iPhone to cost $399 for existing customers — Verizon, T-Mobile, Sprint rejoice
By Triston McIntyre
Well, ain’t that a B? Here all the existing customers with AT&T were throwing full-blown parties for the low iPhone 3G costs, only to find out that AT&T will only be gracing new customers with the low-priced handsets.
Now, not only have the early adopters been screwed out of hundreds of dollars, but the rest of the iPhone community is also suffering the costs of being loyal to AT&T and Apple. But really — who didn’t see something like this coming?
After all, it did seem too good to be true, and we all love a good life lesson to reaffirm well-established idioms, do we not? In effect, those customers who helped established the iPhone’s dominance of the touchscreen smartphone market by spending copious amounts of cash are being kicked to the curb by AT&T and Apple for new customers. Classy.
How does it make you feel, knowing that you early iPhone adopters are effectively subsidizing the low costs of the 3G iPhone you have to pay significantly more for? Sure, we all want our friends to have nice toys like us…but I’m certainly not keen on helping front the bill.
The announcement of the new iPhone 3G price for existing customers has implications that reach further than only AT&T customers. Granted, AT&T will be forced to deal with the hordes of existing AT&T customers who were waiting for a price reduction to adopt the iPhone, but now can’t. Beyond that, the iPhone 3G’s adoption rate is effectively stunted before the cute little handset makes its way to store shelves.
However, this could spell success for other carriers and handset manufacturers like HTC, Nokia and Samsung. The fact that the iPhone 3G will cost effectively the same amount as the current model to existing customers means that competing manufacturers and carriers can now leverage lower prices on new high-end handsets to draw customers away from AT&T. Believe it or not, not everyone is completely happy with their current model iPhones.
Just yesterday I was in an Apple store having a Genius take a peek at my Macbook Pro’s optical drive, and seated next to me was a very upset business man. Overhearing his conversation, my deduction skills discovered that this man was on his fourth iPhone due to various handset issues ranging from malfunctioning speakers to less-than-adequate battery performance. Even I could tell he was about ready to cash in his chips for a different handset, something the man made all-too clear to the frightened Apple rep.
This could be the break that competing manufacturers and carriers need. If carriers can negotiate exceptionally low prices for what are usually considered high-end touchscreen handsets, they might manage to hold back the flow of customers switching to AT&T, and win a few dissatisfied AT&T current iPhone users to boot. Carpe diem, baby!
Related:





Stumble It!

July 1st, 2008
This is entirely not true. Some current customers will be eligible to upgrade. And that includes most early adopters of the original iphone, as one columnist has already said. Current customers: check with ATT to see if you are eligible for an upgrade… this guy doesn’t know what he’s talking about. Just check out ATT’s iphone page.
July 1st, 2008
This is not true. Some current customers will be eligible to upgrade. And that includes most early adopters of the original iphone, as one columnist has already said. Current customers: check with ATT to see if you are eligible for an upgrade… this guy doesn’t know what he’s talking about. Just check out ATT’s iphone page.
July 1st, 2008
Dude, get the facts straight before you publish, people who are eligible for upgrade will get it at 199, which is most of att’s customers. Yet your too ignorant to read Att’s website, your pathetic.
July 1st, 2008
Sometimes i don’t understand ppl. If you are an “early adopter” then you pay a pretty penny while other ppl don’t. That is how it is and that’s how it will always be.
Everytime I buy a new video card for my comp I know that i just a few months it will be half the cost but i want it now. So i fork over the cash. Why would cell phones be any different?
August 23rd, 2008
This is entirely true. Tried to upgrade last week and was told the price would be $200 bucks more – and, since ATT is making up the difference with the discounted price with the new, higher priced data plan the total fee for being a loyal ATT customer is $400 more over 2 years!
ATT will tell you that some customers are eligible to upgrade but the question is when are you eligible?
June 19th, 2009
Entirely true.
AT&T does the most disgusting things to get you to be in contract with them longer and longer, and they don’t care one bit about their customers. thank you apple for partnering up with the most despicable company out there.
July 13th, 2009
I agree with those who uberbyte, true and gus. I wanted the iPhone 3G but unfortunately I am not eligible for the discount (had to wait next year). Obviously I want it now but oh well. I wish Apple went with Verizon instead, AT&T are a bunch of idiots. the 3G S costs $600 & $700 for early adopters/no contract iphones. Damn SOBS.