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

AppleInsider

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.

[ View this article at AppleInsider.com ]

jeffdm

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

harmsway

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

saarek

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

ny3ranger

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


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.

[ View this article at AppleInsider.com ]

akf2000

Quote:

Originally Posted by harmsway


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!

samab

Quote:

Originally Posted by saarek


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.

adam1134

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?

multimedia

Quote:

Originally Posted by ny3ranger


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


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.

anantksundaram

Quote:

Originally Posted by ny3ranger


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?

tenobell

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


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?

tenobell

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


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.

italiankid

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.

probably

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

enigmafan420

Quote:

Originally Posted by AppleInsider


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

davidswelt

That's how the subsidies work. That's hardly news.

tomhayes

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.

enigmafan420

Quote:

Originally Posted by probably


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.

chadisawesome

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.

dhkosta

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.

c4rlob

I wonder what AT&T's policy will be for customers who purchased an iPhone 3G just a couple weeks ago?