AT&T loosens its iPhone 3G S upgrade policy

AT&T received harsh criticism from some customers who wanted to upgrade to the new iPhone 3G S but discovered they would not receive the best upgrade price. However, the company on Wednesday changed its tune.

Saying it has been "listening to their customers," AT&T is changing its policy to allow customers who are eligible for an upgrade in July, August, or September to upgrade starting on Thursday at what it calls the "best upgrade pricing." The upgrade eligibility tools won't reflect the change in policy until Thursday, the company said.

If you qualify for the best upgrade pricing, you will pay $199 for the 16GB model and $299 for the 32GB model--these are the same prices AT&T will charge new customers signing up for a two-year contract. If you don't fall into either of those categories, you may be eligible for what AT&T calls its "early upgrade pricing": $399 and $499 for the 16GB and 32GB models, respectively.

Previously, early iPhone 3G adopters would have had to pay the "early upgrade pricing"--which had some customers upset.

AT&T will examine several factors to determine eligibility (PDF) including the amount of money you spend a month. For example, if you spend more than $99 a month on services, the company said you are more likely to be eligible for an upgrade after 12 to 18 months.

While this change is good news for those customers who want to upgrade, it does mean that they will have to go to a retail outlet and hope for an iPhone. AT&T has already sold all of its pre-order stock and said orders after June 12 will be processed in the next two weeks.

You can also try an Apple retail store if you're lucky enough to live close to one. If not, AT&T says you can order the iPhone from Apple's online store.

If you already pre-ordered the iPhone 3G S and find that you're now eligible for the lower price, don't worry, you'll be taken care of. AT&T said it would adjust the price of the phone when you pick it up from the store it was ordered from. If you bought it online from AT&T, it will issue a credit.

If you pre-ordered from Apple, it will issue a credit for the difference.

If you still don't qualify for the iPhone upgrade pricing, but really want to have one, you can buy a 16GB model without a contract for $599 or a 32GB model for $699.

Earlier on Wednesday Apple released iPhone OS 3.0. CNET also has a review of the new iPhone 3G S.

[SenorFrog]

Thanks Jim. I'll check the AT&T upgrade tool on Thursday but I'm pretty sure it won't matter and I'll still have to wait. Not a biggie since jailbreaking iPhone OS 3.0 will give me most of what I want with iPhone 3GS (video recording, tethering). I can wait a few months for the better camera and the compass.

[ikramerica--2008]

My Dad's account is only 8 months old (he got the 3G in November) and he was already listed as elligible for the "1/2 discount" price of $399 for the 16GB. And he has only the basic plan with no text messaging: 450 minutes, so that's under $100 a month by a great deal.

My guess is that it is also related to credit score because his is very high, but AT&T isn't going to come out and say that, not when having a bad credit score is a badge of honor to our current administration...

[USMCWarVet]

I'm not sure if credit score is a factor, but limiting who can and cannot purchase your new product has historically been a bad business venture, especially when they are already clients. Soon, Verizon will offer an iphone, and AT&T will lose a great number of customers to a more expansive network. Customer service means nothing when you are the only show in town, but soon that won't be the case.

By the way, with regard to your, "badge of honor to our current administration... " comment. I love my country immensely! If you don't, explore your freedom options and leave! I hear China has great opportunities these days!

[irueludruel]

I love my country a great deal as well but it does seem like the current administration goes out of it's way to look for tax frauds and other dasterdly characters.

[hankthedwarf]

I'm not an Apple-basher by any means (i own a Touch 2ndGen and a Nano 4thGen), but I think anyone who feels they MUST desperately upgrade right away from the 3G to the 3GS is pretty much letting the company play them for a fool.

[ikramerica--2008]

Some people want the latest greatest I guess. We just looked into it because my Dad's wife is going to get an iPhone and switch them to a family plan, and we were exploring all the options.

Ultimately, he was interested in the new one because it had voice command and he's old and would like that feature, but early reviews are that it's still a work in progress, so he's going to stick with his, his wife is getting the $99 3G as well, and then he'll revisit an upgrade at Christmas when his contract is over 12 months old.

[jcmark42]

I just got my 3G back in April so I guess there is no way I can get a 3Gs. It doesn't really matter since I don't have the cash for it anyway. So far the 3.0 update is enough to keep me happy.

[myles taylor]

Ditto on April. However, I'm happy with my 3G. While it'd be nice to have some of those new features, the 3.0 and 3G is still awesome.

[Voice_Of_Logic]

Pay attention kiddies.... this is how you lose customers. As a software developer, I have just been butt fvcked by AT*T. How the hell they can arbitrarily determine what months qualify for a upgrade and what dont is beyond all comprehension. If you want me developing for this new hardware then you need to be a bit more accommodating to those who JUST MIGHT bring you in more business - you dumb schmucks. I dont know what happens to these people but the higher up the elevator takes them to their office, the LOWER their IQ gets. I hope the churn is so bad that you beg people to come back. But you wont because this new generation of customer service says "Fvck you, customer. Thanks for the money. See ya". And we consumers are even bigger idiots for taking it.

[ATOBDavis]

What kind of anger issues do you have to have to use this type of 11th grade language on an online forum. Take it back behind the gym and have another smoke

[ittesi259]

Um AT&T probably doesn't give a crap one way or another about the App Store....which I'm assuming you might be referring too. If anyone cares about that, its Apple. And for a software developer....please publicly post how you are listed as an author of your apps because I have no desire to use your products after seeing your public behavior like this.

[Eddie-c]

Dear VOL, *you* are the one who signed the contract. Do you simply sign anything put in front of you without reading and understanding what it means and what you are getting into? You must be one of the many pathetic whiny little babies that feel entitled to the latest at the cheapest price "just 'coz". Bzzzt. Wrong answer, and you need your diaper changed. ;)

[billd888]

Every Cell provider I've ever heard of uses purchase date for determining who is eligible for an upgrade, it is probably the only really fair way to do that. Depending on how long you have been a customer you may get some breaks by whining, otherwise grow up.

[Goodbye Helicopter]

how can anybody who's not poor be so bitter about not getting the latest doodad at the lowest price?
seriously? how can people live with themselves? have you ever sold a product yourself?

[etiahwhite]

Honestly, I don't see what all the fuss is about there are only 5 new things with the new iPhone. Trust me I love getting a cell phone and I briefly toyed with the idea of upgrading...But then I realized that since they only did 5 minor (in my opinion) changes that I would rather wait till next summer...I anticipate that next year there will be some kind of worthwhile change. The same people that are pumped about this minor upgrade are gonna be pissed when they can't get the low price with next years phone.

[felipestrong]

@etiahwhite:

maybe next year, the people who have the new 3GS iPhone will be content enough to keep their 3GS's and pass on the new ones. similar to how a lot of people kept their 2G iphones after the iPhone 2G came out...

[hooterboy31]

I purchased my iphone 3g on 7-11-08 the day it came out. I called ATT and was told I had to wait untill 2-10-10 to get the new iphone at the subsidized price. I understand how this all works. My problem is in Feb. I have to choose wether to get the 3gs or to wait for the newer phone which will be released next summer. It is a vicous cycle and I just can't stand it anymore.

[andyengle]

*sigh*

AT&T sucks. Why do we have to deal with them to get an iPhone?! Come on Apple, come on Verizon Wireless -- work out a deal already.

[ender21]

@Andy

I know you're venting, but obviously Apple can't do anything while they're under exclusivity with AT&T, as much as many people would like.

And unfortunately, cell phone carriers' service is kind of like the cable companies. In one area Sprint is like gold and all others stink, and in other areas it's AT&T or Verizion that has their act together.

In my immediate area AT&T is actually pretty solid. But if I drive down the road a mile it's Verizon that has better coverage than AT&T. Sprint is an afterthought around here, unless it's Nextel. Until all things are equal for all carriers, leaving us with only features, pricing and customer service by which to judge them, there'll never be a consensus.

[wimpytx93]

Thank You! somebody who finally sees its just one big cycle. It's never gonna stop this is a minor upgrade. Video recording *** thats been available for jail broken iphones since gen 1, and from what iv'e hear the new camera is only a minor improvement. just make a wise decision because you guys will be complaining when you can't get the new iphone that wipe you're ass next year!

[layclerk]

I may be in the minority here, but I don't feel like I'm getting a raw deal at all. I purchased a 3G back in February, and I'm now upgrading to the 3G S tomorrow for the *somewhat* subsidized price of $399. Am I bitter? Not at all. According to AT&T, my upgrade eligibility date isn't until 07/01/2010, and I'd rather pay the extra $200 to get the newest phone early. I switched from T-Mobile in February, and since I had video recording capability on my previous phone, it's important enough for me to upgrade to the 3G S for that extra feature. One comment I have, though, in the whole debate over whether it's "fair" for current customers to demand lower pricing for early upgrades: AT&T is a for-profit company, and it exists to serve its customers, not the other way around. While I completely support the notion of contracts, the fact is that the customers vote with their feet (and dollars). I'm willing to bet that the day Apple severs its exclusivity agreement with AT&T with the iPhone, AT&T will be singing a very different tune about who gets to upgrade when, and at what price. Just my $.02 worth.

[brynn08]

raise your hand if you were one of the idiots that switched to ATT bcuz you wanted this phone ??? lol

[dlowe402]

I don't understand why AT&T is bowing to anyone on this. If you signed a 2 year contract then deal with it. Either wait till the contract is up for renewal or pay the extra. It isn't rocket science. I still have my original iPhone because I signed a contract for 2 years. It will be up in October and I might consider upgrading then. I have been a Mac user longer than probably 85% of the iPhone or iPod users but I don't need to rush out and buy the newest thing when it comes out. Do you people think that any other company would give you a break on a contract that you sign without a penalty. No way. Deal with it and quit sniveling.

[scostantino]

It isnt about AT&T bowing to anyone. There is an arbitrary and unclear early upgrade opportunity in which they changed last week to help early adopters. Unfortunately the 12-18 month early upgrade is base on something and they arent clear as to what, which is creating alot of confusion. For example, they say I am eligable, and I pay over 100 a month. But yet, I cant get the phone unless I pay the original early upgrade price.

So there are some factors that are deciding this and they dont let you know when you ask.

[brynn08]

@ dlowe402....i hate ATT....but i agree with you 100% brotha.....

[makom8]

If Att is going to make us wait well lets just wait till this att and apple lock up is over and buy the 3G s when it's offered by a different carrier. I bought the iPhone 3G the day it came out and was told I would have to wait till 12/12/09 or pay and extra $200.

[gbrei]

What about someone who purchased the 3G on May 5th of this year?

[makom8]

They told me that if you purchased the 3G in May that you would get the discounted prices.

[Bill4202]

I have to wait till December to upgrade. What I don't understand is why they don't want to get the money now (a bird hand hand is worth two in a bush) as some may change their minds or even go to another carrier. Also I have a person who is ready to take my old 3g and switch carriers to AT&T which would give them a new customer. Economy must be OK for them. I believe if it was my company I would allow anyone who wanted to upgrade to do so, but what do I know.

[ScottSchrantz]

I'm eligible in July, so I should be able to take advantage of this "early upgrade". But they wouldn't give it to me. Was anyone else successful in getting an early upgrade under this new policy?