Some early iPhone 3G S adopters subject to $200 surcharge
(Credit:
Apple, Inc.)
Since last year's announcement of the iPhone 3G, customers have grown accustomed to a price tag heavily subsidized by AT&T. Similarly, the just-announced iPhone 3G S will be offered in a 16GB model for $199 and a 32GB model for $299--but only if you are adding a line to your AT&T service or you are a new AT&T subscriber. Early iPhone 3G adopters seeking to upgrade will face serious sticker shock.
If you purchased an iPhone 3G on or after July 11, 2008, you will not be able to purchase an iPhone 3G S at a reduced price until you reach your one-year anniversary. (We've determined this cutoff by checking a sampling of existing AT&T accounts via AT&T's myWireless Account Web site.) If you want the new iPhone 3G S early, you will have to pay an additional $200 for the hardware, raising the cost of a new iPhone to $399 and $499, respectively. The only alternative to this price increase is to wait for your first iPhone anniversary before buying. On top of the price increase, you will--as expected--have to sign another two-year service agreement.
The pricing history of the iPhone has been tumultuous from the beginning, hitting its pinnacle quickly: $599 for an original 8GB iPhone. Apple and AT&T significantly reduced its price shortly thereafter, angering enough iPhone buyers that Apple gave away $100 rebates to the angry hordes.
Are Apple and AT&T trying to take advantage of loyal customers by releasing the new iPhone 3G S nearly a month before existing customers--many who are loyal and anxious to upgrade--are eligible for reduced pricing? Let us know what you think about this situation in the comments.

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I got the 2G iPhone Feb 12 2008...had it for 5 months until the 3G released...then upgraded to the 3G on 7/12/08...when I check my upgrade date...it says 3/13/2010...Remember if you got an original iPhone 2G and then upgraded to 3G soon after this was only because AT&T chose to "allow" customers who just got a 2G or have not had it for the 18months to just go ahead and get the 3G at the lowest customer price...but now that the 3Gs is out 6/19/09...those like me who originally got a 2G then a 3G have to wait until after 12 months from the purchase date of the 2G...in my case that was Feb 12 2008 so AT&T made my upgrade date 3/13/09...the cycle month after my original purchase...
Now the RANT...so...let me get this straight AT&T...you allowed me to upgrade to the 3G after only 5 months and still pay the lowest customer cost...but NOW you want me to sign a new 2-year contract just like a year ago and not get the lowest customer price and instead pay 500 for my desired model unless I wait until March 2010...
How dare you!!!
I will say its funny how some people feel entitled to have whatever they want at the price they want. ATT sets out the terms and conditions when you sign a contract and you know full well that you have to wait a certain period to upgrade. It just happens that last time they were generous with the 3G release. Doesn't mean that have to do anything. Its technology and it is always going to be quickly out of date. Either pay the cost that comes from being an early adopter, or wait. No one is forcing you to upgrade to the 3Gs.
I like my 3G and will be waiting to upgrade rather than shelling out 200$ extra. Sucks, but thats life.
You think to spur loyalty and even more revenue they'd give the customers who already paid for a previous iphone the discount.
They can't keep up with technology when we can go and get a MMS phone for ca. $100 ... tethering already exists.
AT&T wasn't ready - and now is the time Apple needs to take its' toys elsewhere!
AT&T is launching MMS and Tethering on June 19th... which happens to be the exact same date that Iphone 3GS will be in stores.
[CNET editor's note: Personal attack deleted.]
Apple does its WorldWide Developers Conference EVERY JUNE. They ALWAYS announce upgrades and new products. The new iPhone has been rumored for months. If you had even typed in iPhone under Google News, you would've known this.
Always DO YOUR RESEARCH BEFORE YOU MAKE A MAJOR PURCHASE.
You deserve to have to pay to upgrade. People like you are how companies make their money-- sheer stupidity.
[CNET editor's note: Personal attack deleted.]
Your argument really doesnt hold water. Whizfish is 100% right.
How does this not hurt ATT, with 4.4million iphones sold in Q1, that is a gross of $880,000,000 in subs payed to Apple. I say almost $1billion dollars is a little bit of change.
Then think of it this way, you are in a two year contact, they tear it up after year one and give you another two year contract, (so far $200+$200 in subs). Year 3 come along they tear it up again and give you another $200 and a new 2 year contract. Now year 4 comes you do the same, tear it up give you a new 2 year contract and another $200. So far they have given you $800 toward phones. You decide to hold this one or you want a different carrier so you wait out the full 2 year term. So now you have only been with ATT for 6 years. If they would not have torn up those contracts you would have been there 10 years. So not only have they kept you as a client for years they have also paid $800 to do so.
I hope the first person to do this is the boring editor/reporter who thought up this exercise.
The 1-year detail is very likely wrong. My plan was renewed in March of last year, and AT&T refused to even sell a new iPhone to me -- not even at the higher rate, but they wouldn't sell anything to me for 6 months after the account had been renewed. From what I've seen, I will be eligible for the reduced hardware pricing this coming August, so 17 months later.
yes, the contract keeps changing numbers, good point... why not just give people a new phone every few days? as long as theyre being loyal, what difference does it make right!
service providers sell phones at discounts because over the life of the 2-year contract they end up making a profit despite selling the phone for a loss. by shortening the time between new phones, you eliminate the profit. try to understand this before you criticize people for being unintelligent.
IDEA
perhaps ATT should consider this: instead of charging 200$ for recently purchase service contracts for previous iphones, offer the subscriber an option to upgrade under the condition of adding another two years to the previous contract. both options may still be not appealing, but at lease one or the other may be the least of the evil for some subscribers.
Apple invented a REAL time machine?
Patience is a virtue that we generally do not learn here in the States. I bought my 2G iPhone 6 months after it came out, didn't get the 3G and now am getting a 3G S at the low price. If more people were patient instead of insisting on having the best, newest stuff right now, they would pay less. It goes to show where Americans' priorities lie.
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by jeffprop
June 8, 2009 10:02 PM PDT
- AT&T sold an unsubsidized 3G iPhone that was $200 extra. That is what existing AT&T customers had to pay if they were not eligible for an upgrade on their current contracts. That was the case for me. New customers could have done the same and bought an iPhone with no contract requirement. Now that a lot of people are a year into their 2-year contract for the 3G, they will have to 18 months into their contract in order to get an upgrade without paying the unsubsidized price. That is the case for me.
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by rustygreer
June 8, 2009 10:09 PM PDT
- thank you. your about the only intelligent person i have read on here with a good comment
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Showing 1 of 5 pages (149 Comments)I have a crappy Nokia phone. Instead of paying the extra $200 for a 3G when it first came out, I waited until I was eligible for the subsidized price in Feb. 2009. I then decided to wait a few more months because I figured a new model would come out around WWDC '09 to entice the 2G iPhone buyers whose 2-year contracts will be up. I am glad I did.