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Another Great 3G iPhone Article

New Apple iPhone price depends on AT&T plan

Some people throw a full-blown hissy fit when Apple�s new Apple's new iPhone 3G, which went on sale Friday, is described as cheaper than the original.

Look at the calling plans, they say, decrying the fact AT&T Wireless, which is the only carrier selling the discount new iPhone in the United States, is leveraging its exclusive deal to lure new subscribers and squeeze profits from calling plans.

The new iPhones cost $199 to $699, but more specifically they cost:

� $199 for the 8-gigabyte model and $299 for the 16GB model with a two-year contract with AT&T Wireless. That�s the price for people activating new lines, discount iPhone 3G owners who bought their device before July 11 and current AT&T customers who are eligible for an upgrade discount.

� Existing AT&T subscribers who are not eligible for an upgrade discount can buy the Apple's new iPhone 3G for $399 (8GB) or $499 (16GB). Both require a new two-year service agreement.

How much Apple's new Apple's new iPhone 3G, which went on sale Friday, costs depends a lot on the AT&T contract.

� AT&T will offer a no-contract-required option for $599 (8GB) or $699 (16GB) in the future.

� The new iPhones must be activated in an Apple or AT&T store.

As an original iPhone 3G store owner - and by the time this column is published, owner of a 3G, too - I am aware of how AT&T is recouping subsidizing the iPhone deals's purchase price.

Thankfully, my account was eligible for a phone upgrade, so I had to pay only an $18 upgrade fee in addition to the $299 for the 16GB model - as well as locking myself in to AT&T service for another two years.

Continuing the Nation 900 plan I've had since buying the original iPhone a year ago is becoming a bit of a nuisance. Before upgrading, my plan cost $59.99 for 900 "anytime minutes" (including all of the various features) and 200 text messages a month. The iPhone data plan cost an extra $20 a month.

Now, assuming I didn't run into any unpleasant surprises in the AT&T store Friday, the same voice and data service costs $89.99 a month in addition to an extra $15 for 1,500 text messages.

I found myself pushing up against the previous 200-message limit too easily because sending text messages via iPhone is so simple, and although 1,500 is obnoxiously more than I need, it was the next available option.

And I count myself one of the AT&T subscribers lucky enough not to get too singed in the iPhone-upgrade shuffle.

An iPhone-seeking colleague wasn't so fortunate.

A customer for four or five years, he signed a new two-year contract with AT&T last fall when he lost his phone. He was told at the time that he'd be able to buy an iPhone with no extra charges as long as he was willing to sign a new contract.

When the iPhone was first announced, he was told by AT&T that he would be able to get one at the prices Apple announced. However, he discovered last week that he was not eligible for an iPhone upgrade discount until next May.

He called AT&T a few days before the iPhone went on sale and was told he could get the 16GB iPhone for $499 - a $200 premium. This colleague wisely pointed out he could pay a $175 early termination fee and come out $25 ahead.

"You can do that if you want," he was told.

It would seem that in the mad dash for the latest high-tech toy, some people might find themselves pinched by the calling plans, contracts and promised discounts.

Source: http://www.jsonline.com/story/index.aspx?id=771276

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