iPhone 3GS Launch Day Details and AT&T Pricing

[Shiner]

This is not hard stuff

The iphone costs ~$700-800.

You pay $199 when you start a 2 year contract. The $500-600 difference is absorbed by AT&T at the start of the contract.

If AT&T makes a $100 a month from you then it is paid back that difference in 12 months.

If AT&T makes less than $100 from you a month it is paid back the difference in 18 months.

Someone said they are paying $400 a month by themselves (first off WOW) they should be eligible in 12 months.

Some one stated they pay $98 plus their husband is added for another $35. Nope does meet the requirement. If the person was by themselves at $100 minus the taxes then you meet the payoff for AT&T.

Where do people think the $500-600 iphone goes after you buy it? Someone has to pay for it.

 

[edoates]

AT&T should be welcoming current users to buy a new iPhone, regardless of when they purchased their last one. All it does is binds them to another two year contract. They are not losing any money by forcing me to renew for another two years. They are actually ensuring that I will remain an AT&T customer longer -- something they should WANT to do.

Of course, if Apple does not renew THEIR contract with AT&T, maybe I'll be happy I waited to buy a new iPhone. AT&T has done nothing but screw iPhone users with unnecessary costs. I'm sorry, but it does not cost $10 MORE a month to provide me 3G connectivity. And it CERTAINLY does not cost $40 a month more to allow to to tether my iPhone to my laptop. AT&T can drop dead.

Yes they are "losing money." You are not being bound to another 2 year contract; you are terminating your current two year contract early, and getting a "new" two year contract. So instead of 4 years, they are only getting two years plus whatever you've already used on your existing plan.

 

[erzeszut]

Here's what I'm upset about.

I bought 1st gen the day it came out. Paid $500 for the 4GB. Ok... Great... they lowered their price and I got $100 store credit from Apple.

Then that one broke in April of 2008, so I bought another one... This time I went with the 16GB... another $500.

So you bought the first one in June 2007 -- and it "broke" in April 2008. Do you mean that you broke it? Because if it just "broke," it was only 10 months into a 12-month warranty and Apple would have replaced it for free.

Then they announced the 3G SHORTLY after that. I wasn't happy with the timing of everything, but I sucked it up. I wasn't planning on getting the 3G, but I broke down in September and bought it. 16GB for $300.

I cannot upgrade until February of 2010. So, when the NEXT phone comes out in 2010, I still would not be able to get it. I'm definately going to talk to someone about this, just to see what they say. I've ALREADY spent $1200 on iPhones since it came out. To be forced to wait, and skip the next gen phone is ridiculous!

By April of last year, there were already rumors flying about (on this site and others) that Apple would announce a new iPhone in the summer of 2008. Sorry if you didn't see those rumors, but how is that Apple or AT&T's fault?

You broke your first phone, you replaced your second phone after only 5 months of use, and that's why you're mad at Apple and AT&T??

People on this thread are whining more than my 3-year-old.

I'm paying $500 for my new 32GB 3GS. This represents a $100 discount, even though I'm not eligible for an upgrade until January 2010. That's more than I expected from AT&T, quite frankly. I would have expected to pay full price.

The contracts are for 2 years, people. That's what made the 3G so affordable last year. If you don't like the terms, don't buy one!!

 

[press045]

Be objective, please

As an AT&T customer who purchased both the first generation and 3G iPhone, I can understand the frustration of current customers who cannot immediately upgrade at the subsidized price. However, be objective for a second and think about this.

1) You signed a two year contract with AT&T. The contract doesn't say, "this is for two years unless a new iPhone comes out." You're bound to that contract.

2) AT&T subsidized the cost of your iPhone 3G. This means that it costs them money to sell you an iPhone 3g. They lock you in for two years to recoup that money that they LOST by selling you an iPhone. If they subsidized another expensive phone before the two years is up, they would lose money yet again AND if they had you sign another two year deal from right now, they would lose out on one year of monthly service charges.

I understand the frustration with AT&T but stop acting like they are screwing people over.

 

[erzeszut]

sorry if this was already asked...

are we allowed to resell our 3G if we upgrade to the new 3GS?

the 3GS costs 400 for the 16GB and I can get at least 200 for the 3G I have right now.

Of course. Once you get your new 3GS, the line (and the obligations of your contract with AT&T) will transfer to the new phone.

You can then do whatever you want with the 3G.

 

[doubleatheman]

Yay my preorder is in process...

why is their two things listed...

 

[Shiner]

So I talked to apple and att and the best option for me is to ADD a line , which means I guess I have to go to a family talk plan.

The apple store says they can do that , I hope they are right.

That puts my plan over 100.00, so going forward that should put me on a 12 month upgrade right????

very confusing.

Do I have to go with a family talk plan to add just one additional phone.

No this does not make you eligible whatsoever!! Your personal plan must be over $100. Family plans do not count.

 

[caligurl]

I just went through the ordering process and the "estimated taxes" for the $299 phone are $66.41

That is over 20% !!


Is there an extra federal sales tax on cellphones?

WTF!

same here... and i asked last night.... and no... it' ALL ABOUT CALIFORNIA! they are charging us tax on the so-called "full" price of the phone and not the sale price we are paying (like we do with EVERY other thing we buy... cars..... computers..... groceries... if they are on sale... we still pay tax on what is rung up... NOT the MSRP....

i'm really ticked about it!

 

[Jamie 360]

Data Plan Rate

It's not the iPhone that's getting the thumbs down, it's AT&T.

I'm new here (posting anyway) and surprised I haven't seen much complaining about the data plan price. I've had the 2g for since the first weekend it was released and have had the $20 data plan which includes 200 text messages. It is now $30, and in order to not get charged per text message, you have to pay an additional $4.99 I've been on the pre-order site twice and back out when I think of paying that per month.

 

[kas23]

Do I have a negotiating point with a 2 dollar difference. That sounds stupid.

I'll add more text messages.

That is exactly what you have to do. Add some sort of $5 per month service and you can always cancel it after a month.

 

[fithian]

Eligibility

I have a 2G and a 3G. The Apple Store Online found me eligible to upgrade the 2G to a 3GS at the $299 price (32gb). Ordered and will arrive on 6/19. So, I suppose that this does confirm the 3rd point, nor unconfirm it. The Apple Store did note that my data plan would go from $20 to $30.

After a brief chat with AT&T, it seems as though they're doing the following:

- if you owned a 1st Gen and are upgrading to a 3Gs you qualify immediately
- if you owned a 3G and are upgrading to a 3Gs you will qualify 18 months after your 3G purchase (hence a lot of January 2010 dates)
- if you owned a 1st Gen AND a 3G, you will qualify 12 months after your 3G purchase (hence a lot of July ~13 dates)

This is very poorly communicated but looks to be the situation, which is a tiny bit better than I thought it was last night as they're not totally hosing their most loyal customers.

Can anyone else confirm?

a

 

[kevdo]

Overall, I do think people are complaining unreasonably about the "early upgrade" pricing. As noted throughout - what part of two years did you not understand?

That said, I do understand the frustration people are having with AT&T and their lack of transparency about pricing for those who aren't new customers (and otherwise "qualifying"). In this respect, Apple shoulders a bit of the blame too.

I don't think it is unreasonable for customers to want to have it spelled out in plain English what the phone costs, when it costs more, and why.

 

[caligurl]

You know, if someone at the AT&T store told me that my monthly bill needed to be 100.01 each month to upgrade after 12 months, I would have gladly upgraded my text plan to meet that requirement.

However, since no one mentioned it to me, it just seems like I wasn't given a fair shake.

Which is what I think the majority of us feel.

hmmmmm... so does that mean... since my bill will now be going up to over $100 (family plan), since i'm adding internet and text to it... that next year i will be eligible after 12 months vs the 18? or is it strictly based on the voice plan?

 

[exodar]

I am SO confused by all of this pricing and while I don't like the idea of the increased pricing for existing 3G owners, I do understand it. However, I still haven't found someone with my situation after reading through several message boards. I will probably just go to the AT&T store near my house to find out the deal, but perhaps one of you has a similar situation and can weigh in.

My wife and I both bought 2G iPhones when they first came out and have them both under the FamilyTalk iPhone plan. I upgraded mine last year when the 3G became available and my wife has kept (and is still using) her 2G iPhone. My wife doesn't care about the 3GS, but would like to have my 3G if I upgrade hers and keep it for my own. This is what I had planned to do. However, when I punch her phone number into store.apple.com, she shows the exact same pro-rated 3GS upgrade price that I get when entering my phone number:

$699.00* — 32GB iPhone 3G S (black or white)

What gives?!?! She has a silver-backed 2G iPhone and has had one since the first week the first iPhone came out! I am hoping this is a mistake, but knowing AT&T, I am worried that it has something to do with the fact that these are both on the same FamilyTalk iPhone plan and I am getting screwed on both because I upgraded one of those phone numbers to a 3G last year. UGH!!! Why can't this ever be simple?

Anyone else have this situation?
exodar

 

[Shiner]

That is exactly what you have to do. Add some sort of $5 per month service and you can always cancel it after a month.

Do not follow this persons advice. The contract must be for over $100 for at LEAST 12 months! So if you start now you will be eligible in June of next year. Believe me, I followed people's idiotic advice on this forum before.

 

[jojohnst]

Upgrading Solution:

It is NOT a question of entitlement. For ATT, the relative cost of subsidizing an upgrade is marginal. They could subsidize upgrades w/ contracts for huge profit + develop loyalty. instead, they want to bleed out 6+ months more of $ and then assume everyone will resign anyway. i understand this is SOP, and they're in their rights to do it, BUT its dumb! And it's dumbness is esp evident in this case. iphone users are a dream customer base for any wireless company (disposable income, high satisfaction rates and reliable revenue for premium services).
The SOLUTION: If ATT wants to make a marginal call so should we. Make your cell bill your last priority, the last mo bill you pay. Companies spend many millions to encourage you pay them first so, on average, their revenue collects a bit of interest before due. If we all agree not to do this (just pay at the last moment) we won't get in trouble (no late fees) and ATT will lose that little extra they expect from their "best" costumers. If everyone turns up the temp just a small degree, the whole cost-benefit of their policy is put into question. If on average they get payments on the 2nd or 3rd, but now its the 4th or 5th, that means a loss of millions every mo for them. We can do this without breaking our contract but simply by paying Your Cell Bill Last!

 

[kevdo]

Exodar,
The swap you want to do will be fine. Have your original iPhone upgraded and then swap the SIM cards. The AT&T people can do this for you (and should do so without issue). You defintely should be paying $699.


Also... gotta pile on. That head-tilt by the AT&T guy is just plain creepy.

 

[rteichman]

If your monthly bill is more than $99, then you are eligible after only 12 months.

Not true. My bill is over $175 a month and I am not eligible till Jan 2010

 

[exodar]

Exodar,
The swap you want to do will be fine. Have your original iPhone upgraded and then swap the SIM cards. The AT&T people can do this for you (and should do so without issue). You defintely should be paying $699.


Also... gotta pile on. That head-tilt by the AT&T guy is just plain creepy.

I should be paying $699?!? Or did you mean to say shouldn't? God I hope I don't get screwed.

 

[Shiner]

I am SO confused by all of this pricing and while I don't like the idea of the increased pricing for existing 3G owners, I do understand it. However, I still haven't found someone with my situation after reading through several message boards. I will probably just go to the AT&T store near my house to find out the deal, but perhaps one of you has a similar situation and can weigh in.

My wife and I both bought 2G iPhones when they first came out and have them both under the FamilyTalk iPhone plan. I upgraded mine last year when the 3G became available and my wife has kept (and is still using) her 2G iPhone. My wife doesn't care about the 3GS, but would like to have my 3G if I upgrade hers and keep it for my own. This is what I had planned to do. However, when I punch her phone number into store.apple.com, she shows the exact same pro-rated 3GS upgrade price that I get when entering my phone number:

$699.00* — 32GB iPhone 3G S (black or white)

What gives?!?! She has a silver-backed 2G iPhone and has had one since the first week the first iPhone came out! I am hoping this is a mistake, but knowing AT&T, I am worried that it has something to do with the fact that these are both on the same FamilyTalk iPhone plan and I am getting screwed on both because I upgraded one of those phone numbers to a 3G last year. UGH!!! Why can't this ever be simple?

Anyone else have this situation?
exodar

I did have this problem and you are screwed. Here is the issue with family plans. When anyone upgrades the plan for a new two year contract then the entire plan is upgraded. WHENEVER you upgrade a family plan you must make sure to upgrade everyone. Think of a family plan as really one main phone with a few added phones to your plan. Do not think of it as many separate plans. You upgraded the phone to the 3G and now you have a new contract they do not care about the the other family plan members.

 

[twoodcc]

well then. i might just pre-order

 

[exodar]

I did have this problem and you are screwed. Here is the issue with family plans. When anyone upgrades the plan for a new two year contract then the entire plan is upgraded. WHENEVER you upgrade a family plan you must make sure to upgrade everyone. Think of a family plan as really one main phone with a few added phones to your plan. Do not think of it as many separate plans. You upgraded the phone to the 3G and now you have a new contract they do not care about the the other family plan members.

If that is the case I am going to be COMPLETELY pissed! The subsidizing I get, but this would be complete ******** since I have been paying that same dual-phone plan price to them for WELL over 2 years now and never upgraded that 2G iPhone. Damn greedy pigs.

 

[coolpal]

Yay my preorder is in process...

why is their two things listed...

If I remember correctly, when I bought the original iPhone (refurb for that matter), I too saw two items in the order.
One was the phone itself, and the other was the special iPhone only att plastic bag... they literally had to ship that bag along with the iPhone (in a generic att box) in the shipment... no the iPhone box was not placed in the plastic bag

pal

 

[Shiner]

Not true. My bill is over $175 a month and I am not eligible till Jan 2010

So by yourself your bill is over $175!! Wow what do you have on that plan?

 

[rchalico]

Why is he tilting his head so much?

I couldn't even listen to what he was saying, it was too distracting.