Please Prove My Friend Wrong About iPhone 4

Discussion in 'iPhone' started by amitdoc2b, Jun 24, 2010.

  1. amitdoc2b macrumors 6502a

    Feb 25, 2008
    I pre-ordered and am already using my iPhone 4 for personal usage, so this has nothing to do with me. But.. My friend stood in line today to get iPhone 4 and plans to sell it on eBay. He previously had a 1st generation iPhone so he is under the impression that if he bought this new phone under contract ($499 early upgrade) that he could stop paying the $15/month fee after one month since he will no longer have the iPhone 4 anymore after he sells it on eBay. With the 1st generation, he was only able to remove the $15/month fee at will because the phone was no longer under contract or not sold under subsidy.

    So my question is this, won't AT&T charge him a cancellation fee or continue wanting the $15/month on the family plan for the iPhone 4 because he signed a 2 year extension for his line on the family plan? Otherwise how will they get their money back for the subsidized phone?

    Let me know.. I tried to find details of this on the Internet but couldn't find the exact link with this wording to show him because he doesn't believe me.
  2. gforce216 macrumors 6502a

    Jun 17, 2009
    I'm pretty sure he can sell it. Termination fees come when you end a line, not sell a phone. He could buy the iPhone 4 under contract, sell it, then use a phone from 2002 with a sim card and be totally fine. He'd still be under contract so he couldn't upgrade a phone without waiting the 2 years or buying it at a higher price but he can do it. He can also change his plans anytime he wants because they only care about being under contract, not what phone you got when signing the contract.
  3. amitdoc2b thread starter macrumors 6502a

    Feb 25, 2008
    He is currently under a family plan that is not paying $15 per month for data for an iPhone. So they can keep the same data-less, iPhone-less plan for an additional 2 years since he sold the iPhone? So how does AT&T or Apple benefit out of this by selling him an iPhone for a cheaper price?
  4. beamer8912 macrumors 65816

    May 30, 2009
    He signed a contract, so that guarantees them some money. Whoever he sells the iPhone to will have to pay for the data. So in the end, someone will be paying for data on that iPhone.
  5. citron230 macrumors 6502a


    Dec 17, 2007
    San Diego, CA
    hopefully he is the account holder otherwise he wont be able to upgrade without them
  6. c2006 macrumors member

    Jun 16, 2010
    Not if it's activated abroad or on T-Mobile domestically - AT&T won't get that money.

    When you sign an iPhone contract agreeing to a data plan it means the data plan will remain on your contract for those 2 years. You can get rid of the phone and have some other phone use the data plan, but you can't cancel the data plan without terminating the contract since you agreed to pay for data for two years.
  7. dojoman macrumors 65816

    Apr 8, 2010
    Selling back won't be easy because once you buy one your iTunes account will be tied to the phone. Once the other person on ebay tried to activate it won't work. A lot of extra steps required to activate.
  8. Jay G. macrumors newbie

    Jun 24, 2010
    The best place for info is to check AT&T's wireless plan details on their site:

    From the return/cancellation policy page:
    The full retail price for the iPhone 4 is is $599 for 16GB and $699 for 32GB.

    So he'll either have to pay the ETF ($325) or pay the difference between the retail and subsidized prices ($400).
  9. cowsrus macrumors 6502

    Mar 17, 2008
    has to pay an ETF if he doesn't want the $15/month

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