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AT&T To Offer No-Contract iPhone

rfc1394 writes "While the regular price of an iPhone is $199 if you take a 2-year contract with AT&T, if you're willing to pay a lot more you can get one without a contract. An article in InfoWorld mentions that 'Freedom will come with a price — $599 for an 8GB device and $699 for a 16GB — but this will mark the first time consumers in the United States are able to buy an iPhone without being tied down to a two-year contract. The phone probably would still be locked for use only on AT&T's network, said Jupiter Research analyst Michael Gartenberg. But buyers could choose a pay-as-you-go plan for voice service.' The question still remains, does it make any sense to pay that much for a phone that is still locked to AT&T's network even if you aren't bound to a contract?" Update: 07/05 18:21 GMT by T : An anonymous reader suggests that there is a convoluted but possibly cheaper route to an new, unlocked iPhone.

13 of 193 comments (clear)

  1. This is a response to iPhone unlocking... by It+doesn't+come+easy · · Score: 5, Insightful

    So I buy a phone outright for $599/$699, or I buy a phone for $199/$299 with a 2 year plan ($36 activation fee) then cancel the contract immediately for $175...net cost $410/$510. Hmmmm.....

    --
    The NSA: The only part of the US government that actually listens.
  2. Still locked? by MacDork · · Score: 4, Insightful

    Fail

  3. Re:This is a response to iPhone unlocking... by Austerity+Empowers · · Score: 3, Insightful

    What if the phone gets "stolen"?

  4. New 3G Data plan is $30/month by foniksonik · · Score: 4, Insightful

    Just FYI... the new data plan with AT&T is $30/month while the old plan (Edge) was only $20/month

    SO with the new phone you're already paying $120/year more than previous... which means people are actually paying more money over the 2 year period... $199 + $240 (2 year contract) = $459

    --
    A fool throws a stone into a well and a thousand sages can not remove it.
    1. Re:New 3G Data plan is $30/month by philhyde · · Score: 3, Insightful

      Just FYI... the new data plan with AT&T is $30/month while the old plan (Edge) was only $20/month

      ...and what's wrong with a 3G data plan costing more than a 2G data plan? I personally don't have an issue with paying more $ for a faster connection.

    2. Re:New 3G Data plan is $30/month by Free+the+Cowards · · Score: 3, Insightful

      What's wrong is that it's simply too expensive. I'd like to get an iPhone 3G but there's no way I'm going to pay $70/month for a telephone. $60 was right on my threshold for buying, and $70 is just too much. It may be necessary, reasonable, or whatever, but from my perspective as the customer it's just too much money.

      The cell phone situation in the US sucks pretty hard right now for a medium-light user. There's essentially no way to spend less than $45/month (including taxes) on a cell phone, even though I use perhaps 1/5th of my plan. Prepaid might save me a little money, but they don't get to be really sensible until you're calling much less than I am each month.

      --
      If you mod me Overrated, you are admitting that you have no penis.
  5. Re:Why buy an iPhone by nuggetman · · Score: 3, Insightful

    Because there's something to be said for having walk-in support at the Apple store, the Apple user interface, access to the app/music store... shall I go on? People buying an iPhone likely aren't buying it based on specs.

    --
    ...and that's all there is to it.
  6. Re:Why buy an iPhone by BitZtream · · Score: 5, Insightful

    Because the software is shit? No one can even make the example videos of it look like its decent. I expect my phone not to lag, have you seen OpenMoko in use? Its a joke.

    I know I'm going to be modded as a flame, but seriously, no one who wants a phone to USE will want OpenMoko. It looks cool as hell from a developer/hacker point of view, one of the guys I work with ( who loves his windows mobile phone, heh ) intends to order one to play with, but he just replaced his old phone with another Windows Mobile phone so he had one that actually worked along side the OM phone he hacks around on.

    But ... no one who just wants a usable phone wants to deal with an OS thats ... pre-alpha at the very best, and will come with absolutely 0 support from your carrier.

    The people who will buy an OpenMoko device are developers, not users. The people who buy an iPhone are users who don't want to be developers to know how to use their phone. They just want a phone thats intuitive and works.

    These two devices do not in any way target the same market at this point in time.

    --
    Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
  7. Re:I don't think so... by It+doesn't+come+easy · · Score: 5, Insightful

    This is getting better and better...

    They have a special iPhone section ((4) iPHONE TERMS AND CONDITIONS): Terms Applicable to AT&T Nation/FamilyTalk® GSM Plans: Credit approval required. Subscriber must live and have a mailing address within AT&T's owned network coverage area. An early termination fee applies if service is terminated before the end of the contract term. The fee will begin at $175 per device and decrease by $5 each month for the term of the agreement. If phone is returned within 3 days, activation fee will be refunded. If phone is returned within 14 days in like-new condition with all components, early termination fee will be waived. Service may be cancelled after 14 days but within 30 days and early termination fee will be waived, but equipment may not be returned. All other charges apply. Some dealers impose additional fees.

    So they explicitly say that you can cancel the service between 14 and 30 days, avoid the early termination fee, but don't have to return the iPhone. As an aside, this section also implies that the "you may be required to return devices" in the other part of the contract indeed only applies to the first 30 day period, but the explicit iPhone section makes the various interpretations of the other section mute for this question.

    So, we can buy the iPhone outright for $599/$699 or we can get a contract and cancel it after 14 days (but before 30 days) and pay a net of $235/$335. As my son would say Sweeeet.

    --
    The NSA: The only part of the US government that actually listens.
  8. Re:iPhone- future of computing or just a phone by BitZtream · · Score: 4, Insightful

    The iPhone is certainly not a general computing device. I love my iPhone, and I actually enjoy the iPhone SDK, but ... it will never replace my laptop when I want to get something done.

    Typing on any phone sucks. Some suck less, but they all suck, even the ones with the keyboards that cover the full size of the phone ( HTC Tilt as an example ).

    The iPhone does some tasks great. Its a good 'phone' imo. Its obviously a great iPod, some would argue that there are better portable audio players, but I've never used a non-iPod player so my opinion is obviously biased. Its not as good as my old Palm V or Windows Mobile devices for taking notes or managing tasks by a long shot, but it does the job well enough.

    With the SDK release, it'll have a few cool/good apps for it come out soon, but its not a PC and never will be.

    As far as Palm being great because of open development, this is a double edge sword. Do you know how many absolutely crappy palm apps exist? I'd guess about 10 crappy apps exist for every half way decent app. The advantage to making it 'harder' to developer for the iPhone is that in itself will weed out many of the crappy apps written by people who wont put much effort into it.

    With Job's evil grip over apps with the AppStore and digital sigs, some types of malicious apps can be stopped as well.

    The only apps that may not be released on the iPhone are ones with a GPLv3 or like license due to the retarded restrictions in it that are supposed to help support my 'freedom' to do what I want with the software, but ARE restrictions to what I can do with it. Any GPLv2 or BSD or (insert any of the thousand other sane distribution licenses here) will be available, if not by the original authors, by someone else who is part of the SDK program, someone will probably make a service for OSS developers who don't have the money to blow on the iphone dev program.

    Even GPLv3 apps aren't ruled out. The original authors can do whatever they want with the software, they are not under the restrictions of the distribution license so they CAN release an iPhone version should they choose to, OR, they can grant someone else the right to do so.

    BUT ... in all of these, 99% of the apps out there, don't belong on the iPhone. Its a phone/entertainment device, with some basic computing abilities, nothing more.

    --
    Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
  9. No pay as you go by my reading by RalphBNumbers · · Score: 3, Insightful

    The phone probably would still be locked for use only on AT&T's network, said Jupiter Research analyst Michael Gartenberg. But buyers could choose a pay-as-you-go plan for voice service.

    AT&T has explicitly said that even without a contract you still have a locked phone and the same choices for plans (i.e. minimum $70 a month +taxes and fees for voice/data, with no sms).

    That doesn't sound like pay-as-you-go is allowed to me. Which is a shame, because if it was I might actually be interested. A $500 phone, $30 a month for data, and a hundred bucks for a year worth of minutes and SMSes is a better deal for me than a $200 phone plus $75+taxes+fees every month for more minutes than I use in a year.
    AT&T needs to let people who don't use their phone as a phone that much buy what they want.

    --
    "The worst tyrannies were the ones where a governance required its own logic on every embedded node." - Vernor Vinge
  10. Re:Canadians by Anonymous Coward · · Score: 3, Insightful

    All we need now are for some Canadians to reiterate how shafted they feel by their only GSM provider :)

    Not just the monopoly GSM provider, but the CDMA providers as well.

    Canada is in the dark ages when it comes to cell phones & service. The CEO of RIM (maker of the blackberry, a Canadian company) has said many times that the ridiculous prices of Canadian cell phone companies are impeding progress.

    Canada has the highest prices in the western world when it comes to cell phones & service. As a result, just over half of the population has a cell phone. Compare with most of Europe when almost everyone has a cell phone.

    The previous Liberal government fucked up big time when they allowed two big mergers (BC Tel with Telus, and Rogers with Fido), reducing the number of large providers from 5 to 3. Not surprisingly, prices went up quite a bit post-merger.

    Canadian cell phone companies will whine and claim their costs are higher because Canada is such a large country with a small population. While that is true, the vast majority of the Canadian land mass has no cell phone service. The carriers are not incurring costs to provide service to areas of low population, they only provide service to cities & towns with sufficient population. As an example, Rogers (the only GSM carrier) provides service to about 2% of the land area of the province of Saskatchewan.

    Canada's laws prohibit a foreign firm from operating a cell phone network. It's time to revisit this.

  11. Re:This is a response to iPhone unlocking... by Achromatic1978 · · Score: 3, Insightful
    Good luck using it when they blacklist the IMEI from their network (and then publish it to the other networks).

    Can't say I wouldn't laugh, either - entering into an agreement with every intention of breaking it, and being willing to file a fraudulent police report just to save yourself some money? What a world class fucking citizen you are.