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February 17, 2009 2:29 PM PST

Return of the $99 iPhone 3G

by Rick Broida
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The mythical $99 iPhone has returned to AT&T.

(Credit: Apple)

Hey, remember the refurbished iPhone deal I wrote about late last year? Well, it's back! AT&T is offering the 8GB iPhone 3G (black) for $99. The 16GB model is available in black or white for $199. That's a savings of $100 on both models.

As before, you have to sign up for a two-year contract, and you get a warranty of "at least 90 days"--which I suspect means 90 days. (AT&T's site doesn't seem to have any specifics on the warranty--anybody know the deets?).

Of course, the price tag of the phone itself isn't what stops most people--it's the monthly nut. The bare-minimum service and data plans will run you $70 per month (plus another few bucks in taxes and fees).

Personally, I think it's worth it. Much as it kills me to write that check every month, I can't overstate how much I like--no, love--no, lurve--the iPhone. And, hey, the $100 you save on the refurb is like getting a month's worth of service free.

What do you think? Are you liking this refurb deal, or is the iPhone still too rich for your blood? While you're thinking it over, check out my six must-have iPhone freebies--a roundup of some of the latest and greatest free apps for the device.

Rick Broida, a technology writer for nearly 20 years, is the author of more than a dozen books. In addition to writing CNET's The Cheapskate blog, he oversees BNET's Business Hacks. Rick is a member of the CNET Blog Network and is not an employee of CBS Interactive. Disclosure. Deals found on The Cheapskate are subject to availability, expiration, and other terms determined by sellers. Follow Rick on Twitter at cheapskateblog.
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Add a Comment (Log in or register) (26 Comments)
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by robmarreel February 17, 2009 4:03 PM PST
I agree, the iPhone is well worth that monthly fee, but dropping the entry price by $100 probably isn't going to stimulate a ton of new sales.

Rob
www.exectones.com
iPhone Ringtones for the Business User
Reply to this comment
by PressAnyKey February 17, 2009 9:14 PM PST
I agree... The data plan is too high. Plus the virtual keyboard is tough to use for any serious emailing. I wish they could mate the Blackberry keyboard with the iPhone interface...
Reply to this comment
by Fantastipotamus February 18, 2009 5:57 AM PST
Yeah, the data plan is a pain, but considering how big your bill would be without it, it's really for the end-users benefit.

Of course, the alternative would be to drop the price on the data plan, but I don't see that happening. Pre-iPhone, the data plans were $40 for business / PDA phones, and $20 for non-QWERTY phones. I had an old AT&T branded 8125 that I used for several months, and that was $100/mo after taxes and all the rest of the obnoxious fees they tack on.

What this does indicate to me is an effort to reduce inventories on the current gen iphone by boosting sales, which apple always does before announcing a new version... Which is exactly why I'm not upgrading my 8gb 2G to a 16gb 3G right now.. and holding out hope for an upgraded one in the next couple months.

Keep hope alive!
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by skaorsk8 February 18, 2009 6:03 AM PST
I refuse to pay more than $15/month for a data plan, since it's for personal use. Call me crazy if you want, but it's true. And I think a lot of other people agree with me.

If my company was willing to pay ... that would be a different story.
Reply to this comment
by patrickpiteo February 18, 2009 6:08 AM PST
Yea but the phone can come with minor cosmetic damages.. Like scratches..
Reply to this comment
by homercles82 February 18, 2009 6:33 AM PST
If it works, who cares?
by blusky08 February 18, 2009 6:39 AM PST
IME, refurb phones suck!
They are often have cosmetic issues, sealing issues and general quirks. Plus, the device and/or battery may or may not give up the ghost before your contract period is up!
Bottomline: Saving a hundred bucks on the phone is nothing--it is the data plan that's the killer!
Reply to this comment
by rickbroida February 18, 2009 6:44 AM PST
For what it's worth, I've purchased a couple refurbished iPods, and they've been absolutely 100% like new. Can't say for sure if the iPhones will be the same way, but I think Apple's pretty good at the whole refurb game.
by WDS2 February 18, 2009 8:32 AM PST
I concur with Rick. I've purchased 4 iPods, 2 new and 2 refurbs from Apple. The refurbs were in perfect condition.
by Tombow February 18, 2009 7:52 AM PST
Who care how much you love the iPhone? You?re so blinded by your apple fetishes that you?ve invalidated your own arguments why this is anything but a rip-off deal. At $70 a month, you'd be better off paying for a brand new iPhone with a lower monthly plan and you'd still save significantly more in the long run. And best of all, you'll have a "brand new" iPhone - not a refurbished piece of crap. Seems apple can sell some of ya'll rocks and you'd still call it a gemstone.
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by fcz1 February 18, 2009 8:07 AM PST
I'll just reiterate what so many others believe. It isn't the initial cost of the device that prevents me from getting an iPhone, it is the $70+ a month thereafter.
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by rufustel February 18, 2009 8:10 AM PST
Tombow, you're missing the point: you can't escape the $70 per month fee. Making the iPhone an $840 per year "experience" (totally apart from them "more minor" hardware cost) ...
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by urisage February 18, 2009 2:29 PM PST
I haven't done it myself, but from what I understand you CAN escape the $70/month fee; it's just inconvenient, you won't get the subsidy on the device, and it's not supported by AT&T. Basically, 'all you have to do' is get an AT&T SIM card, get it set up for pre-paid/PAYG, and then pop the SIM card into the iPhone 3G.

http://www.tuaw.com/2008/09/13/confirmed-3g-iphone-works-out-of-the-box-with-payg

Pages 2 and 3 of the comments there aren't loading for me atm, so I don't know if something has changed since September - like AT&T actively going after people doing it - but hopefully not.

What's especially interesting to me - she was pretty much just using the data-only prepaid plan, which IIRC is $20/month (prepaid is, or at least was, cheaper than the regular iPhone data plan). That's really what I want out of the iPhone; if I've got the internet everywhere, and all the ways of communicating it brings, I'm not sure I really need a phone.

The PAYG plan probably isn't a good deal for people who want to use the phone itself a lot, but for those who want to use it to get to the internet anywhere + make a few calls here and there it could save up to $1200 over the course of the two years you no longer have a contract for.

Not sure how much the hardware would end up costing, but certainly for this group of people you'd still have hundreds.
by frenzy2223 February 18, 2009 9:05 AM PST
I?m a current at&t customer and have a Blackberry. It?s time for me to upgrade my phone and I was told by at&t that the $99 (8g) or $199 (16g) iphone deal was only for new customers who sign a 2 year agreement! The stated that current customers are not eligible to purchase a refurbished iphone at the $99/$199 price! Has anyone else been told this?
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by hafenbrack February 18, 2009 10:42 AM PST
Yes and it is a total line of CRAP. But you DO have to sign a new 2 year agreement, a whole new deal, not like a 2 year extension. It's like you become a new customer.
by frenzy2223 February 20, 2009 12:12 PM PST
UPDATE
I went on to my account with att today and it allowed we to purchase 2 iphone 3g?s for $199 with a new 2 year contract agreement (family plan)!
by WHYnow February 20, 2009 8:28 PM PST
I'm a current ATT customer and bought a refurb 8gb on the 18th for 99 from them, so yes you have to do it online.
by bsachs February 18, 2009 1:16 PM PST
I am under the impression that it is only for new A T & T customers and that exsisting customers cannot take advantage of this offer
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by nutjob February 18, 2009 2:13 PM PST
At $99 the 8GB iphone is still too much (total cost) except for people who have disposal income or are spending $$ to impress.
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by cfr0213 February 19, 2009 5:41 PM PST
I just got the $99 8GB iPhone and I'm a current customer. I had an available upgrade and extended my contract. I already pay the money for a corporate data plan so there was no difference in cost.
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by derek5L February 20, 2009 10:05 AM PST
AT&T are a bunch of crooks. I had three different iPhones. They are awesome. Apple's warranty rocks, but upgrading and renegotiating my rate plan is like pulling teeth. I switched to Sprint 3 months ago, sold my iPhone 3G 8GB to a 16 yr old kid who broke his blackjack 2. The dude paid $450. Now I am patiently waiting on the Palm Pre to make its debut. I already pay the Simply Everything plan to Sprint. My bill is now $113.84 per month. I was paying $181.22 per month to AT&T for the same thing. You tell me which is a better choice?
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by frenzy2223 February 20, 2009 12:14 PM PST
I still can't figure out what the deal with the warranty is! The att site says 90 days, but I have heard that apple will warranty it for 1 year! If someone has the aswer to this, please let me know!
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by njiacdolas February 22, 2009 8:04 AM PST
Hi i'm nicolas from lebanon, i want to buy an iphone 3G and i will pay cash so please tell me how
email: brook1573@hotmail.com
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by deepen05 February 24, 2009 7:49 PM PST
for all of you saying a refurb is crap? you have no knowledge at all. According to AT&T, refurb means it was returned within 30 days. so it could even be a phone somebody bought and returned the next day. thats basically brand new. i mean come on, who can really mess up a phone in 30 days anyway? I am about to get this deal. it will be about 70 bucks plus tax per month. which i know is a lot, but after using a moto slvr l7 on tmobile for the past 2 1/2 years i think its time for an upgrade.
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by tbennett39 March 26, 2009 5:56 AM PDT
I don't get it!! Someone who just wants to save a hundred dollars does not need an iPhone anyway!! If you are that tight you probably arent going to pay the 30.00 monthly data fee either!! N who wants a used phone??? I sure as heck don't!!!
Reply to this comment
by birdshake June 4, 2009 7:52 AM PDT
The data plan is also what kills it for me aswell. Come on AT&T! :(
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About The Cheapskate

The best things in tech are cheap. "The Cheapskate" scours the Web for great deals on PCs, phones, gadgets, and all the other tech stuff that makes life worth living. Send your own cheapskate tips to thecheapskate@gmail.com. Rick is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. Deals found on The Cheapskate are subject to availability, expiration, and other terms determined by sellers.

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