Why are "ALL" iPhone users eligible to upgrade? Is that wrong?

[TimothyB]

When the iPhone launched a year ago I read what I could at ATT on qualifying. I was worried about my current 2 year contract and the required iPhone 2 year contract.

To my surprise, as all well known by now of course, they just started the 2 years over on top of your current account, and upgrade status didn't matter, as it wasn't subsidized then.

Though, I swear I read that your upgrade status, where ever it was when you bought the first iPhone, it stayed the same. So if you had 12 months until your next equipment discount, after buying the iPhone, you still had 12 months. It wasn't reset with the new 2 years. That was a good thing, they didn't cheat you out of your next real upgrade.

But now it seams with this 3G subsidized iPhone, all current iPhone users are some how get a free ticket for the discount, regardless of their account's upgrade status.

Like say someone bought an iPhone 4 months ago, and they had 12 months before their upgrade discount. Then they should still have 8 months left at the moment before they could get any upgrade. Yet, some how it doesn't matter for the discounted iPhone? That's a slap in the face to all the other AT&T customers that have to wait still.

If they are going to give a free ticket to all the current iPhone users that had a wait, then they should do it for everyone. What made iPhone users so special over any other ATT customer with a different phone?

And now the idea is floating around that maybe you could simply "Borrow" an iPhone and use your sim card to activate an iPhone plan on your account, and then you'd be instantly eligible for upgrade. That's how crazy it is.

 

[citron230]

yeah I think it's fair. The first iPhone users paid full price for their phones. Whether they were eligible for an upgrade of not. ATT is making out by getting
the current iPhone users to upgrade.

 

[TimothyB]

yeah I think it's fair. The first iPhone users paid full price for their phones. Whether they were eligible for an upgrade of not. ATT is making out by getting
the current iPhone users to upgrade.

Yes, people paid in full for the first iPhone, didn't matter if they were eligible or not. But the thing is, their eligibility status stayed the same after buying it, so if they had 8 months left, they still had 8 months before any equipment discount. Thus, many iPhone users should have to wait for the new iPhone discount like the rest of us because of their existing eligibility status.

Buying in full for any phone doesn't suddenly make you eligible for an equipment discount if you had an existing wait, you still have to wait. So how it fair this is totally changed for iPhone users?

How they making out? They already got iPhone users into a 2 year contract without even discounting the phone originally (not sure what Apple gets out of the contract). But if they upgrade with the discount now (when normally they would not qualify) that 2 years starts over and now ATT slowly has to start making it's money back from the discounted iPhone they didn't have to shell out for before. They might as well then let everyone upgrade.

 

[okrelayer]

i think they simply want everyone to go over to the 3g network. I guess its also only fair for those who spend 500-600 on the first one a year ago

 

[citron230]

fair or not, ATT can set the rules any way they see fit. Seeing as how I am a current iPhone owner, whose eligilbilty for upgrade went from 12/08/08 to now I am eligible, obviously i not complaining. I applaude their decision.

 

[TimothyB]

i think they simply want everyone to go over to the 3g network. I guess its also only fair for those who spend 500-600 on the first one a year ago

Whatever was paid for the iPhone, no matter how much, it wasn't discounted, so their upgrade status should be where it was at before. They should still have to work off their discount from before the iPhone just like everyone else. That's the unfair part, they don't have to.

 

[TimothyB]

fair or not, ATT can set the rules any way they see fit. Seeing as how I am a current iPhone owner, whose eligilbilty for upgrade went from 12/08/08 to now I am eligible, obviously i not complaining. I applaude their decision.

Yes, they make the rules. I'm just calling them out on it to see what people think.

I take it you eligibility changed recently since the 3G announcement? And it's only for the iPhone 3G, right?

 

[26139]

uh...

Whatever was paid for the iPhone, no matter how much, it wasn't discounted, so their upgrade status should be where it was at before. They should still have to work off their discount from before the iPhone just like everyone else. That's the unfair part, they don't have to.

I didn't buy a subsidized iPhone, that was never an option. Any current iPhone owner paid the full price at the time with no discounts even available. So, since I paid full price, I've never received a subsidized phone from AT&T, I'm eligible for the discount.

Makes complete sense to me. Am I missing something?

 

[davidlw]

I just hope that they don't slam us on the Data Packages.

 

[jplan2008]

Yes, people paid in full for the first iPhone, didn't matter if they were eligible or not. But the thing is, their eligibility status stayed the same after buying it, so if they had 8 months left, they still had 8 months before any equipment discount. Thus, many iPhone users should have to wait for the new iPhone discount like the rest of us because of their existing eligibility status.

Buying in full for any phone doesn't suddenly make you eligible for an equipment discount if you had an existing wait, you still have to wait. So how it fair this is totally changed for iPhone users?

How they making out? They already got iPhone users into a 2 year contract without even discounting the phone originally (not sure what Apple gets out of the contract). But if they upgrade with the discount now (when normally they would not qualify) that 2 years starts over and now ATT slowly has to start making it's money back from the discounted iPhone they didn't have to shell out for before. They might as well then let everyone upgrade.

Well, at least 40% of iPhone owners switched to AT&T just for the iPhone (actually signed up for service with the newly-purchased iPhone -- I'm not sure if this counts the people who bought a subsidized phone and then switched to the iPhone the next day -- I bet most people didn't know that was possible anyway). So we paid full-price for the phone, still had to sign a two-year contract, and now will have to sign a NEW two-year contract -- so we're actually in contract for MORE time in contract per subsidized phone than the typical AT&T customer. It may all come out as a wash in terms of real upgrade eligibility, and probably is easier this way The whole system was never 100% "fair," since it mixed two different pricing/contract/eligibility models.

I think the real reason may be that AT&T is paying up to $18.50 per month to Apple for the 2G contracts, plus we (original iPhone owners) are only paying $20 data. And we all have at least a year to go on that plan. AT&T has to shell out more money up-front, but depending on the real subsidy amt. they're paying Apple, in the end, they're probably happy for us to sell our 2G's unlocked to Canadians (who won't be buying the 3G if this site is to be believed) and get out of the commitment to Apple and get more for data.

 

[JML42691]

I completely understand where you are coming from with this, but I am sure that it was made under some negotiation between AT&T and Apple. Why else would it only be previous iPhone users. But the main thing that I do not understand is why they would not allow you to upgrade your phone or contract. I am sure that there is some small reason, but in the long run they are receiving more money. But if you really want to get the iPhone 3G, then cancel your contract and then sign up as a new user. It should only cost you $175, and that is almost the price of the phone, but it could be a lot worse.

 

[TimothyB]

I didn't buy a subsidized iPhone, that was never an option. Any current iPhone owner paid the full price at the time with no discounts even available. So, since I paid full price, I've never received a subsidized phone from AT&T, I'm eligible for the discount.

Makes complete sense to me. Am I missing something?

You are eligible for a discount, and nothing wrong with your situation. My comments are about ATT customers that already had a regular subsidized phone before the iPhone.

 

[TimothyB]

I completely understand where you are coming from with this, but I am sure that it was made under some negotiation between AT&T and Apple. Why else would it only be previous iPhone users. But the main thing that I do not understand is why they would not allow you to upgrade your phone or contract. I am sure that there is some small reason, but in the long run they are receiving more money. But if you really want to get the iPhone 3G, then cancel your contract and then sign up as a new user. It should only cost you $175, and that is almost the price of the phone, but it could be a lot worse.

I'm still holding out hope that on the 11th all people can upgrade. I thought about the $175. But also, isn't that $5 less each month into your contract?

Though, the bad thing is you lose your number from what I hear. Then there's the thought of borrowing someone's iphone to quickly activate a plan to make you instantly eligible.

I just hope in the future they will be consistent, like all discount iPhone buyers this round will have to wait 18+ months before their next discounted iPhone, unless they had some $99+ plan that made it shorter.

 

[citron230]

It's crazy, people will complain about almost anything. Life isn't fair, that's all I can really say. Why some people get better deals and others don't I really can't say.

 

[TXCraig]

It's crazy, people will complain about almost anything. Life isn't fair, that's all I can really say. Why some people get better deals and others don't I really can't say.

AMEN! To answer the OP- "Why ask Why?"

 

[skubish]

Nothing really to see here. iPhone owners paid full price for their phones so of course they should be eligible for the subsidized 3G price.

A. Doesn't matter their upgrade status before buying the original iPhone. That contract became null and void when they activated their iPhone and a new 2year contract was created.

B. Why wouldn't ATT jump at the chance to get another $10/month out of iPhone users?

 

[grego33]

B. Why wouldn't ATT jump at the chance to get another $10/month out of iPhone users?

Why isn't AT&T jumping at the chance to get another $30/month out of existing non-iPhone users?

 

[TimothyB]

Nothing really to see here. iPhone owners paid full price for their phones so of course they should be eligible for the subsidized 3G price.

A. Doesn't matter their upgrade status before buying the original iPhone. That contract became null and void when they activated their iPhone and a new 2year contract was created.

B. Why wouldn't ATT jump at the chance to get another $10/month out of iPhone users?

On "A," maybe it changed, but as I mentioned I swear I read at ATT's site on the first launch that the upgrade status did not become null, just stayed the same. Which is why I was frustrated as to how all iPhone users qualified. I mean, if that was case, if the status became null back at launch, and not a new policy since the 3G announcement, I don't have much issue anymore.

And on B. I'm sure they want the extra money per month, but are they not losing money by paying for nearly half the iphone upgrade? Almost a wash except the contract is extended again I guess.

 

[TimothyB]

Why isn't AT&T jumping at the chance to get another $30/month out of existing non-iPhone users?

It's possible not all new iPhone users would choose a data plan, as it seems to be optional to except for the $40 voice.

 

[26139]

yep

Well, at least 40% of iPhone owners switched to AT&T just for the iPhone (actually signed up for service with the newly-purchased iPhone -- I'm not sure if this counts the people who bought a subsidized phone and then switched to the iPhone the next day -- I bet most people didn't know that was possible anyway). So we paid full-price for the phone, still had to sign a two-year contract, and now will have to sign a NEW two-year contract -- so we're actually in contract for MORE time in contract per subsidized phone than the typical AT&T customer.

This is exactly what I did. I switched to Cingular in Feb 07 and bought the cheapest phone I could find in anticipation of buying the $499 iPhone in June. Now, had I not purchased that iPhone, I probably would not have yet been eligible to upgrade quite yet, which makes sense, because the first phone I bought WAS subsidized.

They're basically letting those who spent a ton of money up front upgrade without paying as much up front again. Makes complete sense to me.

 

[TimothyB]

I guess this really doesn't matter. I just thought it was hypocritical for ATT to let some ineligible customers upgrade, being some iPhone users, and not all ATT customers. The whole way I thought the system was suppose to work is if you were not eligible for an upgrade, you pay full price for any phone. You got no perks from paying so much up front except no-commitment beyond what you were already in, except for the iPhone that starts your 2 years over. Otherwise, after paying full price, you still have a wait for eligibility. How was paying full price up front back then for the iPhone different than paying that much on any other expensive smart phones, besides the 2 years required?

And I'm not 100% anymore sure if the upgrade status was set to instant eligible for the past year if they bought an iPhone, even if they bought a subsided phone right before it.

So, say 6 months ago. Just to be dark and probably would fail, but by this logic, could someone have bought an expensive and free subsidized regular phone, then buy the iPhone, instantly making them eligible again, upgrade to get another free phone , reactivate the same iPhone, instant eligible again, upgrade to a free phone, back to iPhone, again and again...

 

[skubish]

On "A," maybe it changed, but as I mentioned I swear I read at ATT's site on the first launch that the upgrade status did not become null, just stayed the same. Which is why I was frustrated as to how all iPhone users qualified. I mean, if that was case, if the status became null back at launch, and not a new policy since the 3G announcement, I don't have much issue anymore.

And on B. I'm sure they want the extra money per month, but are they not losing money by paying for nearly half the iphone upgrade? Almost a wash except the contract is extended again I guess.

Well when I bought mine, my ATT account no longer said I was eligible for a new phone.

And on B, I am sure that over the 2yr contract ATT is making more money than they are on the first gen. iPhone. Because they are getting an extra $10/month and also they are not sharing of the monthly fee with Apple.

 

[skubish]

I guess this really doesn't matter. I just thought it was hypocritical for ATT to let some ineligible customers upgrade, being some iPhone users, and not all ATT customers.

And I'm not 100% anymore sure if the upgrade status was set to instant eligible for the past year if they bought an iPhone, even if they bought a subsided phone right before it.

So, say 6 months ago. Just to be dark and probably would fail, but by this logic, could someone have bought an expensive and free subsidized regular phone, then buy the iPhone, instantly making them eligible again, upgrade to the free phone again, reactivate the iPhone, instant eligible again, upgrade to a free phone, back to iPhone, again and again...

Buying an iPhone doesn't make you instantly eligible to buy any phone. It just lets you buy the subsidized 3G iPhone. You are completely confused

 

[26139]

Noo...

So, say 6 months ago. Just to be dark and probably would fail, but by this logic, could someone have bought an expensive and free subsidized regular phone, then buy the iPhone, instantly making them eligible again, upgrade to get another free phone , reactivate the same iPhone, instant eligible again, upgrade to a free phone, back to iPhone, again and again...

I really, really doubt it. If they had bought multiple iPhones, sure, but not reactivated the same phone over and over.

If it bothers you, just go buy an iPhone. You'll be instantly eligible!

 

[TimothyB]

Buying an iPhone doesn't make you instantly eligible to buy any phone. It just lets you buy the subsidized 3G iPhone. You are completely confused

I figured as much. I was just trying to point the flaw of instant eligibility for buying a full price phone.

I suppose I can only submit and agree it's fair for iPhone users. After paying full price, you probably are not going to want to pay full price all over again so soon for the new version. So ATT offers the discount to help with that hurtle in this special case of the amazing iPhone. Though, I won't act to particularly pleased for you guys when the old iPhones are making a killing in the used market.

What about after this 3G phone? Will iPhone users always be allowed to upgrade at the discount price? I guess no one has a crystal ball for this. Like if an iPhone user upgraded to the 3G iPhone, in 6-12 months when the next iPhone is released by Apple, will they again get to upgrade at a discount, or will they pay full price?