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AT&T Reveals iPhone 3G Prices

This morning, AT&T Wireless announced its pricing for Apple's upcoming iPhone 3G --and this news release reveals that the new model, due July 11, will be a little more expensive to use than previously thought.

AT&T had earlier announced that "unlimited data" use on an iPhone 3G would cost $30 a month, up from the $20 a month users of the first iPhone paid for its considerably slower cellular-data connection. (Note that AT&T's terms of service, much like those of Sprint Nextel and Verizon Wireless, give it the right to charge extra if your data use exceeds 5 gigabytes a month.[AT&T spokesman Michael Coe e-mailed to clarify that this 5 GB cap only applies to more expensive plans sold for use with computers: "The iPhone 3G data plan is unlimited," he wrote. "We don't charge for data usage over 5GB."]) But today's news also confirms that text messaging is no longer part of the core iPhone service bundle.

So while an iPhone user would have paid $59.99 for a bundle of unlimited data, 450 daytime minutes and 5,000 night and weekend minutes and 200 text messages a year ago, that same combination will cost $74.99, in the form of AT&T's $69.99 "Nation 450" bundle plus $5 for 200 text messages. You can also pay $15 a month for 1,500 text messages, or pay $20 for unlimited texting -- or you can pay 20 cents each if you are dead certain you will never text more than 25 times a month.

(Things could be immensely worse: You could live in Canada, where Rogers Communications is offering an insultingly limited set of plans, starting at $60 Canadian for 150 weekday minutes and a measly 400 megabytes of data use -- no, that last number is not a typo. Canadian iPhone fans are as irate as you might expect.)

The wireless-industry news site mocoNews.net (that's short for "mobile news," not "Montgomery County") also notes that AT&T customers who haven't fulfilled their current contract will pay much more than the advertised prices of $199 and $299 for 8-gigabyte and 16-gigabyte iPhones. Instead, they'll be charged $399 and $499, respectively. Later on, AT&T will offer no-contract-required prices of $599 and $699, which the story suggests explains the higher cost of iPhone 3G service: "the carrier is subsidizing the phone somewhere in the $300-$400 mark." Indeed, $15 a month extra over a standard two-year contract adds up to $360.

I'd like to hear from people who have been eyeing an iPhone 3G but hadn't committed to closing the deal. Do the details of these plans encourage you, discourage you or make no difference?

By Rob Pegoraro  |  July 1, 2008; 10:06 AM ET
Categories:  Telecom  
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Comments

Well, I'm not thrilled to have an increase in the cost of my cell phone usage. I currently pay around $50 and change per month from Sprint, but that's with no data access and .20 per text message. So, I figure, with the features I'll be gaining from the iPhone, I will just have to swallow the price hike.

You gotta pay your dues for the Jesus Phone.

Posted by: Kimosabe | July 1, 2008 11:50 AM | Report abuse

If I'm getting unlimited web usage, what's to stop me from sending messages to other people's phones via Gmail (and to direct others to text to my email account)?

Posted by: Ronson | July 1, 2008 12:07 PM | Report abuse

man, i was going to get one.
I'm thinking of getting the other phone like lg or samsung. I think they work almost the same. I'll stick to my palm treo for now.

Posted by: kaz | July 1, 2008 12:20 PM | Report abuse

I've been looking into an iPhone for a while now so I've done my homework, and even with the increased data rates the price I pay per month for unlimited data and texts would be the same regardless of which iPhone I bought. For the old iPhone, unlimited data/texts was $20+$20=$40/month; however, this would have hindered me since my family has an unlimited family text plan ($30/month split 3 ways = $10/month for me). So, although the new data rate is $30/month, the texting is now only $10/month for people in similar situations to my own, so the total is still $30+$10=$40/month. Maybe this only applies to avid texters like myself, but if you do the math and have an unlimited family text plan, the new iPhone is a steal with 3G and GPS, not to mention X number of apps.

Also, another thing to consider...if you're an AT&T customer, $30/month is the CHEAPEST you will pay for unlimited data regardless of which phone you buy (Smartphone, Blackberry or now iPhone), so raising the price to $30/month to JUST NOW match the other smartphone data rates really isn't that unreasonable when you compare the quality of the applications using those data plans (mobile browser vs. Safari, downloadable apps, google maps with GPS, etc etc etc).

In short, I'm still content :)

Posted by: Anthony | July 1, 2008 12:25 PM | Report abuse

Hell us Canadians would love this plan!

When's AT&T moving up here? :)

Posted by: GusF | July 1, 2008 12:26 PM | Report abuse

I'm discourage. Not getting one anymore although I'm sure it won't hurt them to lose one potential customer.

Posted by: OA | July 1, 2008 12:26 PM | Report abuse

Kaz,
Correct me if I am wrong, but arn't these plans identical to the Palm Treo's?

OK, I am not a fan of the subsidy. But, I had seen this coming (Although the internet didn't?) back when the rumors were flying before the announcement at MacWorld. SO maybe the hit didn't hit me as hard as it did everyone else. BUT, I will say this. Now that the shock has subsided, I realize that it gets 3G access. That's something that NONE of my previous phones have had. SO the REAL question is this: Does it cost AT&T more to allow access on 3G? And, even more important, is the 3G access worth $15 more TO YOU then EDGE? If either of those scenarios is true, maybe the subsidy isn't as large as you might think.

I am going to be getting it. Hell, I have a family unlimited texting plan. Those 200 were never used anyway.

Posted by: Tyrell | July 1, 2008 12:35 PM | Report abuse

Was going to join the line at midnight. Now won't get one at all. Family Talk w/3 lines (1 iPhone incl) going from $100 to $140. Does include 150 more voice minutes I DON'T WANT. Big deal. Meh. I'm outta here.

Posted by: Will | July 1, 2008 12:50 PM | Report abuse

its insulting. I don't think people r so desperate for the iPhone 3g. I own an iPhone first generation and I pay $82 after taxes. For 400min 1500 SMS, unlimited data and extra rollover minutes 200. I really can't complain. But I don't think I am going to upgrade my phone this year. They r asking to much. And the only diference basicllly is gps and 3g. Att rather not push my buttons increasing my current plan or I'll go somewhere else with my iPhone (unlocked) or just wait till my contract is over and never come back

Posted by: Wagner m | July 1, 2008 1:09 PM | Report abuse

Ok - I was ready to switch myself and my sales team (roughly 16 total), but no way in hell am I going to approve such a hefty price increase (collectively) in addition to doubling the promised cost of the phone. We have Blackberrys now (AT&T) and would love to upgrade, but the math just doesn't work out. Sorry Apple - you ALMOST had us.

Posted by: Silvertooth | July 1, 2008 1:09 PM | Report abuse

I only hope that soon the number of service providers for the iPhone will increase, creating some competition.

Posted by: Christopher | July 1, 2008 1:11 PM | Report abuse

AT&T has a five year exclusive.

Posted by: Walter | July 1, 2008 1:26 PM | Report abuse

Wow dude that would be suck so bad... Why does it cost that much for the phone with an enclosed OS? This is a monopolizing between at&t and apple. What happen to those who just want the Iphone not the plan?

Posted by: Iphone User | July 1, 2008 1:35 PM | Report abuse

The 599/699 prices are the "no-commitment" price that will be offered "in the future". Current AT&T customers that are not upgrade-eligible can pay 499/599 ($100 less) but have to sign another contract.

I'm one of those people--My Treo broke in January. I decided to wait for the release of the 3G phone. I ended up buying a refurbished Treo at a discounted price, thus making me not eligible for the lower iPhone cost.

I'm not thrilled about my situation--although I realize that this is the way that wireless service works, it's annoying to hear Apple and AT&T tout the "lower price" when in reality, between subsidies and higher monthly rates, it costs just as much (or more)!

Posted by: TJ | July 1, 2008 1:38 PM | Report abuse

OK, I've been following hype every week since the announcement of the new iPhone 3G. This latest in this article puts out my flame on purchasing a unit on the 11th of this month. I'm simply NOT going to pay $599.00 for the 8GB version because my current contract is not up until Nov 15th of this year. By then the HTC Touch Pro and Samsung i900 (Aug 2008 release) will be out. I'll be looking at them as possible upgrade options if AT&T will be carrying them. Soooo long to waiting in line for hours on end on the 11th of July...

Posted by: shopwireless | July 1, 2008 1:39 PM | Report abuse

I Love IPHONE!!! but seriously i have the "Blackberry Curve" Right now and i pay $30 for UNlimited EDGE network from AT&T
but when i get the IPHONE 2.0 on july 11 I will be paying the same amount for 3G network so its not so bad plus Iphone 2.0 kick ass compare to to blackberry curve or the new blackberry BOLD!!

Posted by: dildar | July 1, 2008 1:41 PM | Report abuse

There's also a hidden cost for those contemplating a switch from Verizon--AT&Ts network is SO inferior in the DC area. My wife wanted an iPhone so we both switched (I have a Curve). We complain constantly to each other about missed/dropped calls, no data service, garbled calls that ARE connected. It's very very poor and we hate those commercials that advertise "more bars in more places." What a joke.

Posted by: I HATE ATT | July 1, 2008 1:42 PM | Report abuse

And for those of us in the frozen North(east), where Edge/3G access is not available (heck, where basic phone service is questionable... up here, Verizon runs ads that begin, "does ANYBODY hear me, now? Hello?...") and where AT&T will actually CANCEL YOUR ACCOUNT if they discover you live in Vermont, the entire question is... well... moot.

Which makes the iPod Touch the best device b/c just about everyplace up here has open wifi (as opposed to NYC where everything was locked up tight).

Now I'm just gonna piss and moan about being charged for the software upgrade the Jebus Phone will get for free.

(begin whining)


(/whining)

*sigh*

Posted by: Bush -- not related | July 1, 2008 1:49 PM | Report abuse

@Silvertooth, the price of the phone has not been doubled at all. People who fail to fulfill the two year contract will be charged the full price of the phone, but otherwise you will still pay either $199 or $299 towards the iPhone.

@allot of other people too, let's compare this more completely with the original iPhone. The original iphone cost $399 for an 8gb model. So while the difference between the contracts is $360, when the price of the phone is factored in that drops to $160. Yes, it is more money, but for what amounts to $6.67 a month, you get a phone with 3G (which is a huge upgrade from edge), GPS, and (thanks to the plastic back) better reception.

Posted by: Jason | July 1, 2008 1:51 PM | Report abuse

Can someone advice on the following?

I want to take AT&T connection for me & my wife. But I want to buy only 1 iPhone 3G (i.e. One of us would have an iPhone 3G and the other would use the AT&T connection with some other phone).

Now which family plan would we be elgible for?
Is the family plans under iPhone 3G applicable only when both the lines are using an iPhone 3G??

Posted by: Raj | July 1, 2008 1:59 PM | Report abuse

My current contract has been up for a year and I was hoping to upgrade to an iphone 3G. I can understand the higher fee given the subsidy on the phone, but that's simply too much to spend just to talk to people (and/or surf the web, etc.). I'll keep my current phone, which is less than half of that per month.

To people comparing this across plans for other phones, take a step back and realize that you're talking about paying $75 a month for just a phone/internet device. AT&T hopes you'll do the cross-device comparison as it changes the large per-month fee into small "difference-of" fees. Saying "it's just $10 more" masks the true cost of things. I can eat for over a week on $75. No thanks.

Posted by: sandman | July 1, 2008 2:00 PM | Report abuse

@TJ: Thanks for catching that mistake--$599 and $699 are the no-contract prices AT&T will offer later on, while customers still in a contract who aren't eligible for upgrade pricing will pay $399 and $499. I've corrected the blog post accordingly.

- RP

Posted by: Rob Pegoraro | July 1, 2008 2:01 PM | Report abuse

What some people don't realize is that 3G service isnt' even available in all areas. The 'region' we live in doesn't have 3G service access and we've been told that there are no plans for AT&T to upgrade our towers any time soon. Upgrading would be a waste.

Posted by: 73Chelle | July 1, 2008 2:03 PM | Report abuse

I was going to give my money to charity, but now I'm going to buy an ipod telephone instead.

Posted by: Slim | July 1, 2008 2:10 PM | Report abuse

I got Samsung Instinct from Sprint after using first gen iPhone for almost a year and selling it on ebay for same price as I paid for it.

After my discounts, my monthly plan will run me $50 with 450 voice minutes, unlimited data, unlimited text, Navigation, Sprint TV, etc.

I sure will not pay double for using iPhone on AT&T network.

Posted by: TechyWill | July 1, 2008 2:14 PM | Report abuse

I had AT&T years ago and hated them. Nevertheless, I was going to switch to them to get the iPhone. It's not happening now. This is typical AT&T. Add bad reception and horrible customer service and it's a no brainer.

Posted by: RG | July 1, 2008 2:19 PM | Report abuse

If you look at AT&T's "Prepare for the iPhone" info, you'll also notice that they tack on an extra $30 for Family Talk. (I currently pay $9.99/mo to share minutes w/ my wife) They also charge an $45/mo for the "business data plan" if you want to connect to your work email. My current Windows Mobile based phone does this already. Based on my current plan w/ AT&T, it looks like upgrading to the iPhone for me will cost more than $150/mo when I'm currently paying

Posted by: JR | July 1, 2008 2:20 PM | Report abuse

You guys might want to give the new Sprint Samsung Instinct and try. Its just like the Iphone (I own both). Its 3g, has a camera, cool sleek look,and operates very well. I have the 69.99 Unlimited plan which gives me 450 anytime minutes, Unlimited Nights and Weekends, Unlimited mobile 2 mobile, unlimited text, unlimited data, no roaming fees. I love the phone I will be severing my AT&T contract next month. If your a new customer to sprint the phone is 129.00 with instant and mail-in rebates.

Posted by: Ryan | July 1, 2008 2:31 PM | Report abuse

Man, I was all excited about possibly getting an iPhone since my contract with Verizon was going to expire at the end of July anyway.

But now after reading about the price hike and the fact that AT&T network sucks...

Well, I'm going to re-up with Verizon (for my standard $35/month--450 mins) and just get an iTouch--same features without the phone.

Posted by: Beantown Man | July 1, 2008 2:38 PM | Report abuse

To the person that said the iPhone blows the BB curve away, what are you thinking? If all you do is talk and web, then OK. But the text/keyboard capabilities of the BB are huge. Can you say copy/cut/paste on the iphone? I think not. I like both phones; both have strengths. The iphone needs much better predictive txt and txt manipulation, AND voice dialing. Other than that, it's nice.

Posted by: Sam | July 1, 2008 2:40 PM | Report abuse

Increased a little? As in 25% you mean?

Sheesh!

Posted by: Mark | July 1, 2008 2:51 PM | Report abuse

Simple solution- Stay with your cheap phone and service and get an iTouch. No ongoing fees.

Sure iTouch can only access the web by WiFi but hot spots are everywhere.

Nice deal- I just bought a Mac and got 16 GB iTouch for $100 after $300 rebate. (The 8 GB is free with buy of any Mac. the 32 GB model is $200 after rebate). The rebate was done on line and check arrive 4 days later!

I carry an LG phne and an iTouch in me pocket. The iTouch is much thinner than iPhone.
I sync my Apple apps (iCal, contacts) at office and home. Google Maps actually stay stored in iTouch when out of WiFi range. Not a bad workaround.


Posted by: towards light | July 1, 2008 3:08 PM | Report abuse

I was prepared to wait in line for hours for a new 3G, but now I think I'll keep my Verizon phone and invest in an iPod Touch instead (which has all the features except for calling/texting. Get a Skype account and problem solved). Considering AT&T's coverage - which is patchy at best - there's no way I'd pay that kind of monthly fee. Sweet phone, sour deal.

Posted by: Jennifer | July 1, 2008 3:34 PM | Report abuse

Was thinking of getting one but now no more. It is a nice toy but just to costly. We are paying for the looks.

Posted by: Matt | July 1, 2008 3:51 PM | Report abuse

We were considering upgrading my wife's current AT&T plan to the 3G iPhone, but that price is way beyond what we would be willing to pay. Guess we'll have to wait one more year for her current plan to expire.

Posted by: Justin | July 1, 2008 3:55 PM | Report abuse

Wow. There's no way I would ever pay that much per month for the iPhone. Luckily I don't have to since I qualify for their No Minutes TAP plan. $40 a month for unlimited data and txt isn't too bad, even that is $10 more on the iPhone than on their other phones.

Posted by: Lucky | July 1, 2008 4:01 PM | Report abuse

Over the long run, the 2nd gen iphone is a comparable price to the 1st gen(price of iphone + service agreement)but I, like most people HATE more expensive residual prices. I would rather pay the difference upfront than to upgrade my plan which will probably put me around the century mark for the same plan I have now. Before I get called a dumb consumer the fact of the matter is is that seeing my cell phone bill that high just bugs me because I could be getting WAY more bang for my buck these days at sprint. But I love my iphone too much. What a dilemma. Phone or carrier. That is the question.

Posted by: Ty | July 1, 2008 4:17 PM | Report abuse

I was ready to switch to AT&T from Verizon to get an iPhone, only to discover that I couldn't get an AT&T signal within a mile of my house (I get 3-4 bars w/ Verizon)

Pricing plans are irrelevant when you can't get a signal.

Still thinking about an iPod touch if the price drops.

Posted by: Jeff | July 1, 2008 5:00 PM | Report abuse

i'm getting it! i had a blackberry 7290 with browsing cap but it was so slow that i never used it - i'm paying $44.99 for bbryunl - basically $45 for something i never use so it'll be a bargain for me! i've been waiting for the second gen iphone - i never go with first gen!

Posted by: mmmmm | July 1, 2008 5:01 PM | Report abuse

The AT&T/Apple relationship has been interesting to watch. It looks to me like AT&T has reached the conclusion that Apple customers are willing to pay a premium price, so they're jacking up their rates accordingly. What they don't seem to understand, though, is that Apple's customers are willing to pay those premium prices for superior value. AT&T got as far as "premium prices" and seems to be neglecting the "superior value" part of the equation.

Particularly for those customers who buy the phone from an Apple Store, I think AT&T is taking a real risk by providing the customer with an opportunity to easily and directly compare one of the best customer purchase experiences around with one of the very worst.

Posted by: Phil | July 1, 2008 5:12 PM | Report abuse

Apple did it right the first time around. Anyone who bought the phone could get service at a reasonable price. For those with poor credit, they could pay at the first of the month rather than the end.

This is no longer the case. Thus there will be an entire class of people who will not be able to get an iPhone. Anyone whose credit is poor, regardless of the reason why it is poor, will be unable to get service from AT&T. This is most unfortunate. It is an ugly form of social discrimination.

One reason why I've kept my phone with Sprint for 15 years is because I detest such practices. Sprint has always made it possible for those in the lower income strata to get a phone. Verizon, and now AT&T, have policies that discriminate against the poor. Verizon even asks those with poor credit to put down a $1,000 deposit as a disincentive.

What kind of nonsense is that?

Posted by: Jerry | July 1, 2008 5:28 PM | Report abuse

I was planning on switching to AT&T in August when my Verizon contract expired but I'm not too certain now. The increase in prices has discouraged me enough to re-think it. The only way I would still switch is if they announce that the iphone is compatible with slingbox.

Posted by: Gerson | July 1, 2008 5:42 PM | Report abuse

One other update--an AT&T publicist e-mailed to say that the 5 gigabyte usage cap only applies to plans that allow use with a computer (i.e., with data cards or with phones that allow "tethered" modem use with a laptop). Cheaper smartphone plans such as the iPhone 3G's service options, he said, don't carry any such limit.

- RP

Posted by: Rob Pegoraro | July 1, 2008 6:20 PM | Report abuse

Forge ahead, early adapters! Drive the price down for all the people who AREN'T going to swallow a bait and switch.

Posted by: Squatty HJ | July 1, 2008 6:36 PM | Report abuse

Will Fenty send his minions to cut, er, stand, in line to get iPhones, as they did last year?

Posted by: Ted | July 1, 2008 8:48 PM | Report abuse

"AT&T customers who haven't fulfilled their current contract will pay much more than the advertised prices of $199 and $299"

I don't think that is true. I have not fulfilled my current contract but the AT&T web site says I am eligible.

Posted by: pwb | July 1, 2008 9:25 PM | Report abuse

No thanks. The initial report from AppleCore seemed to imply the total monthly rate for a 3-line Family Plan would be about $90 for 700 minutes for 3 lines with unlimited data but no SMS. For that price, we would have purchased 3 phones.

Now, the price for 3 lines on a Family plan would be a minimum of $170 monthly. We won't do that. No way.

Jaybo

Posted by: Jaybo | July 1, 2008 10:42 PM | Report abuse

owner of first iphone very dissapointed that you have to wait for contract to be renued if you missed the trade in date for the iphone 3g

Posted by: josh | July 1, 2008 10:54 PM | Report abuse

What's the most affordable solution? For me it's to sign up for a new 2 year contract with AT&T for a 16GB phone. Then, after the "trail period", cancel the service for $175. That leaves me with a no commitment phone for $374, not the outrageous $699. Of course, this all hinges on wonderful developers like the iPhone Dev team finding a way to unlock the phone for free, but I'd say if it can be done, it's worth losing the warranty.

Posted by: prs | July 2, 2008 12:42 AM | Report abuse

WHEN ARE ALL THE MAJOR WIRELESS CARRIERS PLANNING ON STOPPING THE SCAM ON ++++ BOGUS ++++ PHONE/CONTRACT PRICES ???

THIS ++++ ESPECIALLY ++++ APPLIES TO VERIZON WIRELESS !!!!!!!!!!!!!!!!!!!!!!!!!!!

I HAVE HAD VERIZON WIRELESS FOR PROBABLY OVER 10 YEARS NOW AND THIS IS MY 2D NOKIA [NO FRILLS] PHONE.

I HAD VERIZON LAND LINE WITH E-MAIL FOR OVER 25 YEARS, UNTIL THEY BILLED ME INCORRECTLY. WHEN THIS WAS POINTED OUT TO FINANCIAL SERVICES, I WAS CREDITED ABOUT $80 ON THE INTERNET SIDE [DSL], WHICH THE [SUPPOSEDLY DIFFERENT] VERIZON LAND LINE CARRIER ++++ IMMEDIATELY SNATCHED ++++ CAUSING ME TO GET DISCONNECTED ON THE SIDE !!!

TALK ABOUT GALL, VERIZON THEN NOTIFIED ALL 3 CREDIT BUREAUS TRAT I OWED THEM OVER $100 WHEN I DISCONNECTED THEM. A REAL ESTATE BUSINESS CANNOT AFFORD A DISCONNECTION BECAUSE ONE COMPANY SEIZED A REFUND FROM ALLEGEDLY A DIFFERENT VERIZON COMPANY.

FORTUNATELY, I USUALLY DON'T GIVE A GOOD $HIT ABOUT MY CREDIT RATING, WHERE THE ERROR IS SOMEONE ELSES. I TELL THEM AND IF THEY DON'T LISTEN OR NEGOTIATE REASONABLY, THEY CAN SHOVE IT WHERE THE SUN DOESN'T SHINE.

FORTUNATELY, I DON'T LIVE ON CREDIT CARDS -- LEARNED THAT LESSON THE HARD WAY. I ++++ TRY ++++ TO KEEP LIFE SIMPLE TODAY.

I DON'T GIVE OTHERS POOR FINANCIAL ADVICE -- NEVER YET RECOMMENDED AN ARM TO ANY CLIENTS IN A HOME PURCHASE, SO I CAN SLEEP AT NIGHT/DAY OR WHENEVER.

SO VERIZON WIRELESS, WHAT KIND OF A TOP NOTCH WIRELESS PHONE/PDA CAN I GET FOR OVER 10 NYEARS OF LOYAL SERVICE WITHOUT A CONTRACT ???

HOPE YOU HAVE AN ANSWER ---- SOON !!!!

Posted by: brucerealtor | July 2, 2008 3:32 AM | Report abuse

I switched to ATT in preparation for the new iphone a little more than a month ago (bringing with me my own blackberry) to find out that I'm not eligible for the upgrade pricing (or any upgrade) for the new iphone and I will undoubtably have to pay $699 for the new one. That in itself is ridiculous enough to put the breaks on the thing altogether, I'd been with TMobile previously for nearly eight years and was grandfathered in on a plan with 1000 anytime minutes and unlimited Nights and Weekends for $50 a month and now realize that I truly had it good. I never needed to change my plan - I never needed more minutes, but now I'm paying more for less with ATT. I might have to wait, It doesn't make sense that, although you are receiving 3G service and a GPS receiver, the price of the product has gone up. With any other electronic (let's say a macbook) the price goes down when a newer - faster version comes out. WHY ARE WE BEING CHARGED MORE? AND WILL APPLE LATER APOLOGIZE for lowering the price and give us a gift card like they did in the past?

Posted by: Brandon | July 2, 2008 4:23 AM | Report abuse

I admire the iPhone (3G), but currently pay $50/month for voice+data from Sprint for my Palm Centro. I would've been willing to pay an extra $10/month to use an iPhone, but $20/month is a barrier.

I'll hold off for now, at least until my contract runs out, or Sprint goes out of business.

BTW, I love my Centro, and will like it even better when [Sprint] aGPS support for Google Maps comes out later this summer (already available to Verizon and AT&T users).

Posted by: Jonathan | July 2, 2008 9:51 AM | Report abuse

People in the "lower income strata" don't need to be buying an iPhone. Not if they want to rehabilitate poor credit.

Posted by: Franklin | July 2, 2008 10:09 AM | Report abuse

I was planning on getting the Iphone but I still have to wait for 1 year to be eligible for the upgrade (i have the BB curve I bought last year) .. too long a wait.. better phones will be out by then... ATT should not make it that hard for existing customers, they are making more money with more expensive service anyway...

This sucks..

Posted by: Ssgd | July 2, 2008 2:00 PM | Report abuse

I want to get a 3G, but the increase in service price is making me reconsider. Especially for texting (which should be FREE considering you get UNLIMITED DATA). This text messaging thing is utterly ridiculous. I cannot believe how much the phone companies are allowed to charge. And they all do! There's no competition, you can't go anywhere else for better rates. To top it off the options are absurd. You can only go from 200 to 1,500? Why not a 500 or 700 option?

Posted by: Farbo | July 3, 2008 2:12 AM | Report abuse

Guys,
Trust me, neither you nor I believe the Canadians have anything to complain about with regards to the price of the iPhone 3G, Australians have it the worst. Even check out our prices; so far Telstra and Optus have revealed prices.

Posted by: James | July 3, 2008 8:15 AM | Report abuse

Too bad AT&T is the only service provider for the IPhone. Glamor and glitz soon part a fool and his gold (well, most of the time). But I'll await the results of the recession to see what the struggle for survival and real competition for customers will bring. Meanwhile my TracPhone will do just nicely, thank you.

Posted by: John H Noble Jr | July 4, 2008 7:44 AM | Report abuse

I'm a long time AT&T customer who currently pays $39.99/month for the 450 min. package as well as $59.99/month for the laptop connect card. I planned to upgrade to my first smartphone and get the new 3g iphone. Now I find out that because I have 6 months left on my 2 year contract, the $199. price on the iphone does not apply to me, not to mention the increase in cost for the monthly plan. I am very disappointed to say the least. There are plenty of other good phones out there. I think AT&T is really making a huge mistake in sticking it to their existing, loyal customers. I guess this is the thanks I get for my many years of business. You're blowing it AT&T.

Posted by: Disappointed | July 4, 2008 1:40 PM | Report abuse

I called and checked with AT&T and the way the have stated it I won't even be able to buy an Iphone on July 11 ! at the recommendation of a AT&T employee I got a new phone in Dec. because at that time they thought whenever you got an Iphone your 2 year commitment would just renew . So now I would have to wait until they come out with a no commitment phone for $499 / $599 or wait till next Aug 2009 and pay $399 / $499 !!!! And this is how they treat long time loyal customers ???? Idiotic and greedy !!!
I hope they rethink before I just get an Ipod Touch and look for a new carrier .

Posted by: RHamdrum | July 4, 2008 3:05 PM | Report abuse

I'd love to get the 3G iPhone, but at $75.00 a month for service, that's just too stupid silly expensive... at least for my taste. The way I look at it, if I could afford to buy one less tank of gas a month, this would work. But I can't, so I won't be in line to get screwed by AT&T.

Posted by: jltno | July 6, 2008 4:44 PM | Report abuse

We have 2 iPhones and were planing on getting 2 of the new ones. Not going to happen at $399 or $499. each to upgrade to the new iPhones

Posted by: rx7race | July 7, 2008 10:15 AM | Report abuse

to Canadians: you can put that $ you save on health care and prescriptions toward the iphone contract...you'll still come out ahead of us:))

Posted by: mollytjm | July 7, 2008 11:13 AM | Report abuse

I looked into this whole thing, since the wife really wants an iPhone and I am at the end of my contract and want to upgrade to a new smartphone. We have been with Verizon for years and despite my dislike of some of their policies and tactics, they provide me the best coverage and service I've had (I even worked for a competitor for almost 2 years). First, the pricing is just too much for the plans. Second, we would have to shell out for the hardware. Third, and DEFINITELY not least, is the fact AT&T coverage in our area is abysmal. There are only 2 areas in our whole state that have 3G coverage, so why bother? I told the wife unless we plan on moving, it makes no sense. That has pretty much ended the discussion. More bars in more places? Bah! We'll stick with Verizon and get our FREE or discounted upgrades, tack on a data/email plan and still be ahead. Sorry AT&T, you lose.

Posted by: krausbrew | July 7, 2008 1:12 PM | Report abuse

With the cost of switching contracts before the old one is up within ATT, they are insuring there will be no loyalty to ATT. I switched to ATT in May 07 to be ready for the iPhone only to be told that I should have stayed with Sprint and then switched when the iPhone came out. They so don't get it and when the iPhone opens to other carriers, I so won't be with them. Loyalty begets loyalty.

Posted by: Merle | July 7, 2008 1:36 PM | Report abuse

You guys need to do your homework. I have a blackberry curve currently with ATT and have always paid 30(data)+20(unlimited texts)+the plan(on a family plan). This is the SAME as the iphone. If you are a CURRENT smart phone holder with ATT they are now ALL the same. So all of you that wont switch from your blackberry or palm treo are not correct. Switch if you want to because it is the same. The only thing that changes is a new 2 year contract which you have to do if you take an upgrade. So suck it up smartphone generation, you are already paying that much. If you do not have a smartphone stop complaining and go get a gophone.

Posted by: Anonymous | July 8, 2008 1:36 PM | Report abuse

Apple's false advertisement makes me sick!!! I am very disappointed with Apple and AT&T to say the least. I was looking forward to getting two 3g Iphones at 199 and now I find out that because I have 3 months left on my 2 year contract I can't get the 199 deal. AT&T is making a huge mistake, I am so disappointed that I will be switching to another carrier as soon as my contract expires. The heck with the iphone, I rather spend the money somewhere else. It is evident that AT&T will make more $$$ if they allow exiting and loyal customers to take advantage of the 199/299 iphone prices, but they are been downright idiotic and greedy. I guess this is the thanks I get for been a loyal customer. You're royally blowing it AT&T.

Posted by: Ryan | July 9, 2008 12:06 AM | Report abuse

Apple's false advertisement makes me sick!!! I am very disappointed with Apple and AT&T to say the least. I was looking forward to getting two 3g Iphones at 199 and now I find out that because I have 3 months left on my 2 year contract I can't get the 199 deal. AT&T is making a huge mistake, I am so disappointed that I will be switching to another carrier as soon as my contract expires. The heck with the iphone, I rather spend the money somewhere else. It is evident that AT&T will make more $$$ if they allow exiting and loyal customers to take advantage of the 199/299 iphone prices, but they are been downright idiotic and greedy. I guess this is the thanks I get for been a loyal customer. You're royally blowing it AT&T.

Posted by: Nelson | July 9, 2008 12:13 AM | Report abuse

I too found out today that I'm "ineligible" for the upgrade price @ $200/$300, because I upgraded (and when I say upgrade, I mean replaced for the exact same phone) at the AT&T representative's recommendation. It was common knowledge that the 3g was coming out, so she said to hold out for it, and just get a new phone to replace my RAZR for another RAZR, since it was on it's last legs. I had no problem renewing my contract for another 2 years, since I otherwise havent had any major issues with AT&T's service. But it was never explained that this would exclude me from any special pricing in the future. Then again, who would expect that AT&T would present a product at a better price only to entice customers who they dont have yet.

Now I have to wait till April 2009 to purchase the iPhone for the same price that any new customers will be able to purchase it at.

TERRIBLE TERRIBLE customer service practices. They just may not have my or my husband's business in April 2009, when my contract runs out!

Posted by: Anonymous | July 9, 2008 10:43 PM | Report abuse

EXISTING ATT CUSTOMERS...YOU CAN SAVE YOURSELF $25!!!! If you cancel your existing plan for $175, you can get the new customer plan for $199. ATT will still be making $720 from you over the next two years for the additional support cost to go with an iPhone ($30 x 24 mos.).

Posted by: lynn s | July 10, 2008 12:43 PM | Report abuse

im extereamly mad about the fact that if you where someone who bought the first gen. of iphone that you still have to pay 299 for the 3G i think that this is a bad choice on apples part and im going to give them hell to pay for it when i go into the apple store tomarow

Posted by: blake | July 12, 2008 1:13 AM | Report abuse

i bought the iphone 16GB [before the 3G] is out. i was quite happy about it, but the 3G that i bought today :) doesn't compare to any phone on the market right know..

Posted by: steve87 | July 12, 2008 9:23 AM | Report abuse

I was to buy my wife a 3g iphone for her birthday today, but, as mentioned before, I am a current at&t customer and not eligible for the 199/299 pricing. at&t service is sketchy at best and we have been with them simply to get the iphone, but now we will wait until our contract expires and change providers. Love apple, but cannot stand at&t.

Posted by: kramer68 | July 16, 2008 4:39 PM | Report abuse

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