Regarding AT&T’s iPhone 3G Upgrade Policy

M. Jackson Wilkinson explains what I was missing with regard to AT&T’s upgrade policy for existing AT&T customers. In short, original iPhone owners can buy new iPhone 3Gs for $199/299 because the original iPhone wasn’t subsidized. But if you purchased a subsidized phone from AT&T and are still in your mandatory two-year contract period, you’re still paying off your last subsidy with your monthly fees, and so you’ve either got to wait or pay full price for an iPhone 3G ($499/599).

What this means, though, is that when Apple comes out with next year’s new iPhone(s), iPhone 3G owners are going to have to pay a penalty to upgrade.

Tuesday, 1 July 2008