AT&T iPhone 3G $199/$299 Pricing Policy
After our story about the AT&T subsidy for the Apple iPhone, it appears there remains an enormous amount of confusion about AT&T's iPhone 3G upgrade policy. We had previously posted a guide based on circulating rumors describing individual eligibility for the $199/$299 iPhone 3G pricing.
The main area of confusion relates to existing AT&T customers who don't currently own an iPhone. Some interpreted Apple's initial announcement of $199/$299 as an absolute price, not subject to qualification. Adding to the confusion is that AT&T sales representatives are giving conflicting information about whether or not individuals need to meet special eligibility requirements.
A recent InformationWeek story provides some official word from AT&T spokesman Mark Siegel. Siegel clarifies once and for all that current AT&T customers using something other than an iPhone will need to qualify to receive the iPhone 3G's subsidized $199/$299 price.
While payment history is one factor, "how long the person has left on the current contract" also weighs into the decision. Siegel refused to provide exact criteria since "there's a whole lot of variables, and [he] would hate to give specific criteria." AT&T's standard upgrade criteria, however, are published online and depends on a combination of how much your monthly bill is and how much time is left on your contract.
Siegel states that an "unsubsidized" price for the iPhone has not yet been determined and AT&T will announce that price sometime before the iPhone 3G goes on sale.
To Summarize:
- iPhone 3G will launch in the U.S. on July 11th
- $199 (8GB), $299 (16GB) represents subsidized iPhone 3G prices
- If you are currently an iPhone AT&T customer or not currently an AT&T customer, you qualify for the subsidized pricing
- If you are currently a non-iPhone AT&T customer, you will be subject to certain qualification criteria. AT&T's "standard" upgrade criteria are posted here but may be subject to change.
- If you don't qualify, there will be a higher unsubsidized price for the iPhone 3G which will be announced before July 11th.
- Speculation: While rumors have pegged AT&T's subsidy at $325, it seems very unlikely that the unsubsidized price will be this high ($199+$325). Historically, canceling your existing mobile phone contract for the typical $175 early-termination fee would automatically qualify you for any future subsidized phones. As a result, we suspect the unsubsidized pricing will be about the same as the early-termination fee (about $199+$175 for 8GB).
The main area of confusion relates to existing AT&T customers who don't currently own an iPhone. Some interpreted Apple's initial announcement of $199/$299 as an absolute price, not subject to qualification. Adding to the confusion is that AT&T sales representatives are giving conflicting information about whether or not individuals need to meet special eligibility requirements.
A recent InformationWeek story provides some official word from AT&T spokesman Mark Siegel. Siegel clarifies once and for all that current AT&T customers using something other than an iPhone will need to qualify to receive the iPhone 3G's subsidized $199/$299 price.
While payment history is one factor, "how long the person has left on the current contract" also weighs into the decision. Siegel refused to provide exact criteria since "there's a whole lot of variables, and [he] would hate to give specific criteria." AT&T's standard upgrade criteria, however, are published online and depends on a combination of how much your monthly bill is and how much time is left on your contract.
Siegel states that an "unsubsidized" price for the iPhone has not yet been determined and AT&T will announce that price sometime before the iPhone 3G goes on sale.
To Summarize:
- iPhone 3G will launch in the U.S. on July 11th
- $199 (8GB), $299 (16GB) represents subsidized iPhone 3G prices
- If you are currently an iPhone AT&T customer or not currently an AT&T customer, you qualify for the subsidized pricing
- If you are currently a non-iPhone AT&T customer, you will be subject to certain qualification criteria. AT&T's "standard" upgrade criteria are posted here but may be subject to change.
- If you don't qualify, there will be a higher unsubsidized price for the iPhone 3G which will be announced before July 11th.
- Speculation: While rumors have pegged AT&T's subsidy at $325, it seems very unlikely that the unsubsidized price will be this high ($199+$325). Historically, canceling your existing mobile phone contract for the typical $175 early-termination fee would automatically qualify you for any future subsidized phones. As a result, we suspect the unsubsidized pricing will be about the same as the early-termination fee (about $199+$175 for 8GB).
Top Rated Comments
(View all)
48 months ago
To Summarize:[/url]
Steve Jobs must be groaning. Apple has always strived for simplified pricing. Also, shame on AT&T for not having a pass-along plan for old iPhones.
48 months ago
Seriously, no one really knows what is going to happen until it is announced. Just leave it alone already. Yes, it is likely that AT&T is going to screw over its current customers like they have done for a very long time. That is business and if AT&T can make more money by doing it, they will and there is really very little we can do about it if it happens.
48 months ago
Seriously, no one really knows what is going to happen until it is announced
I think AT&T''s spokesperson probably does know.
arn
48 months ago
You mean to tell me that if buy one at an apple store, some apple rep is gonna tell you that you arent due for an upgrade on att. I find this increasingly complex... Arn, I know you will be the first one to let us know when we have official details of how the "buying/pricing/sales" process will actually work on July 11th. Until then, I can say that we have a demographic of likely Iphone buyers, who are very angry with the speculation, so att and apple need to get off their A** and give us consumers the answers we deserve. The right answers, that is.
48 months ago
they are going to lose a lot of customers over this. me, for example.
Apple and AT&T will be fine, trust me.
48 months ago
Last week I was sad that I couldn't afford to pay for AT&T's data plan.
But now I realize this means I don't have to try and understand this article.
Granted, I tried anyway, but since it doesn't apply to me I can give up before it gives me a headache!
So I guess there's a silver lining to every cloud.
But now I realize this means I don't have to try and understand this article.
Granted, I tried anyway, but since it doesn't apply to me I can give up before it gives me a headache!
So I guess there's a silver lining to every cloud.
48 months ago
Wait, so current AT&T customers who have been with AT&T for less than 2 years get treated worse than people who have never been with AT&T?
That's some bulls***.
That's some bulls***.
48 months ago
You mean to tell me that if buy one at an apple store, some apple rep is gonna tell you that you arent due for an upgrade on att. I find this increasingly complex...
great point. would they would need to install AT&T databases in all apple retail stores to double check?
too bad i'm stuck in a family plan on verizon....blackberry thunder for me in september...:apple:
Wait, so current AT&T customers who have been with AT&T for less than 2 years get treated worse than people who have never been with AT&T?
That's some bulls***.
but if you bought an iphone in the last month you can upgrade for free AND get the difference back...that makes a lot of sense for all the good folk here who knew about the 3g iphone (and are current AT&T customers) and decided to wait..
48 months ago
Wait, so current AT&T customers who have been with AT&T for less than 2 years get treated worse than people who have never been with AT&T?
That's some bulls***.
a company is giving incentives to new customers that are not available to current customers? inconceivable!
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