[Michael Johnston]

Continuing the flurry of depressing iPhone 3G news, Gizmodo has word from AT&T that current customers may not be able to purchase the device for Apple's advertised price of $199 or $299. According to AT&T, the iPhone 3G is being treated as any other AT&T device when it comes to upgrades. Customers who are not eligible for a phone upgrade will need to pay full price for the device. AT&T has not determined what the full price will be, but if you're a current iPhone owner, you're automatically eligible. Read on for the list of conditions which determine upgrade eligibility.

While this will likely not affect any current iPhone owners, AT&T customers who anticipated that they would be able to purchase the new iPhone based on the less stringent conditions of upgrading to the first generation iPhone may be forced to pay full price for the phone.

From Wirefly:

Not all Cingular/AT&T customers may qualify for a cell phone upgrade. At this time, AT&T Mobility allows these customers to upgrade with no upgrade fee when they commit to a new 2-year contract:

• AT&T customers who have had 24 months of cell phone service since activation of their cell phone or since their last phone upgrade.

Certain AT&T customers may be eligible for a cell phone upgrade even if they have been in their current plan for less than two years (24 months), if they commit to a new 2-year contract and meet these eligibility requirements:

• Customer has had a standard calling plan plus data services costing at least $68.99 a month but no more than $98.99 a month, and who has been in contract (and not had a phone upgrade) for 21 months or more, ?or
  
• Customer has had a standard calling plan plus data services costing $99 a month or more, and who has been in contract (and not upgraded) in the last 12 months.

A customer with a calling plan and data services of less than $69 who is 21 to 23 months into contract may upgrade for a fee and a commitment of an additional two-year service contract extension. No upgrade fee is assessed for any customers who are on a month-to-month agreement.
Note that AT&T upgrade eligibility may be further limited based on customer’s usage history, payment record, previous phone replacement, etc. Upgrade eligibility is solely determined by AT&T Mobility at its discretion.

[via Gizmodo]

[Zak Reiter]

I can hardly believe the audacity of AT&T. The business move makes financial sense, in the idea that they can harpoon more money, but still...

Uncalled-for.

[WatersWest]

This REALLY blows chunks!! I've specifically been waiting for the upgrade to 3G, and now I may have to wait another 5 months to actually complete the upgrade. That sucks! ... but here's an interesting question: What if I were to breifly register a 1st gen iPhone on my account (whether I plan on keeping it or not). Would I then be immediately eligible for a subsidized phone??

[Spoon]

Originally Posted by WatersWest

[...]
here's an interesting question: What if I were to breifly register a 1st gen iPhone on my account (whether I plan on keeping it or not). Would I then be immediately eligible for a subsidized phone??

That would probably work

[triped]

I think we all felt a vague uneasiness when we first heard of the Apple/AT&T partnership and this is one of the reasons why. AT&T has never understood that things like price and customer service are part of marketing. While Apple does, contracts limit them.

By the way, nice Death Star/ATT chop. I knew there had to be some elegant way to sum them up, parody style.

This sucks for me because i just dropped my phone not 2 months ago and it cracked the screen. i had an 8125 (two years old) and unlimited internet package. My g/f has an iphone and i might just try to get around this that way, otherwise, i'm going to raise hell.

I don't see the business logic with this. If I am in a current phone whatever it maybe that has no data plan. Isn't in At&t's interest to get me into an Iphone and racking up those Data charges. How is apple going to sell 10 million when a ton of people are locked into contracts.

I'm on the phone with AT&T right now. On hold, I should say. Trying to find some numbers on what this will cost. Chick I just spoke with said she thought it might be $399 to $599 for full price. Even if I did buy one, does anyone know if it works with EDGE also?


dang.

[Parrothedd]

You can log on to your AT&T account now and check your upgrade status. I believe there are multiple classifications of eligibility. You may be eligible for some discount if not the whole nut and not be aware of it.

They are treating this just like any other phone, so this is not really news. If you buy a BlackBerry and then ATT comes out with another BB 6 months later that you like better, you can't upgrade/get the cheap price. You have to pay full price. Same with the iPhone. If you got a new phone less than a year ago, then you can't get the cheap price, must pay full price. This won't matter to those who bought iPhones last year, as ATT didn't discount them and you paid full price. Only thing I didn't like last year was paying full price and having to sign a contract. Also it looks like if you can't upgrade and have to pay full price, you won't have to sign a 2 year deal.

[madscientest]

what if you decide to buy the iphone 3G at the apple store instead of an at&t store?

[Pearldrm7]

I am sure that Apple will have access to AT&Ts upgrade records. They are easily accessible through the online account information.

I am really hoping that my apple care plan will ensure me getting a free upgrade to a 3G.

Those are the prices no matter what. At least thats what Apple told me.

[iphonefreak11]

steve jobs said the most it will be for 8gb is $199 ...

[madscientest]

I didnt notice it at first, but i LOVE the death star AT&T logo. thats awesome

[turd blossom]

Actually I think it makes good business sense for AT&T to work the upgrades the way it does. For those customers that have another AT&T phone (not iPhone), AT&T has to recoup the the subsidy for the device (plus make a little profit). For the iPhone v1.0, the rules are different, AT&T is paying a subsidy to Apple each month. I'm sure they want everyone to upgrade to 2.0. They are collecting more money (data plan is $10 more and now $5 for 200 text messages) and I'm sure they are paying less to Apple than they would under the 1.0 iPhone.

[thebeast09]

It is good business sense, but it isn't good for the customer, Overall it will cost more for this phone than the old phone, even with the price cut. Data and phone usage will eat up that 199 price... they ned to give us(faithful iPhone users) another discount to even out the price a little bit.. make it more pleasant and appealing to purchase an iPhone..

[agent6998]

Seriously? Do AT&T and Apple know about the current economy? Oh wait, I forgot, it makes rich people richer and everyone else poorer, so I guess Apple and AT&T don't know that half of us can't afford $500 phones. I mean, you say you've dropped the price because people who haven't gotten the phone say it's too expensive. So you lower the price, yet people still can't buy it cuz it might be the same friggin price? Apple and AT&T, seriously... get smart. :\ This is a cry for help, if you can here me out there, you are stupid AT&T.

[imagine engine]

When can you upgrade to new hardware with AT&T? Here in Canada on Rogers network they allow upgrades to new hardware at subsidized pricing every 12 months. Though it's still not as low as new activation pricing unless the customer spends an unusually high amount over that 12 month period or waits till the end of a 3 year contract before upgrading. An example of this is that if the customer paid $49.99 for a Blackberry which retails for $599.99 then after 12 months they can expect to see the price for new hardware only drop between $100.00 to $150.00 from the full retail price. As for AT&T position customers wanting to upgrade to the iPhone at least are being given the option to purchase the iPhone even when they are not hardware upgrade eligible so they shouldn't complain.

Originally Posted by Spoon

That would probably work

But the activation fee may be greater than the upgrade fee...