New iPhone 3GS on June 19, 2009: upgrade nightmare
Filed under: Cell Phone Information, Cell Phones | By: Peter Chubb
Posted on: June 9, 2009 | 8 Comments
We now know that there is a new iPhone 3G S handset coming on June 19 2009, and already people have started to complain. The handset itself does not offer the huge update that had been rumored, but we do get more speed and battery performance. The problem for most will be the upgrade nightmare.
The Washington Post explains that for those who already own an iPhone 3G will want to upgrade to the iPhone 3G S, but it may not be as simple as that. When owners of the original iPhone upgraded to the 3G model last year they were offered the full subsidized $199 and $299 prices, this will not be the same this year.
For current owners of an iPhone 3G who are just one year into their two-year contract will have to pay $399 and $499 for the upgrade. The reason for this is that AT&T subsidizes the handset, if you only pay for one year of that contract, then it will eat into the profit for AT&T. Therefore, the carrier has to put the cost back into the new phone.
This is not only the case in the U.S.; we wrote an article yesterday, if you want to get a new iPhone 3G S on the O2 network in the UK, you would then have to pay to end your contract. My brother and cousin still have 6 months left of their 18-month contract, so they will have to pay six months of their remaining contract. Their contract is almost £45 per month, so they will have to pay £270 to end the contract, as well as a further £175.19 to begin a new 18-month contract.
Will you be upgrading early, or will you see your contract out?
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As much as I’d like to have the upgraded software… I really would… I’ll be damned if I am going to knuckle under to the price gouging that is discussed above. My iphone works just fine now. I can live without the extra “functionability” until they decide to lower the price…or I just keep it the way it is.
PLEASE be reasonable Apple !
I just spoke with ATT about the completely unreasonable cost of $399 for iPhone 3Gs as an upgrade from an iPhone 3G. I questioned the reasoning behind charging long term loyal ATT customers the extra $200, meaning $200 more than a new customer will pay. When they tried to rationalize this charge by saying the iPhone would cost $599 if I was not eligible for an ‘early’ upgrade discount, the discussion quickly went south and it really became obvious that the extra $200 is NOT going to Apple - It is all going to ATT!! This is their way of showing thanks for being with them for years as a customer who pays every bill on time!! So, don’t blame Apple for this - under their current contract, ATT has the exclusive until 2010 and they call the shots on final pricing - Apple gets $199 for a 3Gs 16GB iPhone. ATT is milking it for everything it can until the contract expires instead of doing the right thing and making sure existing customers will not want to abandon ship and go with Verizon in 2010. When this company was ‘Cingular’ it was great…. but every time ATT takes over a company and imposes their twisted marketing and opportunistic biz practices, everything is downhill from there. I would recommend that everyone wait until 2010 and switch (even for the $175 fee) and dump ATT.
This is an “upgrade nightmare”? “Price gouging”? Mad that you actually have to adhere to the terms of the agreement you signed? And you signed it knowing they’ve have an upgrade in less than two years? Please, stop the insanity. You get new software for free, virtually a new phone, and you’re complaining. Sad.
The pricing is so ridiculous, I prefer to bite my arm off!!! damn you apple! :o)
This is ridiculous. Not AT&T, this article and attitudes presented by people regarding the issue. AT&T would be losing money on every phone if they just let you have them at the price they let new contractees get them at. The low pricing is just a marketing strategy to get more people to sign contracts. You obviously fell for it. Its the same thing as the free phones that cell companies give out to those who sign a new contract. If I had a motorola flip phone and had been using it for a year and a new model came out that my cell co. was offering for free would I expect to get it free as well?? Idiots.
Think again! The new 3Gs iPhone 16 GB does not cost ATT $599. No way! I worked inside for a couple of recent years (Apple not ATT) The extra $200 they are getting over the $199 they are charging NEW customers IS ATT profit and follows the usual opportunistic crap that ATT has been know for over decades. Don’t fool yourself. They are bagging the money, not Apple.
Burt I agree……
I paid $535 for the 3GS and sold my 3G for $400 on eBay……Just unlock your phone and sell it people come on. You can bitch all you want the price tag isn’t going to get any lower. Get on the grind slackers! You knew this was coming eventually….its the same thing with any other provider / new device honestly…..
God people quit WHINING!! Your paying the “penalty fee” because you SIGNED A CONTRACT! You can’t REALLY EXPECT att to let alll the people that signed contracts to just “forget about them” and give you the new phones at the SAME PRICE?! Your paying that fee to att and not apple, and for anyone with an iphone/iphone 3g/iphone 3gs (soon) GET A GRIP! REALLY IF YOUR PAYING $200 FOR THE PHONE OR $399-$499 1st off your NOT DEAD BROKE!! Anybody willing and able to shell out THAT kinda money for a CELL PHONE AND PAY FOR THE VOICE/DATA PLAN every month doesn’t need to be WHINING!!! You should feel so priviledged that you can afford a nice phone and have no problem still putting food on your table! Your probably the same people that buy a $200 cell phone and then whine about spending $4.99 for a game/wallpaper/ringtone! Hahaha!!