November 30, 2022
AT&T Responds To Outcry Over iPhone Pricing

AT&T Responds To Outcry Over iPhone Pricing

Posted June 17, 2009 at 2:38pm by iClarified · 11850 views
AT&T has responded to the public outcry and lowered the upgrade pricing for the new iPhone 3G S.

Customers who purchased the iPhone 3G within its first three months of release may now be eligible for AT&T's best upgrade pricing. ie the $199 and $299 price points.

Unfortunately this seems be based on your account standing and monthly services; however, most early adopters should be able to receive the discount.

Below you can find AT&T's explaination of the changes...

Read More

AT&T Responds To Outcry Over iPhone Pricing

Some customers have had questions about our plans and policies for iPhone 3G S, and we’d like to provide you with answers. We’d also like to announce a change to the date when some iPhone customers are eligible for our best upgrade pricing to iPhone 3G S.

Importantly, we want our customers to better understand our wireless device upgrade program. Like most U.S. carriers, we offer a variety of phones that we sell below our actual cost when customers agree to sign service agreements. In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device. For example, iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract.

We also currently offer early upgrade pricing only for iPhone 3G S and iPhone 3G.

All of that said, we’ve been listening to our customers. And since many of our iPhone 3G customers are early adopters and literally weeks shy of being upgrade eligible due to iPhone 3G S launching 11 months after iPhone 3G, we’re extending the window of upgrade eligibility for a limited time.

We’re now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.

If you’re one of the many customers who will benefit from this change, please note that our upgrade eligibility tools will reflect this change on Thursday, June 18.

We invite you to come to our stores beginning Friday during normal store hours, although please be aware that customer demand may exceed supply in some of our stores. You may also preorder online on June 18 at, and your iPhone 3G S will arrive in 7 — 14 days. Or you can purchase iPhone 3G S at Apple’s retail and online stores, as well as at other popular retailers.

If you’re one of the customers who benefits from this change, and you’ve already preordered from an AT&T store, we’ll adjust the price of the device when you pick it up. If you benefit from the change and you pre-ordered from AT&T online, we’ll send you an e-mail and issue you a credit.

If you pre-ordered an iPhone 3G S through Apple’s online store, your upgrade eligibility will be reassessed based on AT&T's new upgrade policy for iPhone 3G owners. If you are eligible for the lower price, Apple will issue you a credit for the difference as applicable.

So, what if you still aren’t eligible for our best upgrade pricing and you still want iPhone 3G S now? You do have options:

You may qualify for the iPhone 3G S early upgrade price of $399 (16GB) or $499 (32GB).
You can pay full retail — and not have to sign a 2-year contract — at $599 (16GB) or $699 (32GB).
You can wait until you’re eligible for our best upgrade pricing. We invite you to check your upgrade eligibility by visiting, calling *NEW# (*639#) on your AT&T device (we’ll send you a text with upgrade information), or visiting any of our over 2,200 stores.
If you want more details on our pricing and upgrade policy, check out our FAQs. And as always, you may visit one of our stores to talk with a representative.

In Summary
We’ve listened to our customers — and hope our response helps answer some of your questions and concerns.

We are incredibly proud to be the U.S. carrier for the new iPhone 3G S and will work around the clock to be ready on June 19 to serve customers who are interested in the fastest, most powerful iPhone yet.
Add Comment
Would you like to be notified when someone replies or adds a new comment?
Yes (All Threads)
Yes (This Thread Only)
iClarified Icon
Would you like to be notified when we post a new Apple news article or tutorial?
You must login or register to add a comment...
BRIKZ - June 18, 2009 at 1:04pm
So im no lawyer....Are there any lawyers out there..... Since ATT is basing this upgrade price on what you spend a month or your monthly plan can we say they are being prejudiced against poor people and that everyone should get to share in the price and not just those of means.... Or does paying $500 for a phone in the first place kind of shoot that argument in the foot...
Nick - June 18, 2009 at 5:29pm
They do that because they make the money they eat off of the initial purchase of the phone quicker on the people who spend more money, thus they don't mind letting you upgrade on a shorter interval. If they offered the subsidized price to someone only spending $40 a month on their phone bill they would be losing money by offering you a fully discounted phone every year.
Joe - June 19, 2009 at 3:19am
LOL please, what a joke!! They don't pay retail price to Apple for the phones they sell. They are raking it in for the lousy service. At an absolute min, they make $70 a month on each 3G owner. $70x12 months = $840 a year bare minimum, this includes NO texting which most people have.
FogCityNative - June 18, 2009 at 12:01pm
AT&T still SUCKS. i bought my original 3G phone in August of 2008. It was stolen in January of 2009. AT&T of course offers no insurance on iPhones. I had to pay FULL RETAIL price of $499 plus an $18 fee plus re-up my contract for two years from the date of the purchase of the replacement phone at FULL RETAIL PRICE. So now the bastards at AT&T say my elgibiloity date to buy the new 3Gs is not 12 months from the date I first got a SUBSIDIZED iPhone 3G at $299 but 12 months from when I purchased the replacement (NON SUBSIDIZED) at full retail. No matter who I talk to at AT&T, they will not budge on the issue and I must wait until January 2010 to get a subsidized iPhone 3GS. I HATE AT&T WITH A PASSION. They say they listen to customers, but they really don't, they just treat their customers like crap.
Nick - June 18, 2009 at 5:31pm
Sorry to hear that man, it's a shame to hear a company even act like that to one customer. What ever happened to treating every single customer as if they were your biggest client? That's how you get repeat business and loyal customers, not by just having a great phone or a great service.
15 More Comments
Recent. Read the latest Apple News.
Tutorials. Help is here.
How to Fix 'No Matching Host Key Type Found' on Mac
How to Stream the World Cup Using a VPN
Where to Download macOS Ventura
AppleTV Firmware Download Locations
Where To Download iPhone Firmware Files From
Deals. Save on Apple devices and accessories.