New $199 iPhone is Just $599

[admin]

Fans of the newly announced $199 iPhone will soon be able to get it... for $599. Huh? According to a report on Reuters today, U.S. consumers who want the new iPhone but cannot or do not want to sign up for a new two-year contract with AT&T Inc will eventually be able to buy it for an extra $400... sort of. Maybe. Kind of.

Discuss "New $199 iPhone is Just $599" here. Read the article.

 

[FatStrat85]

It's a fair deal... If you want the freedom of not having a long-term contract, you can have it, but you have to pay extra for it. If you don't mind being with AT&T for 2 years, then you can get a nice discount on your phone.

 

[aberkowitz]

This is standard industry practice for wireless companies. Give the phone away cheaply and lock somebody into a guaranteed 2 year revenue stream, or make a customer pay the "true" retail price of the phone and make money off them anyway! I don't blame AT&T for doing it this way, and I don't think Apple can do a thing about it.

 

[Matt34]

Darn it, I read the title and thought I was going to have to ban Admin for spam.

 

[MapleSyrup]

I so need to start my own phone service.

Yup. Nothing out of the ordinary. I have heard though that the IPhone's reliability really isn't all that. Any insights?

 

[FatStrat85]

Reliability in what sense? It's very rugged. It always works. Service is dependent on the AT&T coverage in your area, but I get great service where I live (and all the places I've traveled, even fairly remote places). It's a pleasure to use. It's really a great device.

 

[birdonthebeach]

I have had my iPhone for a year, taken it around the world, and had no problems. Lives in my pocket most of the time, and I have had no issues.

And as mentioned above, this pricing structure is no different than that of any other competing device/provider....

 

[corysmith01]

Agreed, I don't know why this is news. The reason people get it for $199 in the first place is because AT&T is subsidizing it. That news was announced months ago, that AT&T would now subsidize it to bring the price down thus roping in more people knowing that the $200 subsidy they're offering is made up for within the first 3 months of service ($70x3 = $210...the new 3G data plans go up $10 from $20 to $30, giving a new base price of $69/month). If you don't want to sign up for a plan, then why should you get it for $199? No other carrier/phone maker does that. Why is this news?

I've had my iPhone for 6 months with 0 problems. I've dropped it a few times (I do have a case on it), I've travelled with it and I've used it for e-mail/maps/web/text/stock reports, all without fail. I was skeptical at first, but am now completely sold. It's a pretty genius product and I think the competitors agree seeing that now they're all following suit with "iPhone-like" smart devices.

 

[mike c]

Darn it, I read the title and thought I was going to have to ban Admin for spam.

me too! good thing there's no instant ban button next to the admin's name

 

[Audioholics]

Edit: Incorrect info - article updated to reflect the exclusion that AT&T has given existing iPhone owners/subscribers.

[strike]I just thought it was notable that it's $199 for new subscribers only (or those out of contract). For anyone who bought one already an upgrade will cost full $599 or $699.

I actually know people who were selling their iPhones on eBay after the announcement because they figured they could buy a new one at $199. Apple didn't exactly make a big deal out of the subsidized part (and consequently the limitations) during its debut.[/strike]

Additionally, if you read the fine print you can't just pick up a phone for $599, you must subscribe to some service with AT&T wireless as well... just not a contract.

Overall it's no big deal, but some may have thought that the new price was $199 and that if they opened an account 6 months ago they can just trade up - that's not the case.

 

[FatStrat85]

I just thought it was notable that it's $199 for new subscribers only (or those out of contract). For anyone who bought one already an upgrade will cost full $599 or $699.

That's not correct at all, Clint. If you are upgrading from an old iPhone, you can get it for $199. If you are not with AT&T at all yet, you can get it for $199. If you currently have a different phone with AT&T, you can switch over to the iPhone for $199 so long as you're eligible for an upgrade. The only people who can't get the $199 price are people with other phones with AT&T who are not eligible for an upgrade. This is well publicized.

 

[Audioholics]

I stand corrected. I hate AT&T, lol.

Most of their documentation in print (ie my research) talks about upgrade pricing per eligibility, but the existing iPhone users do indeed seem to be excluded if they purchased before July 11.

I updated it to reflect the difference between upgrade eligible users and existing iPhone users.