iPhone 3G S pricing: Existing customers, beware

One of the most attractive aspects of the new iPhone 3G S is the pricing; $299 for the 32GB model and $199 for the 16GB model isn't bad. Even better is the $99 for the old iPhone 3G with 8GB. But beware; not everyone qualifies for the announced pricing right off the bat.

The truth is, these prices only apply to new customers, new lines of service, and contract renewals. If you're still under contract, including existing iPhone 3G owners, you're probably not eligible for the upgrade. AT&T claims that most iPhone 3G owners will be eligible for the announced pricing only after 18 months. However, you might still qualify for an "early upgrade price", which are $499 for the 32GB, $399 for the 16GB, and $299 for the old 8GB iPhone 3G--that's only if you can't wait the six or so months to get the new phone. If you don't want the two-year contracts at all, you'll have to cough out the full price of the phones, which are $699 for the 32GB, $599 for the 16GB, and $499 for the 8GB.

I bought my iPhone 3G in August of last year, and so I tried to see what price I would get when I tried to buy the latest iPhone 3G S. This is the screenshot of my online order:

The "early upgrade" price for existing customers

(Credit: Nicole Lee/CNET)

Notice that it says that my eligibility date is 04/15/2010, which is about a couple more than the 18 months stated. I've heard plenty of coworkers say their eligibility date is early December of this year, while others said their eligibility date is February of next year. It seems like there's some inconsistency as to when existing customers can truly qualify for the announced pricing. On top of that, it looks like it costs another $18 to upgrade at all.

Of course I understand that AT&T doesn't need to cater to its existing customers; we've already signed our souls away to them. This happens with almost all cell phone carriers, not just AT&T, and this is nothing new. But that doesn't change that it's just a little frustrating to know there are these little hidden annoyances that happen to us existing customers just because we gave them our business before everyone else.

(Additional information via Gizmodo)

[kingrah1]

does it show the rate plan for new customers IE: talk, data, texting?

[subie09lega]

All the plans have the same pricing as they were with the 3G. I just checked through the ATT site and that's what they have posted. I also preordered through Apple yesterday and it's the same info.

[Staszek]

I am still not sure why everyone is complaining about this? I remember when they were charging $499 for a Moto Razr if you were not eligible for an upgrade. As you stated in your report just about every single carrier does this. Infact Verizon is even worse, on most phones you get NO break until you are at the 2 year mark not 18 months.

This is nothing new, so why is it big news because its the same on the iPhone as every other carriers phones?

I think its because people are confused, they were able to upgrade their V1 to the 3g iPhone while paying less. I guess they forgot that those were not subsidized.

[kingrah1]

they need to have a 1year plan if they are going to make a new, barely better iphone every year, otherwise they should make a new one every 2 years that is as groundbreaking and advanced as the first one was

[pnoyryder]

Is it really a surprise to anyone that the new Iphone 3G S will not be as wallet -friendly as Apple has trumpeted to be? We all know that Apple products will continue to be out of the reach for the financially strapped cosumer even though their products are well thought out, attractive and just flat out fantastic. Hey, if it sounds too good to be true, it probably is. All i know is I'll keep my money where it is, with me and wait later around X-mas to find a better bargain.

[andrewrm]

It is just as wallet friendly as the last phone. You're just being held hostage by AT&T. You have a standard AT&T two year contract nothing new there. My scenario is pretty standard. You will always leapfrog from your phone. I have a first generation phone so I get the $199.00/299.00 pricing. Next year when that refresh comes I'm stuck in contract hell. By the time my contract is up I'll skip a generation. It's the standard for U.S. cell phone contracts.

[bartszyszka]

How much less than $99 would you like to spend on an iPhone? You can get a ****** LG Dare from Verizon if you'd like, but it's pretty much the same thing. $199.99 with a two-year contract, $269.99 with a one-year contract, $409.99 with no contract.

This sense of entitlement, borrowing money, getting things for free is what has gotten this country in the financial mess to begin with. If you can't afford something, save up for it or pick something else to get or go to college/improve your skills and get a better job so you can afford it. Nobody should be handing you anything for free and you shouldn't expect hand-outs.

[lolalol1]

^ Kurt, same with my family. 3 of my family members have the 3G which they signed up for last Dec., but we're forced to wait till Aug. 2010 for an upgrade to 3GS. I mean, I'm glad I didn't get the 3G, because it looked too similar to the last gen and there was nothing special to it. But this 3GS model, is something I've always wanted on an iPhone, but it sucks that I had to wait next year for it. It blows hard.

[newtman42]

I got an iPhone 3G last July at the non-subsidized price. I tried to ugrade to the 3G-S today, and it says I'm only eligible for full price, $699. ***?! I hate AT&T!

[kingrah1]

buy it at the store and tell them

You cant even upgrade nor purchase to the iPhone 3G s until the 19th, so how can you even request one.

[kurtthewurt]

You can pre-order the phone online. but I am having the same problem here. I bought my iPhone #G for $499 last November, and it says i'm only eligible for FULL $699 price. I'm confused AT&T!

[happicrack]

When is the Iphone 4g coming out......with the new and improved screen? I'll wait for that....I have 3g now.....pretty hard to swallow $400-$500 for a better camera with video.......I just wish they included the voice dialing with the software upgrade for us none 3G-S user's...

I dunno about anyone else BUT at&t qualified me for another upgrade next month and i upgraded my line with the iPhone 3G last year

[jnp1001]

I purchased my iphone 3G in July last year and this is what im getting on the Apple site:

You may qualify for a standard iPhone upgrade on 07/19/2009.

So I will wait to 7/19 to get my 3GS

[lolalol1]

Well, aren't you lucky? I signed up for AT&T last December and got the LG Shine, but I'm forced to wait until next August for an upgrade. POS.

[jleff]

So wait the iphone 3G came out july 11, 2008. And to be eligible for the lower $199/299 price of the 3GS you need to be within 18 months of the 2 year contract. So then anyone with a 3G, wont be eligible for the $199/299 pricing option until January 2010?

Please correct me if i am wrong, i am just trying to understand all of this?

Wow AT&T is really rewarding their loyal costumers. I was really looking forward to new iphone, even if the updates where minor, but now i don't $400 is worth a the few extras

[tluckman]

I don't see how any of this is surprising. It's all very standard for AT&T. Contracts are two years, so everyone's "eligibility" date will be different based on when they got their phone and signed the contract. The author's eligibility date is 4/15/10, which is 9 months from now. Well within that 18 month range. And the $18 fee is the same for any upgrade with AT&T, on any phone you would qualify for an upgrade on.

The only real issue here is the ongoing problem with two year contracts that you're basically forced to enter into to get the phones are lower prices.

[rockstarblech]

i think u guys should chill out...this should have been planned for? it only makes sense...
they know people want these...u would do the same thing if u were Mr. Jobs...come on? regardless whether u think its unreasonable. which is isnt...but as a business...its business.

[drbohner]

OR - you could add an additional line to a Family Plan (that's what we did). We rotate the latest and greatest phone every six months (our additional lines are staged every six months - so we have two years of roll-out). Dad, Mom, Boo and Zplat all get to play the lotter every six months to see who wants what's new or vote to keep the credit and wait. Since no one has determined they wanted the latest/greatest in the last eighteen months - we have credits for three new upgrades

:-)

[mysqlscott]

My suggestion is to find a friend with a 1st gen iPhone and offer to buy them a $99 3G iPhone or give them yours if they will buy you a 3GS iPhone at the lower price.

[Dekim99]

My upgrade eligibility date is 12/15/09...about 6 months from now. If I upgrade then, Apple (if history is any indication) will most likely release the 4th generation iPhone around this time next year, but since I only upgraded to the 3rd generation 6 months earlier, I will have to wait a year after its release until I am eligible to upgrade to the 4th generation. If I wait a year, then the 5th generation will be out, so somewhere along the line I have to decide whether or not to skip the 3rd or 4th generation models. It seems to me that Apple and AT&T could have planned all this timing and pricing better. It should be set up to encourage yearly upgrade with the release of each new generation. They would also be locking customers into a new 2 year contract every year which would also benefit them. I think most iPhone users would go along with that. At $299 I would do a yearly upgrade, but at $500 I think its not worth it and I can wait. They are missing out on additional revenue from existing customers by not ensuring that most will uprade their hardware each year. The high cost of data and text for the iphone must easily cover the subsidies.

[Dekim99]

One more thought on this...by making existing customers wait on their upgrades and not locking them into a new 2 year contract every year, they are giving the competition a chance to put out a more compelling option. While for me, I currently think the iPhone is the most versatile and fun phone available, it doesn't mean that it always will be. If I'm waiting for my upgrade eligibility and its nearing the end of my contract and a more appealing phone is released...I will jump off the iPhone ship just as easily as I got on it.

[Jonathan Zschau]

One thing that people have been suggesting is to sell their existing iPhone 3G to help to subsidize the cost. Remember, the $99 price for the regular 3G is with a 2 year contract. So you can surely get $99+ for new 3G without any contract. My suggestion: if your iPhone 3G is defective in any way (I recently wrote an article about this) take it in and get it replaced. You'll definitely have an easier time selling a new iPhone 3G than one that's been banged up a bit.

here's the link: http://cultofmac.com/how-to-get-the-most-from-your-iphones-warranty/11368

[jgdpsu]

I only got my iPhone 3G in January, but as I understand the terms of my iPhone contract...I'll be eligible for upgrade pricing 20 months into my 2-yr contract. When I had Verizon prior, it was 22 months.

I just checked my upgrade eligibility and I am eligible for a full discount in 10/2010 (20 months) and the upgrade now options for the 3GS are the same as stated in the article ($299/399/499).

[SuperEnchi]

I qualified for the discounted pricing immediately. The last phone I bought from ATT was the original 8GB gen one iPhone, when it first came out.

[Zippy-T-Pinhead]

This is just bad planning and a missed business opportunity by Apple and AT&T. I bought the first gen iPhone the second week it was out, in July 2007. In July 2008 I was able to upgrade to the 3G with no such "premium charge" insanity - I was eligible after a year for the upgrade. So now it tells me I'm not eligible until January 2010, unless I want to pay through the nose (incidentally, I was one of the original purchasers that paid through the nose to begin with when I paid $699 for the 1st Gen iPhone).

Apple and AT&T could have gotten another $199 and two years from me next month if they weren't such tools. But why the hell would I buy a new iPhone 3GS next January when, if I wait 6 months, I can buy the 4G (or whatever) iPhone in July 2010. I really don't need a compass and video phone that badly, but would have paid $199 next month if I was allowed. It's just bad business. There's a lot of that going around between AT&T and Apple - ever since this little incestuous relationship first began.

Morons.

[annannannanna]

I just talked to Apple and they said that I can not buy it full price even if I wanted to. I have to apply for a contract and only if I fail in getting a contract will I be able to pay full price. Does that make sense to anyone? Is the G3S being sold without a contract or not? There should not even be any talk of the $699 price if someone is willing to pay it, but you won't sell it to them.