://www.youtube.com/watch?v=2CslrzyoXtE

 

[bakerster]

For me, the eligible upgrade is valid as of 7/12/09 which means one day after one year of buying my iPhone 3G (bought it on release date).

I also had the original iPhone, which leads me to believe the theory if you had the original iphone the upgrade eligible time is 12 months rather than the normal 18 months.

oooooorrrr... in my situation:

bought 3g in 8/ish/08.. the bought another 3g in 12/ish/08.. had verizon before.

i can do a 199 upgrade on 8/ish/09 BUT phone #2 has to wait until 5/ish/10

 

[Kadman]

I just went scanning the various Blackberry forums and I can't find any uproar or war being waged against providers because of contract terms. Some mention renewal dates in discussing when they might pick up a new model they want, but it's just accepted as a way of life.

Maybe the whining and demands that the wireless carrier business model change for iPhone releases is just part of the "Think Different" experience...