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!
Reader Comments (Page 1 of 3)
6-12-2008 @ 3:37PM
Alex said...
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
6-12-2008 @ 3:43PM
Andrew A. said...
No, it's extra
6-12-2008 @ 5:08PM
Ryan Trevisol said...
So, wait, the plan costs more and doesn't include ANY texts? At all?
6-13-2008 @ 8:18AM
Sam Katz said...
This is all based on a leaked memo. We don't know. A caller to bol.cnet.com says that there are 200 texts.
6-12-2008 @ 3:47PM
Laerkai said...
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
6-12-2008 @ 3:47PM
Fritz Laurel said...
So, your plan date resets to the new date then?
Reply
6-12-2008 @ 3:58PM
Christina Warren said...
Exactly. It resets to two-years from iPhone 3G purchase date.
6-12-2008 @ 3:57PM
bismark said...
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
6-12-2008 @ 4:03PM
Christina Warren said...
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.
6-12-2008 @ 7:47PM
Fritz Laurel said...
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
6-12-2008 @ 7:51PM
Fritz Laurel said...
Doh, that went under the wrong thread. It should have gone under Matt Janosko's thread right below this one...
(and yes, thank you Christina for having answers!)
;)
6-12-2008 @ 8:06PM
Christina Warren said...
Fritz,
Unfortunately, the exact scenario you are describing has been common practice in the US cell phone industry for eons. And because they have great lobbyists and a stronghold over enough Congressman, it is unlikely to change.
It used to be even worse -- before number portability was allowed about 5 years ago, you couldn't even switch to another provider if you wanted a cheaper phone or a different plan without losing your number.
Every cell phone manufacturer offers their phone at subsidized prices with different carriers, and the carriers offer those deals contingent on a contract. Even after you have been with a company for years, you probably won't ever get the types of discounts you can if you sign on as a new customer (especially when looking at deals you can get with third-party affiliates like Amazon.com), at best the company will let you upgrade at the same price as a new customer, minus any new customer discounts or rebates that you don't qualify for. I've been with the same cell phone company since January of 2001...I still had to pay $350 for my BlackBerry in March, and that was at the discounted upgrade price. Had I switched carriers, I could have had the same phone for $99 (but it would have been an additional $30 a month, negating the whole point).
I agree that it is outrageous and it sucks -- but unfortunately, that's the US mobility business.
6-12-2008 @ 8:45PM
Fritz Laurel said...
It does, though, seem like there's something different here. I was looking to upgrade before the iPhone was announced and as I remember there was the retail price for a given phone and then the ATT upgrade price which was, as I remember, always less than retail (with a new contract). Even for me, as an existing customer.
And I never heard 1 word from ATT about charging me extra when I *did* buy my day-1 iPhone. There was just one price. They were, and should have been, happy enough to keep me as a customer.
Alas, maybe I am slow on the uptake here, but maybe that's what's needed is for more people to become aware of the intricacies of these contracts (I shudder at the thought) so we know enough to band together and release that stranglehold of which you speak. (We are, after all, in charge of our own government, aren't we?)
But, it starts with getting the word out. Just because it's commonplace doesn't make it acceptable or right or just or valid.
Best,
FL
6-12-2008 @ 3:57PM
Matt Janosko said...
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
6-12-2008 @ 4:01PM
Christina Warren said...
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).
6-12-2008 @ 4:04PM
Matt Janosko said...
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.)
6-12-2008 @ 4:08PM
Stephen said...
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.
6-12-2008 @ 4:06PM
Christina Warren said...
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.
6-12-2008 @ 4:17PM
Fritz Laurel said...
Wait -- I thought the *regular* 3G iPhone pricing was $199/$299. Am I wrong? Did I miss something?
6-12-2008 @ 4:21PM
GoingToAlpha said...
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