iPhone Upgrade Outrage?
Tech, atm June 9th, 2009I really don’t understand why there is so much complaining around the web about the iPhone upgrade pricing. Apparently if you have an iPhone 3G you can’t just upgrade to the 3G S for $199. People are all up in arms about this. But I don’t understand why.
The iPhone 3G was subsidized by AT&T which is why it was $199 instead of $399. The deal with this is that AT&T picks up the difference (granted it’s not a full $200, but it’s something). AT&T can do this because over the two year contract you signed they will make up the money. But if in a year in you buy another subsidized phone, then AT&T probably hasn’t made back their money from the first phone. Hence the reason that they won’t give you the subsidized price but will let you get one at full price.
The thing is this is always how mobile phone companies have worked. If you sign a contract, you get a deal on a phone, and you can’t get another deal on a phone until your contract is up. Apparently a lot of people are crying foul because last year you could get the 3G at the subsidized price even if you already had the original iPhone. But the reason for that is simply because the first iPhone wasn’t subsidized, so AT&T wasn’t losing out on any money.
So why are people so pissed? This is how phone companies make money. I agree that it’s disapointing, but anyone who says they are pissing off their “loyal” customers make me laugh. If you were so loyal you would honor your contract. Most of the iPhone customers weren’t even customers 2 years ago.
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June 9th, 2009 at 8:35 pm
Hey what the hell! Did you copy the post I wrote this morning about this? haha, apparently this is the first time a lot of people have bought subsidized cell phones…
June 9th, 2009 at 9:18 pm
Though, some customers (myself, anyway, and I would assume others) do not have to wait the full two years. According to AT&T I will be eligable after only about 18 months. Not sure if it has anything to do with my long tenure as a customer (6yrs) or if I am the benefactor of a clerical error.
But agreed. People can be very shortsighted when they see a new shiny toy.
June 9th, 2009 at 9:20 pm
Andy- 18 months is likely past the point in which AT&T makes their money back. That is the only issue, AT&T doesn’t want to lose money on the price of the phone that they paid.
June 10th, 2009 at 1:40 pm
And we wonder why we have such a bad economy.
Read the fine print people