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Comments on: Some early iPhone 3G S adopters subject to $200 surcharge

The iPhone 3G and 3G S are both subsidized, selling for a significantly reduced price if you are eligible. Early iPhone 3G adopters, however, are finding themselves subject to a $200 higher price tag for the iPhone 3G S upgrade.

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by hooterboy31 June 10, 2009 8:37 AM PDT
I purchased my iphone 3g on 7-11-08 the day it came out. I called ATT and was told I had to wait untill 2-10-10 to get the new iphone at the subsidized price. I understand how this all works. My problem is in Feb. I have to choose wether to get the 3gs or to wait for the newer phone which will be released next summer. It is a vicous cycle and I just can't stand it anymore.
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by gba2000 June 10, 2009 8:41 AM PDT
This is saving me $50, cancel my line and then add a line.


Only works if you don't care about your phone number.
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by ywkhgqo June 10, 2009 8:44 AM PDT
david martin could be one of the most idiotic article writers ever.
It isn't a surcharge. Its not special to only iphone 3g users. every single company does this for every single cell phone. If you sign a two year contract, they give you the discount because they will make it up in the time of the contract. So when you stupid 3G buyers signed the 2 year contract and got your phone for say $199, you agreed to pay ATT for service for two years so they could make up the roughly 400 hundred bucks they lost on you with giving you the discount. Because it is only a year after, you are NOT elible for the discount because they still haven't made up for the money they gave you for the phone. If you bought a dare (like me) from verizon, its the same story. I just went in yesterday to ask if i could sign a new contract and get the upgrade price on the env touch and they said not until twenty months of my contract was up. THIS IS HOW IT IS FOR EVERYONE WHO SIGNS A CONTRACT.
You apple guys screaming about customer loyalty should shove it. I've bought LG phones for a few years now but that doesn't mean i expect to not actually pay for their products
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by JGowan June 10, 2009 9:30 AM PDT
For the pissers & moaners who have to wait 18 months to get the subsidy, GET OVER YOURSELVES! YOU GOT YOUR DISCOUNT LAST YEAR!!

You received the "3G" at a major discount, saving $200-300 only about a year ago. Why should AT&T do it again for you so soon? That's ridiculous. Talk about petty and ungrateful. Yes, it's business, but they only recoup their money by having you as a customer in a contractual 2yr obligation. If they turned around and kept giving high-end phones away every 12 months, they'd be bankrupt eventually. Your lucky it isn't every two years. There was a time when it was.

You still have the phone that is your property and will never be given back to AT&T/Apple. It will always be an amazing iPod for you if you choose to upgrade on your own to the 3G S. Or you can give it to someone else and they can have AT&T program it for their use/plan.

It was that long ago that iPods came out and were $399 without ANY thought of subsidy and we all bit the bullet. Now the expectations are way too high even though the devices are light-years ahead of the iPods of yesteryear.
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by Sgr76 June 10, 2009 10:43 AM PDT
Normally, i would be 100% on board with all of those who are saying thats how things are. Yes you did get the 3G at a great price and thats why you can't get the 3GS at a great price now. Just like how i paid for my phone and then Apple dropped the price. Thats how things are...I didn't complain one bit (but i did use my $100 gift card lol).

I just don't understand why Apple stays with a company that plays so dirty. Since i paid full price for my original iphone and signed a 2 year contract, they don't have to make any money back from giving me a discount right? Also...Since 2007, new contract rules apply and the termination fees change according to how many months are left in your contract but those new rules don't apply to anyone who signed up at the original iphone launch because we signed our contract before those rules went into effect. I also found out recently that my contract term was for 25 months (instead of the traditional 24). Noone at AT&T was able to explain why so they fixed it.

I am truly looking forward to the day when AT&T Mobility loses this iphone buffer zone.
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by Sgr76 June 10, 2009 10:45 AM PDT
I'm sorry, my point is AT&T should be doing everything they can to keep those loyal iphone junkies happy.
by sting7k June 10, 2009 2:49 PM PDT
You will find that Verizon, Tmobile, and Sprint all have the exact same policy as AT&T when it comes to upgrading your phone. This applies to Razrs, Blackberries, WinMo, Android, and every cell phone they sell. AT&T is playing dirty.
by Sgr76 June 10, 2009 3:05 PM PDT
I know for a fact that Tmobile has a more flexible policy for long term customers when it comes to upgrading your phone. Of course it requires a contract renewal but how much you save depends on how long you have left in your current contract and they also allow you to pay for the phone over time by breaking it down in installments on your monthly bill. However, i remember a similar problem a while back with tmobile when they came out with a new sidekick. I am sure they were not as nasty about it as AT&T but there were "special rules" for existing customers.
by  Brian June 10, 2009 11:30 AM PDT
What's the big deal?

Other cell phone companies do this all the time.

You sign up for a 2 year contract and can't get the next "Latest & Greatest".

Seriously, you bought a phone last year!

Where is it written that you absolutely MUST funnel the cash into Apple's greedy wallet with every single upgrade?

I am the type who enjoys my purchase for many years.
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by bmaberryjr June 10, 2009 11:50 AM PDT
Apple & AT&T have always done this. It makes me angry, but what can you do. They know they have you over a barrel & that you will probably pay to upgrade. According to Apple's website my reward for being a loyal AT&T/Cingular customer ( 14 years now ) is a $500 price tag for the 32gb 3Gs phone. Gosh! Thanks Apple & AT&T. This is what keeps me from going all in with Apple. The laptop, the desktop, the whole mobile me thing. I want to so bad, but I imagine I'll just get screwed that much more.
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by ywkhgqo June 10, 2009 5:27 PM PDT
YOU ARE NOT SPECIAL. YOU ARE NOT UNIQUE. att and apple are in this business to make money. You cost them money buying these phones so cheap. So they have to make it up. Just because you're a loyal customer doesn't mean they'll just give you a 66% discount for no reason.

Be happy with your phone, the 3GS is certainly not worth upgrading for.
by BenzBoy79 June 10, 2009 12:32 PM PDT
Leave it to ApHOLE or AT&TAX to once again slap their loyal customer base in the face. It really shows how they leverage their Monopoly on the whole iPhone situation. God Please stop!!!!!!!!!!
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by iMuggle June 10, 2009 12:49 PM PDT
This article is very inaccurate. Shame on you Cnet.

You are NOT eligible on your anniversary. That has nothing to do with it at all. IF you spend more than 98$/month on your AT&T service (on ONE line), THEN, and only then, are you eligible to upgrade once a year. I have 2 iPhone 3Gs on my account, both purchased on 7/11/08, the primary line that has an 80$ voice plan, a 30$ iPhone 3G data plan, and a 30$ family text plan is eligible every 12 mos for upgrade. The other iphone 3G which is a secondary line is not eligible until march of 2009 as it only has 40$ worth of charges on it.

Get your facts straight please.
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by never_satisfied June 10, 2009 3:17 PM PDT
Hey, what about me? I just bought the phone on May 12th. Had I waited another week, I could have just returned the phone and exchange it for the newer model. Who knew!!!
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by teacherttom June 10, 2009 4:40 PM PDT
Maybe someone has an idea -- Here it is. I was up for an upgrade with AT&T on my 2 yr contract on 5/9/09 so went to the AT&T store and found them pretty rude and off putting and found that Wallmart had the same for 40$ cheaper so i went there to do my upgrade, i got Eternity phone only because I could Exchange phones for any reasion anytime for 30 days! so I used the Eterenty for a week took it back and got the curve did the same and got the 16gb Iphone -Fell in love with it but HATED THE NAVG app - so was almost going back to eternity-- but the Iphone won out BECAUSE OF THE PENDING 3.0 release-- I knew that new phone was coming-- but not just ONE DAY AFTER MY 30 DAY EXCHANGE period ran out -on 6-9-09 --YESTERDAY-- Question is Is there any way that I can get apple -at&t to allow an Exchange Extension or something (HHaa)-- I have been with them for 6 or 7 yrs now. Isthere anybody else that is in this type of situation??
I tried to call and talk to an apple rep and he said that there might be something that can be done if i go down to the apple tore and explain it to them but there was nothing that he /they could do -- it was up to the store that sold it to me or try rthe apple store suggestion. I hope all this made sense I just didn't know what I wanted untill I tried them out for real and this was the only way i could afford to do it . any ideas on how I could convince them to let me get the new 3Gs?
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by drtimecode June 10, 2009 5:11 PM PDT
It's not like AT&T is just targeting iPhone users for this pricing structure. I don't have an iPhone yet... been waiting until now actually... but if I wanted to change my current phone to another before my contract was up, I would have to pay full price for that new phone. Just the way they do business. Remember, it wasn't that long ago they wouldn't give existing customers ANY deals on phone upgrades.
Early adopters always end up paying more in the end, you all should know that, so stop getting upset about it.
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by play7 June 10, 2009 5:55 PM PDT
"Early adopters always end up paying more in the end, you all should know that, so stop getting upset about it.
Reply to this comment"

not all other caryiers treat thaeir older users with old Tech products this bad? Infact they go out of their way to make them happy. What world do you live in?
by play7 June 10, 2009 5:52 PM PDT
Why does apple continue to play these game with its buyers? The people supporting Apple products are really a pice of art. But still you to feel sorry for those that support and buy Apple products,service and wares. I am not really a apple person but this tpe of games just gets more and more out of hand with apple.
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by jskrenes June 10, 2009 6:03 PM PDT
Even the title of this article is misleading. Apple users aren't "taxed" any more than any other cell phone users or early adopters. How many Storm users are going to have to pay the early-adopter price when the storm 2 comes out? How many flavors of HTC touch phones are going to hit in the next year or two? What about everybody in the last year that upgraded to Voyagers and the EnV Touch is now out?

My hobbies are bicycling and music. It's worth my money to do those things. If your hobby is being an early adopter, then paying t he price is a non-issue. If it is, then the life of the early adopter is not for you.
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by k1m0d0 June 10, 2009 6:38 PM PDT
key stroke error can you guys send draft back to me
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by CarMan253 June 10, 2009 9:09 PM PDT
For all those people who bought the iphone 3g when it first came out, you can upgrade to the iPhone 3GS but its going to cost you an extra $200 onto the price tag of the iphone, plus you will have to pay an $18 one time upgrade fee. If you do this you will be able to buy the NEW iPhone on the Launch date of June 19th.

Or you can go onto a family plan and add a new line and get the new iphone 3GS and get the New iPhone at the Subsidized price of $199 (16 GB) or $299 (32 GB) plus the $36 activation fee. So you would walk out paying Price of Phone + TAX+ $36 activation fee.

Then you say what good does that do me then i Have an iPhone 3G (original) and an iPhone 3GS. the 3G having a One year and a month contract left (if you bought the 3G at launch day) Then you have a two year contract with the new iPhone 3GS.
Well then you just take your internet fee off of the iPhone 3G and make it a regular phone. So you would have basically a phone with a phone number that shares minutes with your other iphone for $10 a month.

Just continue paying for your old phone at $10 a month and get the new iphone at subsidized price. so to have the extra number you would only pay $10 a month or $130 total which is still less then paying the $200 upgrade fee for being a previous iphone 3G customer.

total=
iphone 3GS (32 gb) (doing it this way) you pay
iphone +tax=fee = $366 and then you have two phones and numbers
and paying the $10 a month for remainder of old contract =$130 which is only $5 more then paying the termination fee on your old iphone contract, doing it this way you get an extra number that shares your minutes, to able to someone or have for emergencies .

Termination fee Normally is $175 then subtract $5 a month for every month you have used up in your contract
Doing My way in the long run still saves you about $30 bucks
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by gaurav_gd2 June 10, 2009 11:28 PM PDT
i live in india n just bought my iphone 3g on may 25th 2009....wht should i do to upgrade to the new iphone 3g?
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by k1m0d0 June 11, 2009 2:07 AM PDT
AT&T and Apple are not abusing existing customers. The treatment of new and existing customers is covered in the contract. This is not to say that I do not have a problem with the fuzzy language used when iphone purchases are being discussed. In the keynote speech a WWDC Mr Schiller concludes a fine presentation on the 3GS with a price. There is no mention that this price is based on signing a two year contract with AT&T. Throughout the media we are told that AT&T is subsidizing the cost of the iphone. Merriem-Webster's online dictionary defines subsidy as a grant or gift. AT&T, then, is cast as Santa Claus. The more accurate portrayal is that AT&T "fronts " Apple a set amount per phone to reduce the initial price of the iphone. AT&T recovers these payments over the life of the two year contracts. AT&T is simply providing a banking function. They could probably do a better job challenging this whole subsidy business, but who doesn't want to be Santa. The downside occurs when people discover that AT&T really isn't placing gifts under their tree.
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by hooterboy31 June 11, 2009 6:46 AM PDT
As I said before I really am tired of all this crap. What can we do you say? Well I do not use ATT phone service on my home phone. I do not use their internet. I do not subsribe to their U-verse TV service. And I will NOT buy an Apple computer. If you don't scratch my back I won't scratch yours. Screw them both.
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by ivandrago June 14, 2009 10:34 AM PDT
This might have been the first iPhone I would have considered getting now that they have the data tethering option. Except that they're tied to AT&T which seems to be trying to fail on an epic level in terms of price, speed, and call quality.
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