iPhone 3G users to pay $200 premium for early upgrade to iPhone 3G S - Page 7

Originally Posted by teckstud

Why do iPhone owners, with a 2 year contract, think they can get the new iPhone at the cheap rate after 1 year? Just because you waited in a ridiculous line last year or whatever does not give you any free ride. Why do you think you should be treated any differently than any other cellphone purchaser anywhere with a 2 year contract?
You can't blame AT&T on this one. Maybe Apple should have waited until next year to release it instead. I wondered last year how you all got away with that deal. You've all been spoiled.

Originally Posted by pmz

Can anyone in this thread count? Anyone?

Your contract with AT&T is TWO years. Understood? 1 + 1 = 2 years.

AT&T has decided to offer subsidized pricing to ALL iPhone customers of 1 year or more. This is not required, expected, or even necessary given the TWO year contract you signed.

AT&T may be a horrible company (they are, I assure you), but give credit where its due. All 3G owners will be eligible for subsidy halfway through their contract. Unlike Verizon, or Sprint, or any other U.S. carrier.

Originally Posted by moofrank

Our situation is odd. Bought a 3G in late July as an upgrade from a 1G bought on 12/26 2007.
My wife uses the 2G. We cut her over in January 2009.

The upgrade Date on my phone reads 8/15/2009. Possibly 1 year
Hers reads 12/26/2009. 2 years.


One thing I have wondered is if folks with 1G Iphones can be upgraded as a service request. In our case, it seems as if the Edge network has gotten much slower in our area since last July when I was using the 1G Iphone. For her, it is glacially slow.

Originally Posted by Boogerman2000

I just want to encourage everyone to write in to apple about their egregious upgrade pricing for existing customers. $500, $600, $700 for an upgrade to the 3gs.

sjobs@apple.com

Originally Posted by lilgunther

The reason is simple. This is a new policy to them. The most devoted and loyal iPhone customers, the ones that were in line for the last 2 years in a row to own the latest offering are now being thanked for their patronage being told that they have to pay a premium to do the same thing the third year. Many companies offer consumer loyalty bonuses, but in this case, consumer loyalty puts them in the back of the line, unless they want to pay extra.

I was one of them. I couldn't wait to place my order yesterday, but was shocked and dissappointed to be told I had to wait or pay nearly double the price shown at the bottom of the order page. I honestly have a hard time stomaching paying $218 more than the advertised price (sans fine print) for the same product, just because I was already a big fan and was in line the last 2 years for the release.

One other thing that a lot of us have forgotten is that when the original iphone was released and we stood in line for hours to get it, we paid $599 for it. Then within 2 months, they dropped the price by $200 and people were outraged. In fact the public outrage was so great that Apple ended up coming back to lighten that blow by giving us a $100 gift card.

Originally Posted by pmz

Can anyone in this thread count? Anyone?

Your contract with AT&T is TWO years. Understood? 1 + 1 = 2 years.

AT&T has decided to offer subsidized pricing to ALL iPhone customers of 1 year or more. This is not required, expected, or even necessary given the TWO year contract you signed.

AT&T may be a horrible company (they are, I assure you), but give credit where its due. All 3G owners will be eligible for subsidy halfway through their contract. Unlike Verizon, or Sprint, or any other U.S. carrier.

Originally Posted by lilgunther

With all due respect. It's not really about counting as it is "new math".

Old Math 2 yr contract - 1 yr completed + new 2 yr contract = new customer price

New Math 2 yr contract - 1 yr completed + new 2 yr contract = new customer price + $218

Last year we were able to sign a new two year contract and get the same advertised price as new customers. This year those numbers have changed and we can get the same price 6 months later.

Originally Posted by teckstud

While I understand your pain , you still are not getting that AT&T is not the company making the iPhone. They are not obligated to give you a break. Perhaps Apple is but not AT&T. AT&T has continually provided bad service and connectivity- why would you now expect them to give you a price break under 2 years? Apple knew this was going to happen. They should have either waited to release new iPhone or eaten the costs themselves for a new one- not AT&T.

Originally Posted by abernathy

This really is a bad situation and I also hold Apple accountable. They knew that loyal customers would be frustrated that the iPhone upgrade cycle would be totally out of sync with service plan commitments. This unique phone should have a more unique service plan - one that is customer friendly and doesn't take all the fun out of otherwise exciting new product announcements. That was probably Apple's original idea with the full-price 1G iPhone, but when they switched to subsidized plans they should have negotiated something like 1-yr commitments, or prorated upgrades (well, maybe that's what they call the $499 32GB price?)

Originally Posted by pmz

Can anyone in this thread count? Anyone?

Your contract with AT&T is TWO years. Understood? 1 + 1 = 2 years.

AT&T has decided to offer subsidized pricing to ALL iPhone customers of 1 year or more. This is not required, expected, or even necessary given the TWO year contract you signed.

AT&T may be a horrible company (they are, I assure you), but give credit where its due. All 3G owners will be eligible for subsidy halfway through their contract. Unlike Verizon, or Sprint, or any other U.S. carrier.

Originally Posted by lilgunther

With all due respect. It's not really about counting as it is "new math".

Old Math 2 yr contract - 1 yr completed + new 2 yr contract = new customer price

New Math 2 yr contract - 1 yr completed + new 2 yr contract = new customer price + $218

Last year we were able to sign a new two year contract and get the same advertised price as new customers. This year those numbers have changed and we can get the same price 6 months later.

Originally Posted by rutiger

i bought two 3g phones the first day they were out. when i logged in to both the apple site and my att acct they both state i'm eligible for upgrading.

i was just able to order a 32gb 3gs on att's site for $299 + $18 with free shipping! hope it shows up asap

Originally Posted by lilgunther

I agree that AT&T service is continually a problem. I was laughingly waiting to hear something in the release announcement that the iPhone 3gs would work better as an actual phone. Admittedly, the 3G often drops calls and has less than stellar sound when it does actually connect. My 2G had much better sound quality and fewer dropped calls. I have never seen a definitive answer if it is the phone, AT&T's 3G service or the combination of the 2.

That being said, I still love my 3G iphone with all of it's infinite possibilities and wanted to do the same thing I did last year and be amoung the first to own the new offering.

I understand many other phones are subsidized; however, surely you will agree with me in recognizing the fact that this is a subsidized phone is played down and in fact rarely mentioned until time of purchase. If you walk into any cell phone store you see two clearly marked prices on most phones. They clearly show a full purchase price and the subsidized contract price.

Perhaps if they hadn't continually released information showing one price structure for the iPhone, this feeling of ill will and feeling like the loyal customers are all of all of sudden being penalized would have been softened.

This change in upgrade policy is not just on AT&T. After a series of phone calls to both companies this morning that included a lot of finger pointing, I finally had an upper tier supervisor with Apple (what ever that means) tell me that it is part of a mutual agreement made between AT&T and Apple.

I am not asking for something for free. I don't have a problem signing the new 2 year contract, but I was really taken aback yesterday when I found out I had to pay so much more that the advertised price.

I have to wonder who they think are the people that are the first in line each year? I wonder what would happen if all the 3G owners actually really waited out the 18months before buying one. Would there be the frenzy of new purchases they heartily enjoyed the last two years on the release date?

Originally Posted by lilgunther

Wow, wish I knew what was different. I bought my 3G the day after it came out last year and I just tried to order like you did, but was given the polite following message:

As a valued AT&T customer, AT&T can offer you an early iPhone upgrade with a new 2-yr commitment and an $18 upgrade fee. You may qualify for a standard iPhone upgrade on 12/13/2009.
$299.00* 8GB iPhone 3G (black)
$399.00* 16GB iPhone 3G S (black or white)
$499.00* 32GB iPhone 3G S (black or white)

Originally Posted by lilgunther

I understand many other phones are subsidized; however, surely you will agree with me in recognizing the fact that this is a subsidized phone is played down and in fact rarely mentioned until time of purchase. If you walk into any cell phone store you see two clearly marked prices on most phones. They clearly show a full purchase price and the subsidized contract price.

Perhaps if they hadn't continually released information showing one price structure for the iPhone, this feeling of ill will and feeling like the loyal customers are all of all of sudden being penalized would have been softened.

This change in upgrade policy is not just on AT&T. After a series of phone calls to both companies this morning that included a lot of finger pointing, I finally had an upper tier supervisor with Apple (what ever that means) tell me that it is part of a mutual agreement made between AT&T and Apple.

I am not asking for something for free. I don't have a problem signing the new 2 year contract, but I was really taken aback yesterday when I found out I had to pay so much more that the advertised price.

Originally Posted by JeffDM

Expecting to get a new phone as if you don't still have a year left on the contract is a bit much. They never did promise that you would get the lowest price every year.

Just maybe, if enough people get huffy, I think a $100 upgrade fee above a new customer / completed contract fee might be a realistic expectation. As teck said, the first iPhone wasn't priced as a subsidized phone so laying the same expectation this time around is excessive. First Gen iPhone buyers paid $200 more for theirs than the 2nd gen buyers did.

Originally Posted by teckstud

I totally agree with you. Why all the secrets on the subsidized priceing? Same thing with the FALSE advertising- "Half the Price". IT WAS SUBSIDIZED!
Having said that, the sales figures this quarter will be very strange as people have to actually wait AND WAIT.

Originally Posted by abernathy

(I posted this on Apple's Discussion Boards)

I understand all this talk about the 3GS costing more if you're in the middle of your subsidized plan, but based on my situation I question this:

I bought the 3G iPhone shortly after it was released. Then I decided to get a FamilyTalk plan and give my partner my original (non-subsidized) iPhone. Yesterday I rushed to the online Apple Store to buy (2) 32GB 3GS and was given prices of $699 for mine and $499 for my partner. $499 to upgrade an original iPhone! I called AT&T this morning - they couldn't explain this - they said that's just the way it is.

This really is a bad situation and I also hold Apple accountable. They knew that loyal customers would be frustrated that the iPhone upgrade cycle would be totally out of sync with service plan commitments. This unique phone should have a more unique service plan - one that is customer friendly and doesn't take all the fun out of otherwise exciting new product announcements. That was probably Apple's original idea with the full-price 1G iPhone, but when they switched to subsidized plans they should have negotiated something like 1-yr commitments, or prorated upgrades (well, maybe that's what they call the $499 32GB price?)

Originally Posted by moofrank

AT&T clearly doesn't quite have their act together here yet.

The AT&T website doesn't show the discounted prices for 3G phones. Talking to a customer rep tells me that this should be up on Friday.

Originally Posted by TenoBell

Its only a secret to you because you didn't read. Read your contract.

Originally Posted by lilgunther

$100 would be easier to swallow than $200, but while it could have been in the fine print, I personally never saw anything showing that the phone was unsubsized the first round vs. a subsidized version the second round.

I simply was told to pay the $599 and sign a 2 yr contract. They dropped the price soon after, but again I saw nothing indicating it had anything with it being subsidized. I do recall there being a large public outcry about the drastic reduction so soon after so many people bit a larger bullet. That public outcry did indeed prompt the $100 giftcard; so, perhaps if we complain enough they will change this policy.

The same thing happened last year on the release date. Nothing was said, upfront, about it being subsidized...only that I simply had to sign a new 2 yr contract and pay the purchase price.

Originally Posted by hasanahmad

sell yours on ebay and use that $ to buy this

Originally Posted by teckstud

OK smart ass - you knew the subsidized price of the iPhone (what was AT&T's piece) last July 2008? total B.S.
I mentioned "Half the Price " was false over and over and all y'all said was "but it is" blah, blah, blah. Now I am once again being borne out.
Now you make up BS.
It has only been recent that these actual amounts have been disclosed if at all.

Originally Posted by teckstud

I totally agree with you. Why all the secrets on the subsidized priceing? Same thing with the FALSE advertising- "Half the Price". IT WAS SUBSIDIZED!
Having said that, the sales figures this quarter will be very strange as people have to actually wait AND WAIT.

Originally Posted by DHKOsta

I think there is a different logic to the upgrade system than simply "AT&T wants to reward their more loyal customers." I think it has to do with controlling the locations and timing of traffic increases on their network. Last year, AT&T's network handled the 3G launch poorly, and was heavily criticized. Maybe they're learning from their mistakes.

Of course it would piss people off if they found out they couldn't upgrade because of the city they live in.

Of course, being that my date is 03/23/10, I think I'll probably take a pass on the 3G S, and wait for next year's model.

Originally Posted by Multimedia

It's easily worth $236 to me to get it ASAP.

Originally Posted by jdavy

AT&T = $200 penalty for the loyal early adopters that all always looking for the best.

Originally Posted by Enigmafan420

HURRY-30 day returns allowed.

Can I ask? WHY would you have done this two weeks ago

Originally Posted by tbmichals

I got my Iphone for my anniversary on May 22, 2009. At that time neither the people at Cingular, nor my husbands' friend who works for AT&T knew they were going to have a new phone. We all new about the upgrade, but thought that was it. Or I would have waited for the new phone. This really pisses my off. They should have let us know in advance. How much will I have to pay to take my phone back, get refund and rebuy the new phone? Will they even let us do that? Or will they say that you already redid your contract and are SOL.

Originally Posted by tbmichals

I got my Iphone for my anniversary on May 22, 2009. At that time neither the people at Cingular, nor my husbands' friend who works for AT&T knew they were going to have a new phone. We all new about the upgrade, but thought that was it. Or I would have waited for the new phone. This really pisses my off. They should have let us know in advance. How much will I have to pay to take my phone back, get refund and rebuy the new phone? Will they even let us do that? Or will they say that you already redid your contract and are SOL.

Originally Posted by lilgunther

The reason is simple. This is a new policy to them. The most devoted and loyal iPhone customers, the ones that were in line for the last 2 years in a row to own the latest offering are now being thanked for their patronage being told that they have to pay a premium to do the same thing the third year. Many companies offer consumer loyalty bonuses, but in this case, consumer loyalty puts them in the back of the line, unless they want to pay extra.

I was one of them. I couldn't wait to place my order yesterday, but was shocked and dissappointed to be told I had to wait or pay nearly double the price shown at the bottom of the order page. I honestly have a hard time stomaching paying $218 more than the advertised price (sans fine print) for the same product, just because I was already a big fan and was in line the last 2 years for the release.

One other thing that a lot of us have forgotten is that when the original iphone was released and we stood in line for hours to get it, we paid $599 for it. Then within 2 months, they dropped the price by $200 and people were outraged. In fact the public outrage was so great that Apple ended up coming back to lighten that blow by giving us a $100 gift card.