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iPhone 3G users to pay $200 premium for early upgrade to iPhone 3G S

post #1 of 430
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During its presentation at WWDC Monday, Apple highlighted new pricing for the iPhone 3G and the upcoming iPhone 3G S model but didn't explain that existing iPhone 3G customers will have to pay a $200 premium to upgrade to the latest model if they want one right away.

AT&T has outlined the following prices for "new and qualifying customers":
iPhone 3G S will cost $199 (16GB) and $299 (32GB).iPhone 3G will cost $99 (8GB) for new and qualifying customers.The 16 GB iPhone 3G will be available for $149 while supplies last.
However, just as users seeking to buy a replacement phone face a higher cost than they originally paid for their original contract-subsidized phone, buyers seeking to upgrade from an iPhone 3G to the latest model will have to pay hundreds more, as AT&T won't subsidize the cost of another new phone by $400 after less than a year of service. An $18 upgrade fee will also be imposed by the U.S. wireless carrier.

To qualify for the iPhone 3G S at the advertised $199 (16GB) and $299 (32GB) price points, existing iPhone 3G users will have to have remained customers for what appears to be a year following their purchase. That means current users who bought their iPhone 3G shortly after its launch last year will have to wait a year from their iPhone 3G purchase date to qualify for the new price.

Otherwise, they'll pay either a $200 premium -- $399 for the 16GB iPhone 3G S or $499 for the 32GB iPhone 3G S -- as existing subscribers in good standing to perform an "early upgrade," in addition to signing a new two year contract. Alternatively, users can pay a $400 premium -- $599 for the 16GB iPhone 3G S or $699 for the 32GB iPhone 3G S -- to obtain a new phone with no-contract, no-commit pricing "for those who prefer not having a two-year service agreement," according to AT&T spokesperson Seth Bloom.

A third alternative Bloom noted is that users "can simply continue to use their current iPhone 3G, which is eligible for the free upgrade to the new iPhone 3.0 software."

Users can check their eligibly for new or early upgrade pricing at Apple's website at http://buyiphone.apple.com. The Cupertino-based company is taking early orders for the iPhone 3G S, which is scheduled for availability June 19th. A breakdown of the three AT&T customer classes and associated iPhone pricing follows:

iPhone pricing for new and qualifying AT&T customers:
iPhone 3G S will cost $199 (16GB) and $299 (32GB).iPhone 3G will cost $99 (8GB) and $149 (16GB).The 16 GB iPhone 3G will also be available for $149 while supplies last.
iPhone pricing for early upgrade customers (iPhone 3G owners):
8GB iPhone 3G (black) will cost $299.00.16GB iPhone 3G S (black or white) will cost $399.00.32GB iPhone 3G S (black or white) will cost $499.00.
No-contract, no-commit pricing:
8GB iPhone 3G (black) will cost $299.00 and 16GB (black or white) $349 while supplies last.16GB iPhone 3G S (black or white) will cost $599.00.32GB iPhone 3G S (black or white) will cost $699.00.
post #2 of 430
Seems pretty fair to me. I recall they did similar upgrades last time around too.
post #3 of 430
I think the "S" stands for Snappy !!!
post #4 of 430
Doubt O2 will rip off the UK users like AT&T does to it's customers.
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post #5 of 430
You can also cancel your account for 175 bucks and then get a new iphone 3g (S) for 199 299. Or this way you can actually sell your iphone and make another 150 to 200 bucks on top of that if you can jailbreak that bad boy.

Quote:
Originally Posted by AppleInsider View Post

During its presentation at WWDC Monday, Apple highlighted new pricing for the iPhone 3G and the upcoming iPhone 3G S model but didn't explain that existing iPhone 3G customers will have to pay a $200 premium to upgrade to the latest model if they want one right away.

AT&T has outlined the following prices for "new and qualifying customers":
iPhone 3G S will cost $199 (16GB) and $299 (32GB).iPhone 3G will cost $99 (8GB) for new and qualifying customers.The 16 GB iPhone 3G will be available for $149 while supplies last.
However, just as users seeking to buy a replacement phone face a higher cost than they originally paid for their original contract-subsidized phone, buyers seeking to upgrade from an iPhone 3G to the latest model will have to pay hundreds more, as AT&T won't subsidize the cost of another new phone by $400 after just a year of service. An $18 upgrade fee will also be imposed by the U.S. wireless carrier.

To qualify for the iPhone 3G S at the advertised $199 (16GB) and $299 (32GB) price points, existing iPhone 3G users will have to have remained customers for what appears to be a year and a half following their purchase. That means current users who bought their iPhone 3G shortly after its launch last year will have to wait till the end of the year to qualify for the new price.

Otherwise, they'll pay either a $200 premium -- $399 for the 16GB iPhone 3G S or $499 for the 32GB iPhone 3G S -- as existing subscribers in good standing to perform an "early upgrade," in addition to signing a new two year contract. Alternatively, users can pay a $400 premium -- $599 for the 16GB iPhone 3G S or $699 for the 32GB iPhone 3G S -- to obtain a new phone with no-contract, no-commit pricing "for those who prefer not having a two-year service agreement," according to AT&T spokesperson Seth Bloom.

A third alternative Bloom noted is that users "can simply continue to use their current iPhone 3G, which is eligible for the free upgrade to the new iPhone 3.0 software."

Users can check their eligibly for new or early upgrade pricing at Apple's website at http://buyiphone.apple.com. The Cupertino-based company is taking early orders for the iPhone 3G S, which is scheduled for availability June 19th. A breakdown of the three AT&T customer classes and associated iPhone pricing follows:

iPhone pricing for new and qualifying AT&T customers:
iPhone 3G S will cost $199 (16GB) and $299 (32GB).iPhone 3G will cost $99 (8GB).The 16 GB iPhone 3G will also be available for $149 while supplies last.
iPhone pricing for early upgrade customers (iPhone 3G owners):
8GB iPhone 3G (black) will cost $299.00.16GB iPhone 3G S (black or white) will cost $399.00.32GB iPhone 3G S (black or white) will cost $499.00.
No-contract, no-commit pricing:
8GB iPhone 3G (black) will cost $499.00.16GB iPhone 3G S (black or white) will cost $599.00.32GB iPhone 3G S (black or white) will cost $699.00.
post #6 of 430
Quote:
Originally Posted by harmsway View Post

I think the "S" stands for Snappy !!!

We're on 18 month contracts on O2, didn't realise the AT&T lot were 2 yrs!
post #7 of 430
Quote:
Originally Posted by saarek View Post

Doubt O2 will rip off the UK users like AT&T does to it's customers.

Just go to the O2 forum:

http://forum.o2.co.uk/viewtopic.php?t=20274

O2 is going to charge 15 pounds per month extra for 3GB tethering, and for those who are still on 3G iphone 18 months contract --- you have to pay out the rest of the contract and then buy the new iphone.
post #8 of 430
Apple and ATT finally get a decent purchase model and they screw the early adopters. The same idiots (like me) that they are trying to prevent from clogging up their stores and then they won't let us use the online upgrade?!!!! WTF?
post #9 of 430
Quote:
Originally Posted by ny3ranger View Post

You can also cancel your account for 175 bucks and then get a new iphone 3g (S) for 199 299. Or this way you can actually sell your iphone and make another 150 to 200 bucks on top of that if you can jailbreak that bad boy.

I talked to an AT&T Manager in Sacramento right after the Keynote and he says the upgrade policy hasn't been decided yet and that last year everyone was able to upgrade with a new contract for the same price as all new customers. So I am not convinced this $200 premium will be in effect by next Friday. If it is I'm with you on early cancelation and new contract. Why spend another $25 above the early cancellation $175 penalty? That's why I don't think they will keep the $200 higher charge to upgrade rather than deal with a bunch of canceled agreements. \
Quote:
Originally Posted by JeffDM View Post

Seems pretty fair to me. I recall they did similar upgrades last time around too.

No. Last year existing iPhone customers were able to upgrade to the iPhone 3G for the same price as new customers - no early adopter penalty. The $200 penalty for existing contract holders is INSANE and UNFAIR.

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post #10 of 430
Quote:
Originally Posted by ny3ranger View Post

You can also cancel your account for 175 bucks and then get a new iphone 3g (S) for 199 299. Or this way you can actually sell your iphone and make another 150 to 200 bucks on top of that if you can jailbreak that bad boy.

Would you have to get a new telephone number - or can the existing number be ported?
post #11 of 430
You only feel that you are being screwed if you don't look at it from AT&T's perspective. The iPhone is very expensive for them and they are not going to continuously eat the cost of subsidizing customers phones year after year.

Quote:
Originally Posted by adam1134 View Post

Apple and ATT finally get a decent purchase model and they screw the early adopters. The same idiots (like me) that they are trying to prevent from clogging up their stores and then they won't let us use the online upgrade?!!!! WTF?
post #12 of 430
This was because the original iPhone was not subsidized, users paid full price. The situation changes once AT&T is paying half the cost of the phone.

Quote:
Originally Posted by Multimedia View Post

I talked to an AT&T Manager in Sacramento right after the Keynote and he says the upgrade policy hasn't been decided yet and that last year everyone was able to upgrade with a new contract for the same price as all new customers.
post #13 of 430
So long Apple...

this is a phone...

http://www.gsmarena.com/samsung_i800...e-news-960.php

HOT SICK LOOKING PHONE!

these are the specs Apple should have released.
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post #14 of 430
Then is the EDGE --> 3GS policy the same as EDGE --> 3G? I get the good low price?
post #15 of 430
Quote:
Originally Posted by AppleInsider View Post

A third alternative Bloom noted is that users "can simply continue to use their current iPhone 3G, which is eligible for the free upgrade to the new iPhone 3.0 software."

That'd be me-3.O should be enough for me. Not worth $499 for an electronic compass and voice commands.

On the other hand, $49 for a family pack of Snow Leopard-BRING IT ON
post #16 of 430
That's how the subsidies work. That's hardly news.
post #17 of 430
This happened last year right after the keynote - and then AT&T came out with an upgrade policy with no $200 premium a week later (and before launch.)

I'll try to find a link, but I remember this *distinctly* from last time too.
post #18 of 430
Quote:
Originally Posted by probably View Post

Then is the EDGE --> 3GS policy the same as EDGE --> 3G? I get the good low price?

If you are still on a 1G iPhone-you should get the full monty as far as discount goes. Your two years are up or nearly so.
post #19 of 430
I posted this in the iphone thread, but it seems now there is an entire thread dedicated to it, so I'll repeat myself:

I swear you people act like you've never bought a phone before and don't understand subsidizing at all. how did you get by before the iphone? I'll explain it... again:

the original iphone was unsubsidized (AT&T gave you nothing to buy the phone) this made the phone more expensive ($600) but the plans were cheaper because AT&T didn't need to recoup any costs.

the iphone 3G was subsidized ($200) which means AT&T pitched in the other $400 for the phone to get more customers. However AT&T needs to recoup that money, so they charge you $20 more per month, which means over the course of 2 years, they recoup their money plus interest ($480... 24months * 20 bucks). This extra 80 bucks over two years is why AT&T allowed people how had the first gen iphone upgrade for cheap. They now were able to lock you in for 2 years and charge you more per month and get an extra 80 bucks out of you over 2 years.

Now everyone who has an iphone 3G at the most has had the phone 11 months. AT&T has only recouped $220 from you from the $400 they pitched in for you to get the phone. Why would they then pitch in another $400 for you to get the new phone? If you want the new phone, AT&T is saying, okay, but you are bringing your own $400 this time.

hopefully this explains everything to people who have apparently never purchased a cellphone before or never signed a contract.
post #20 of 430
I think that's fair. Of course, it's the only reason they won't sell me an iPhone more often than every other year.

It's probably good for me to show some restraint, anyway.
post #21 of 430
I wonder what AT&T's policy will be for customers who purchased an iPhone 3G just a couple weeks ago?
post #22 of 430
Quote:
Originally Posted by TenoBell View Post

This was because the original iPhone was not subsidized, users paid full price. The situation changes once AT&T is paying half the cost of the phone.

Yes but we will in turn agree to an additional year on our contract if they subsidize each next one - total $720 premium for both phones. So doesn't that keep things fair for them to let us buy it at new customer rates?
Quote:
Originally Posted by Enigmafan420 View Post

That'd be me-3.O should be enough for me. Not worth $499 for an electronic compass and voice commands.

On the other hand, $49 for a family pack of Snow Leopard-BRING IT ON

Longer Battery Life, Video Recording and 32GB RAM are huge for me.

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2.6GHz 6GB 17"HD LED MBP, Sony 52XBR6 HDTV
EyeTV 500, Hybrid 2G, EyeTV 3 HDTV Recorder
64 ATT iPhone 5S, 128 ATT iPad Air, 128 ATT iPad miniRetina, 16...

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post #23 of 430
Does the $99 iPhone 3G still mandate a $30/mo data plan? Because the cost of the phone isn't the issue for non-iPhone owners; it's the $80/mo minimum phone bill.
post #24 of 430
I can understand even if I don't like the price for upgrading. The carrier is subsidizing the cost. Ok. But the fact that we have to sign a new contract just because we want to upgrade the phone is ridiculous!

This just makes it too much of a hurdle for me.

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post #25 of 430
Quote:
Originally Posted by saarek View Post

Doubt O2 will rip off the UK users like AT&T does to it's customers.

I definitively hope so...
Any news about when new iPhone 3GS is going to launched in UK?? (please, say soon!! Can't wait now!!! hehe)
post #26 of 430
Actually the terms are a lot worse then what is stated in this thread!!!

Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).


So if you got a new 3G contract last July you will be spending up to $699 plus $36 in upgrade/activation fees. I'm all set with that!!!
post #27 of 430
Quote:
Originally Posted by anantksundaram View Post

Would you have to get a new telephone number - or can the existing number be ported?

You should be able to port your existing number.
Pity the agnostic dyslectic. They spend all their time contemplating the existence of dog.
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Pity the agnostic dyslectic. They spend all their time contemplating the existence of dog.
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post #28 of 430
Quote:
Originally Posted by techno View Post

I can understand even if I don't like the price for upgrading. The carrier is subsidizing the cost. Ok. But the fact that we have to sign a new contract just because we want to upgrade the phone is ridiculous!

This just makes it too much of a hurdle for me.

I agree with that. If they're not going to give you 2-year contract pricing, then you shouldn't have to sign a new 2-year contract. Pretty sleazy move, AT&T.
post #29 of 430
Quote:
Originally Posted by Enigmafan420 View Post

If you are still on a 1G iPhone-you should get the full monty as far as discount goes. Your two years are up or nearly so.

Really?? Excellent!!!! I'm on 1st gen iPhone too... I'm so glad I waited....

People be strong!! Only few days left!!!!!!
post #30 of 430
Quote:
Originally Posted by oh_arom View Post

Actually the terms are a lot worse then what is stated in this thread!!!

Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).


So if you got a new 3G contract last July you will be spending up to $699 plus $36 in upgrade/activation fees. I'm all set with that!!!

Let me guess. You didn't even TRY to order or reserve an iPhone3G S online to verify your upgrade price before you posted this?
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post #31 of 430
Quote:
Originally Posted by justflybob View Post

Let me guess. You didn't even TRY to order or reserve an iPhone3G S online to verify your upgrade price before you posted this?

That's actually how I found out DUDE!!! Go check yourself.....
post #32 of 430
Quote:
Originally Posted by ny3ranger View Post

You can also cancel your account for 175 bucks and then get a new iphone 3g (S) for 199 299.

Very doubtful.
Likely if you cancel your contract prior to the 2 years (maybe 88 months) , you will be considered a "non-qualified" customer.

" (2) Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB). "
post #33 of 430
Quote:
Originally Posted by Multimedia View Post

Yes but we will in turn agree to an additional year on our contract if they subsidize each next one.

No, because it's a two year commitment, not a one year commitment. One year is not sufficient time for them to fully recoup the subsidy.

This is exactly the same way it works with every phone and every major cellular provider in the US. Anyone who is surprised by this has clearly never before tried to upgrade a phone within the two year window before. Probably because prior to the iPhone, there was no compelling reason to upgrade your phone more than once every two or three years...the technology was too stagnant. The only exception to the two year rule was the original iPhone, and that was an exception only because it received no hardware subsidy. iPhone 3G received a hardware subsidy and plays by exactly the same rules that everyone else does.
post #34 of 430
No it doesn't AT&T reported in it's quarterly financial notes that it lost profits from subsidizing the 3G, AT&T would loose money by continously subsidizing phones for previous AT&T customers.


Quote:
Originally Posted by Multimedia View Post

Yes but we will in turn agree to an additional year on our contract if they subsidize each next one. So doesn't that keep things fair for them to let us buy it at new customer rates?
post #35 of 430
So far as I can tell, AT&T is only requiring a one year wait before allowing the subsidized price.

My one year anniv. from my iPhone 3G is 7/12, which is what the website says for me to get the subsidized pricing.

Prior to that date, its $200 more.

My wife got my iPhone 2G and is currently eligible for the normal subsidized pricing. I have asked a few friends who also go iPhone 3G's but on different dates, theirs also show their 1 year anniv. as the date they are eligible for the subsidy. One for example is 7/17/09.

Here is mine....

post #36 of 430
Quote:
Originally Posted by Multimedia View Post

I talked to an AT&T Manager in Sacramento right after the Keynote and he says the upgrade policy hasn't been decided yet and that last year everyone was able to upgrade with a new contract for the same price as all new customers. So I am not convinced this $200 premium will be in effect by next Friday. If it is I'm with you on early cancelation and new contract. Why spend another $25 above the early cancellation $175 penalty? That's why I don't think they will keep the $200 higher charge to upgrade rather than deal with a bunch of canceled agreements. \No. Last year existing iPhone customers were able to upgrade to the iPhone 3G for the same price as new customers - no early adopter penalty. The $200 penalty for existing contract holders is INSANE and UNFAIR.

The one difference that you should remember is the 1st gen iPhone owners paid full price for the phone when they bought it as it was not subsidized by AT&T. That's why AT&T had no loss by giving you an upgrade to iPhone 3G as a new customer.

However, iPhone 3G was subsidized meaning that in pricing the Phone AT&T is planed to get back the subsidy back through your two years contact.

If you break this contract by getting another subsidized phone then you need to return to AT&T to amount that they were planning to get from you during the reminder of the contract.

That's why an upgrade fee in this case does make sense. It is exactly what AT&T or any other wireless carrier does with any other subsidized phone.
post #37 of 430
Quote:
Originally Posted by renegade View Post

So far as I can tell, AT&T is only requiring a one year wait before allowing the subsidized price.

My one year anniv. from my iPhone 3G is 7/12, which is what the website says for me to get the subsidized pricing.

Prior to that date, its $200 more.

My wife got my iPhone 2G and is currently eligible for the normal subsidized pricing. I have asked a few friends who also go iPhone 3G's but on different dates, theirs also show their 1 year anniv. as the date they are eligible for the subsidy. One for example is 7/17/09.

Here is mine....


Yeah, I upgraded my original iPhone to 3G last July, and I can upgrade to 3GS on July 25th.
post #38 of 430
if you have more than 1yr on your existing 3G contract you are a "Qualified Customer" so you'll get the $199/$299

As of today no one is yet a QC, because the last 3G hasn't been out a year yet.
post #39 of 430
If you paid full price for a new phone you would not have to sign a new contact.

Quote:
Originally Posted by techno View Post

I can understand even if I don't like the price for upgrading. The carrier is subsidizing the cost. Ok. But the fact that we have to sign a new contract just because we want to upgrade the phone is ridiculous!

This just makes it too much of a hurdle for me.
post #40 of 430
You buy a phone, not a subscription to a phone model. Everyone who had the original Razr had to wait two years to buy the even niftier Razr at a subsidized price. Please folks, don't make this sound like something unique to Apple. Now, ATT does let renewal dates creep a few months - I know because I was relieved to find this out on my last plain cell phone renewal, but I can't say that they do it for iPhones. At any rate, it's typical and not invented just this afternoon by Phil.
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