iPhone 4 - (3) year contract for existing customers

[iPadThai]

Since existing 3GS customers who still have ONE YEAR REMAINING ON CONTRACT with AT&T can do an early upgrade at a reduced price ($399/$499) but needs to sign on an additional 2 YEAR contract, how does this actually make any sense to AT&T?

I'm one of those people who can't get a $199/$299 pricing but I have my 3GS since launch day last year - I have 2 iPhones on a family plan and both are 2/2011 dates for full subsidized pricing.

What I don't understand about AT&T is how are they making any sense from this: If I have one year remaining on my contract, I can get the early upgrade special but all I have to do is sign a TWO YEAR contract deal? Well, I haven't completed the remaining year left on my contract, but signing a TWO year agreement just simply extends my contract by another ONE YEAR ONLY?

So instead of doing: 2 years (renewal) + remaining 1 year left on contract, AT&T let's me just add on another year? so essentially it's only TWO YEARS?

That's quite a bargain really. If AT&T is really that stupid - I don't mind ripping them off if this is the real deal. I don't want to sign up for the $499 pricing and then get shafted by them saying I have 3 years left.

Does anyone else think think this doesn't' make sense? If you signed up for a 2 year contract and you still have a year remaining, how does this automatically get pardoned?

 

[Goaliegeek]

It resets.
EX: My contract is up April 2011. If I resign up for 2 years today, my old contract gets cleared out, and my new contract will expire June 11, 2012. 2 years from today.

 

[LSUtigers03]

I don't understand AT&T's upgrade dates. I bought my 3GS a week or two after launch and my upgrade date was 12/10/10. Someone in my office got their 3GS the day it came out and their upgrade date is the same as yours. That really doesn't make sense to me.

 

[amitdoc2b]

I have been upgrading the first day of the iPhone launch each year, and every year they just start my contract over from scratch. So even if I had a year remaining on my contract, they would just have me sign the new contract and it would expire 2 years from the date it was signed. Again this year, I still have a year remaining, but it will start over on June 24th.

Since existing 3GS customers who still have ONE YEAR REMAINING ON CONTRACT with AT&T can do an early upgrade at a reduced price ($399/$499) but needs to sign on an additional 2 YEAR contract, how does this actually make any sense to AT&T?

I'm one of those people who can't get a $199/$299 pricing but I have my 3GS since launch day last year - I have 2 iPhones on a family plan and both are 2/2011 dates for full subsidized pricing.

What I don't understand about AT&T is how are they making any sense from this: If I have one year remaining on my contract, I can get the early upgrade special but all I have to do is sign a TWO YEAR contract deal? Well, I haven't completed the remaining year left on my contract, but signing a TWO year agreement just simply extends my contract by another ONE YEAR ONLY?

So instead of doing: 2 years (renewal) + remaining 1 year left on contract, AT&T let's me just add on another year? so essentially it's only TWO YEARS?

That's quite a bargain really. If AT&T is really that stupid - I don't mind ripping them off if this is the real deal. I don't want to sign up for the $499 pricing and then get shafted by them saying I have 3 years left.

Does anyone else think think this doesn't' make sense? If you signed up for a 2 year contract and you still have a year remaining, how does this automatically get pardoned?

 

[foolishfocus]

In the end, they are still coming out ahead. I wouldn't worry about their bank account.

 

[iPadThai]

It resets.
EX: My contract is up April 2011. If I resign up for 2 years today, my old contract gets cleared out, and my new contract will expire June 11, 2012. 2 years from today.

OK - thank you. This contract renewal is a bit of a blur because if AT&T resets your contract and makes the 2 year essentially starting the day of your iPhone 4 activation, AT&T is the one getting a bad deal (from a contract perspective) - because logic would dictate that your contract would be nulled and a new one kicked in - from a financial standpoint, AT&T is getting shafted it seems.

Of course AT&T would still be the benefiting body in all cases but it's just really having the subscriber sign up for just an additional year of service agreement. I am not going to argue with AT&T on this matter but it is a bit ironic that I haven't finished my contract and have one year remaining but AT&T is willing to just let me add an extra year rather than 2 extra years.

 

[Revelation78]

OK - thank you. This contract renewal is a bit of a blur because if AT&T resets your contract and makes the 2 year essentially starting the day of your iPhone 4 activation, AT&T is the one getting a bad deal (from a contract perspective) - because logic would dictate that your contract would be nulled and a new one kicked in - from a financial standpoint, AT&T is getting shafted it seems.

Of course AT&T would still be the benefiting body in all cases but it's just really having the subscriber sign up for just an additional year of service agreement. I am not going to argue with AT&T on this matter but it is a bit ironic that I haven't finished my contract and have one year remaining but AT&T is willing to just let me add an extra year rather than 2 extra years.

Nope, they're not. iPhones mean a lot more money for AT&T over a standard phone. That's also why you don't see other phones getting special upgrades. Also if you look at a Family plan with multiple lines, the Primary line would be upgrade eligible every year, where as the additional lines would be on a 24 month upgrade cycle.