iPhone/costco/free extra phone

[kewl]

I was at the local costco and asked the guy at the cell phone kiosk if he carried the iphone (since costco sells the entire ipod line). He said no, iphones are only sold at the apple store or att store. However, he did say I could do this:

1. Sign up for a new at&t contract, with no activation fee, get a new freebie phone or $29 motorola razr, etc, no rebates.
2. Go to apple store, purchase the iPhone.
3. Transfer my new at&t plan to the iphone.
4. Keep the new (non iphone w/out service) as a backup/sell on ebay/give to a family member.

It seems to make sense since I would be buying the iPhone outright. I checked the apple website and it also says you can transfer your service even if you're under a contract.

Has anyone done this or something similar? Anyone see any flaws in this scenario?

 

[kajitox]

I guess I just can't see the advantage unless someone is in dire need of a new freebie phone.

 

[evillageprowler]

Kewl,

The guy at Costco is correct. You can get an iPhone as an *existing* AT&T subscriber and just pay the difference. In my case, for the unlimited data plan, it's $20 additional monthly.

It doesn't matter how you became an "existing" AT&T subscriber at the time of the iPhone purchase... IMO, it's nice to have a backup phone for any number of reasons: (1) there is no downside; (2) if I have a problem with the iPhone for whatever reason, I can always use the backup phone until I resolve my iPhone issue; (3) the backup phone can still be used when I go somewhere and I really do not want to bring my iPhone; (4) unlock the backup phone and you can use it when you travel outside the USA.

EVP

 

[briansolomon]

That's a pretty good idea. If you do some research on which "free" phone to pick you could easily fetch $100+ on eBay and put that towards your iPhone.

 

[TEG]

A better plan would be to buy the iPhone, then purchase a GoPhone for $20 with a $10 or $20 minute card. You can then use the SIM from your iPhone in the GoPhone if you ever go someplace where you'd be afraid of losing your iPhone. I have my old phone from my old contract I use when I go fishing or to the beach.

TEG

 

[mdgolom]

When I bought my iPhone, I was under a contract with Verizon Wireless. I renewed my contract with them and got a new KRZR phone. I figured I was going to cancel and get hit with the termination fee, so doing it with 2 years on my contract vs. one year didn't make any difference. Anyhow, I got the KRZR for free and then cancelled Verizon and sold the phone for $165 on Craigslist. That pretty much negated the termination fee and I'm very happy with the iPhone.

I wish I thought of going your route with getting a KRZR through AT&T first, then I could have sold both phones.

 

[Surely]

Hmmm, some good ideas. I'll be moving to the US in Feb, and I think I'll go for a free phone and then upgrade to the iPhone so I can have a backup phone.

One question though:
Are there activation fees associated with either or both phones? Would I have to pay, let's say a $35 activation fee, each time I activate a new phone?

 

[call235jake]

Bad Idea!

This is a stupid idea!
The Iphone would cost you $600-$700 without a contract, while with the contract your paying $200-$300. Your paying $400 more just to get a free phone. Dont you see that!!!!

Okay, I even called my friend. I just got off the phone with him who manages an ATT store. He hooks me up with the new info and lets me make great deals.

I asked him about signing up with a free phone then buying the Iphone outright to add and keeping the free phone for a backup.

He said that would be stupid! You'd waste like money BIG TIME!
Seriously, think about it. I worked with him for a year at "Cingular". This story was all about the sell. He was trying to get you to buy now, and get screwed later. He wouldn't care, he got his commission.
Do the research.

 

[EricNau]

This thread was created after the release of the original iPhone. Since the iPhone 3G, the policy has changed and this technique is no longer valid.