AT&T talks iPhone 3G pricing

Update at 10:52 a.m. PDT: Information about monthly text messaging added

AT&T reaffirmed pricing for the iPhone 3G on Tuesday, noting that eligible customers can snag the new smartphone for a discount: $199 with an 8GB flash drive and $299 for 16GB.

AT&T will begin offering Apple's iPhone 3G at its retail stores beginning July 11 at 8 a.m. local time. AT&T is the exclusive iPhone carrier in the U.S.

Under the plan, the discounted price will be available to customers who have purchased any iPhone before July 11, who are activating a new customer line with AT&T, or who were eligible for an upgrade discount at the time of purchase. (Eligibility for an upgrade discount, the carrier said, is generally determined by amount of time remaining on a current contract and the payment history.)

To be eligible, customers must also sign a two-year contract. Apple had revealed the $199 and $299 pricing for the iPhone 3G at its Worldwide Developers Conference in June.

Those who are not eligible for an upgrade discount can buy the iPhone 3G for $399 for the 8GB model or $499 for the 16GB version. Both require a two-year contract as well.

Customers who purchase the phone without a contract will pay $599 for the 8GB version or $699 for the 16GB model.

The phones will come with the iPhone 2.0 software preloaded on the devices, which includes such business-class e-mail through Microsoft Exchange ActiveSync and the iPhone Software Development Kit for creating customized applications. AT&T will also offer its Yellowpages.com Mobile for iPhone on the devices.

There will be an activation fee of either $18 for existing customers eligible for an upgrade, or $36 for new customers.

AT&T is requiring customers to activate their phones in the stores, as the carrier looks to reduce the number of customers who may try to unlock, or hack, the phones to run on other carriers' networks.

AT&T is launching four voice and unlimited data plans for the iPhone 3G.

The AT&T Nation Unlimited plan will include unlimited anytime minutes for $129.99 a month, while the AT&T Nation 450 plan includes 450 anytime minutes and 5,000 night and weekend minutes for $69.99 a month.

The carrier is also offering its Nation 1350 plan, which includes 1,350 anytime minutes for $109.99 a month, and Nation 900 plan that includes 900 anytime minutes for $89.99 per month. Both of these plans include unlimited night and weekend minutes.

And for folks who engage in tons of text messaging, AT&T is charging $5 for every 200 text messages; $15 for every 1,500 messages; and $20 for unlimited text messages.

For more details on the device, see Crave's iPhone 3G FAQ.

[QuetzalcoatlUSA]

>>Under its offering, the lower price will be available to only customers who purchased an iPhone before July 11

So if iPhone 3G is not available until July 11, how do you purchase it before July 11? Sounds like the $199 bottom line is a bunch of BS.

[firemandan9]

I believe that means if you have already purchased a first generation Iphone you can upgrade to the second generation at the cheaper price.

[llewis417]

They are talking about people who bought the first iPhone prior to July 11th...

[kmatzen]

You can most certainly purchase a first generation iPhone before July 11. All this says is that if you are in the middle of an AT&T contract you cannot get the discount by buying the new phone unless they are offering you an upgrade in which case you have already invested your two years or whatever in their service. The statement regarding existing iPhone users is probably just to stifle complaints from first gen users.

[Coolone3000]

They are talking about people who bought the original 1st gen iPhone. Meaning that if you bought the original iPhone (at any time before the 3G iPhone launches) you are eligible to purchase the new 3G iPhone at the $199/$299 price even though you technically don't qualify for that price according to normal AT&T upgrade standards. Its a nice way to let us Apple iPhone fans continue to purchase iPhones every year without paying any more then necessary. Usually its almost a full 2 years before you can get the discounted upgrade pricing.

[ortizlgnd]

Ok, Now Im confused.... for the longest time now, the 3g iPhone was priced @ a SET price of $199 (8GB) and $299 (16GB). Now this article implies that that unless a person is eligible, they will have to pay $399 (8GB) and $499 (16GB). Whats the deal with that?

[roar08]

When/where did you see a "set" price? It was always "starting at" $199. And these prices aren't "implied", they're clearly stated.

[Coolone3000]

The price has never been "set" for every person. It has almost always been stated that those prices were for customers signing a new 2 year agreement or if you were eligible for an upgrade per AT&T upgrade eligibility requirements.

[Ronlap]

QuetzalcoatlUSA, The 'before July 11' clause is meant to cover anyone who purchased an original iPhone. If you purchased an original iPhone OR you are eligible for a phone upgrade, you get the fully-subsidized price. If you are NOT a member of this class, then you need to pay the second set of prices ($399/499). Anyone who wants a phone without a contract pays $599/699. I wonder if a non-contract phone would come or could be unlocked??

[togaphone]

I think this is great that you can get one without a contract. Check out www.iphonedownloadworld.com for more info about this.

[roar08]

The rule pertains to people who purchased an iPhone 1.0 (obviously this had to occur before July 11), and to anyone who purchases an iPhone 2.0 AFTER July 11.

Was it really this hard to interpret? Just read it is:

"If you bought an iPhone before, you're not going to get screwed."

"If you're not an AT&T customer, switch over and get a cheap(er) iPhone."

Oh and don't be surprised to find this is all inaccurate and subsequently revised over the coming days.

[Ataxia08]

The $199 price is for owners of the previous version of the iphone. If you are wanting to upgrade to the new iphone being released July 11th then that would be your price. Simple as that.

[Rijad11]

Yes surely simple it's also explained above but...
The plans weren't like this, because Steve Jobs while he was unveiling the iPhone 3G he dind't mention anything about these things, plus he said the prices will be 199 and 299 to make it more afordable for the people who couldn't afford to buy the standard iPhone.
So most probably there's sth wrong with this info...
Only time will tell.
All we can do is wait, 11th of July is in few Days.
We can authenticate all these things then.

[livecrunch]

I think it's still rip off! Especially for Canadians ! $113 for 2gb of data plan "com'on" Anyways great article I had some of my opinions about it on my blog if you wish to check

http://www.livecrunch.com

[Jeff Putz]

Who ever wrote this isn't making any sense. Does CNet not have copy editors anymore?

[johnleestudio]

Whoa! This is confusing as hell. Everything Apple has said since June 9 has implied that the $199 was a flat fee for the 8GB iPhone itself across the board. This article needs editing and clarification right now.

[walle23]

Man, what planet are you guys on? Do you not read the FINE PRINT? The lowest prices ($199-299) have always been for new lines or upgrades for current At&t customers. Never has Apple or At&t said the prices were a flat fee across the board, nor have they implied so.

[sgrmba]

Unfortunately, I spoke to an AT&T rep last week who actually stated that everyone, across the board was eligible for the lowest pricing structure if they have good credit. So those who were laboring under that belief were probably given the same bad info I was.

[teachlynns]

Thats not true! Apple has the $199 price listed right on their website...it isn't until you really read everything that you realize you'd being paying twice as much if you're an existing customer. It says right on the home page..."Half the price".

[nickelstar]

Ok, I bought an iPhone 1.0 the day it came out last year. But I just sold it so I can afford the new iPhone. I currently have a cheap little AT&T phone for use between now and July 11th. Will I still be eligible for the $199 price point? I'm hoping AT&T doesn't screw customers who recently sold their iPhones in preparation for the new model!

[nickelstar]

Well, I just got off the phone with AT&T and people who had an iPhone but recently sold it ARE eligible for the $199 price point. Whew! I was really worried I had made a major mistake by selling my iPhone early!

[Jim---]

Basically the phones are the exact same price as the iPhone 1.0 is today. Just now ATT has talked Apple into allowing them to subsidize the iPhone so they can lock more people into contracts. This information has been available online since the day Jobs announced the iPhone 2.0.

However, this is the first time I've seen the non-upgrade and no contract prices "officially" announced.

You might also be interested to know that the plans are changing... see the details here:

http://www.macnn.com/articles/08/07/01/att.iphone.3g.plans/

In short they are more expensive for the 2.0.

[QuetzalcoatlUSA]

Yes, I totally remember Steve Jobs taking the stage at WWDC, with that giant $199 behind him. What I don't remember is the asterisk next to it - nor the part of his keynote - where he disclaimed "but only for new lines or current ATT customers with an iPhone." If you're going to brag about the new low price, at least clarify that most people won't be eligible to purchase the phone at that price.

[jag0]

Wow have you ever owned a cell phone before? This is common practice with ALL the cell phone carriers (at least in the US.) You should maybe try and do some research so you don't look like a fool.

[Rijad11]

I totally agree with that.

[sgrmba]

I just spoke with AT&T about the eligibility issue and here are the facts:
If you are currently an AT&T customer with the 1.0 version of the iPhone, you qualify for the lowest pricing structure but must sign a new 2 year contract.

If you are currently an AT&T customer using another type of phone and are at least 1 year into your 2 year contract, you qualify for the lowest pricing structure but must sign a new 2 year contract.

If you are currently an AT&T customer and are less than 1 year into your 2 year contract, you DO NOT qualify for the lowest pricing structure. You qualify for the mid-pricing and must sign a new 2 year contract.

All of these eligibility requirements also include good credit with AT&T. If the customer doesn't have good credit, they do not qualify for the lowest pricing structure - period.

[registered user]

You guys are delusional if you think you can get an iphone for such a low price without any strings attached. Besides, all the tech sites have been repeating over and over again, that a 2 year contract is _required_ this time for the iphone 2.0, for new and existing iphone users. And no more prepaid activations either.

[Xtoo]

Interesting to see that everyone talks about the new iPhone price but no one on this thread talks about the increased pricing of the voice and data plans. As a 1st day iPhone owner I have to complaint. AT&T has increased the price of the plans by $15 dollars before all regulatory fees. Every current iPhone owner is complaining. Some say that the iPhone new pricing is what blackberrys have been paying. Considering that no "true" upgrades have been done to the actual phone, AT&T is cashing in on the demand but at much higher cost and with this economy that is not good. While most carriers are dropping rate prices At&T decided to raise them. Luckily, I already own the device and with the free 2.0 software upgarde my older 1st generation phone is and will be just as god as the new version. So keep that in mind if you are thinking on upgrading your existing iPhone.

[socketwiz]

>Considering that no "true" upgrades have been done to the actual phone, AT&T is cashing in on the demand but at much higher cost and with this economy that is not good.

Really? So you'll be able to get 3G and GPS on your 1st generation phone with the 2.0 software update?

[thelemurking]

The Samsung Instinct from Sprint on the $99 simply everything plan is a much better deal. Everything is unlimited, that's voice, data, gps, text!

[Xtoo]

Google maps on the older iPhone already give you turn-by-turn directions and works extremely-really fast over EDGE. 3G is the only true upgrade. I have lived without 3G for 12 months and I am sure I can "survive" - sure it would be handy sometimes but not all the time. And considering that I personally jump from wi-fi to wi-fi at home, the business, coffee shops, restaurants and so on the new iPhone 3G doesn't really make a difference. This time theREAL update are the applications and that is free as a software upgarde for all new and old iphones; remember that no processor upgrades have been made to the phone.

[ed4193]

ok, I have studied the ATT web site and read their promotional material. The only people who would pay the extra $100 on the phone are early upgraders. However, it appears that there are some hiddden costs that were not mentioned in the original announcement. Unlike the old unlimited data plan that included 200 SMS you now have to pay an additional $5 a month to get those same 200 messages. So really the additional monthly cost is $15 assuming that you use SMS at all. (or you can pay .20 a message). Have I gotten that correct?