The brand new iPhone 3GS has just been announced. It’s faster than the 3G iPhone, with all kinds of bells and whistles. I was a bit surprised to read that the 16GB variety will be sold for only $199, while the 32GB flavor will be $299. That’s quite a bit lower than the 3G when it came out.
But that’s just for new iPhone customers.
What about those of us that have, say, an 8GB iPhone 3G, and want to upgrade to the 16GB 3GS? Well, according to the fine print on the AT&T website, existing iPhone customers will need to shell out at least $499 to upgrade:
For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).
Wow.
So for $500, an existing iPhone customer can replace their 3G iPhone, which now only costs $99 new.
If I want to upgrade my current 8GB 3G phone to a 16GB 3GS iPhone, I’ll have to shell out six hundred dollars, and refresh my two-year service plan.
It would be cheaper to cancel my current plan, pay the $200 (or whatever it is) early termination charge, then buy a new 8GB 3GS for $199 and start a new plan.
How can AT&T get away with this?
I love tech, but don’t have as much time or money to spend on it as I’d like. I get what I need to sustain my Geek vicariously through other sources and pass it along to you.
{ 2 comments… read them below or add one }
Thanks for the useful info. It’s so interesting
Don’t blame AT&T. Blame Steve Jobs. Blame Apple. Whatever. Apple’s forced contractual obligations for the iPhone is unprecedented amongst other AT&T manufacturers. The iPhone’s incredible success has also pretty given them ultimate leeway in who dictates what terms with the iPhone. For example, I work for the company, and the representatives have the capability to make certain exceptions for upgrade eligibility if we deem it appropriate. However, the iPhone? We give you an early upgrade for the iPhone, we lose our jobs. Apple’s release of the iPhone is global, btw, and in Europe, there are no contracts. People pay full price for their phones, and use them on whatever carriers they want, so there’s no reason for Apple to delay the release of a new phone, and in the end, AT&T is a business. Are they going to lose the iPhone exclusivity? Hell no, that would be stupid. So they’ll release it, and dedicate iPhone customers can either pay the increased cost of an early upgrade, or they’ll wait like everyone else had to for upgrade eligibity.
My point? Stop crying. AT&T’s not doing anything that any other carrier wouldn’t do in return to have the iPhone contract. If you don’t like it, don’t buy an iPhone.