I just wanted to help fuel the flames a little bit in the general internet atmosphere of being pissed at AT&T and their dropping the ball with the new iPhone 3GS.
Apple goes and throws out $199 and $299 price points on the new models and we ooooh and ahhhh and start dreaming of standing in line. Then the fanfare is over, the new phones are up on Apple.com, and we are able to check our plans to get ready to buy them. This is when we all find out that if we already had an iPhone 3G, we were ineligible for the upgrade pricing. In my particular scenario, It gave me price points of $399 and $499 with an upgrade date of 12/13/2009.
So this means that any old customer off the street can walk in and get a phone for 3/5 of the price that me, a loyal customer for years and years can. That just doesn’t feel right.
Of course, this is how the cell phone industry has worked forever. The prices of the phones themselves are subsidized by the carriers, and we aren’t eligible for that subsidization any ol’ time we please. We are only eligible when they say we are, which is typically at some percentage of being completed with a contract. The reason this wasn’t a problem with the 3G, is that the 1st generation phones were not subsidized (hence why they were so damn expensive), so literally everyone was eligible for the subsidization when the 3G came out.
It gets a little more confusing, as my own boss has in iPhone 3G which he bought close to when they came out and his eligibility date is 7/15/2009. Not sure I understand that, I’ve been a customer longer and my date is later. He also pointed out some text in the footer on Apples iPhone page.
For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).
Hey that’s weird… so where is this $499 for the 32GB coming from? One or the other must be a mistake. Which is it?
It boils down to this. I fricking want the new phone. It has video, its faster, it has longer battery life, it has a bigger hard drive. I’m a lifelong fan-boy and I want to buy the thing but I’ll be damned if I’m going to pay hundreds of dollars more than random folks. If anything, I should pay less.
This is how it has always worked, but since Apple is changing all the rules with this phone anyway, why not now? It’s really AT&T that is the problem, and this pricing crap is just the tip of the iceburg.
I’m glad you brought this up. I was just about to start looking to upgrade to the newer iPhone. This is BS!
[…] I follow Chris Coyier’s Blog and just read his post, Bullhonkey on AT&T. […]
I already knew it was expensive to be a loyal customer. In the three years and then some that I’ve had my current contract with AT&T, I have never once had the same price for the bill as was agreed upon, and the last time I went to upgrade my phone (when they said I was eligible mind you) I still would have had to pay hundreds out of pocket as opposed to “new” customers who could get the exact same phone cheaper or free.
There is no loyalty from them for existing customers, never has been. Welcome to the club. :)
While I agree with your frustration Chris, you must remember that when you bought that 3G phone in the first place, it was only that cheap because AT&T subsidized it, with the knowledge that you were going to be a customer of theirs in the future.
Asking AT&T to help pay for your phone again may seem fair to you and all, but think of the company putting out money to get a customer last year and then doing it again this year, just so you can have your phone…
If you don’t want to bother, perhaps you could buy a Palm Pre, iPhone or Nokia N97 for $600+ without a contract and then not have to worry about upgrade eligibility ;)
I said right in the article I understood is a matter of subsidization and that is how it has always worked.
However, I think a decent compromise would be to allow us to re-up our 2 year contracts to get the subsidization again. If the goal is to get us to BUY iPhones and STAY on AT&T, that would be the right move.
I’m one of the those who waited for a better iphone until now and I’m still waiting for the 4G with CDMA network for Verizon.
I don’t know if this helps you in your specific situation, but just read it today and thought about what you were saying:
http://www.boygeniusreport.com/2009/06/17/att-to-offer-early-iphone-3g-adopters-199-299-upgrade/
Yeah they are throwing some folks a bone, but only if your date was in July August or September, which is extremely rare for anyone. Anyone who was day-of as a 3G buyer has a date of December or later and doesn’t qualify.
Yeah, I don’t even own an iPhone and I feel your pain. I think I’ll be getting one for work soon but I won’t have to deal with this issue. I too am tired of the crazy ‘deals’ that new customers get compared to Loyal customers. Not just AT&T – I’m with Verizon for my personal phone and they do that same thing.