Filed under: Retail, Rumors, Wireless, iPhone
AT&T iPhone "rebate" clarification
Yesterday, Twitter was abuzz with incorrect rumors that current iPhone owners would have to trade-in their 2G phones in order to upgrade to the iPhone 3G. I spoke with AT&T's mobility media contact yesterday and confirmed that the rumors were bogus, but after the original source posted a clarification and retraction, we didn't think it was necessary to post, fearing it might just confuse readers further.However, today we received a tip from a reader linking to a FinancialWire story that mentions an exchange/rebate option for AT&T customers, but does not properly explain the procedure and the eligibility. Because I spoke with AT&T yesterday, I would like to set the record straight.
As Mark Siegel from AT&T explained to me yesterday, "AT&T wants to be as fair as possible to customers who very recently purchased an iPhone." Thus, if you purchased an iPhone from an AT&T store AFTER May 27, 2008, you have the option of returning the phone to an AT&T store between July 11, 2008 and August 1, 2008 for the new iPhone 3G. Those customers will also be refunded the difference between the price paid for the 2G iPhone and the iPhone 3G.
I commend AT&T on taking such a proactive and consumer-friendly approach.
Just to reiterate: if you bought a 2G iPhone BEFORE May 27, 2008 and you want to upgrade to the new iPhone 3G, you can do so at the subsidized price ($199 or $299), as long as you sign and new two-year contract and add-on the 3G data plan (this plan will replace any data plan you currently have for the iPhone). You do NOT need to trade-in your old phone.
Thanks Mark!
Get a WordPress.com Blog
![TUAW [Cafepress]](http://www.blogsmithmedia.com/www.tuaw.com/media/tuaw-cafepress-promo.png)
Reader Comments (Page 1 of 3)
Alex said 3:37PM on 6-12-2008
Just wondering, maybe this has been covered too, but does the 3G data plan, like the current data plans (my plan is $30 for unlimited data + 1500 text) include text's as well, or do we need to add that on?
Reply
Andrew A. said 3:43PM on 6-12-2008
No, it's extra
Ryan Trevisol said 5:08PM on 6-12-2008
So, wait, the plan costs more and doesn't include ANY texts? At all?
Sam Katz said 8:18AM on 6-13-2008
This is all based on a leaked memo. We don't know. A caller to bol.cnet.com says that there are 200 texts.
Laerkai said 3:47PM on 6-12-2008
Are they going to waive the restocking fee for trade ins? I read somewhere that they are going to charge 10% restock for trade ins bought after May 27th.
Reply
Fritz Laurel said 3:47PM on 6-12-2008
So, your plan date resets to the new date then?
Reply
Christina Warren said 3:58PM on 6-12-2008
Exactly. It resets to two-years from iPhone 3G purchase date.
Matt Janosko said 3:57PM on 6-12-2008
I talked to an ATT sales rep yesterday who told me something for us pre-May purchasers (I waited in line day one, so i only speak for "early-adopters"). As we were required to get a two-year contract at the time of activation for iPhone1, it seems as though none of us are eligible for a phone "upgrade" and as such are NOT eligible for the $199/$299 prices. This can be completely wrong, but are the exact words of ATT. If someone else has heard contrary to this, let me know, but as far as I can tell we early-adopters get yet another awesome bonus out of this deal (in addition to the $200 initial price drop last year), we must pay premium prices to move on to version 2. Awesome!
Reply
Christina Warren said 4:01PM on 6-12-2008
That's absolutely not true. AT&T confirmed to me yesterday that iPhone owners will qualify for the upgrade price (which is $199/$299), regardless of when they purchased the phone. The only people who MIGHT pay more (and the price hasn't been determined) are AT&T customers who don't have an iPhone but aren't upgrade eligible (say you recently bought a Tilt or a BlackBerry).
Matt Janosko said 4:04PM on 6-12-2008
Christina, oh good! Then I'm actually HAPPY an ATT rep lied to me. He was quite adamant that my phone being only a year old meant I was absolutely not eligible under any circumstance for the subsidized prices. Thanks!
(You'd think they'd get their crap together and wouldn't have two different people saying two different things.)
Stephen said 4:08PM on 6-12-2008
GizModo reported that AT&T customers who are not eligible for an upgrade WILL be made eligible for the upgrade. Why would AT&T not let current iPhone users upgrade? They would lose so much more money that way.
Christina Warren said 4:06PM on 6-12-2008
Agreed -- it is kind of sad when people reporting the news know more about the policy than the CSRs -- but I spoke with AT&T's mobility spokesman, so you're fine :-) The iPhone is different from a typical phone release and I guess the employees aren't all aware of how they differ in protocol yet.
Fritz Laurel said 4:17PM on 6-12-2008
Wait -- I thought the *regular* 3G iPhone pricing was $199/$299. Am I wrong? Did I miss something?
GoingToAlpha said 4:21PM on 6-12-2008
Fritz, its $199/$299* where * is with a new contract, upgrade, or iPhone-user-special-upgrade.
If you didnt want a two year contract, or bought a new phone/renewed your contract in the past
GoingToAlpha said 4:31PM on 6-12-2008
Darn it.
... in the past less than 24 months, then you will be paying substantially more. I believe the unsubsidized price in Europe that was announced is around $700/$800 (currency conversion taken into account.)
Fritz Laurel said 4:45PM on 6-12-2008
Okay, I'm now confused.
Regular off-the-street 3G iPhone pricing is supposed to be $199 for an 8GB and $299 for a 16GB.
From what I'm hearing here, the "upgrade" price isn't any different than if just walk in off-the-street and buy one.
I take "If you didnt want a two year contract, or bought a new phone/renewed your contract in the past" to mean only those people who are still under their original contract and still have their original any-brand phone.
Is that true, or is there some incentive for me, a legit iPhone owner and ATT subscriber, to upgrade by offering me a 3G iPhone for less than people who don't already have one? (Not that I would expect ATT/Apple to do that, but someone mentioned "upgrade" pricing...)
Thx!
FL
Christina Warren said 4:53PM on 6-12-2008
The incentive is that if you already have an iPhone, you automatically qualify for the "upgrade" pricing, which in this case is the same as if you buy one as a new AT&T customer and sign a 2-year contact. If you have another brand of phone and you are on AT&T, you may have to pay more for an iPhone 3G if you don't qualify for the upgrade pricing.
Because the iPhone 3G is subsidized, the pricing scheme is akin to regular phones, meaning that they offer discounts to new customers (to lure them in) and existing customers have to be eligible to "upgrade" to get a better price. Usually you are enitled to upgrade once every 22 months or whatever term of contract, but AT&T is letting all iPhone users be "eligible" if they want to buy an iPhone 3G.
bismark said 3:57PM on 6-12-2008
i am guessing that to be a qualified-for-subsidized-upgrade owner of an original iphone, you must be on an iphone data plan. so this means if i relock my phone and get an iphone plan on july 10th, i can get a $199 iphone 3g if i am understanding correctly.
Reply
Christina Warren said 4:03PM on 6-12-2008
You don't have to be on the data plan, you just have to sign up for the new data plan (as it is required now for the iPhone) when buying your iPhone 3G.
Fritz Laurel said 7:47PM on 6-12-2008
Maybe, then, the real headline here is not so much "Hey, look how nice ATT is being" but "Hey, did you know that ATT would normally screw you to the wall if you wanted to buy a new phone?"
This implies that this wouldn't normally be the case and ATT subscribers would normally be charged an extra fee if they want to change phones. That's news to me.
So, they lure you in and then just keep hammering away at you while you stay with them? The only incentive there would be to jailbreak my phone and go with another carrier. If they don't care about their loyal customers, then their loyal customers won't care about them.
I understand there are subsidies involved here, but that shouldn't matter. I'm Joe Customer and I shouldn't have to know or care what kind of relationship exists between two companies -- especially when they don't make their relationship completely public. ATT presumably makes their money back by being the exclusive carrier, so why bother the customer with this?
Everyone sounds like they think ATT is doing them a favor. This would be akin to Apple charging you an extra fee just because you want to upgrade your Mac prior to some set time limit expiring. It sounds like ATT isn't doing anything special for us here other than realizing they were being jerks in the first place.
Did we elect an overly green president or something? Did we pass a law that says you have to keep a piece of technology a certain time? Am I missing something?
That just seems incredibly ignorant for ATT to do that in the first place. Everyone loses with that mentality.
At least, that's my current opinion. I'm willing to be wrong.
;)
FL