Apple again sells contract-free, carrier-locked US iPhones
Like it did in March of last year, Apple this week at its retail stores began selling the iPhone at an unsubsidized price without the standard two-year AT&T contract agreement. Also as before, the phone, which costs as much as $700, remains locked to the exclusive U.S. wireless provider.
Apple stores made the change Monday, selling new iPhones at an unsubsidized, contract-free price. The low-end 8GB iPhone 3G sells for $499, the 16GB iPhone 3GS is $599, and the top-end 32GB iPhone 3GS sells for $699.
Gizmodo obtained a copy of the internal Apple memo detailing the policy change at Apple stores. It was first published for employees of the company on Monday.
"Effective immediately, customers purchasing iPhone as device only at full price are no longer required to have an A&T account or provide a form of ID," the memo to all U.S. employees reads. "Device only full price iPhone sales are limited to one person per day."
The memo notes that while customers are limited to one iPhone per day, they can still purchase up to five handsets in a day if they agree to an AT&T contract. The terms of the deal also dictate that users can only buy 10 iPhones at full-price in their lifetime.
It was about a year ago, in late March of 2009, when Apple began selling the iPhone 3G without a contract. The non-subsidized 8GB version carried a $599 price tag, while the 16GB model cost $699. The sale preceded the launch of the iPhone 3GS.
As was the case a year ago, activation is completed by the customer at home through iTunes. The iPhone can be unlocked through a warranty-voiding technique known as "jailbreaking," but the 3G radio in Apple's handset does not support the high-speed data network of the only other GSM-based carrier in the U.S., T-Mobile. That means that potential unlockers would be restricted to slower EDGE data speeds.
Much like in 2009, Apple is likely looking to sell off inventory to prepare for the coming launch of the new 2010 iPhone. Last June, at its annual Worldwide Developers Conference, Apple unveiled the iPhone 3GS, which added a faster processor and the ability to record video.
Apple stores made the change Monday, selling new iPhones at an unsubsidized, contract-free price. The low-end 8GB iPhone 3G sells for $499, the 16GB iPhone 3GS is $599, and the top-end 32GB iPhone 3GS sells for $699.
Gizmodo obtained a copy of the internal Apple memo detailing the policy change at Apple stores. It was first published for employees of the company on Monday.
"Effective immediately, customers purchasing iPhone as device only at full price are no longer required to have an A&T account or provide a form of ID," the memo to all U.S. employees reads. "Device only full price iPhone sales are limited to one person per day."
The memo notes that while customers are limited to one iPhone per day, they can still purchase up to five handsets in a day if they agree to an AT&T contract. The terms of the deal also dictate that users can only buy 10 iPhones at full-price in their lifetime.
It was about a year ago, in late March of 2009, when Apple began selling the iPhone 3G without a contract. The non-subsidized 8GB version carried a $599 price tag, while the 16GB model cost $699. The sale preceded the launch of the iPhone 3GS.
As was the case a year ago, activation is completed by the customer at home through iTunes. The iPhone can be unlocked through a warranty-voiding technique known as "jailbreaking," but the 3G radio in Apple's handset does not support the high-speed data network of the only other GSM-based carrier in the U.S., T-Mobile. That means that potential unlockers would be restricted to slower EDGE data speeds.
Much like in 2009, Apple is likely looking to sell off inventory to prepare for the coming launch of the new 2010 iPhone. Last June, at its annual Worldwide Developers Conference, Apple unveiled the iPhone 3GS, which added a faster processor and the ability to record video.
Comments
I owned an original iPhone and it was out of contract, but in order to activate it with AT&T I had to . . . . . that's right sign a 2 year contract. AT&T will only do it this way to the best of my knowledge. So you can buy the phone. It will be locked for use with AT&T and then AT&T will require a 2 year contract. "*Requires purchase of a $30/mo data service. 2 year contract & new activation required. Limit 2 iPhone devices per household when ordering online. "
That was for the original iPhone (Full price & contract). Now you don't need to signed a 2 year contract but you need to sign up for a data plan.
New iPhone in May? "Dads and Grads" time of the year?
A lot of what if cases, I know, but what if this policy remained unchanged 7 years from now?
What kind of price point is $700 for a carrier-locked phone, especially with that small screen resolution, versus $530?
the 16GB iPhone 3GS is $599, and the top-end 32GB iPhone 3GS sells for $699.
Well there you go.
A hearty 'Lol' @ all the sheepboys that said "awmagad $530 for a Nexus One, that's so expensive". Yeah, well the iPhone is even more.
No wonder Apple wants to sue; it's better AND cheaper.
Further explanation into why Apple has been so trigger-happy on suing competitors.
What kind of price point is $700 for a carrier-locked phone, especially with that small screen resolution, versus $530?
04gb Nexus = $530
16gb iPhone= $599
32gb iPhone= $699
so where do you get the idea from that the iPhone is more expensive?
add the extra gb with an SD card and the Nexus is more expensive always.
Does it make any sense to get an iPhone with an AT&T contract but still jailbreak it to use with other sim cards when you travel overseas?
yes: it's what I did. I live in Europe
Hillarious...an iPhone 3G, now almost 2 year old technology, AND locked, sells for more than an iPad...priceless...
ahem, because it has a phone inside?
04gb Nexus = $530
16gb iPhone= $599
32gb iPhone= $699
so where do you get the idea from that the iPhone is more expensive?
add the extra gb with an SD card and the Nexus is more expensive always.
Oh really?
And "Always" eh?
http://www.newegg.com/Product/Produc...82E16820134912
Effing fail of EPIC proportions.
Now you don't need to signed a 2 year contract but you need to sign up for a data plan.
Who are buying these phones at full price? The subsidized price + the prorated contract cancelation fee looks to be cheaper than the unsubsidized price.
Still wish they would clear inventory with unlocked phones.
I don't quite get it since it's not like it can be used in US by other carriers, except for T-Mobile USA's EDGE/GPRS network. I can't wait until legislation requires a paid in full phone to be unlocked.
Further explanation into why Apple has been so trigger-happy on suing competitors.
What kind of price point is $700 for a carrier-locked phone, especially with that small screen resolution, versus $530?
1) What does Apple protected its IP have to do with this 2nd year in a row clearance.
2) You've also failed to mention other competitors suing Apple.
3) Note that your price comparison is between a 32GB 3GS and 4.5GB Nexus One. Not exactly even-steven. If you find that the higher resolution display and faster processor suit your needs better despite many aspects of the much newer device feeling considerably slower and less refined than the iPhone then go for it, even promote it (Google and HTC need all the help they can get) but don't purport that the iPhone is some ripoff device.
Well there you go.
A hearty 'Lol' @ all the idiot sheepboys that said "awmagad $530 for a Nexus One, that's so expensive". Yeah, well the iPhone is even more. Idiots.
No wonder Apple wants to sue; it's better AND cheaper.
I predict a ban-hammer in your future.
Hillarious...an iPhone 3G, now almost 2 year old technology, AND locked, sells for more than an iPad...priceless...
Not if you add in the cost of the 3G radio, but your point is still valid.
Oh really?
And "Always" eh?
http://www.newegg.com/Product/Produc...82E16820134912
image: http://img690.imageshack.us/img690/2923/microsd.png
Effing fail of EPIC proportions.
We can all play that game. Here is the most expensive microSD card I could fine in 20 seconds. How 'bout them Apples?Over $80 for 16GB for Class 6. While it might be the fastest speed for microSD it's still very, very slow for NAND. The TH58NVG7D series NAND used in the 3GS could be as high as 230Mb/s read and 180Mb/s write, but I'm unable to find an exact match to the chip. Regardless, this makes a noticeable difference and affects the usage. You can even test this between the on-board NAND and microSD of the Nexus One.
PS: Try not to use huge images in forums, please.
We can all play that game. Here is the most expensive microSD card I could fine in 20 seconds. How 'bout them Apples?
...
Seriously?
Your best counter-argument was to try to find the most expensive microSD card on the market?
Why in the world would anyone purposely buy the most expensive option if we're talking about trying to save money?
That was just sad. Pathetic attempt at a rebuttal.
The Nexus One is cheaper; bottom line. Get over it.
Does anyone know?
Don't really see the need for this other then trying to clear inventory and some ebay seller try to make a quick buck by selling it for even more then apple.