[gudin]

One thing you seem to be missing here is that it's not just that the phone is subsidized or unsubsidized. It is essentially a wash between people who bought the old phone at $399 and get rate plans that are $15.00 less per month for two years, vs. buying a new phone at $199 and paying $15 more per month for two years.

If AT&T, through their agents induced someone to buy a new phone now because they would have "no problem" getting a new iPhone when it did come out, they are promising, essentially, that there would be no penalty. (I think paying an extra $200 constitutes a "problem"). Sure, they may have been willing to buy the new phone at the old rates . . . but they are not being allowed to do that, nor are they being allowed to get the new phone the same as everyone else at the new rates and for $199.

Why are they not being allowed to do this? Because they did exactly what their AT&T rep told them to do, knowing full well that they wanted a new iPhone as soon as it came out. They did what they were advised to do, and because of that, they have to pay an extra $200 more than they would have if they didn't listen to AT&T. This is not the same as a person whose phone dies, they get a new one because they needed one, and then three months later they see this new phone and decide they want it. These people knew in advance about the new iPhone, told the AT&T people about what they intended, and were told the best thing to do is to get the new cheapo phone now and not wait. AT&T's reps lied to them. Pure and simple.

[WaterCons]

As a Verizon customer for six years now, the issue that seems strange about all this is not that switching to a new phone mid-contract requires you to pay full price. They all do that. I get a new discounted phone every two years (including many standard cellphones for free) but if I wanted to upgrade before the two-year period is up I'd pay "retail". And of course the steep phone discount requires a two-year contract. That's never bothered me because Verizon's basic service is good so it's not as if I'm going to switch anyway...until now.

What seems different here is that usually you buy a phone through and from your service provider while here you can buy it from Apple and many people will do so.

From what people have said, and correct me if I'm wrong, if you are an existing AT&T customer in mid-contract not only will you move to the more expensive voice/data rate plan (understandable) but you'll also pay more than $199/$299 for the phone? What if you bought the phone from Apple? Would AT&T refuse to activate it?

I'm not apologizing for cell phone companies; they all have crummy policies, but that last point is the only thing here that seems to be extra special screwy.

[doglesby]

I am not missing anything. As I said, I don't think the rates have anything to do with the subsidy, the subsidy is roughly equivalent to the revenue sharing arrangement (plus they had their ears to the ground enough to know a new iPhone was coming, but they didn't hear that the rates might be increasing?). As I also said, the at&t reps didn't know about the new arrangement, so they didn't lie. bak464s made a really bad choice on really bad advice, but expecting a sales person to turn away a customer is foolishness.

[doglesby]

Good question, perhaps Macworld can get an answer.

[guywb]

So, let me get this straight. If you bought an iPhone last year, signed up for a two year contract and want to upgrade to a 3G iPhone, you can ignore the existing contract and upgrade for $199 or $299 plus a two year contract. But, if you are an EXISTING AT&T customer, bought ANY OTHER phone last year and renewed to a new two year contract, the same iPhone will cost you $399 or $499 plus a two year contract. Am I the only one that is seeing something wrong with this picture?? Why are non-iPhone AT&T customers being treated like second class citizens? Either the two year contract applies to everybody or nobody, otherwise it's discriminatory.

[doglesby]

No, iPhone owners can't just ignore an existing contract. We are, however, eligible for the reduced price because we paid full price already. Similarly, Christopher M and bak464s can buy an iPhone 3G for full price without pushing back their eligibility for a discount.

For a year and a half people have been complaining that the iPhone is expensive, now you complain that we get special treatment. We paid for this privilege. Any at&t customer who bought an unsubsidized phone can do likewise. What part of "no freebies from cellphone companies" don't you understand. No one is getting special treatment.

[guywb]

I have purchased phones at full price from AT&T in that past, that did not qualify me for any different treatment in regards to my contract. A two year contract is a two year contract. What I am saying is that those same rules that have been in force in the past should still apply whether someone has purchased an iPhone or any other phone. Also, there is no reason to get nasty because someone asks a question you do not agree with. If you cannot be civil, maybe you should not post at all.

[Kyle64]

Heh, so to make this clear, simply because i haven't owned the old iphone. You have to start a new 2 year contract regardless of anything. So if i am, say on a family plan, for me to have the iphone i'd have to start a new contract?

[doglesby]

iPhone users are not getting special treatment. They are still subject to the same 2-year contract. If you paid full price for a phone in the past (keep in mind that cellphone providers never advertise full price; if you paid the advertised price, you bought a subsidized phone), you should have been eligible for an equipment upgrade or a (slightly) reduced rate or a month-to-month contract. Standard practice.

[doglesby]

No, check out the follow-up story.

[johnny5]

This article states:
"I want to buy iPhones for me, my dog Ralphie, and my Aunt Marge; can I do that?
Nyet. AT&T says you may purchase only 1 iPhone per person in line. Your Aunt Marge and Ralphie will have to wait in line for their own."
Another states:
"Need more than one line? No problem: you can snag an AT&T FamilyTalk plan, which includes two lines, starting at 700 Shared Anytime minutes for $130/month and going up to 6000 shared Anytime minutes for $360/month—and you can get up to 3 additional iPhone lines for $40 per line."
So, can I show up at the Apple store and get 2 iphones activated under the same account as a family plan or not?

[Jon Seff]

johnny5 said:

This article states:
"I want to buy iPhones for me, my dog Ralphie, and my Aunt Marge; can I do that?

Nyet. AT&T says you may purchase only 1 iPhone per person in line. Your Aunt Marge and Ralphie will have to wait in line for their own."

Another states:
"Need more than one line? No problem: you can snag an AT&T FamilyTalk plan, which includes two lines, starting at 700 Shared Anytime minutes for $130/month and going up to 6000 shared Anytime minutes for $360/month—and you can get up to 3 additional iPhone lines for $40 per line."

So, can I show up at the Apple store and get 2 iphones activated under the same account as a family plan or not?

Only if both of you show up to activate phones.

[johnfkoen]

We're debating the idea of upgrading to iPhone 2 (bought ours June 26 '07 or whatever it was). As the major bread-winner, the Family Plan is in my name. If we upgrade, there's a good chance I'll only get the phone for my partner at this time. I'm wondering if that will cause the basic $60 plan in my name to 'upgrade' to the $70 plus $30 for each of us, even if I don't upgrade my phone, or if it'll be possible to just upgrade the $70 $10 for 1 family add-on, $30 for iPhone 2 + $20 for existing iPhone 1?

Make sense? (I know, when I write I can't believe it.)

Currently paying a base of:

Me: $60 +20
Family: $10 + 20
Total: $110 (plus taxes & fees)

New:
$60 (or $70) + 20 (or 30?)
$10 + 30
Total: $120 (more likely $130) or will it be the full $140?

If it is, that makes my decision more likely to upgrade both phones; at least I can sell one to recoup some expenses and then try to unlock one for overseas use!! Plus being locked into ATT for only another 2 yrs. instead of upgrading myself later and that being the new 2-yr. extension?

I'll probably stop in an ATT store or call to get a 'definitive' answer sometime in the next couple of weeks, but if anyone else finds out something, I'd be grateful if you post it.

[dave256]

To: johnfkoen
I had one iPhone and 3 Razrs on our plan. I wanted to give my wife the original iPhone and get the new one from me. Everything I've read and what I was told at the store was that the end result would add $30 to our bill. If you want 200 text messages on the new phone, that's another $5. We'll see what happens when the bill comes. So your new bill should be $120 tax or $125 tax if you want 200 text messages on the new phone.