iPhone Subsidies

Discussion in 'iPhone' started by americaskate, Jun 7, 2008.

  1. americaskate macrumors member

    Apr 19, 2008
    I know this is all rumors, but I want some basic information.

    If ATT was to subsidies iPhones down to $200, how exactly would that work?
    Would we have to renew the 2 year contract or will they add two years to
    my existing contract?

    I also don't understand why Apple would keep the price
    at $400 while ATT subsidies the phone if you would have to get a 2 year contract to begin with. It would be foolish to buy the phone from Apple.

    Or does this all mean that with no contract iPhone = $400.
    and with contract iPhone =$200.

    I just want to get my ideas straight before i make a decision.
    Let me know- thanks.
  2. skubish macrumors 68030


    Feb 2, 2005
    Ann Arbor, Michigan
    Typically, you are only eligible for new phone subsidies with ATT every 18 months. Then they will start a new 2 year contract from the day you get the new phone.
  3. wako macrumors 65816

    Jun 6, 2005

    for the sake of making this easier to explain, let me just make it so that subsidizing a handset is a "voucher"

    Basically if you are already signed up with AT&T right now and say you bought the iPhone as your first handset, you still have this "voucher" to subsidize your next phone. So if it happens that the 3G phone is allowed to be subsidized you can use your "voucher" to subsidize it. You already signed a two year countract but you simply never got to subsidize a phone which everyone is entltled (i want to use this as lightly as possible) when you sign a two year contract.

    However if your case is that you bought a phone that was not the iPhone, say the AT&T Tilt and you paid at the subsidized price when you signed up with ATT for 200 bucks (MSRP is 600) then you dont have this voucher. This means you would then have to pay for the FULL price for the iPhone.

    So it really depends on where you stand in your contract and if you have the option to subsidize a phone.

    And if Apple does keep the iPhone at $400 bucks even after it being subsidized, then thats simply because they found within reason to raise the price of the iPhone by 200 bucks or 300 for its 3G capabilities and GPS or whatever bells and whistles that will be attached.
  4. MrT8064 macrumors 6502a


    Jun 7, 2006
    My guess, you buy an iPhone with your credit card, which is only charged after 30 days, once activated, it costs $$$, and if its not activated it costs $2XX more.
  5. Auzburner macrumors 65816


    Apr 11, 2008
    Syracuse, NY - USA
    I have the first generation iPhone. I really would buy one if they allowed me to still have a subsidy with my existing contract, or just extend my contract length... I'm on the edge wether or not to get this new one, and if I was eligible - I will be there day one!
  6. MrT8064 macrumors 6502a


    Jun 7, 2006
    ha! you dont even know what its like yet...

    ...tomorrow is the day!!

    (if your in the UK that is, in america you'll have to wait a few hours)
  7. w0nker macrumors member


    Jun 7, 2008
    Actually, if you are a current at&t customer, you get an "upgrade" after 20 months into your 2 year contract. This means you get a discount on a new phone. It is not always the same price as a new customer gets. Most of the time it is 50% higher than new customers with a $50 to $100 Visa debit card mailed in 6 - 8 weeks.
  8. Ilovemyipod macrumors regular


    Jun 25, 2007
    Sandy ego
    So im about six months into my contract does that mean i'll have to pay full price since im neither new or have the 20 month upgrade option.

    Because that sucks lol:(:)
  9. americaskate thread starter macrumors member

    Apr 19, 2008
    I have this same question as well. If we bought a 1st gen iPhone- we are basically not eligible for the subsidy of the 3G iPhone(meaning we must pay full price)?
  10. mtfield macrumors 6502

    Jan 9, 2008
    If you began a new contract with the purchase of the original iphone then u will get a subsidy! FOR THE LAST TIME ANYONE WHO WANTS TO KNOW IF THEY ARE ELIGIBLE FOR A SUBSIDY GO TO YOUR ATT ACCOUNT WEBPAGE AND HIT THE CHECK UPGRADE ELIGIBILITY LINK.. IF IT SAYS "This line is eligible for reduced equipment pricing when you sign up for a new 2-year service agreement." THEN YOU CAN UPGRADE TO THE NEW 3G PHONE AT THE SUBSIDIZED PRICE!!!
  11. Willis macrumors 68020


    Apr 23, 2006
    Beds, UK
    American networks is a lot more confusing.

    to me when a phone is subsidiesed, the Network are purely making sales and sales only. They make more money back from using your allowance at the price you pay.

    Over here, some phones are free with contracts or you pay a little bit of cash for that particular phone. Usually in the case of it being a desirable phone.

    See what happens, not long left!
  12. JBaker122586 macrumors 65816

    Jun 21, 2007
    With all the rumors of an iPhone subsidy, which I originally completely doubted, I thought of a decent explanation for them happening.

    Right now, Apple is making about $80 per hardware sale of each iPhone. If that iPhone is then activated with AT&T, they're making an additional $240, for a total of $320 over the next 2 years. If it's unlocked for use on another carrier, they don't gain that extra $240.

    Now, let's say this new iPhone costs Apple $250 to make. They sell it for $500 with a $200 subsidy if activated with AT&T. Now, if a person purchases it and activates with AT&T, they're making $290. If a person purchases it and unlocks if for use with another carrier, they're making $250. Only $40 less, rather than a $240 difference. That huge difference will also persuade more people to switch from T-Mobile or whatever, because it's much less practical to just buy an iPhone and unlock it.

    Because of this, I see the (potential) subsidy being available to all AT&T customers, whether you're up for a new contract or not.
    Anybody see any flaws in my logic, disagree, or agree?
  13. piecinitup macrumors member

    Jan 20, 2008
    Something Id like to point out if they don't subsidize the new iPhone. Use your upgrade on a decent phone and sell it (ebay, craigs, whatever your fancy). This is what I plan to do if they don't have a discounted price or for some reason we can't use our "voucher" on it.

    Also, since we don't know exactly what the new one will cost, even if they do discount it $200, buying and selling a phone may still be the route to go. cause it may be possible to buy the Treo 750 or At&t Tilt and get upwards of $300 saving you another $100 on the new one. Just my 2 cents.

    Gosh I hope they actually start selling it Monday or at least by the end of the week. I've had this $20 nokia POS for 2 months since i dropped my Ver 1 iPhone in water.
  14. frosse macrumors 6502a

    Sep 23, 2007
    Even if the new phone would be subsidized, the price of your contract/subscription would still be higher than with a not subsidized phone, right? Its not like the carrier would want to lose money...
  15. wwe2008 macrumors 6502

    Mar 10, 2008
    can anyone tell me what the story is in the UK. I
    know its not definate but their thoughts or past experience is welcomed
  16. sananda macrumors 68020

    May 24, 2007
  17. MBHockey macrumors 68040


    Oct 4, 2003
    New York
    Seems iPhone owners who started their contracts on June 29, 2007 will have to wait 18 months until getting the subsidy (if there actually is one). I purchased my iPhone on launch day and started a two year contract and this is what it says for me under the upgrade box within the device page on at&t:

  18. citron230 macrumors 6502a


    Dec 17, 2007
    San Diego, CA
    i have never had a subsidy like that. my eligibility was about ever 18 months and it was the same as new customers. i have been with AT&T since Cingular and Pac Bell Wireless, going on 10 years.

    I bought my 16GB iPhone in Feb. 2008. I paid full price and havn't used a voucher for 2 yeears yet my login page on AT&T Wireless says: You can take advantage of our no-commitment pricing option. This line may be eligible for an equipment discount on 12/03/2008

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