I don’t tend to rant on here, but I am just incredibly disillusioned by the iPhone pricing model.
In October or November of last year, I switched to AT&T, with a long-term goal to get an iPhone. I established my service plan with them with this firm objective, and was assured that this was feasible.
The pricing model for the new iPhone has been criticized by some: the $199/$399 (and eventual $599) prices seem confusing. Yet I wasn’t concerned as I had confirmed when I started with AT&T that this was my intent.
Just to be sure, however, I logged into my account on wireless.att.com a few days ago to confirm.
You can take advantage of our no-commitment pricing option, with the exception of iPhone which requires a 2-year commitment.This line may be eligible for an equipment discount on 06/25/2009
Fab, confirmation that I could “take advantage” of no-commitment pricing, although I had to commit to another two years. No problem!
So yes, I was one of those suckers who stood in line for hours. I’ll admit, it wasn’t planned, but I got out of work early and didn’t have anything better to do. Got to the front of the line, read the agreements, and then they ran my account. “That’ll be $399…”
So evidently “no-commitment” means absolutely nothing. I still have to commit to two years, AND there is no special price. I am now being penalized for my decision to move to AT&T in advance of this purchase. What’s most disappointing is that I explicitly declared my intentions when I signed up, and although I know the sales people at AT&T weren’t aware of this new pricing, I am now being penalized for it.
I don’t want AT&T service. I wanted that dang phone. I signed up with AT&T months ago to facilitate this whole process. Now I’m being penalized for choosing to enroll in a service before I was actually going to reap the benefits.
I’m incensed at this whole model: alienating your existing consumers to appeal to new users. It would be different if I hadn’t gone out of my way to prepare for this purchase of an iphone, and just happened to be an AT&T customer. But this has always been my intent, and I certainly regret the last 8 months of using their service.
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{ 22 comments }
But that’s what “no-committment pricing” means– full price, without a discount from the subsidy associated with a committment to a new service contract.
How much clearer can it be to say that you’re not eligible for a discount until 2009?
Also I’m not sure how your existing contract can end in June of next year if you started it in “October or November” of last year. That’d be a term of 19 or 20 months, very strange.
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I agree, it is very strange. I went back and looked, and I started with AT&T on October 24, 2007.
Follow me on twitter: afhill262
How could it be clearer? How about if it said “You are not eligible for a discount until 2009″? That would make it more clear.
As well, $199 was advertised as the *price*, not the *price after equipment upgrade discount and/or if you are a new customer and/or if you have an iPhone*. So I came prepared to pay the price in the ads.
Follow me on twitter: afhill262
I work at AT&T, we give upgrades after 18-20 months as a bonus
If you get no commitment pricing, you would not extend you contract. The no commitment pricing for the iphone is either 600 for an 8 gig or 700 for a 16 gig. If you upgrade and get the 199/299 prices it is a 2 year commitment price, another contract. The wording they use sucks out loud ill give you that but in the long run you didnt lose out on money. Hope this helped.
I’m in the same boat, I waited patiently for over a year for my contract to expire with Sprint and for the 3G phone to be released. After my old phone nearly died in March I figured why not go ahead and get ATT service then buy an iPhone when they come out, brilliant! Or so I thought.
I’m in business, software to be specific, and I simply can not rationalize this pricing model. Not only am I not “eligible” for the $199/299 rate, it doesn’t matter how much cash I have, they won’t let me buy an iPhone for 13 months. 13 months!
My only option is to terminate the contract, pay the fine and start over (with a new number of course).
In what parallel universe does this make sense? Why would they not want to sell existing customers iPhones??? Insane.
I’m not going to sit tight and forget it, I’m going to find a way to make a stink about this, ATT is wrong.
Hm, interesting…
I was given the option to buy the phone for $399, I just wasn’t thrilled about it. What you describe (not being able to buy the phone at all) sounds like what family friends are going through in Canada. They tried to buy the iPhone the day it came out and were told it was only to be sold to new customers.
Follow me on twitter: afhill262
the 13 months is probably bc you had an old account with AT&T if theres ANY balance at all they don’t let you get service for 2 years from that date, sometimes 4
What I did was I said lost my phone they suspended my line a few weeks later they allowed me to get a new phone I just had to pay I don’t remember if was 50 or 75 dollars more.
I totally agree that AT&T and Apple have people very dis-illusioned. I was under the impression that the new iphone 3g would be either $199 or $299 with no hidden principles from AT&T or Apple. I was told by an account rep at AT&T that this is due to the fine writings in their contract signed with Apple. I think that existing AT&T customers should get the phone as advertised for $199 (8G) or $299 (16G). AT&T you suck….. Im think I’ll take my business to Verizon or Sprint!!!!!
Would you mind telling me if you ever got anything done about your At&t phone problem? I am having a similar problem, but I NEED the Iphone because it is the only one that my mind understands after a recent stroke. I have begged every AT&T represenative and 1 Apple person that I could, to allow me to purchase it 4 months before my contract expires so I will have a phone that I can use. I absolutely cannot use the one(s) I have now because they are too complicated for me to understand, or the keys are too small for my shaking hands. I am just 48, but I cannot use these other phones. DO YOU THINK THIS BIG COOPERATION CARES? No way, $200 would cause them a major loss and cause them to go broke. I would just hate that, wouldn’t you?? I would love to hear from you so you are welcome to email me at any time.
That’s why I have Verizon.
I wonder if they are holding off on selling to existing customers to try and make make more money off new customers. They are out of phones, at least at Apple stores – see Daring Fireball as of Saturday.
I just had to get $70 worth of activation fees waived for our iPhones, plus make them realize that I was being charged for separate text plans when it should have been one plan. I think the only way to get decent terms from any sort of cell phone/cable/DSL company is to quit, and come back later as a new customer. Otherwise they could care less about you.
Even with the higher price, I would say it’s worth it if you can afford it. Nicest device I’ve ever used, and the app store makes it way to easy to spend money.
FYI, one possible way to get out is wait for a notice of price increases on things like texting. Verizon did this a few years ago, and some people were able to use this as a change in terms of service, and then could cancel with a fight. See consumerist.com. Didn’t try it myself, but it might work. We were lucky enough to have contracts that ended in May, so we waited and ported over. On the other hand, I’ve been using a 5 year old Nokia for 7-8 months now, which wasn’t too fun.
Follow me on twitter: scottplumlee
I feel your pain. I, too, am absolutely incensed by ATT’s policies.
I’ve been a loyal customer of theirs for nearly ten years now. When the announcement of the $199 Iphone was made, I was elated and excited. But about six weeks ago my cheap Samsung died on me. Knowing that I was soon going to be switching to the Iphone, I figured I’d just get the cheapest replacement possible to tide me over for the month or two until the Iphone 3G was launched. So, I had ATT send me a cheap, no frills Nokia handset (this phone is from the freakin’ stone age) for free, since I was due for an upgrade.
Well, needless to say, when I went to my local ATT store this weekend to do a direct fulfillment purchase of an Iphone (beats waiting in line was my reasoning), I was told I wasn’t eligible for the $199 price. I’m really irritated, because IT NEVER EVEN OCCURRED TO ME that picking up this cheap little freebie phone would create this situation (I mean, ATT certainly doesn’t make any attempt to educate its customers about the necessity of preserving eligibility for the Iphone upgrade price). I called ATT customer service and was told that I could get the 8G phone for $399 (an early upgrade charge) but the store wouldn’t honor this policy and told me only Apple stores (not ATT stores) were able to give this price. How crazy is that? And now I’m not even sure the Apple stores will give me this price, since I’ve read contrary things on the internet (I’m afraid I may actually have to pay $599). Of course, going to the Apple Store is really not a very appealing option to me, since I’m a busy professional and waiting two or three hours in line is just not an option.
Anyway, the net-net is I feel ATT, in a rush to sign up new customers, is NOT EVEN CONSIDERING the needs of their long term, loyal customers. I mean, I’d gladly extend my contract with them an additional two years in exchange for the $199 Iphone, but they’re not offering such a deal. So, at the end of the day, people who have been using Verizon, say, or TMobile can get a great deal from ATT on an Iphone. But long time, loyal ATT customers like me can go screw themselves. Thanks, ATT.
> I called ATT customer service and was told that I could get the 8G phone for $399 (an early upgrade charge) but the store wouldn’t honor this policy and told me only Apple stores (not ATT stores) were able to give this price. How crazy is that? And now I’m not even sure the Apple stores will give me this price
I was at the Apple Store when they offered me the $399 “deal”. This was after I’d said I was an existing customer, read the T&Cs, given them all my info. As a final step before giving me my new baby, they let me know I was ineligible for the pricing. Ugh.
Follow me on twitter: afhill262
One thing you might try is seeing if your company has a business plan with ATT, and if so sign up for that. Then call and you’ll get the business customer service, who seem to be better about solving problems. If that fails, see if your company rep is available (the person with ATT who controls your companies acct) and try that person.
Hope it works, because having the iPhone is a lot of fun.
Follow me on twitter: scottplumlee
Thanks for writing this post!! I totally concur! Last August I signed up for AT&T Wireless service with the express intent of upgrading to the iPhone in one year; the AT&T sales representative promised that I could upgrade in one year. Lo & behold, I discovered that I could not upgrade to many different phones – but not the iPhone – until Feb 2009 unless I pay a $200 “early upgrade” penalty! (In fact, I would save $25 if I terminate my current contract and get an iPhone as a new customer.)
You expressed this perfectly – I’m an existing customer who is being penalized for wanting to extend my commitment to AT&T by upgrading to the iPhone. (Note: I’m an outstanding AT&T Wireless customer; I use only a fraction of my minutes and never call technical support; I’m a profit center for the company.)
The answer? I’ve decided to go contract-free for my cell phone. I’ve purchase an unlocked cell phone and am ordering service through Consumer Cellular. They do not offer data plans, but my new iPod Touch has wireless access, so I don’t really need wireless cellular data services. The end result? I’ll have spent $175 to terminate my current contract and $120 to buy my unblocked cell phone, but over the next 2 years, I will save over $1,500 on monthly fees to AT&T. And at any point in time, I can cancel/upgrade/downgrade/modify my cell phone service with no penalties. Freedom – it rocks.
When it says You can take advantage of our no-commitment pricing option, with the exception of iPhone which requires a 2-year commitment.This line may be eligible for an equipment discount on 06/25/2009.
with the exception of iPhone which requires a 2-year commitment. that means that you have to get a 2yr contract with the iphone.
I have enjoyed reading your comments about AT&T and how they could care less about their longtime customers. I have been with Cingular/AT&T since the Dark Ages of the cell phone. Did this matter at all in this situation? Of course not!! I looked at their policy concerning Disabilities and they offer NOTHING for the disabled customer, as far as upgrading to an iPhone earlier than the end of their contract. My stroke occured in the middle of my contract and I did not know that I would need an iPhone when I purchased my last phone. The iPhone is the ONLY phone that I am capable of using or understanding. I have gone to the AT&T stores and tried all the other available models, and just can’t do it. What now? They don’t care. I have looked at filing a complaint against them, but don’t know if it would help.
Oh, by the way. Some of you suggested I drop them and go to another carrier. In my RURAL area, they are the ONLY choice. BUMMER!!
You DID receive the discount price on the iPhone.
I know this because I work for AT&T.
Break that puppy and you’ll find yourself spending $800 for a new one.
There is no insurance for iPhone, only extended warrenty which goes through Apple.
Do I recommend the iPhone to anyone? Nope. Not at all. They’re complicated buggers with a lot of problems.
Follow me on twitter: None.
Pretty much goin’ through the same thing almost, I am an 1yr.ATT customer, I even emailed corporate, did get a phone call back, but the contract with Apple did it to us long time customers!!!!!
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