Have 2 AT&T Reps Just Confirmred The UNSUBSIDIZED PRICE To Me? You Be The Judge.

[emceechad]

I just got off the line calling AT&T twice to check if I was eligible for an upgrade, and they have said I have a chance (I'll be close to 21 months into my contract come July 11th).

However, during the call, an interesting detail came up:

As I was being optimistic about if I could upgrade or not, I asked (knowing that an answer was probably not coming) if the person knew the unsubsidized price of the 8GB iPhone, and I got a simple answer of "$299". I asked again if that was the unsubsidized price of the 8GB iPhone which I said very clearly, and the woman told me "Yes, the price without the eligibility is $299".

I thank the woman and decide to call again, now here is the thing: I spoke to a different rep, and she too also said that the unsubsidized price of the 8GB iPhone would be $299.

Be the judge for yourself, did I just get a piece of info leaked here?

[CrazEtooN]

I hope you are right, but my better judgment tells me you aren't.

Customer service phone reps are notorious for not having the correct information, as well as for being poorly trained. When you tie that to the information about what At&t actually pays in subsidization to Apple, an unsubsidized price of $300 seems near impossible.

Again, I hope you are right, but I just don't see it being so. My guess is that the 8 gig is going to be over $500 and the 16 is going to be over $600. At least at first...

[hermdog]

Originally Posted by CrazEtooN

I hope you are right, but my better judgment tells me you aren't.

Customer service phone reps are notorious for not having the correct information, as well as for being poorly trained. When you tie that to the information about what At&t actually pays in subsidization to Apple, an unsubsidized price of $300 seems near impossible.

Again, I hope you are right, but I just don't see it being so. My guess is that the 8 gig is going to be over $500 and the 16 is going to be over $600. At least at first...

I would have to agree. That has been my experience with Customer Reps, it seems like they are the last to know.

[alex.stef]

it's to good to be true

[volsfan0911]

I emailed AT&T last week asking if I'd be eligible for the subsidized price. My case - 9 months into a 2 year contract with a BlackBerry 8310. The answer I received back is below:

"Dear Mr. xxxxxxx:

Thank you for taking the time to e-mail the new AT&T regarding the
ability to upgrade to the new 3G iPhone when it becomes available. I
apologize for the inconvenience and I'm happy to address your concerns.

After reading your e-mail, I have reviewed your account and found that
as long as the account is in good standing (no past due amount, etc.)
when the iPhone becomes available you will be automatically eligible to
upgrade at either the $199 (8GB) or $299 (16GB) with a two year
contract. In other words; you will be eligible for a standard upgrade."

So, bottom line is I should be good to go. Of course, my monthly bill is $120 per month currently (road warrior & I get a cell phone allowance - thank God) but anyway - that's what I got from AT&T for what it's worth to the rest of the forum.

[taylorh]

The unsubsidized price for every phone AT&T sells is $150 over the subsidized price. Rather the subsidy is $150 for a 2-year contract.
With most PDAs. there is also a $50 mail in rebate for adding a data plan (because it's optional) which you can get even if you paid full unsubsidized price.

Considering that even if you pay the unsubsidized price you have to sign a 2 year contract with mandatory data plan, the mandatory data plan is worth at least a $50 discount.

I think the unsubsidized price being $100 (or $299/$399) more sounds spot on to me.

Now I know this is the iPhone, so I know everything is different. But AT&T is a company of habit and they're doing what they can to make this priced like a standard PDA.
But also consider this. If the standard EFT is $175 on my existing lines, so how can the unsubsidized price possibly be greater than $200.
If that were the case I'd add a line on to my family plan to get the discounted price and cancel an existing line and pay the EFT on it.
$175 EFT + $35 activation fee = $210. It would be a PITA, but worth it.
I won't pay a penny over $210 more than $419/$519.

$199 (iPhone 3G sub price) + $150 (discount) - $50 (data/contract discount) = $299.
My wager, $20 says it's what the OP said. $299(8GB)/$399(16GB).

[HymerSchmidt]

My intuition says the reps are right. My reason agrees with them as well. Who's to say they can't partially subsidize a phone for a PR advantage, yet still discourage users from doing it in mass? Charging the cost price for the phone will only lead to confusion about the "actual" $199 price. "Hey Tommy, is that a new iPhone you got there? Yes Steve, it is. Well Tommy, how much did it cost you? Well Steve, it cost my $700; isn't it amazing? Wait Tommy, I thought the price was $199!? Well Steve, there is this contract and I already had one and because I already had one I couldn't get it at that price. But Tommy, the price is suppose to be $199. It is Steve, but the actual cost is $700 and because of the contract... So Tommy, I should ask and see what I have to pay and it might be $700? Yes Steve, that's right." We have to remember what an average consumer is like; terminology is beyond them, time is scarce, and most decisions they make are made with their pre-human, pre-mammalian even, simple, reptilian brain. You mention $700 and the iPhone in the same sentence, and you can wave bon voyage to the competitive pricing advantage.

ATT will recover all their money with the data plan, and in sales they otherwise would have lost due to the confusion; more people using their towers in the short-term equals more customers in the long term, as people are less likely to change companies for less than substantial reasons; not selling for cost is no biggie.

[c4sizzle]

Does anyone else think it's incredibly weird that AT&T is keeping the info so underwraps? Its like they were the last to know that the iPhone 3G is coming out.

Give us strict numbers and let us know already dangit!

[bigbrass93]

volsfan, i am in the same boat (6 months in) with curve. how are you eligible for an upgrade? i don't think i am.

[xintelinsanex]

$299 sounds like a good price, almost too good to be true. Considering what AT&T is paying Apple, the numbers just do not add up.