AT&T reveals true cost of unsubsidised iPhones in US

Alex Zaharov-Reutt
Tuesday, 01 July 2008 23:46

Your IT - Mobility

Get ready to pay US $599 for an 8GB iPhone 3G, or US $699 for the 16GB model, if you want a no-contract-required iPhone from AT&T!

If you thought the iPhone was US $199 for 8GB or US $299 for 16GB, it is – but not for everyone.

AT&T has revealed its iPhone pricing strategies and is giving consumers tips on how to be, ahem... “iReady” for the iPhone to go on sale at 8am “local time” on Friday, July 11, 2008.

Ralph de la Vega, president and CEO of AT&T's wireless unit said: "We can't wait to offer iPhone 3G to our customers, and we want to make sure the buying process is as easy as possible. Considering all the great new features of iPhone 3G, we think our pricing and monthly plans present a tremendous value for consumers and businesses alike."

So, who can get the iPhone 3G for the well known prices that Steve Jobs announced at the WWDC? AT&T says the $199 and $299 price points must be taken up on a two-year contract and can be purchased by:

- iPhone customers who purchased before July 11
- Customers activating a new line with AT&T
- Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

If you’re already an existing AT&T customer, but you’re not eligible for an upgrade discount, get ready to pay more! The price rises to US $399 or $499 for the 8 and 16GB models respectively, and you’re up for a “new two-year service agreement”.

AT&T then says that sometime “in the future”, it will “offer a no-contract-required option for $599 (8GB) or $699 (16GB).”

The best advice that AT&T can give existing customers not eligible for an upgrade discount is to wait, or pay the higher prices, and advises that: “eligibility is generally determined by amount of time remaining on a current contract and payment history.”

But the fees don’t stop there. If you’re a new customer, the standard $36 tax – oops, we mean activation fee – still applies, but AT&T upgraders get a 50% discount and are only slugged an $18 upgrade fee instead.

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