Why Fortune's report is (at least partially) untrue

[JBaker122586]

Let's look at it this way. The 3g iPhone comes out. AT&T offers a $200 subsidy to anyone who purchases and activates with a 2 year contract. The 3G iPhone (to work on ATT) operates at a 1900 Mhz frequency. T-Mobile (the only other 3G carrier in the US) operates at 2100 Mhz frequency, making the 3G part of the 3G iPhone completely useless to anyone in the US not with AT&T.

Therefore, anybody with an iPhone right now could sell their iPhone unlocked to T-Mobile users for up to $350 (the only way T-Mobile users could get an iPhone would be to pay $400 at the Apple store, so this is a deal for them), renew their contract, and get a new iPhone for $200, profiting $150 in the end. Stuff like that would run rampant. Apple does not want to create that kind of resale market.

And they don't want the iPhone to be devalued.

 

[NeoMayhem]

I dont even think T-Mobile has 3g yet in the US, so why would T-Mobile users even care if the new 3g part wont work once the phone is unlocked? There are probably going to be other new features as well that would encourage people to buy the new model.

Plus, people who have already had an iPhone on ATT for 1 year would need to wait another year before they were entitled to the $200 credit, just like all other phone subsidies.

I got a cheap phone with my new ATT contract and sold it when I got my iPhone a few days for about $175, so this this $200 credit is pretty much the same thing they were already doing with other phones.

 

[aristobrat]

The 3G iPhone (to work on ATT) operates at a 1900 Mhz frequency.

It'll operate on a whole bunch of other frequencies besides 1900Mhz, too (if it wants to work outside of the US).

Whether or not it'll support T-Mobile USs band remains to be seen. Nothing official has been said.

 

[Michael CM1]

That's a nice theory ... if you discount the fact that most of the discounts from all phone carriers are only available to people outside of a contract (either new customers or existing ones that have had theirs for 2 years). I see no reason why AT&T would act any differently with the iPhone.

 

[touchyphone]

I dont even think T-Mobile has 3g yet in the US, so why would T-Mobile users even care if the new 3g part wont work once the phone is unlocked? There are probably going to be other new features as well that would encourage people to buy the new model.

Plus, people who have already had an iPhone on ATT for 1 year would need to wait another year before they were entitled to the $200 credit, just like all other phone subsidies.

I got a cheap phone with my new ATT contract and sold it when I got my iPhone a few days for about $175, so this this $200 credit is pretty much the same thing they were already doing with other phones.

I you sure we wait a year, I thought you can just get a new iPhone anytime, and a new contract starts anyway, you just keep your number if you want...I dunno, I went from 8gb, to 16gb, back to 8gb, and each time I started a new contract, I think something is flawed in your post...but I dunno

 

[NeoMayhem]

I you sure we wait a year, I thought you can just get a new iPhone anytime, and a new contract starts anyway, you just keep your number if you want...I dunno, I went from 8gb, to 16gb, back to 8gb, and each time I started a new contract, I think something is flawed in your post...but I dunno

If you want to buy a subsidized phone from ATT you need to be a new customer or be within 3 months of the end of your contract. Otherwise you pay full price. The current iPhone is not subsidized, so you can buy them as often as you want.