Complain about a product or service

AT&T Relents On iPhone Upgrade Pricing — Sort Of

Company will allow upgrades for users nearing end of contracts

By Martin H. Bosworth
ConsumerAffairs.com

June 17, 2009

• Apple Hit With Patent Infringement Suit • MMS Goes Live on iPhones as Apple Faces Another Lawsuit • New iPhone App Locates Swine Flu, Infectious Diseases • Will Apple End Exclusive iPhone Deal With AT&T? • AT&T Relents On iPhone Upgrade Pricing — Sort Of • iPhone Users Bristle At AT&T Upgrade Policy • Apple Said to Be in Talks with Verizon over iPhone • AT&T Looks To Extend iPhone Exclusivity • Best Buy To Sell Refurbished iPhones • Wal-Mart to Sell iPhone Starting Sunday • Wal-Mart Reportedly To Sell iPhone • iPhone Wins Over Both Consumers and Businesses • Signal Problems Plague iPhone 3G • Internet Buzzing About iPhone Case Cracks • Glitches Plague iPhone 3G Intro • AT&T To Offer Contract-Free iPhone • NYC Cops Break-Up iPhone Craigslist Scam • Apple Unveils New Generation iPhone • New BlackBerry Will Take On iPhone • Group Hits Apple Over 'Toxic' iPhone • Apple Cuts Price of Most Expensive iPhone • Security Flaw Found In iPhone • Congress Slams AT&T Over iPhone Contract, Fees • Apple Denies iPhone Nano Reports • iPhone Snags Reported • Apple Readies iPhone For Release • Look For Early iPhone Price Cuts • Apple iPhone Wows MacWorld Audience --- • iPhone Complaints • More about Apple

When Apple introduced its souped-up iPhone 3GS earlier this month at bargain prices of $199 and $299, respectively, fans flocked to upgrade — but many found that to upgrade before their contract was up would cost them an extra $200, courtesy of AT&T's exclusive deal as the sole iPhone carrier.

Irate customers flooded tech blogs, social networks, and both AT&T and Apple's discussion forums demanding the upgrade discounts be readjusted, and today AT&T relented — after a fashion.

According to AT&T's official statement, "We're now pleased to offer our iPhone 3G customers who are upgrade-eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18."

"We invite you to come to our stores beginning Friday during normal store hours, although please be aware that customer demand may exceed supply in some of our stores. You may also preorder online," the company added.

The formula by which one qualifies for an upgrade is confusing many, as it involves factors including one's length of time as a customer, how much they spend, the time between their last iPhone purchase and the release of the 3GS, their credit history, and other variables.

Users under contract with AT&T for 12 to 18 months after purchase of a previous iPhone, and who spend $100 or more a month in services are generally eligible, the company said.

Customers who are within three months of their contract end date during the window of the 3GS eligibility are able to upgrade, but those who aren't are either stuck with their current iPhone or forced to upgrade at the higher price points of $399 and $499, respectively.

iPhone users expressed their unhappiness with AT&T's crippling of certain iPhone features in the 3GS, such as "tethering" (Using the phone as a modem to connect other devices to the Internet) and sending multimedia messages such as photos or videos. Apple, perhaps due to rumors that it may end its exclusive relationship with AT&T over the iPhone, not-so-subtly fed those criticisms when the 3GS was unveiled.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |