It seems that AT&T will be selling 3G iPhones for $599 and $699 for the 8GB and 16GB models, respectively. These models come without contracts, but the only major provider you could use would still be AT&T, to my knowledge (and with simultaneous worldwide release, international trading loses its punch). Now, if you decide to get a two-year contract with your new iPhone, the price is instead $199 or $299, a whopping $400 price difference.
So far, so good. Except, the fee for early contract cancellation is only $175. Granted, currently contracted AT&T subscribers can’t partake in this system, but I’m sure they have at least one friend not currently with AT&T. Have them buy a phone with a new contract, and then pay to back out, saving $225. Voila!
The only thing I can figure is that (1) AT&T will be changing their cancellation fees at the same time they roll out the new iPhone, or (2) they are assuming a very low standard of intelligence and communication in the year 2008. For all of the early adopter’s sakes, I hope it is the latter.
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Yeah, if AT&T thinks that duping the activation system isn’t going to be mastered within the first week, they’re either naive or stupid or both.
Also: not to nitpick, but 499 and 599 down to 199 and 299 is a $300 difference, not a $400. ;)
Still: assuming the cancellation fees do not change, you’re getting a 16GB iPhone for about $475, give or take, which saves you $125 over buying it straight-up with no contract.
Does AT&T just think they’re not going to be unlocked? Jesus christ.
Ah, nice catch. The new prices for the phones are 599 and 699, respectively, so the difference was correct, just not the initial figures. :^)
Oh, wow, that’s even more outrageous than the first prices. The hell I’m paying $700 for a damn phone.
$475, however… I could believe that.
It doesn’t quite work that way. If you open a new account to get the iphone and then cancel your contract You pay the early cancellation fee and you have to give the phone back. If you do not give the phone back than they charge you full price of the phone. — As for me - I have AT&T - but I have to pay full price for the iphone. Because - even though I have AT&T - I never gave up my Suncom Contract - Even when Cingular bought them out and then AT&T took over. I still have the unlimited plan for $65.
AT&T only stipulates that you give the equipment back if you cancel within the first thirty days. If you do so on the 31st day, you can keep the equipment, and, assuming they haven’t changed the rules since last month, you only pay the cancellation fee.
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