subsidies

iPhone 3G owners who are ineligible for a subsidized upgrade to the iPhone 3G S will really enjoy this little find. During my quest to buy a 3G S today (I'm ineligible for an upgrade) I stumbled across a way to get the 3G S at the full subsidized price. The trick is you need to go to an AT&T store to get it done. Read on for the details!

How AT&T Decides If iPhone 3G Owners Get A Subsidized iPhone 3G S

After AT&T announced that select iPhone 3G owners would be eligible for a fully subsidized iPhone 3G S the Internet let out a collective sigh of relief. We were told that early adopters would get the better deal and that eligibility status would be updated on the 18th. Well the 18th came, and many 3G owners, including those who bought on day one, were disappointed.

So what's the deal here? How exactly does AT&T determine if you get a fully subsidized iPhone 3G S? Well I spent most of this morning trying to figure it out and here's how it works:

AT&T has posted a press release stating that it will offer the iPhone 3G S to iPhone 3G owners at the full subsidized price. If you're "upgrade eligible" July, August, or September, you'll be eligible for the $199 or $299 pricing of an iPhone 3G S. The change will not be reflected in AT&T's systems until tomorrow, so check your eligibility tomorrow. Those looking to upgrade at the new price can do so after the 18th online or at an AT&T or Apple retail store.

Read on for the details!

Stories of unlocking cell phones has been buzzing around in the news lately. Where commonly the practice of unlocking cellphones involves buying unsubsidized units cheaply, unlocking them, and selling them overseas in large numbers, iPhones are being purchased in an expensive unsubsidized state, and adding more value on top of them.

According to Oppenheimer analyst Yair Reiner, US carrier AT&T is subsidizing the iPhone 3G by $325, not $200 as previously suspected, placing Apple's total cost for each device at $525 for the 8GB and $625 for the 16GB. In addition, he also states that AT&T is paying Apple an additional $100 for each iPhone 3G that is sold in Apple Stores for unknown reasons.