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December 27, 2008 10:24 AM PST

The $99 iPhone 3G finally, kinda

by Natalie Weinstein
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Speculation that Wal-Mart Stores would sell a $99 iPhone was put to rest on Friday when the official announcement came out sans the double digits.

However, all hope is not lost.

AT&T is selling a refurbished 8GB iPhone 3G in black for $99 with a two-year service contract through Wednesday, New Year's Eve. That beats AT&T's previous price tag of $149.

OK, OK, it's not new. But refurbished is close enough.

The refurbished 16GB model in black or white is also being sold for a $50 discount with a $199 price tag. But that doesn't have the magical ring to it of $99.

(Credit: AT&T)

Natalie Weinstein is an associate editor who works out of Austin, Texas. She spent a decade as a reporter and editor in the newspaper industry before joining the CNET News staff in 2000. E-mail Natalie.
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by jharald December 27, 2008 12:10 PM PST
but this $99 is for NEW accounts only, those who want to upgrade can't.
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by jharald December 27, 2008 12:20 PM PST
just another note, if you are not on a family plan with members not ready for updgrades, you could just do a new 2 yr plan and cancel your old plan. my family plan still has some phones not ready, so i would have to pay a cancellation fee, etc. bummer.
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by December 27, 2008 1:15 PM PST
AT&T online only allows ONE iPhone per activition of new account. I want to get 2 iPhones - 1 for my wife & 1 for my son; preferrably refurb each. Any suggestions on how to accomplish this?
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by theonlybuster December 27, 2008 3:11 PM PST
Call once set up a contract for your wife. Call again and set up a second contract for your son.
Both have to have separate accounts. After the first billing period (month) Call and transfer one phone to the other's account. There'll be a small fee of about $25-$30.

AT&T SOMETIMES lets you do this without forcing you to pay a early termination end fee, other times they won't. It all depends on your service rep. I've done it three times. Worked flawlessly twice, The third time I was forced to pay an early termination fee. My advice cross your fingers and hope you find a service rep who's having a good day and is helpful, and be extremely nice to them, and again cross your fingers.
by pauldb December 27, 2008 4:40 PM PST
The service plan costs $2400.......who really gives a crap about $99 or $199 or $299 for the phone???? If you really think you are saving money with the iPhone any way you cut it you are loony. "My cell phone completes me, you had me at i........" Nothing from Apple makes economic sense.
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by bctexas December 27, 2008 5:15 PM PST
People like you confuse me. People like you complain about the price of something, and proclaim that everyone else that pays that said price is stupid. Because you think it's too expensive, it must be idiotic. News flash, the iPhone is hands down the most helpful and best piece of electronics I've ever owned in my life. I would pay $4000 a year if the service plan cost that much, simply because it is worth it to me. So go enjoy your blackberry like all the other drones.

And it doesnt matter if anything from Apple makes economic sense to you. They make wonderfully helpful products that are of very high quality. So that is priceless to not some people, but LOTS of people. I'd rather pay more for something and get something that has worth instead of buying cheap garbage and having to replace it in a year because viruses destroyed it.
by tomws December 28, 2008 10:32 AM PST
"So go enjoy your blackberry like all the other drones."

That's funny: an iPhone user calling someone else a drone. Pot, meet kettle.
by JwL3394 December 29, 2008 9:36 PM PST
"So go enjoy your blackberry like all the other drones."

In order to have a Blackberry, don't you have to buy the special Blackberry data plan? Correct me if I'm wrong, but doesn't it cost the same as the iPhone's, if not more?

I agree with pauldb for the most part. Why does the price of the phone matter by a hundred dollars when the plan for it is going to cost you an additional couple of thousand of dollars on top of your voice plan over a couple of years? Steve Jobs said in his WWDC 2008 keynote that he wanted to make the iPhone more affordable, and then cut the price down $100. People cheered. But then phone ends up being more expensive, with a price increase of $10 a month to the data plan. And bctexas, just stop. You are embarrassing yourself. If you paid $4000 more a year, you would be beyond idiotic. Your Apple fanboy-ness is just disgusting. And yes, I own an iPod touch, and I agree with you that the iPhone/iPod touch is one of the best, most helpful electronics I have ever owned in my life. But not priceless, and not priceless to a LOT of people. Don't be ridiculous. Please, stop.

Also, LOL @ tomws.
by teko00 December 27, 2008 7:26 PM PST
I had an accident with my iphone, it fell into the lake, when it was rescued ,a technician tried to help by cleaning the phone and all its componants, after studying youtube to find instructions, unfortunatly the screen got cracked,(youtube didnt mention that there were two clips as well as the screws when removing the screen) and the rescue didnt work, so the phone wont turn on only a small corner where the crack is ,there is a bit of light ,please help im devastated, is there anything i can do, Im on a telstra contract.
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by anthonysim December 28, 2008 4:08 AM PST
bctexas-

i think pauldb's comment is saying this... does it matter so much what the iphone's price is considering a service plan costs more in a few months than the phone itself?

this article is concerning price. that is what paludb is debating. its ok to talk about price here.
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by Hokulea December 28, 2008 11:56 AM PST
You love your iPhone? That's kinda sick.

I paid $20 for my Tracfone and pay $20 every 3 months for "service". No contracts or early termination fees for me. Of course, I use it solely as a personal communication device and not as an ear decoration. Sorry, I just don't get this whole techno-bauble thing. They are just pricey trinkets that lose their lustre after a few months and become obsolete shortly thereafter.

I'd rather watch a bird on the wing, or Venus and Jupiter emerge as the glow in the Western sky fades in the evening, than stupid commercials in HD on a widescreen TV. If I need entertainment I read a book or listen to NPR. Sometimes, I even put CD's in the microwave. My favorite music is birdsong or the sound of water flowing and falling. I can sit for an hour or more, mimicking bird calls, as I carry on a conversation in a language that has no words. Alas, I don't really understand what we are saying, but it doesn't really matter anyway.

The only apple products I own are sitting on the kitchen counter. There are two red ones and a green one. One or more may be gone by the end of the day. I did have the unfortunate experience of having to sit in front of a Mac Classic for a few years. I felt positively liberated when I started using Windows 3.11 on a second hand PC I bought for next to nothing.

Nowadays, I care more about apps than OS's or hardware. Linux distros are free and not that hard to learn. I picked up a used book cheap and taught myself. There are also lots of free Linux apps that run just fine on my six year old Dell. I do my typing in a simple text editor and my spellchecker is a well worn copy of Webster's Dictionary that sits prominently next to my CRT monitor. The two things I truly can't live without are virgin olive oil and dark beer. I don't scrimp on either.

Some of you probably think I'm out of touch with reality but au contraire mon ami. I'm fully immersed in it. Even in my dreams. Seems strange that my alternate reality is just simply the real thing. And no, it doesn't come in a can.
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by D3vildog699 December 28, 2008 2:43 PM PST
:)

All i can say is good post.

And... That some people seem to forget that these things are just that.. things.

Sure my ipod broke, my computer fell apart, truck died, and im low on cash, but im happy to be alive. Id rather sit and play guitar, read or write than any of then. While i do enjoy playing my xbox, or on my phone, not an iphone. Id rather be back home in the country, going hunting or something like that. Hell some of those memories got me through boot camp, not thoughts of being able to game again. Those aren't memories, and thats not living.

Living is going for a run in the cool morning, in the country and breathing FRESH air.

am i happy with the life i have now? Sure im happy to be fortunate that i can have what i do, could i be happier without my computer? without my phone? sure... i can write my short stories with a pen and paper, i can hunt, and camp. Id much rather go back to the country, and i will when i get out of college.
by oaktowne December 30, 2008 9:07 AM PST
You need to get over yourself You're just cheap and you think that what ever you say really matters. You give this impression of a lover of all that's great on earth and then you mention Linux. You are out of touch!! Cheap and out of touch go away!
by skhowl December 31, 2008 12:59 PM PST
Wow -- you sound so cool -- loved your post. Until you mentioned being liberated by Windows 3.11! What a joke. It doesn't come in a can but clearly grows in nature! :)
by GHynson December 28, 2008 5:32 PM PST
Paying $99 for a phone and then having to pay $120 a month for the service is far from a bargin.
I'm more then happy with my $50 phone and $25 a month service plan.
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by imotionsrt4 December 29, 2008 1:17 PM PST
$120 a month for service......where are you getting this from?

iphone service is $30 a month, the same as the blackberry.

The only thing that would make it more than $100 would be the 1350 w/roll over plan ($79.99), or the National Unlimited plan ($99.99)
by OBelmont December 29, 2008 3:09 PM PST
So is this for only new accounts or can i just upgrade from my old Iphone to this one?
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by john55440 December 31, 2008 7:24 AM PST
It's the AT&T contract, not iPhone hardware, that's the price problem.

Ditto for other brands of smartphones.
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by larryleobig December 31, 2008 5:14 PM PST
The price of the iphone is attractive. The Iphone is an attractive communication device. The Price of the plan AT&T offers is not attractive.
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by firstlovelastkiss January 11, 2009 2:24 PM PST
and what is the price of the iphone 3g without contract
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