AT&T to offer limited iPhone 3G sales without contract
AT&T will begin offering "no commitment" pricing on the iPhone 3G beginning on March 26, without any service contract requirement, according to a report leaking an internal company training memo.
The report, posted by Boy Genius, says that AT&T will only offer the iPhone 3G at its "no commit" price of $599 for the 8GB version or $699 for the 16GB model to existing customers, and limit them to one unit each at that price.
However, the document also notes that AT&T has no way of tracking if the user has already bought a unit at the no commit price within the company's billing system, although AT&T retail stores "can see the transaction through OPUS [AT&T's point of sale system] if the device was purchased through AT&T COR [a company-operated retail store]."
The document says "AT&T is restricting the No-Commit price to existing customers who wish to add a line, purchase as a gift, or perform and [sic] upgrade and are not eligible for the Qualified or Early upgrade price."
"Qualified pricing" refers to the standard $199/$299 price of the iPhone 3G when obtained with a two year contract commitment. For AT&T users who recently received a contract subsidized phone of any kind, AT&T charges an "Early Upgrade price" that is $200 more than the iPhone 3G's qualified price: $399/$499. It also requires a two year contract extension.
The no-committment iPhone models from AT&T incur a device activation fee when used with AT&T's service, and also require a data plan, although device activation is not required at the point of sale.
The new "no-commit" sales program appears to be an effort to push out remaining iPhone 3G inventory prior to the launch of the next iPhone, due sometime this summer. Last year, Apple similarly allowed the existing inventory of iPhones to dry up to the point where almost no iPhones were left for several weeks prior to the launch of iPhone 3G.
Other iPhone 3G partners are similarly discounting iPhone sales to move inventory, which has resulted in various dire rumors about the iPhone's prospects, not unlike last year when certain pundits jumped all over "falling sales" of the original iPhone during the months when inventory levels dried up completely.
The report, posted by Boy Genius, says that AT&T will only offer the iPhone 3G at its "no commit" price of $599 for the 8GB version or $699 for the 16GB model to existing customers, and limit them to one unit each at that price.
However, the document also notes that AT&T has no way of tracking if the user has already bought a unit at the no commit price within the company's billing system, although AT&T retail stores "can see the transaction through OPUS [AT&T's point of sale system] if the device was purchased through AT&T COR [a company-operated retail store]."
The document says "AT&T is restricting the No-Commit price to existing customers who wish to add a line, purchase as a gift, or perform and [sic] upgrade and are not eligible for the Qualified or Early upgrade price."
"Qualified pricing" refers to the standard $199/$299 price of the iPhone 3G when obtained with a two year contract commitment. For AT&T users who recently received a contract subsidized phone of any kind, AT&T charges an "Early Upgrade price" that is $200 more than the iPhone 3G's qualified price: $399/$499. It also requires a two year contract extension.
The no-committment iPhone models from AT&T incur a device activation fee when used with AT&T's service, and also require a data plan, although device activation is not required at the point of sale.
The new "no-commit" sales program appears to be an effort to push out remaining iPhone 3G inventory prior to the launch of the next iPhone, due sometime this summer. Last year, Apple similarly allowed the existing inventory of iPhones to dry up to the point where almost no iPhones were left for several weeks prior to the launch of iPhone 3G.
Other iPhone 3G partners are similarly discounting iPhone sales to move inventory, which has resulted in various dire rumors about the iPhone's prospects, not unlike last year when certain pundits jumped all over "falling sales" of the original iPhone during the months when inventory levels dried up completely.
Comments
"AT&T is restricting the No-Commit price to existing customers who wish to add a line, purchase as a gift, or perform and [sic] upgrade and are not eligible for the Qualified or Early upgrade price."
That will be all of 3 people?
Sounds like ATT trying to make some non-news.....
I like my current $20/month data plan, but not the lousy call quality of the first gen iPhone.
I'll wait to see what comes out this summer.
Presumably to keep me from going to AT&T.
The catch? 2-year contract required.
Mine just expired in January.
No thanks T-Mobile, I prefer to be free.
Free to use with any provider or locked to AT&T? That is the key difference, not only the lack of contract!
Hallelujah. Who knows, but at least for now it's contract-free; making it a similar device to the iPod Touch until the user wants to make it a phone. Perhaps the iPod touch might even get discontinued!
What we need in the US is pre-pay data packages. Salespeople in the stores seem to think it's laughable that anyone would want that. They sent me packing. No probs in the UK, mainland Europe and even the UAE.
I have a pre-paid data plan with AT&T. It's the ONLY way I will do business with that company. Of course it also means I can't use an iPhone, but c'est la vie. I don't need one so badly that I'm willing to compromise my principles.
I'm sure AT&T got words from Apple
Apple would release a killer new gen iphone. With more processor power, better battery life (improvement learned from 17 MBP), probably include video recording, more capacity, iChat AV Mobile (front video camera).
That's why AT&T must start cleaning inventories, and why not make extra $$$ while doing so.
this is how apple is gonna clear their inventory of iPhone 3G to make room for the new iPhone in June.
genius
Oh Apple invented the clearance sale now?
I have a pre-paid data plan with AT&T. It's the ONLY way I will do business with that company. Of course it also means I can't use an iPhone, but c'est la vie. I don't need one so badly that I'm willing to compromise my principles.
just buy a used iPhone and, *gulp*, jailbreak it.
I for one love the iPhone. I, however, don't love it enough to pay AT&T that data plan pricing that I wouldn't use and is too expensive considering I wouldn't use it that much. Moreover, AT&T is a horrible company in so many ways.
I'm currently stuck using my first generation iPhone on T-Mobile. Maybe this deal will let me stick with T-Mobile.
T-Mobile offered me an unlimited nationwide voice plan for $49.
Presumably to keep me from going to AT&T.
The catch? 2-year contract required.
Mine just expired in January.
No thanks T-Mobile, I prefer to be free.
8GB iPhone: $199 + $14 tax = $214
Activation: $36
One month service: $70 + $4 tax = $74
Cancellation Fee: $175
Total for work-around "no-contract" iPhone: $499
Total for AT&T's actual no-contract iPhone: $599 + $41 tax = $641
Is it possible that ATT is going to start this sort of opening up of service in the months before their exclusive contract comes to an end in an effort to lock people into ATT? Boy I can't wait for their to be competition!
KRR
I'll pass!
How long is Apples agreement with ATT? I've heard 2 years and (gulp!) 5 years. If it's two, then we are almost there...
Is it possible that ATT is going to start this sort of opening up of service in the months before their exclusive contract comes to an end in an effort to lock people into ATT? Boy I can't wait for their to be competition!
KRR
No one knows how long.
There is competition, by the way. It's called the G1, the Pre, Verizon and Sprint. Just because the competition doesn't offer a better product/service combination doesn't mean there's no competition.