Apple announced at the WWDC 2009 Keynote address yesterday that their third generation iPhone, iPhone 3G S will be available on June 19.
As expected they didn’t change the price of their new, faster iPhone. $199 for the 16GB model and $299 for the 32GB model for "new and qualifying customers".
However, if you are an existing iPhone 3G user then you will have to pay a premium over the subsidized pricing to upgrade, which doesn’t seem to have gone too well with them based on comments from some of our readers who are already ticked off as MMS and Tethering available won't be available at the time of launch of iPhone OS 3.0.
So I thought of going through it in details to give you a better perspective of iPhone 3G S pricing and to find out if it is fair.
iPhone 3G users:
There are two things that iPhone 3G users who are planning to upgrade to iPhone 3G S need to worry about. The pricing and the eligibility date.
Here is a breakdown of the three AT&T customer classes and associated iPhone pricing follows:
The pricing for new and qualifying AT&T customers are as follows:
- 16GB iPhone 3G S (black or white) will cost $199.
- 32GB iPhone 3G S (black or white) will cost $299.
The pricing for early upgrade customers (iPhone 3G owners):
- 16GB iPhone 3G S (black or white) will cost $399.00.
- 32GB iPhone 3G S (black or white) will cost $499.00.
No-contract, no-commit pricing (same for non-qualifying customers):
- 16GB iPhone 3G S (black or white) will cost $599.00.
- 32GB iPhone 3G S (black or white) will cost $699.00.
Existing iPhone 3G users are complaining that they can’t avail of the subsidized rates that is available to new customers.
The reason for paying a premium is because they had already got the subsidized rates when they bought iPhone 3G, which is essentially given by AT&T for signing a two-year contract.
It’s clear from the no-contract, no commit-pricing that AT&T attaches a $200 premium for each year of the contract, which amounts to $400 over the two-year contract.
This is where the eligibility date comes in if you check for early upgrade pricing at Apple's website at http://buyiphone.apple.com.
For example: If you had bought an iPhone 3G at the time of launch last year, which was July 11th then you will be eligible to upgrade to iPhone 3G S on 11th July and the pricing that you should see is as follows:
- 16GB iPhone 3G S (black or white) will cost $399.00.
- 32GB iPhone 3G S (black or white) will cost $499.00.
As you would have used your iPhone 3G for one year and hence compensated AT&T for a year’s subsidy which is $200, but you still need to pay $200 to cover for the subsidy of your iPhone 3G for the remaining one more year of your two-year contract.
AT&T will also charge $18 upgrade fee. I’m not sure why AT&T charges this fee.
If you are thinking of paying an early termination fee of $175 to get around this, please be careful as this could put you in the non-qualified customers category where you will have to pay $599 (16GB), or $699 (32GB) for a new two-year agreement.
Original iPhone users:
Original iPhone or first generation iPhone owners should be able to avail of the same rates as new customers as they didn’t get the additional $200 subsidy which was introduced with iPhone 3G. But I’m guessing they will have to pay revised monthly rates available with iPhone 3G S.
Is the early upgrade pricing for iPhone 3G fair?
This is how subsidy works so some might say it is unreasonable for iPhone 3G users to expect AT&T to offer them prices offered to new customer without completing their two-year contract. If they want the new pricing the only option iPhone 3G user should complete the two-year contract.
I tend to agree but AT&T could have at least offered a $50 or $100 discount as a loyalty reward for its existing iPhone 3G users as an incentive to renew the contract for two more years.
I might have not covered all scenarios so please feel free to drop us a line and we or our great readers will try our best to answer them.
Based on the above pricing, it will be interesting to see how many of you are planning to upgrade to iPhone 3G S, so please let us know in the comment section below.
http://www.petitiononline.com/3GSprice/
I was planning on upgrading but after seeing those prices I will just wait for the 4th generation iPhone and upgrade to that one I hate when companies take care of new customers but show existing customers any loyalty I have had AT&T for the last 4 or 5 years and 5hey never throw existing customers a break. So I will be skipping the 3rd generation
Unfortunately, that's how subsidies work but AT&T could have at least
offered a $50 or $100 discount as a loyalty reward for its existing iPhone
3G users.
I've been putting up with AT&T for far too long. Once my contract is up I'm done with both AT&T and Apple.
man digg this, I have been loyal to apple and this iPhone thing right from the jump. So needless to say I'm pissed. Ok let xplain. The first iPhone came out and I bought it on that day. Couldn't upgrade so I payd almost 700$ for it well 670$ but that's the same thing really. Believe it or not it was worth it to me, nex year the 3g came and I got that one, once again I choodnt upgrade bcause of the one not being 2 yrs so I pay the 450 kool. Now this new ones come out on the 19th I shood b gud fa the upgrade, but they really won't make it worth it to me, ok it's a little faster, mines hacked so I can tether, got a video cam and MMS so please let me kno y I'd upgrade? And how much whood I have ta pay? I'm juss knot seeing it. I'm very disappointed with apple and AT&T. Y whood they b so short with the ppl who made there products so popular.
what's interesting is that if you ll try to reserve an Iphone 3GS on apple site they let you chose a iPhone 3gs with 8 GB for 199 $ . I think they "forgot " to anounce the 8gb yesterday because they try to sell the iPhone 3g as many as
At least you don't live in the UK! It would cost me the equivalent of $789 to upgrade to the 3GS – It's a joke!
That's what I get for being a loyal customer I guess…
And another thing, I heard there was 99$ deal wat happen? And does apple even check out these sites. Like wat the iPhone community thinks cause there slow, everything the bring out new is at least a yr old and then half of it they don't even try ta make reality, if it's timing, juss hold off dnt put it out then say AT&T won't even offer it til wenever. WTF
I think its fair but that AT&T should be a bit more generous because iPhone customers are big spenders.
I have 2 iPhone 3Gs (me and the better half), both bought through an Apple store here in NJ, so locked to AT&T and jailed. A very good friend of mine bought hers *factory unlocked!!!!* about 2 months later in France from Bouigues Telecom for 44 Euros!!!! That's with a 2 year contract, but french law forces the provider to release the person from the contract if the person is moving abroad (i.e back to the good'ol US of A
). I'm definitely gonna get the 2 3GS, but this time I will wait for them to come out in France where I'll be able to get them *factory unlocked*, so I don't have to worry about unlocking anymore, just jailbreak and Voila!
Really not fair how we are made to go through loops, and pay all kinds of money, just because we are here (in the US). French law (that thing again) forces cell phone companies to unlock any phone after a time. So even Apple couldn't keep their iPhones locked very long, though they did try to weasel their way out of that one. No dice with the frenchies (the froggies?) get back in line, wait your turn or no french euros for you!
So I'll deal with no MMS, Super speed and no 3 megapixels for a while. As y'all know we already have video recording…
Excuse me for my language, but thats a load of crap. Phones only last a year. My iPhone's battery is terrible now. It loses 10% if i play like 20 songs =/. Do you think if i show them how my vibrate toggle button is really loose and the small signs of a crack arriving that they would exchange it for the 3G S for free? Last time my vibrate button fell off and they exchanged it for free(and they let me pick a different color =D )
the iphone battery life is poor, having bought a case battery just to survive for the day is B.S. ATT thinks they have the corner but i'm moving back to Verizon or T-mobile. thanks for looking out for us existing and used to be loyal customer.
F**C apple i just went to 3g about 4 months ago… Im pissed. Last time they said that if you bought the phone within a ceertin amount of time they would let you upgrade free of charge…
Apple is basically relying on new customers by allowing AT&T to do this because I doubt most of us current customers will want to upgrade now. And I was really looking forward to the upgrade until I realized I upgraded from the fist gen iPhone to the 3G earlier this year, meaning I'll have to pay at least $599 umm… for a compass?? Hey Apple, see you next year… or two.
I have an iPhone 3G too and it doesn't have any of the wear and tear that
you have mentioned so I don't agree with the statement: "Phones only last a
year"
As for the battery, it has always been one of my biggest cribs about iPhone
3G from the beginning but that also has to do with the usage. But I don't
think it has deteriorated.
I think features like faster processor and more RAM are underrated. It might
not seem to be good enough but I believe it will greatly improve user
experience.
But can understand your situation.
What do they do if your iPhone does have a crack (which isn't intentional? So what do you think they will do if i show them all that stuff? (I know your not an expert but i just want your opinion)
I have a 3G now and wanted to get the 3GS but I WILL NOT pay $200 dollars more!!!
I hate it, to be honest.
It's like a stab in the back to existing iPhone users. I was planning on updating, but no, not anymore. Why should I have to pay $200 extra? That's not a "small amount"–that's a huge amount, well for me personally.
And don't even get me started on that stupid $18 upgrade fee. Are you kidding me? ANOTHER 18? Are they just making more BS up now to get more and more cash?
I've come to hate Apple and AT&T. The iPhone itself…I like it, even though every single one I've had has had physical problems, mostly dead and stuck pixels, or darkened spots during bright screens, besides that crap, it's an alright phone.
You do not PUNISH your customers for being LOYAL and purchasing a NEW PRODUCT at launch time. Period. I DONT CARE if it it was subsidized before. I, along with everyone else DESERVE the cheap price. You DO NOT stab your LOYAL customers in the back by charging them UNREASONABLE prices for SIMPLY BUYING THE NEW PRODUCT WHEN IT COMES OUT!
Then the Nokia folk start screaming, the Sony E fans start Honking etc. To us it's The 'One' to the networks we're figures & statistics.
To the networks, it's a hook for new business, new customers wanting the latest techtoy with nowhere else to go…
They not worried about you or I, they've had their pennies worth
Dear iPhoneHacks,
Any idea how fast the new processor is, and how big the ram is in the new iPhone 3G S? So far nobody revealed these information yet .. I dunno why!!
I think we need to strike!! Everyone who agrees AT&T should go F themselves should advise potential new customers to stay away from the iPhone. Let's give this a bad rap. Let's hit them were it hurts (thier wallets). Once Apple realizes they are loosing money by not selling iPhones and AT&T stops getting new customers they won't have an option but to change their ways. Now who's with me?!?!
Bad reviews! Bad reviews! Bad reviews!
I went to O2 Store yesterday and in order for me to get the new iPhone 3GS 32GB I have to agree on the following:
1- Agree to pay £175 for the Phone if:
2- I want to keep my current allowance of £35 a month, and…
3- Sign another 2 years contract from the date when my contract expires, or…
4- If I want it now, then I have to terminate my existing 3G contract by paying for the remaining 6 months of my term, which means 6×35=£210 plus £175 = £385 (how much is that in USD?!!) I guess it is just better for me to either buy a factory unlocked iPhone from eBay that worths such a price, or to wait till January 2010 to get O2 locked iPhone 3GS 32GB for £175 only.
This is rubbish and bull**it.
It will eventually happen, not by the term of physical striking, but I really believe that Apple and their locked carriers around the world will be in SHOCK from bad sales this times. Very few people will consider switching to the new iPhone for now especially the 40 million existing iPhone customers who own 2G & 3G iPhones. Then, they will re-study the whole matter again and try to spot the mistake were everything went wrong in order to fix it. Until then I am afraid we got no other choice but to wait, or to waste, and you know what I mean by this.
i am down this is true bs……think its time for boost mobile or metro pcs i would save over 600$ a year by going to one of them but my dumb ass pays over 120$ a month for a iphone i cant even upgrade to wow
I don't understand what everyone is complaining about, AT&T already subsidized your 3G iPhone, why should they turn around and subsidize it again when they haven't even made their money up yet because it hasn't been two years? I'm perfectly fine with the prices, I'll sell my 3G for around the cost to get a 3GS (450.00 or so) and I'll pay the difference. At least it's not the non-contract price.
I'm sorry but when you bought the Iphone you had to know within a year they would come out with another. You signed the contract.
We all know that when you buy a computer its obsolete within a month or two. So should they give you a refund for that. Not its part of business.
They could have made you pay full price for the Iphone.
i have a small crack on my iphone 3g so i will go changes it for free,and get3GS.
no kidding!!
At&t is bunch of idiots want to make quik cash.they threat their costomers as number not humain.
This message to AT&T CEO you are an ass!!!
I don't ever post on here, but I wanted to point out that i think this article is a little wrong. I am an att customer and have a 3g that i got last august and if i try to upgrade now, att says i have to pay 399/499, but if i wait til august 25th, i will be eligible for a full discount, which i take to mean the 199/299 price. That is how I am reading my account, but I could be wrong, all i know is i can get the 399/499 price now and have not done a full year yet, and it implies a bigger discount after my first full year in august
what about the iphone 2g users? can we at least get the subsidized rate? I held out hoping for a better iphone than the 3g and now one is here.
I understand subsidies but u know for us loyal to AT&T and Apple they should have gave us a break or something u know the bills to have these phones isnt cheap and they are making money off of us left and right just a little fairness would be nice,so they wont see a lot of people upgrading from the 3G to the 3GS unless there just so diehard they want to pay that premium I for one will stick with what I got for a while I paid 400 to get my 3g out right I wont pay 600 for the 3GS
Hey Brian,
Why would someone buy your 3G for more than $99.00 when Apple cut our throats and dropped their price to you guessed it $99.00
i think 3g users can keep their old iphone and upgrade to 3gs. so, why don't you just sell the old one to compensate you by yourself. the only question will be, the price of 3g in 2nd hand market will go down, unless the unlock tools are available very quickly.
allow me to make this short and in a non apple fag voice.
FUCK YOU AT&T
you do know iphone 3g now cost 99 $ right. And even if it wasn't the point is you shouldn't have to hustle your way to get a phone when you've paid for there service for a year already. What do they have to lose buy giving you a discount ? All that can happen is that they will get you as a customer for 2 more years. So whats wrong with that ? if at&t and apple hadn't mad such a stupid move I could say I would continue to buy iphones as long as they made them but now I am starting to think that over
straight garbage Loyal customers got a slap in the face with this, I could see paying an extra fee for upgrading early (the 18$ BS) but double the price of the phone??? makes no since to me. How can they justify this when the first iphone was 400 (after price drop in sept) and 3g was 200, so what is the difference this year why all the fuss over this one when the 3g came at a substituted rate?
The only thing that chaps my ass is the fact that they let first generation owners upgrade to the 3G at the subsidized price. If it weren't for that, I wouldn't say anything. I completely understand how subsidies work and I can't blame them for wanting to stick to the contracts, but I feel that they set the iPhone upgrade standard last year and now when we all expected the same treatment, we are getting the shaft.
The only reasoning I can come up with is maybe they did it last year because it was going from Edge only to 3G. This one is still 3G, just faster, so they aren't really depriving anyone service wise. Nobody can bitch about not being able to use 3G. But don't think that AT&T didn't still get their money. Remember…they did raise the data plan from $20 to $30. Over 2 years, they are still getting more than the $200. So, I'm pretty positive that is the reason.
I really think everyone is being extremely unreasonable! Look, a 3g iPhone originally cost 700. Unsub; but, if you sign a 2 year contract, you could get it for 300. So, Att conffered a 400 benefit, for 2 years, it wasn't forced or required. You signed a contract, and are mad because before you complete your agreement you want another benefit? That is classic breach; however, for the first time ever, Att is offering an equitable solution, early upgrade for a better phone for the same price, and people are pissed? Shut tfu! If you buy any other phone, you get either commitment pricing or outright (maybe an exception upgrade). So, to be fair Att should allow you to break a previous deal you thought was fair? All these people sound like whining old people that must not realize what contract is. For all you people that want to get a benefit without completing a contract you signed I have 2 recomendations; 1) go to Europe and by an unsubed phone for double the cost with insanely expensive rate plans, or 2) switch from Att to another company that has the exact same policies so I can have your bandwith! Just like a bunch of pussies to complain about the company that helped bring us the iPhone, I dare you to find another company that doesn't want you to honor your agreements?
if you remember, they increased data from 20-30, creating an additional 240 over 2 years, so from iPhone 2g-3g cost you 240 more, the new 3gs is 200 more; thus, it costs less than the previous increase, for a better phone? Come on, is no one reasonable anymore?
so they why did they offer the price cut for ppl who had the first gen iphone and wanted an iphone 3G? but not for 3g to 3g(s) ? SINCE YOUR SO SMART.
I'm gonna sell my iPhone for $350-$400 on craigslist and get me the iPhone 3gs on one line, and on my other line I bought an iPhone 3g for the full retail price and I'm gonna get the iPhone 3gs subsidized price. People don't believe the haters that tell you you can't sell your iPhone 3g for more than $99 some people don't want AT&T or have other necesities like maybe bad credit or don't wanna be shackeld to a 2 year contract for a 1 year old phone.
Right….that's what I said.
Gilberto Arellano how are you going to make a phone call if you sell your phone?
pay phones days are gone homey!!!
Exactly the point I was making in the previous post. Like I said, I know how subsidies work and normally wouldn't expect them to budge on it. BUT, when they do something for some it looks best when they do it for all. I already explained why I think they did it last year a couple of posts up.
FUUUHHHCK AT&T. strange coincidence, but my first name is actually gilbert and my last name is arellano, the spelling is almost exact. crazy.
i will not be upgrading, with this pricing im going back to sprint. i love apple but fuch this s#it
I guess we will know when its available as Apple doesn't provide those
details. We will let you know as soon as we get any information as we are
quite keen to find out as well.
Hey Ron,
Thanks for commenting.
I don't think the information here is wrong, the price that you see on the
Apple/AT&T site is the price you will have to pay on eligibility date
(august 25th). It won't reduce on that date as you would have finished only
a year of your two-year contract.
can any1 please tell me weather i can buy the iphone without a commitment. because it says up there that without a contract
*
16GB iPhone 3G S (black or white) will cost $599.00.
*
32GB iPhone 3G S (black or white) will cost $699.00.
does this mean we can buy the iphone without a contract ?