Better read the fine print, friends. Apple said today that the iPhone 3G S costs $199 (16GB) and $299 (32GB). But that’s the price only for new AT&T customers. The price if you’re already an AT&T customer and/or are upgrading from an iPhone 3G? Try $699 (32GB), $599 (16GB), and $499 (8GB). To quote Peter Ha: “HOLY SHIT.”
I think I speak for most of the Internet when I say that price is 100 percent ridiculous. How many iPhone 3G’s are floating around out there? And how many of those will be upgraded to the new iPhone 3G S?
I don’t know who’s to blame, Apple or AT&T, but I cannot wait to see them try to spin this news.
UPDATE So this is what AT&T tells us:
An iPhone 3G customer in most cases can early upgrade at $399 [16GB] or $499 [32GB].
You’ll note that that’s still several hundred dollars more than what Joe Smoe would have to pay, right off the street, if he doesn’t already have an AT&T account.
And what does “early upgrade” mean? Or “most cases”? The joys of dealing with AT&T!
My recommendation would be to call AT&T yourself to see what you’re looking at.
Damn, dude. Considering the 3G was their big “bargain” push (twice as fast, half the price), they’re going to be looking at a really low switchover rate. Nobody’s going to want to pay that.
Well even 199/299 prices are too high in my opinion just for a compass and a 3 MP camera. I could go to walmart and by the both for probably 80 bucks
Thank you so much for clarifying, Cameron. I didn’t realize that the new iPhone was only a compass and a camera. What a rip off! You should at least be able to make calls!
Why would you want to make calls? I didn’t think that was a working feature in the old iPhone 3G anyway. ;)
You get a 3mp *autofocusing* <important part… camera and a compass as well as improved battery life and faster internet speeds (HSDPA) aka 3.5g which is around 7mbs rather than 1.4mbs
@Jack Too bad AT&T won’t even START rolling out HSDPA 7.2 until later this year. Not to be completed until 2011
Also a faster processor
you’re an idiot that has too much stuff in his pockets. bad attack on apple.
I just talked to AT&T and they said that the $399/$499 prices are for an “early upgrade” but if you are upgrading from your 1 year mark you are still eligible for the pricing listed by Apple.
Kyle’s right … this article totally *missed* that point.
If one waits until when AT&T says you’ve reached the 1 year point (since you bought the previous iPhone) you are eligible for the rate we all saw at WWDC this afternoon. ($199 & $299).
And the difference after we all get 3.0 is:
- 3 Megapixel Cam with focus – macro too
- Video capture with editing
- Magnetometer (compass)
- larger Hard drive
Then if we *include* 3.0 there’s the whole … lost my iPhone now it can be tracked & located remotely … then wiped remotely.
So is AT&T still trying to rape us … oh yeah, but if you wanna get angry – ask why the hell we still can’t get a decent FLASH PLAYER on this damn phone yet!
Because Flash sucks big red rocks sideways through soda straws: according to at least one analysis, it consumes twenty times the resources on OS X that it does on Windows. Why? Because Macromedia (formerly) and Adobe (now) can’t be bothered to produce a version that works better on OS X.
http://immike.net/blog/2007/07/31/flash-sucks/
http://www.macopinion.com/index.php/site/more/top_ten_reasons_why_flash_sucks/
http://www.theiphoneblog.com/2008/10/21/flash-still-fizzles-on-os-x-version-10-benchmarked/
Where do you get the one year number? I called AT&T right after the announcement and I won’t be eligible till mid December, that’s 18 months since I picked up the iPhone 3G.
There is only one reason. Battery life. In fact adobe has already made and testd a flash player on the iPhone. It only ran for 30mins before the phone died
The reason is not the technology – Adobe produced a flash player and Sun produced a Java runtime environment before the original iPhone was even released.
The reason is control of media. Apple wants to have total control over what you watch and do on your iPhone (App Store, iTunes). By allowing universal platforms such as Flash and Java, Apple loses this control, and thus, the ability to make money.
Obvious reason is obvious.
This 1-year mark is only true if you were paying $99+ for the line you want to upgrade. I’ve been paying $85/month for my year ($50 family plan, $30 data plan, $5 texting plan), so they won’t let me get the upgrade at the reduced price until December, 18 months after the original purchase. BS.
are you 100% sure about that? I thought that was true also, but today I went on apples website and clicked on the Buy iPhone button( I also put my phone number and social). And I was doing that to see if i was eligible for the 199/299 pricing, and it told me ide be able to upgrade to the iphone 3gs for the 399/499 prices. And by the way I do have an iPhone 3g. Im pretty sure that apples website couldnt find out what phone I had. But im just wondering if you would know cause im to lazy to talk to an Apple rep after waiting for 10 minites on hold LOL! thanks for your time!!
I’m just replying to this comment cuz it b at the top.
TO SAVE YOU TIME, HERE IS A SUMMARY OF EVERYTHING TO FOLLOW:
1. iPhone 3G[s]: only extras are a +1MP camera, compass, speed, and the coolest thing that everyone has failed to mention, a kick ass little “s” that is unable to play with the rest of the numbers and letters on the back of the phone because he must stay in his time out box.
2. AT&T is raping the current customers because they are charging much more than a new customer for the iphone.
3. The word rape is bad word
4. The word rape means many other things these days (especially on the internet)
5. If you were to say the word RAPE in all caps, you mean serious business.
6. PEOPLE SAY ONLY DB’S TYPE IN ALL CAPS
7. The people that agree with #6 are completely correct.
8. Some want to start a twitter rebellion against Apple, AT&T, or whoever we should blame
9. No body in the world would take a twitter rebellion seriously
10. We’re all dumb asses because we signed a contract and we should live with it.
11. The guy that said #10 should be shot.
12. I think we just all miss Steve Jobs and need to hold hands and sing Kumbyya (or however the hell you spell that)
I know i already have an iphone 3g ( i got it in april)
and now Apple just got an new iphone!
What a rip off who wants to pay so much money for a new iphone?
Did you know that if you jailbreak your iphone you can get all the features that the iphone 3gs has!
( it’s like hacking but it is legal and you will not get arrested)
I purchased a 3G 4 months ago. Was madd it didnt do MMS and Video or even zoom with the camera. I thought it was suppose to be an upgrade from the Razor that can do all that. Now to find out that the brand new phone 3GS comes with all of that and more GB for same price of what i CONTRACTED for 2 years on AT&T for a 3G 4 months ago. I am so frustrated!!!!!!!!!!!!!!!!!!!!!!!!!!
shuda done your research
No…no… no… NOOOOOOOOOO!!!!!!!!!!!!!!!!
It will drop before christmas, although I don’t know if I would pay for gas money for a compass and +1.0 megapix.
Check you’re stats, it’s not $700 it’s $699
-Dan Hesse
Your?
No, you are stats.
lol
Absolutely. The .14% difference between $699 and $700 is all the room I need to fit it into *my* budget.
More like 3G$, amirite?
lol I’m not going to lie. I wish I would of thought of that first. Thats going to be everywhere in no time!
I like how you combined the three words am, I, and right into one concise word
That is absolutely ridiculous pricing! You’d think that AT&T and Apple would want to get rid of the old hardware and get the new better performing device into the hands of as many people as possible.
Quite simply this is bullshit!
I’m not sure Apple and AT&T have the same goals in mind with this product.
I’m fairly certain that Apple and AT&T have an almost fully mutually exclusive set of goals regarding everything at this point.
ROFLMAO!
Yea, okay, what the fuck ever, amirite? This isn’t even a massive overhaul or a whole new iPhone, this is just a slightly upgraded version of the 3G, the main upgrade is the 3.0 OS. In other words… the 3G S is kind of disappointing, the 3.0 OS was badly needed but not exactly “Wow! Never seen that before!”, and they’re charging a shit ton why again??
Ridiculous. Even for Apple. I can’t wait until someone gives an explanation, just so I can slap them with a rolled up newspaper.
what’s a newspaper?
Get your newspaper out –
In Cupertino, it’s called ‘RDF’ – reality distortion field.
It is because Steve Jobs says it is.
FULL PRICE FOR UPGRADING ON 6/19 – NEW PRICING ON JULY 12TH
THERE IS GOING TO BE A HUGE UPRISING/UPROAR REGARDING THIS
PEOPLE WAITED IN LINE FOR HOURS FOR IPHONE 1.0. THEN HOURS AGAIN FOR 3G – AND WERE ALLOWED TO UPGRADE
NO REASON WHY CURRENT USERS CANT UPGRADE ON RELEASE DAY
HOW DO WE START PETITION TO ALLOW THIS
I LIKE CAPS LOCK TOO.
i pRefEr tHE GRatUitOUs usE of rAnDOm caPItaLIzaTioN. IT SimuLtANEoUslY eNTeRtaiNS aNd EnRAgeS The rEADer.
That’s Funny But I Can’t Stand It When People Capitalize Every Single Word.
I’m not sure, but I know step 1 is to turn off your capslock.
YEAH, BUT CAPS LOCK IS THE ONLY WAY WE PISSED OFF FOLKS CAN COMMUNICATE.
IN CAPS.
WE COULD ALWAYS TYPE LIKE THIS.
I A M R E A L L Y M A D.
CAPS LOCK IS CRUISE CONTROL FOR COOL.
I’LL SIGN A PETITION.
START A TWITTER OR SOMETHING. I’LL SIGN THE BASTARD.
Good luck with that. I doubt AT&T really cares if you “start a Twitter”.
What is wrong with you people?? (I’m looking at you, CAPS LOCK MATT!) You bought a $600 iPhone 3G for only $200 in exchange for a promise to use it for two years. (They call this a “contract,” a term you appear not to be familiar with.)
Now you want to renege on your promise, and you are outraged–OUTRAGED–that they won’t double-subsidize you for two phones at once?
Has proud America degenerated into a mush of infantile whiners? Take some fracking responsibility: you are probably the same people who drop your phone in the toilet and then try to get it replaced under warranty. Show some backbone, people!
Btw, the reason you could upgrade last time was because the original iPhone was sold at full price ($400) with no subsidy, no contract.
Most 3G owners are available for special pricing until they become “upgrade eligible”. For me, it was 399 (3G), 499 (3GS 16gb) and 599 (3GS 32gb). I’ll become “upgrade eligible” on the year anniversary of getting the 3G.
Seems like it’s based on how far you are into your current contract:
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 03/26/2010.
• $299.00* — 8GB iPhone 3G (black)
• $399.00* — 16GB iPhone 3G S (black or white)
• $499.00* — 32GB iPhone 3G S (black or white)
What about for people like me who purchased an 8 gig iPhone yesterday… how screwed am I?
Any advice for me?
take it back, you’re still in your 30 days…
I feel like an idiot for not waiting one more day; that’s what you get when your old phone was a Razr!
I’ll be stopping by the apple store after work, and be on the phone with AT&T customer service on the way there. Should be a fun Monday evening.
the 30 days does still exist?
You are an idiot simply for buying that crap, one more day or not.
Hey you all don’t get it, I had a dream to get 32GB on my iPhone. I can’t up grade to a 3GS tell I’m eligable. But besides you kinda get a New iPhone on June 17, so quit wining. This is why apples great because the give you new software without you paying for new hardware.
If you bought it literally yesterday…
First: did you not know about WWDC today? It was pretty dumb to buy a phone yesterday.
Second: You can return the phone. There is something like a mandatory 3 day period where you can return the phone and pay for only the airtime/data you used.
I knew about the WWDC, just not enough :/
I will be returning the phone.
Had you not logged onto the internet in the past week? :D
No need to return, just point out the updated price and they’ll put a credit on you account.
Seriously, I’ve been following things and I went into an AT&T store last month just to ask what they knew and the salesman sold me a 3G telling me not to worry, that the new video features etc would come out on an OS update. I seriously carried around a crappy flip phone for 2 years waiting to get an iPhone when video came out and now I am 6 days past the 30 day mark to return the phone. Add to that… as a new customer I have to pay $399 on top of the $300 I just spent on the 3G to get the 3GS?! I switched carriers and everything. I called the store I got it at today and asked them why they were assuring people that the 3G would have a push for video when it wasn’t true and he said they were going by what they were told – and I asked who told them that? Do they have a letter from Apple telling them that so they could tell customers that to sell phones? At that point he then back pedaled and denied having ever said that to any customers.
AT&T sucks.
Kepp your 3G…update to 3.0 software in a few days…jailbreak your 3G…now it does whatever you want it to…ta dah
I had a very similar issue. I had a Verizon/WME phone for the past 4 or so years along with a 60gb iPod video. I wanted to get a phone that actually responded and could converge my two devices. iPhone has always been the answer but I was waiting as long as I could before making the leap to get a more refined model.
A few months ago I purchased my 16gb 3G. I was assured there was not a 32gb model in the pipeline in 2009 (although I only really asked in the next 6 months). I was told they would have known about it in January if new hardware would be released.
I also had a problem with lack of MMS which I told would be available in the next major software upgrade. The first statement about new hardware was a complete lie, and the second statement, while true, is a feature not supported by AT&T.
This was an AT&T rep in an AT&T store! This was not Apple although in hindsight I wish I would have traveled the extra distance to go to one of their stores.
So now I have a brand new phone that I paid $299 for shortly before a significantly better model is released at the same price point. AT&T could have had a happy customer and a good sale if they just let me wait a few months… Instead, they chose to lie to me to make a quick dollar and I am now a very unhappy customer.
I hope the competitors can produce a phone that I like as much as this (or Apple can ditch AT&T), because it is certain that I will buy out my contract and go elsewhere if AT&T does nothing to resolve their wrong doing.
Sorry for the rant… but I had to get it off my chest. The new phone looks great!
oh… you are dumb… in more ways than one. and by that i mean you are not smart. and by that I mean you must be retarded. keep your head up. there’s someone out there that feels sorry for you… in more ways than one.
oh… you are dumb… in more ways than one. and by that i mean you are not smart. and by that I mean you must be retarded. keep your head up. there’s someone out there that feels sorry for you… in more ways than one..
I bought my phone on May 9th… I am able to exchange it for the new one because it falls within 30 days of when they announced the new iPhone release. Some people were I work has had luck with the contract by requesting an Upgrade Waiver.
There is a 30 day return. Go return it now and wait for the new one.
I don’t think you have a full 30 days. That’s the APPLE period for returning the PHONE. I think you have something like 14 DAYS to cancel a contract with ATT. At least, that’s what it was when I bought a 3G as a new customer in July 08. YMMV.
I just checked, here’s the text, looks like you DO have 30 days to cancel with ATT.
“Terms Applicable to AT&T Nation/FamilyTalk® GSM Plans: Credit approval required. Subscriber must live and have a mailing address within AT&T’s owned network coverage area. An early termination fee of $175 applies if service is terminated before the end of the contract term. For service activated on or after May 25, 2008 the Early Termination Fee will be reduced by $5.00 for each full month toward your minimum term that you complete. If phone is returned within 3 days, activation fee will be refunded. If phone is returned within 30 days in like-new condition with all components, early termination fee will be waived. All other charges apply. Some dealers impose additional fees. iPhone returns will be subject to a 10% restocking fee, except where prohibited.”
It’s a requirement by law for all carriers in the US that they give you 30-days, just like the requirement by law that they deduct $5/mo from your early termination fee for contracts after 5/2008.
why in god’s name would you have done THAT?
worst possible timing, except for I guess this morning at 9:00am.
oh you’re screwed … I mean really. Take it back, cancel your contract quick and then start it up again to get 3GS – heh!
You’re fine. Go back to the store. You can either take $100 off the price or get exchange for a 3G S on June 19th.
What the hell!!!! I was going to sit in line at least a day before for this…. This is fucking crap! I will NOT be upgrading any time soon…. Let’s see what Verizon does when they get the phone in 2010, maybe the won’t be greedy bitches…. Congratulations AT&T you’ve just lost a loyal customer….
Yeah, good luck with Verizon not being greedy. They are the same company that won’t let applications on your smart phone access the internal GPS because they want you to pay $9.99 a month for their GPS service.
Verizon will make AT&T look downright charitable. The only reason that people are hoping that Verizon will get the iPhone is for better coverage. Personally, I hope that Sprint gets it since they also have good coverage but without trying to rob you with their fees.
Oh yeah, Sprint doesn’t charge any fees. Now we just have to pay $100 a month for unlimited internet and texts.
Apple decides the pricing of their phone, not AT&T. Believe me I’ve talked to representatives of both companies many times about my phone, AT&T only really has power over service related pricing. But the hardware itself is priced by Apple, so go ahead and wait to buy it from Verizon, but it will be the same pricing.
Also, phones are always much more expensive when you are not due for an upgrade.
“AT&T only really has power over service related pricing”
isn’t upgrade pricing service related? what is your argument?
and what exactly do you think qualifies as “due for an upgrade?”
there’s a better product out, and I want it – for the same price as a new customer, considering i’ve been paying AT&T for my iPhone plan since the original iPhone was released. how’s that for “due”
am i alone?
The price that Apple charges for a new subscriber and an upgrade is the same. The difference is that AT&T subsidizes for new subscribers because they know you’ll be paying them $100+ per month for the next two years. Do you think its AT&T’s responsibility to buy you a new phone every time a new model comes out?
I really think its Greed on both sides. Apple prices there phones higher cause Att is subsidising the costs. And ATT wants to limit phone upgrades cause they already have you in a contract they dont have to do anyone a favor at that point.The 2G was not subsidised and it got reasonable after a price drop.
you can pre-order this phone online and it will be shipped to your house. Stay warm dry and in your bed if you prefer. Waiting in line this year is for the adventurous and the uninformed …
@Jason I actually have a similar situation. I’ve been looking around and AT&T’s site doesn’t have any listing for criteria that would qualify existing customers for a lower price point on the 3GS. I’m hoping that something will be announced soon.
yeah; if I return my phone, since it sounds like I can without hassle, does that mean I am locked into a contract and then can not upgrade to the new iPhone?
um.. it’s cheaper to quit your contract and starting a new one!!! ATT is retarded~!
I think I might just do that….
No, you cant do that. there is a waiting period of like 60 days after you cancel your account before you can be eligible for the discount. I was just at ATT.. but lets do something about this.. that petition idea sounded good!
I just did the numbers and yes, it’s cheaper to cancel the contract and start a new one. Why would I do that again? I want the 32g, but NO WAY am I paying $699 for a slight upgrade to a phone I love now. Just not worth it. I can gather from the negative feedback in the blogs that there will be no shortage of phones on opening day.
Did you really just imply that Verizon might NOT be greedy? That’s funny.
Damn AT&T
AT&T is raping its current iPhone owners.
The 32 GB 3GS iphone sells for $299.
But . . .
AT&T wants to charge $699 for the 32 GB 3GS iphone for current folks who have AT&T contracts for iphones.
These folks are rapists.
I’m a loyal Apple stockholder and iPhone user, but I will not be raped by this company.
I have a mind to screw AT&T by dropping my contract, paying whatever outrageous fee they want and kiss them goodbye, then buy a “broken” 3GS iphone and use it with Verizon. I’m that irritated.
I’m on the phone with AT&T now, and get this . . . AT&T does not even know about the new iphones.
Yup.
No idea.
What a bunch of morons.
I hate AT&T.
Why couldn’t Steve Jobs have stuck it to AT&T and opened it up to working with Verizon?
I hate AT&T.
Jailbreak here I come.
Apple could not have a designed a better marketing campaign to chase loyal iPhone users away from Apple’s iPhone.
I lived before the iPhone came out, and I’ll continue to live afterward.
But I will not pay any money, or even continue to keep my AT&T contract to pay them money after I found out that AT&T is raping folks like me.
“Why couldn’t Steve Jobs have stuck it to AT&T and opened it up to working with Verizon?”
Because Verizon was being a bunch of A**holes and wouldn’t accept Apple’s terms….
glc–you’re an idiot. Raping is a violent sexual act. What AT&T or Apple (or both) is doing is definitely stupid, is definitely disloyal to loyal customers, but it is not rape. Grow up.
you don’t seem like the kind of person who handles the internet well.
Most of the people commenting here don’t seem to handle reality very well.
How is AT&T’s pricing on the iPhone any different than any other phone?
http://www.wireless.att.com/cell-phone-service/cell-phone-details/?device=HTC+FUZE(TM)&q_sku=sku3090226
HTC Fuze has a No Commitment price of $499 for a phone that comes with measily 512MB of storage. WHERE IS THE OUTRAGE?!
Oh yeah, no one gives a crap about updating to other phones mid-contract…except for iPhone it seems.
get with the times you idiot, the term “rape” has many different meanings….
I agree…
As long as we’re throwing the word “moron” around …
You can’t use unlocked iphones on Verizon, skippy. Enjoy your continued rapings.
To the person that states AT&T employees are morons. I work at an AT&T call center and they still have not given us any information regarding the new iPhone. All they have said is that we are not to comment until everything is worked out. So you might want to realize that the person you are talking to has a job to do.
AT&T does not set the price of the iPhone. We entered into a contract with Apple. Apple sets the price. If we drop the price, we would be sued for millions of dollars
shut up. That’s what Hitler’s henchmen said. “I had a job to do.’ Maybe while you’re jobbing you could do the blowjob thing.
When the 3G was released there was a special upgrade price for new customers who had bought an iPhone in the past 30 days or so before the 3G was announced. I don’t remember the exact details of that plan but I do remember reading about it.
I called AT&T and they confirmed that you have to pay the full price unless you are eligible for the early upgrade… I’m not until 7/12/2009 and I can’t get that price until then…
What is that date based off of? Two years from your current contract signing? I’m upgrading from the original iPhone and there’s no way I would pay $499.
I bought the original iPhone on the day of launch – checking the Apple “Buy iPhone” site it will cost $199 for a 16GB 3Gs (basically the listed price) along with a one-time $19 upgrade fee (and a new two year contract).
The plan cost is still the 3G plan price, about $10 more roughly than the original iPhone plan.
Thats weird, my date was 07/12 also.
It must have to do with the date the 3g was purchased.
That is the date that the iPhone 3G was released last summer. AT&T gives better upgrade rates after your 1 year anniversary. The difference last year is that when the iPhone 3G went on sale the first gen iPhone users had already passed their 1 year date.
I bought my iphone 3g last year same with my wife so its 2 iPhone 3g’s but mine was eligible for 7/12 and my wife is 12/27. How does we have a different date of eligibility to upgrade our phone?
The problem is that att is dying trying to keep up with the ever rising amounts of data iphone users require. Att is in serious need of upgrading their towers/technology/whatever to support it. You ultra iphone fanatics that will upgrade because you need the newest technology immediately are att’s only hope! But there are always price cuts for those who wait. Cross your fingers that att doesn’t get rid of their unlimited data plan or at least raise the price for iphone users.
You are exactly right Jordano.
Here in Berkeley, high-tech wonderland, phone service is awful, zero or one-bar most of the time with many dropped calls. It’s a great device except for the phone part.
Just want to note that this is the first time in history that Berkeley has been described as “high-tech wonderland.”
No, it isn’t.
The reason you have different upgrade dates is your line is the main line on the account. The primary line gets an earlier upgrade date.
This is ridiculous. I can kinda understand the rule for current iphone user, but I don’t understand why even the existing customer (with different phone) can’t just upgrade to new iphone 3gs? Aren’t they supposed to try to convert those users so they can start earning that $30+ data fee per month? I think it’s quite a stupid move on ATT’s side that they don’t allow existing customer with regular phone to upgrade to iphone with the “upgrade” price.
It’s not so much which phone you have as how far along AT&T’s subsidy is paid off. I’ve had my iPhone since June 29th 2007 back when it wasn’t subsidized and so can get the new model at $199.
I actually think it’s perfectly reasonable on AT&T’s part: Your monthly contract charges pay not only for service costs, taxes, and profits, but also reimburse the device subsidy (e.g, the money AT&T pays Apple on top of $199 for every activated iPhone).
finally an intelligent point!
Its not that hard to believe AT&T is making users wait until one year into their contract to allow them to purchase the phone at a subsidized price.
If you ware AT&T and were buying the phone at >$520 ($170 to manufacture + Apple’s Standard 33% margin), turning around and selling a phone that (gotta love it, but) taxes your network more than any other phone (ill admit, I get my moneys worth out of my iphone) for $199, it just makes business sense. They are only trying to recoup the money they spent to basically give you the phone at a loss.
To Ben, who commented above me, I hope you switch to Verizon, because you will be waiting until the earth stands still for Verizon to allow any phone manufacturer the ability to control its own software. If you don’t believe me, remember the days of the Alltel Razr vs. the Verizon Razr, and how much faster the alltel was? People were trying to flash the firmware because the Verizon product was UNBEARABLY slow.
Can’t wait until July 23 when I can buy my iPhone at standard upgrade pricing.
-Jud
Jud is right. Accomodating the iphone costs AT&T a ton of money. The price they charge the customer is less than what they pay to Apple. There’s a good amount of articles (and AT&T’s SEC filings) that can prove it.
You might want to head back to the drawing board with that math of yours. Seriously? $170 + 33% markup = $520 That would be a 300% markup.
You are right that AT&T pays Apple significantly more than what they are selling the phone to you for. The non-contract price is $599 so it is a good guess that they are paying Apple something close to that, although I think it is probably somewhat less.
They were more lenient with the O.G. iPhone upgrade because that one wasn’t subsidized. The 3G is subsidized by ATT and they expect you to grab your ankles if you want to upgrade again.
Meanwhile, OG iPhone owners who did not upgrade last year are just coming off contract.
You’re right. I can’t believe I forgot about that.
ALL YOU IPHONE PANSIES NEED TO GO AND CHANGE YOUR TAMPONS screw the iPhone.
Good one JOSH. If typing in all caps was cool, you’d totally not look like a douche bag… just saying.
ALL CAPS PROVES YOU MEAN SRS BIDNISS
maybe if you could type in all caps in German… then you would really appear serious! You could say something like “i like rainbow sherbet” and it would appear that you are starting WWIII
People, calm down. AT&T has been throwing 2 numbers around, one for upgrade, and one for “contract and commitment free” pricing.
I have an old v1 iPhone: You pay the subsidized cost.
I want a new 3GS and I have a 3G: You’re probably not eligible for upgrade pricing (which requires being either 12 or 18 months in to your contract, don’t recall which), and you pay $399 (16GB) or $499 (32GB), plus a 2-year contract extension.
I want a new 3GS, but AT&T is evil and wrong so I refuse to sign a 2 year contract: You pay $599/$699.
You people fail to realise that AT&T isn’t evil. They simply can’t afford to give you the discount price. It would cost them a TON of money to be “nice”.
and a ton off pissed off customers to not be “nice” seriously, if you were a CEO of a company, wouldn’t it be nice (steve jobs line) if people said, I love AT&T! then by word of mouth you get people to switch over. Happy customers, happy CEO cuz he has more new customers. Then you also wouldn’t have people that can unlock the “AT&T Exclusive” iphone for other companies… they would just join AT&T.
Ugg, listen. AT&T will make NO money to give us the upgrade price. But it DOES make money with new customers buying the iPhone 3G[S]. They don’t care how you feel, they just can’t do it.
I’m confused. I have a regular old Sony Ericcson and I’ve been eligible for an upgrade for 2 months. I’ve just been waiting. Does this mean I have to pay the full price, or is that only for people who want to upgrade before they’re eligible??
ok, i was still writing while that last post went up….Andy, i just pray you know what you’re talking about.
Justin, if you’re eligible for an AT&T upgrade as your post suggests, you’ll be paying the $199/$299 prices.
BTW, it’s not hard to find out what you’d have to pay to upgrade:
https://buyiphone.apple.com
Justin – no, all customers who have fulfilled their prior contracts are eligible for the ‘good’ prices – $199 / $299.
Your last phone has been paid for, and they will now generously subsidize a 3GS with a new 2 year contract. You get $400 off retail. People never look at it that way…
I purcahsed my 3G over spring break so about 3 or so months ago, do i have any chance of an upgrade
no.
Hey…At least AT&T will let you know when they are raping you and tell it to your face……Verizon rapes you from behind with no vaseline with all their hidden fees.
Never the less….Price is ridiculous.
Current 3G owners should check eBay and see how much 16GB 3Gs are selling for on the secondary market before getting too upset about the 3GS pricing.
Assuming your dog didn’t chew up your 3G, you should be able to sell it on eBay from around $500, more than enough to subsidize the upgrade cost.
Um…maybe I’m missing something here? Why would anyone pay $500 for a used 3G on eBay when they can buy a new 3G for $99?
Because the $500 phone from eBay doesn’t come with a 2 year contract.
Then how do you assume you can get a 3GS off ebay for less than the upgrade price without a 2 year contract? And for the better part, how do you sneak this past AT&T when you sign it onto your plan?
As a valued AT&T customer, you may be eligible for a standard upgrade on this line, with reduced equipment pricing when signing a 2-year commitment. Click ‘Upgrade Today’ to view your upgrade options.
Am I good? On the upgrade pricing, anyway? I’ll be dammed if I’m paying $700 for this shizz.
Well, Apple and AT&T are public, for-profit companies. They are not required by law or some moral guide to be altruistic companies providing welfare to iPhone users.
I’m guessing there is a reason for this pricing. In general, smart companies, and AT&T and Apple are smart, attempt to maximize revenue creating demand by pricing. The fact is, almost all of us with the iPhone 3G are not going to break our contracts over a not affording a small upgrade in equipment. I’m not. Also, a large percentage of people in line at the iPhone 3G launch were upgrading, which clogged the system, and made it a bad experience for lots of people.
So, without any knowledge of the facts, but a huge knowledge of marketing and pricing strategy, it appears that AT&T and Apple want to increase demand with new users. They have a fixed revenue stream from current users, who despite whining from the socialist fringe on the internet who think they deserve welfare from Apple, and outside of the lunatics, are going to continue using their iPhone.
I’ll bet that once the wave of new customers passes by, there will be aggressive pricing for upgrades. I’m patient.
I am an employee for AT&T and I can’t even believe this… from different rumors I have heard floatig around for a short period of time after the release the only people who will be able to take advantage of the $199/$299 pricing are new customers or customers that are currently eligible for an upgrade (ie: Customers who have had their contract for a minimum 18 months). But after that period of time passes (probably a month or so) they will allow existing users to upgrade just like they did last year. I don’t know how much sense this makes other than for the fact of being able to keep stock for new customers until they can keep a good amount of iPhone 3G S in stock. I don’t know how true this is, like I said… it’s just the word around the offices.
Crikey!
when’s dinner?
Brandon, am I okay in that regard? I’ve had the 1st Gen iPhone since day one.
See above post.
Thanks, man..
the original iPhones were NOT subsidised by at&t. they can’t pull the “you’re still paying us for your phone” excuse on us.
Quit grumbling. Slide your CC across the counter and sheepishly hold up your iPhone 3GS box to people on your way out.
Why you expect a Ford price for a Mercedes is a mystery. I don’t see anyone asking for Dell pricing on a MBP.
Hell you guys publicly state you would pay 3x more than what Apple is charging for OSX updates. Consider yourselves lucky Apple and AT&T aren’t charging $1200. I know you’d pay it.
Just go get it, and the first time you turn on the phone the pain will start to ease.
Amen!!
Wow. I was all ready to upgrade from 3G to 3Gs, but with this pricing, I won’t be. I wonder if they’ll realize how poor this pricing is, like they did for the previous iPhone, and change it. Remember when they started at $600, then dropped to $400 and people got ticked off? I kinda think this will happen again, when they don’t see enough people moving to AT&T. Maybe they aren’t still in a recession, BUT I AM!!
Looks 3G upgrade the OS3.0 for free so you at least get some of the new features or did I read this wrong?
http://www.apple.com/iphone/softwareupdate/
If you’re still in a recession, you should be trying to get the most value out of what you already own. Hold on to your phone for 18 months to 2 years and put the $199 in your savings account for next years model that will make this one look like crap!
Don’t just be part of the disposable society and throw your current phone away if it’s still good because something new and shiny came out. iPhones are meant to last at least two years – my two year old iPhone is still doing fine. Battery is starting to show its age, but it’s still perfectly usable.
The new iPhone OS 3.0 will speed things up for you anyways and bring new features (more new features for 3G owners, in fact, than first-gen iPhone owners). The iPhone 3G is still an amazing device. Be happy with what you have. And think how much better you’ll feel when you buy next year’s model and it’s twice as cool.
i agree with all of you
I have a first gen iPhone, and got quoted a price of $199 for a 16G black 3GS.
Yeah, because you’re eligible. That was 2 years ago that you bought the first gen.
It’s SO SIMPLE. 18 months into your contract, you can upgrade. This is very fair.
Seriously, AT&T just comes off terribly today-the tethering, the MMS, and now this?
Can’t wait for next years model, when we can all dump AT&T. Oh wait, yes I can wait.
I’m with you. I now pray that their exclusivity on the iPhone changes come this time next year.
It’s been a part of AT&T’s contracts for at least four years now that you are only eligible for subsidized upgrade pricing after 18 months. I switched to AT&T from a small local carrier four years ago chiefly because I didn’t want to pay $150+ for a very basic cell phone (there were no subsidized ‘upgrades’ at the time, and my old phone had been completely run into the ground). When I switched to AT&T, I asked the sales rep if I would run into that situation again – “I see that this phone is free today, but in a couple of years when it’s completely run into the ground, am I going to have to pay full price?” and he told me about the upgrade plan and the 18 month cycle. I think that once you could transfer your phone number between carriers, a lot of people started switching just to avoid having to pay full price on a replacement phone.
I don’t know what other carriers offer here, but AT&T has had this policy for at least four years. It’s no surprise. It’s just sad. I wish that we had honest pricing. I’d much rather pay the $599 (like I did for my first-gen iPhone) and have less surprises.
If Joe Smoe (Joe Schmoe?) had any sense, he wouldn’t want to be locked into a plan anyway and would buy his iPhone unlocked, selling it each time a new one emerged.
Of course that would also mean living outside the US
(Like I said – If he had any sense;-))
Seriously. I paid over AU$800 for mine, will sell it for between AU$500 and AU$600 and upgrade for about the same.
Total changeover is about AU$300
Yes. It has cost me AU$500 initially, but that is easily offset by the ability to switch provider when I wish for no cost and the fact that I have spent a mere AU$50/month to get all the minutes, texts and data I ever needed.
I got my iPhone 3g on 7/30/08. The Apple site tells me that I won’t be eligible for an upgrade until 12/31/09. Why would I upgrade then? I will just wait for the new phone next summer.
I can’t believe this is going to stick. It will cost them many sales because people will just wait until next summer for the new phone.
This is just standard pricing for subsidized cell phone upgrades… nothing mysterious or malicious (any more than usual, at least).
18 to 24 months after you buy a phone at the subsidized price you’re eligible for a new subsidized phone. So of course everyone with an iPhone 3G is having to pay more than “list” for a 3GS – today. Wait 18 months after you bought your last iPhone and you’ll most likely get the $199/$299 price.
Agreed. I hate that the long-time practice of subsidizing phones has tricked everyone into believing that these amazing bits of miniaturized technology is free / $50 / $100 / $200. In the earlier land-rush of cell phones, its how they got you in off the street – sign up today! Free phone! Then two years later when your phone was junk, you had to pay full price. Often around $200 for the same phone you had gotten for free. Once it was easy to change carriers and keep the same phone number, it became common to switch just to get a new phone with the discount rates.
Then the carriers finally added update plans where after a certain amount of time (mine was 18 months) you would be eligible to upgrade your phone for the same / similar discounts as new users.
It’s all a nasty game. I don’t like it. I really liked the first iPhone release because its price was honest, and you could set it all up from home. I had hoped it would change the industry, because it was (for me) a much better experience than previous phone purchases – no rebate games, no other price / value games, and no having to put up with the slow and unmotivated cell phone store employees! I was disappointed that with the release of the 3G, Apple buckled to the pressure to play by the established rules of the cell phone industry. It’s understandable why they did it, but it’s a shame.
Because now everyone’s complaining about these hidden prices. Hidden prices are the name of the game when it comes to subsidized phones!
Anyways, I believe it’s good practice to try to keep your iPhone for two years. First, that’s how long Apple has spec’d that you’d keep it and have spread out their accounting costs as such. Second, the changes they make every year are not that much. Why spend the money again? But if you wait for two years, you make a bigger leap, and save a little bit of money in the meantime.
And you’re also far less likely to run into situations like this with the pricing. My two year old iPhone is totally eligible for the lower prices (at least, according to my account page on AT&T earlier today).
It’s good to raise a fuss about this so that AT&T will (hopefully) change their minds. But it’s also wise to pay close attention to your contracts. When you’re getting your phone for $400 off of full retail price, there are always terms and conditions.
It’s a dirty dirty game, and one that we’re (unfortunately) stuck with.
Thank you for actually getting it and trying to educate the iPhanatics how the cell industry works. I guess when they all bought the 3G for $299 they failed to read the terms of their service plan / contract. Likely all these same whiners also are driving around in an upside down auto loan as well.
I would love it if Apple just stuck to their own pricing and iPhones were still $500+ it wouldn’t have nearly as many babies thinking all this stuff is free and shouldn’t cost a dime.
Today was a nice reality check that this is a FOR PROFIT industry. How’s that kick in the nuts feel now fanbois?
keep it for 2 years??? the first one is a paper weight by now and soon as 3gs comes out, Im gonna use the 3g to level out my sofa table
what are you thinkin?? keep up with the times keep it for 2 years??? the first one is a paper weight by now and soon as 3gs comes out, Im gonna use the 3g to level out my sofa table
“what are you thinkin?? keep up with the times keep it for 2 years??? the first one is a paper weight by now and soon as 3gs comes out, Im gonna use the 3g to level out my sofa table”
That makes you a retard.
Folks you cannot be serious?! AT&T is pricing this just like ANY OTHER phone upgrade. If you’re not within the ungrade timeframe then it costs you (what they say) retail price. It’s the same way with any phone they sell. I upgraded my daughter’s little Nokia freebee phone to a slider phone and at retail without being in the upgrade period, the phone would have cost me about $275. This is for a crappy little slider phone with an qwerty keypad. Verizon is the same.
They are a business.
Some of the problem is that there is a VERY devoted following of iPhone users (many of whom are also Mac users). Whenever Apple launches a new product, “we” tend to expect to be able to get the latest, and the greatest right away.
With Apple on a 1 year re-design schedule, and AT&T on a 2 year contract, these things conflict to a huge extent and Apple guys can’t get what we want when we want it.
I can have my upgrade (maybe) on 12/12/2009. Worse yet, if I do the upgrade on that date, it will lock me into yet another 2 year cycle! That means that when Apple releases iPhone 4G in June 2010, I have no hope of getting out of my AT&T contract until sometime in 2011 or beyond!!!!
I’m tempted to skip this iPhone 3GS all together, wait until June of 2010, and skip out of AT&T all together. I have to look at my own future here. By then, it’s possible that AT&T will not be the only iPhone option anyway.
As you say, “it’s business”.
“Whenever Apple launches a new product, “we” tend to expect to be able to get the latest, and the greatest right away.”
You can have it – you only have to pay for it.
Seriously – either you pay through the AT&T subscription, or you pay up front. No difference. One of the few times when basic maths skills would help in the real world.
don’t skip you know the iphone is the only way to go
Devoted = dumbass Mactards.
This is no different than any other phone. If you had a Samsung Blackjack you didn’t get to upgrade to a Samsung Blackjack II just because they upgraded the device. You had to wait until your contract was up to upgrade. Same thing for the iPhone. They allowed it last year because the original iPhone should have never been on the EDGE network and Apple pressured AT&T to allow original owners to upgrade immediately.
No. It’s because there was no subsidy on the original iPhone that customers were allowed to upgrade to 3G right away. I’ve still got an original iPhone and I can upgrade to 3GS now if I want to.
It has nothing to do with the phone, it has to do with AT&T recouping the first subsidy before letting you get another one.
As soon as my ATT contract is up, I look forward to getting an android phone. The Apple/ATT partnership has become rotten.
Hmm… The fine print says existing customers who want to replace their iPhone 3G. What about those that want to replace their original iPhone (non-3G)? It will be a new 2 year contract for those that purchased the original iPhone when they were originally released in June 2007.
I had the 1st one like you, I would have thrown it in the ocean by now!
All you people SIGNED A CONTRACT with at&t. if you didn’t know, that means that you agreed to these terms BEFORE you ever used an iphone. Get with the program.
The reason you were able to buy a 3G iphone for a discount if you had the 2G was the fact that you bought the 2G at RETAIL PRICE!
at&t is subsidizing the price for all customers who are eligible to upgrade, BUT allowing you to upgrade EARLY (remember you are still in a contract) and still give you a discount off retail price.
The Apple store still lists the $699 price (and, fortunately, is not functioning very well, timing out a lot). It’s that kind of pricing that may well drive me, an Apple lifer, to the Palm Pre. Shame on both Apple and AT&T.
Wow, the level of panic and vitriol is staggering. Do people not understand how subsidized phones work?
For those of you who bought the iPhone 3G at a subsidized price, the reason you could do that is because you agreed to repay that subsidy over the course of your two year contract. If you don’t complete that contract, then you haven’t finished paying for your phone.
For buyers of the original iPhone 2G… that phone wasn’t subsidized, so AT&T let them upgrade even if their contracts weren’t up. I guess no good deed goes unpunished, because now everyone expects AT&T to let them do it again with the 3G, and lose a ton of money along the way.
Calm down, people. All subsidized phones are prices in a similar fashion. With Verizon you have to complete 20 months of a 24-month contract before you’re eligible for a new subsidy. And if this really has you in a knot, do what a previous poster said and sell your current 3G on eBay. Or heck, just keep your 3G… it’s not like it’s suddenly obsolete.
It’s not just you guys, across the pond we have similar frustrations!
I can clearly see why people, none moreso that myself, are pissing their pants with fury at Apple right now – not to mention the telephone companies.
I’m in the UK and just 4 months ago upgraded my Nokia N95 on a £35 a month tariff to the iPhone 3G which cost me 100 buff… Now I’m stuck with an “outdated” phone and no hope of a free upgrade – tied in for another 14 months!!!!
WANKERS!!!!!!
I’m going into the Apple store next week and chaining myself to the counter until those money-grabbing bastards swap my 3G for free!!!!
why do you expect it to be free? does your cable company give you free upgrades every time something comes out, or do they charge you for them. apple puts out a new phone every summer…hello….i thought you guys were the smart ones, if you upgraded and wanted a new phone, wait for the summer. when you buy a 2009 car at the end of 2009, do you get to upgrade to the 2010 model for free? stop being socialists and asking for handouts
When you guys get a coupon for a discount at a restaurant or clothing store, and use it, do you expect to apply that same coupon every time you purchase something there for the rest of your life?
I’m sure we all want an iphone as cheaply as possible. But if you got an iPhone 3G, you used up the only coupon you get for 2 years. That’s how it works.
THANK YOU! See, you and I understand this, but why don’t all these other cry babies get it? If you are not due for an upgrade, the phone will be expensive. The BB Bold is $200 at upgrade price right now, but without an upgrade it is $450. thats the way it works!
my ass
what, specifically, does your ass have to do with upgrade pricing?
Agreed, I just posted the same thing. you are in a 2 year upgrade cycle, it doesn’t matter if you went to buy a razr you would pay 250 dollars for it. why all the idiot whining.
I don’t see how I used up my “coupon”… I paid FULL price for my iphone 3G back in February, and my wife’s too. AT&T said that I had to do it so I did. So AT&T didn’t “subsidize” my phone at all… I DID!!! So why can’t I get an upgrade price?
If you’ve had your account for awhile, just call ATT to see if you qualify for the regular upgrade pricing announced today. For example, I have a 16GB iPhone and ATT Customer Service said that I could upgrade to the new 32GB phone for $299 (plus an $18 upgrade fee that would most likely get waived if signing up in store).
Best bet is to call ATT customer service first.
i think you got your chained yanked!
I think what’s being missed in most of these ‘upgrade’ discussions is the path for 1G iphone owners. We didn’t get a $200 subsidy on our phones, so just like when the 3G came out we can upgrade for the ‘new’ price by signing a new 2year extension.
Sounds like what you were quoted and that’s what I expect. We didn’t get our use our $200 coupon within the last two years, so we’re eligible for one. Your talk with ATT is the closest I’ve seen to official confirmation, but hopefully that will come soon.
Just used the wizard at buyiphone.apple.com and it confirmed that my 1G Iphone is eligible for a $299 new 3GS. Yeah!
Of course it is, but you’ll have to upgrade your plan, too – at the rate of an additional $15 per month…
…for the exact same service.
No wonder they’re “letting” you upgrade for $299. Add the extra ($15 x 24 months = $360) to your purchase price. You’re out the door for $659 + tax.
Craig:
OF COURSE you’re eligible – your contract is up! It’s very simple, people. If you’re in the middle of a contract, you get nothing – if you’re at the end (you’ve fulfilled your obligations) – you get an ‘equipment discount’ or, put another way, a subsidized phone. Just like a new customer.
Justin: I’m not certain what the original iphone data plan was. AT&T charges $30 for unlimited data, which is totally reasonable since I’ve been running like 750meg – 1GB per month. If they charged less for the original iphone (it’s NOT at ‘1G’ – the Edge network it ran on is ‘2.5G’) then it makes sense because you couldn’t run nearly as much data through that thing at 100Kb/s.
It’s NOT the same service – a 3G phone can grab a LOT more data over the same time. That costs money, it’s not a charity.
I’m kinda sadened that upgrade fees are so high but I understand I have signed up for a 2year contract in april 2009 and I have to finish paying for my phone. What REALLY pisses me off is that the 3g price changing to f-ing 99$ and they still can charge so high for upgrading. I’d rather have $100 back and continue paying for my phone then blackmailing apple or att until they just giv me the whole company.
mac/apple/iphone fanboyz = :( :( :( frowny face