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Foxdog175 · Jun 8, 2009, 11:27 PM

I bought a 1st gen iphone the week they came out. I bought a 3g iphone the week they came out. It cost $300 iirc. Now, Apple wants me to pay $500 for the 3GS???

I went through the process and got this:

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 12/16/2009.

What does this mean? That I CAN'T buy a 3GS until 12/16/09? Or that I can, and at that time, it will be $300? Also, is the 2 year contract a mandatory add-on when purchasing the phone (if I purchased it now or in late dec)? What the hell is this bs? I don't care about at&t. I just want the new toy.

Can someone explain what is going on here?

ort888 · Jun 8, 2009, 11:30 PM

It's called subsidization. 99% of all phones sold in the United States by all of the carriers are subsidized, meaning that part of the cost of the phone is offset by your ongoing commitment to pay for the service plan.

The 1stGen iPhone wasn't subsidized so you were able to upgrade to the 3G with no problem... but when you paid $199 for the 3G, AT&T was eating $200 of the cost of the phone in exchange for your 2-year commitment. Now you are done with one year of your commitment and you have one year to go.

Oh, and...

http://forums.macnn.com/103/ipod-iph...one-3g-to-3gs/

Foxdog175 · Jun 8, 2009, 11:36 PM

Ok. So, regardless of when I buy the phone, do I have to sign with another 2 year contract - making the total 3 years?

Simon · Jun 9, 2009, 03:27 AM

You can also pay the $175 early cancelation fee and get the new 3GS for the standard $199/$299 price with a 24 month contract.

Rumor · Jun 9, 2009, 04:09 AM

AT&T says something similar for my second iPhone except the date is 8/19/09. Funny thing is: I did not buy it from them and it is an original iPhone. I cannot remember when I added it to my plan, but I am pretty sure it was after I bought the 3G.

kylef · Jun 9, 2009, 06:21 AM

You think that's bad? O2 released their UK price plans for the iPhone 3G-S on PAYG:

iPhone 3G 8GB - £342.50 (no change)
iPhone 3G S 16GB - £440.40
iPhone 3G S 32GB - £538.30

iPhone

Simon · Jun 9, 2009, 06:48 AM

Also O2's PAYG do not include tethering from what I understand.

kylef · Jun 9, 2009, 07:21 AM

Originally Posted by Simon

Also O2's PAYG do not include tethering from what I understand.

Yep, the only way that you'll get it included is if you buy the 02 Web 'n' WiFi Bolt-on (costing £7.50 per month to recollection). However, the SIMs that shipped with the iPhone came with 12 months free of this bolt-on, which I'm using right now. Over 3G

ghporter · Jun 9, 2009, 07:28 AM

Originally Posted by Foxdog175

What does this mean? That I CAN'T buy a 3GS until 12/16/09? Or that I can, and at that time, it will be $300? Also, is the 2 year contract a mandatory add-on when purchasing the phone (if I purchased it now or in late dec)? What the hell is this bs? I don't care about at&t. I just want the new toy.

Can someone explain what is going on here?

It means that you're not eligible for the $99/$199/$299 pricing on the new iPhone until 12/16/09. If you want one before then, you'll pay the unsubsidized "OMG that's expensive" prices. This "eligibility date" thing is part of your AT&T contract. And the subsidized price is contingent on a 2-year contract (that isn't cheap to break).

So the prices haven't changed, and actually the eligibility to upgrade your hardware hasn't changed. It's just that you've noticed it now. Getting expensive toys for not-expensive prices means someone else is paying some part of the cost, and they don't do that out of the goodness of their hearts.

Foxdog175 · Jun 9, 2009, 10:39 AM

Understood. Thanks for the info.

turtle777 · Jun 9, 2009, 11:02 AM

Originally Posted by ghporter

And the subsidized price is contingent on a 2-year contract (that isn't cheap to break).

"Not cheap" is relative.

The early cancellation fee is $ 175, and will be prorated over the life of teh contract.
So after 12 months (out of 24), the cancellation fee is "only" $ 88.

So, in essence, if you have 12 months on the contract left, the new iPhone 3GS will cost you $ 88 + $ 299 for a new 2yr. contract.
Note: you will most likely lose your phone number.

-t

ctt1wbw · Jun 9, 2009, 12:47 PM

Is the 3G iPhone suddenly that bad that everyone is bitching about the prices of the new one? Let it go, people. Use what you got and wait until the prices come down. I am sure the prices of the 3G iPhone came down after it was released, right?