Loyal iPhone Customers Outraged Over iPhone Upgrade Eligibility

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Posted October 5, 2011 at 7:59pm by iClarified

iPhone customers who purchased their device on launch day last year are being told by AT&T that they are not eligible to upgrade their devices for $199 despite the longer than normal time between devices.

CultofMac spoke with AT&T and were told by a CSR that upgrade eligibility dates and the pricing models are all dictated by Apple; however, a report from TNW suggests that AT&T is now setting eligibility dates based on the value of your account.

"Tier 1 customers," aka those who spend the most money per month (unlimited minutes + 2gb data + unlimited texts) are eligible every 12 months for early upgrade.
"Tier 2 customers," aka [almost every subscriber,] who have either the 900 or the 450 minute plan but who still use the highest data plan and highest texting plan are eligible every 18 months.
"Tier 3 customers," the ones who spend as little as possible and or the ones who've had late pays or service interruptions must wait the full 24.

Did you buy an iPhone 4 on launch day? Let us know if you are eligible for an upgrade in the comments. You can check your eligibility here.

Loyal iPhone Customers Outraged Over iPhone Upgrade Eligibility

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Dave - October 7, 2011 at 1:03am

I purchased the iPhone 4 on launch day via pre-order. I don't care that I'm not eligible until 11/24/11 for the discounted upgrade pricing. The upgrades of the 4s are enticing, but I'll wait for the next one. By then my contract will have ended and I may shop other carriers than my current Att. What I do find a little shady is, my upgrade status once said, since I was late on my current bill, if I made the payment, I'd be eligible for an early iPhone upgrade. After I made payment in full the eligibility said that I'm not eligible until 11/24/11. I'd like an answer from Att. Either way I don't care, it's the idea if false and manipulative information that I have a problem with.

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Luis - October 6, 2011 at 4:15pm

I got the iPhone 4 on launch date and I'm eligible for the lower prices. Not sure why, i have a 700 min family plan and unlimited data with unlimited texting and i'm getting the better deal. This has been the case for every iPhone, actually. Not sure why, but every 12 months i have been able to get it for the discounted price ($199)

Rogee - October 6, 2011 at 6:27am

I am eligible and did purchase on launch day.

HJ - October 6, 2011 at 6:24am

Went to AT&T today, they said my only options are to either: 1. "Early Upgrade"- $199 PLUS $250 and renew 2-yr commitment, totaling to $449 2. Buy it unsubsidized for full retail price. 3. Cancel Contract - pay ETF ($325 minus $10 for every month), and then sign up fresh, losing my existing unlimited data plan, and phone number. Bought my iPhone 4 on launch Day!.

erpsj - October 6, 2011 at 2:29am

I did not buy on opening day, constantly run a month late, cell service shut-off more than a couple of times...iPhone 4S upgrade $399

Erik C - October 6, 2011 at 2:02am

I purchased my iPhone 4 on launch day last year and the site says I am eligible to purchase at the discounted rate starting at $199.

Upset at AT&T - October 6, 2011 at 1:27am

Just spoke to AT&T customer service. No more Tier 1,2,3 customers, all customers are eligible after 20 months. I have to wait until Feb 16, 2012.

Me2010 - October 5, 2011 at 11:22pm

I have 4 lines on my 5 line account used up. I have the largest data plan on each of my lines and we all share a 900 minute family plan. Each of my lines has a roadside assistance on it as well. After my gf's 23% work discount, I end up paying around $300 a month. All my lines are upgradeable every 12 months. From what I was told, I have a B rating.

Verizon Here I Come! - October 5, 2011 at 11:12pm

Well I was seriously considering going to Verizon anyway and thanks for making my decision simple AT&T! Now I can sell my iP4 on ebay for around $350, pay off my early termination fee of $160, and take my $190 to Verizon and pay the difference of $9 to get an iPhone 4S AND on a network that actually works!

OSCAR0884 - October 5, 2011 at 10:56pm

I'm got my at 2 after the launch day and eligible I think I'm tier 1 because I can upgrade every 12 months

Ryan Mitchell - October 5, 2011 at 10:36pm

i bought mine on launch day but can't upgrade until november 25th...BOGUS!!! i'm currently on the 450min plan with unlim text and 2gb data.

CryMeAriver - October 5, 2011 at 10:19pm

Yup! Eligible!

CryMeAriver - October 5, 2011 at 10:18pm

Yup! Eligible! May wait for the 5 though.

Mr.D - October 5, 2011 at 10:17pm

Some people aren't bright enough to understand how wireless contracts work. They feel like their carrier is obligated to give them an early upgrade just because they want a new phone. All carriers have to subsidize the cost of your phone and hope to return that money, plus some profit, over the course of 12 to 24 months. Is they would be giving people early upgrades any time they wish, they would go bankrupt quicker that you think. AT&T pays Apple about $599 for an iPhone 4 16Gb. They have to make $400 back somehow, after giving the phone to a customer for $199. Now do the math and figure out how long it's going to take them to make $400 back and, hopefully, make some profit after all.

Mr.D - October 5, 2011 at 11:57pm

Ok, listen here. The phone costs $599, not $400, meaning that they have to make $400 AFTER you pay them your $199. Next, how are they going to recover $200 in 4 months if they only charge some people $9.99 (add-a-line cost) and $25 (data plan cost), less taxes (about 25%)? That's only $26. This doesn't include any costs associated with running the company itself.

Mr.D - October 6, 2011 at 12:02am

...and don't forget those customers who only pays $15 for their data plan. That makes it less than $19 in revenue per month.

jake - October 5, 2011 at 10:11pm

I bought on launch day last year. I was a little upset to find out I can't upgrade until March.

eFish - October 5, 2011 at 10:02pm

I got it...and I waited in line and it seems that only after 12 months I was elgible. Family plan with 3 phones, grand fathered unlimited data and unlimited text.

Vibhor - October 5, 2011 at 10:00pm

I bought one on 1st day but am not eligible.

AJ - October 5, 2011 at 9:48pm

Eligible

PeterZ - October 5, 2011 at 9:33pm

Got mine launch day and Im eligible. Just like it says, and how it's always been, I spend more than $99 a month so I'm always eligible every 12 months. It's not complicated.

Ricardo - October 5, 2011 at 9:39pm

one question did you knew they had this tiers ?? cuz i always been able to upgrade every 12 moth but never knew why or how

Neerav Kothari - October 5, 2011 at 9:16pm

I got mine 32 gb on the day it was launched in India - 27th may, 11. I got it for a full US $950! Its factory unlocked. It was the worlds best phone until yesterday. I wonder if they bring any discounts for upgrades in India.

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