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iPhone Users Angry Over AT&T Upgrade Policy

All is not sweetness and light in the wake of the Apple WWDC kickoff announcements, especially concerning the evolution of the iPhone. Reader Hugh Pickens writes: "AT&T will offer the new iPhone 3G S when it debuts later this month at a cost of $199 and $299 for the 16GB and 32GB models, but only to new customers and those who qualify for the discounted price. AT&T subscribers with an iPhone 3G who are not eligible for an upgrade — those not near the end of their two-year contracts — will have to pay $200 more — $399 for the 16GB model and $499 for the 32GB model. 'This is ridiculous and slap in the face to long-time loyal iPhone customers like me who switched from T-Mobile and the only reason was the iPhone,' writes one unhappy iPhone customer. 'We have to mount a vigorous campaign to change this policy. Call your local AT&T and ask for the manager and complain. Send e-mails and post in forums everywhere.' The issue is spurring heavy debate on support discussion forums, with some customers supporting AT&T. 'The option you have is to honor the contract you freely committed yourself to,' says one forum member. 'If you want to upgrade early then you will have to pay full price with no subsidy discount. You can't blame anyone but yourself for your predicament.'"

34 of 789 comments (clear)

  1. BooHoo by Anonymous Coward · · Score: 5, Insightful

    You know Apple releases a new phone every year, and you know AT&T makes you sign a 2-year contract. Either pay the higher price for the upgrade or live through the horror of not having the latest shiny product until your contract runs out.

    1. Re:BooHoo by Skye16 · · Score: 5, Insightful

      Or you could boycott the particularly onerous terms of your contract by paying your ETF and not giving AT&T your money any longer. You and I both know it doesn't cost them even remotely close to 95$ a month for your service - their profit margins are obscene. It's absolutely their right to request you pay that amount each month, and if you were suckered into a contract, that's a blow to you. Learn by your mistake by terminating the contract in the legal manner (and if that means waiting until they change the terms of the contract, so be it) and don't fucking enter another one like it again. Until you tell them you're not interesting in paying obscene costs or entering into their service with any contract (even forgoing your precious ball and chain for a while), they'll keep bending you over and blasting your asshole repeatedly. If you want to just lay there and take it, that's your prerogative, but kindly have the decency to shut the fuck up about how you're not receiving a perceived fair bargain from the entity you willfully signed your custom away to.

    2. Re:BooHoo by icebike · · Score: 4, Insightful

      All well and good to posture, but those having an iPhone under the only contract terms available have sunk costs and can't do a thing to recover them.

      The phone is locked to ATT.

      ATT subsidized the iPhone heavily and wants to recover their costs. Its understandable.

      Yes, ATT should allow you to pay off your ETF (which by the way should ONLY include what they owe Apple for the phone) and let you start a new contract with a new phone.

      What could be more fair?

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      Sig Battery depleted. Reverting to safe mode.
    3. Re:BooHoo by roc97007 · · Score: 4, Insightful

      This is genius.

      1) Apple culture heavily weighted towards having latest shiny object

      2) AT&T contract requires 2 year ownership or pay $200 penalty

      3) Apple maintains 1 year design cycle

      4) Profit!!

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    4. Re:BooHoo by MrCrassic · · Score: 3, Insightful

      Exactly. I guess with a phone this popular, inane complaints will always rise to the surface.

      This is the case with every mobile provider, at least here in the United States. You sign a contract, get a subsidized phone, and in a few years, provided that the phone qualifies, a customer can apply for a discounted upgrade. It's worked nicely for T-Mobile, Sprint and VZW customers since it's conception.

      HTFU.

    5. Re:BooHoo by gumbi+west · · Score: 4, Insightful

      AT&T has a profit margin of 10%. If you think that is insanely high... I'd rather not be in business with you.

    6. Re:BooHoo by MrCrassic · · Score: 4, Insightful

      You know what's somewhat ironic about all of this? At this point, the iPhone is probably the easiest phone to unlock EVAR, and is also the poster child for phones chained to tailored calling plans.

      Education goes a long way...

    7. Re:BooHoo by malchus842 · · Score: 3, Insightful

      But it's not being screwed. You and I willingly bought G1 phones, and have used them. Nobody forced us to buy them, nor enter into the contract. So when the G2 hits, if I really want it that bad, I'll pay the price. If not, I can wait out the 2 years and get the discount(*).

      (*)I have 5 lines on the family plan, so in the end, I can pretty much upgrade any time I like. My kids love getting the hand-me-down cool phones, and my wife isn't into technology. :-)

    8. Re:BooHoo by ScrewMaster · · Score: 3, Insightful

      But it's not being screwed.

      Yes, I agree. That was precisely my point. I meant screwed as in "aw, damn, this new model is like, way cooler than my old piece of junk". I didn't mean to imply that the vendor or cell phone company were in any way to blame for my impatience.

      --
      The higher the technology, the sharper that two-edged sword.
    9. Re:BooHoo by Forge · · Score: 4, Insightful

      A mere price doubling? These people should consider themselves fortunate.

      I remember nearly a decade ago when our then only phone company sold it's top end cellular to staff at a 30% discount with a 2 year interest free payment plan. They thought it was really a great deal, ontil 18 months later when a new phone matching or exceeding all features of that model started selling for less than the monthly installments.

      As for myself, I have never bought a cellphone costing more than 2X the absolute cheapest phone on the local market. But, that's just because I am not rich.

      Here is a more general rule of thumb: If your phone is crushed by a car 15 minutes after your last backup and those backups are safe, you should only be upset over the inconvenience of being out of touch for a few hours and having to restore on the new phone. If the loss of the phone instrument itself is a cause for concern, you payed too much.

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      --= Isn't it surprising how badly I spell ?
    10. Re:BooHoo by drsquare · · Score: 3, Insightful

      Right here:
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    11. Re:BooHoo by Brian+Gordon · · Score: 3, Insightful

      Probably because Microsoft's developed expensive products but after that they just have to pay people to stick CDs in boxes and direct the incoming dump trucks full of gold coins. I'm not surprised to see such a high margin if they're in the "sit on our successful product and let it sell for awhile" phase of its operations.

      I bet any sales of product based business model will generally have a higher margin than continuous providing a servic

    12. Re:BooHoo by bertoelcon · · Score: 3, Insightful

      I bet any sales of product based business model will generally have a higher margin than continuous providing a servic

      And thats why the Media Industries won't change with the times.

      --
      Anything can be found funny, from a certain point of view.
    13. Re:BooHoo by Korin43 · · Score: 4, Insightful

      Pretty much any phone these days comes with Bluetooth, and if you have Bluetooth, you can use Bitpim.

    14. Re:BooHoo by triceice · · Score: 3, Insightful

      I agree with you. I have been a smart phone user for over 10 years and I knew that after using my wife's iPhone that I wanted one. I also knew that means I would have to get back under contract. I had been an Cingular user without a contract for over 7 years (coverage in my area was better from them then from the others). I only bought unlocked phones and paid the full price for them. I know that I am under a 2 year and went in to it with eye wide open. AND SO DID EVERYBODY ELSE. Simply put it's your money and no one forced you to sign the contract.

    15. Re:BooHoo by MikeBabcock · · Score: 3, Insightful

      I'm waiting for "Books sold on this product will never again need to be checked for authenticity and can be ported to any future Kindle device you purchase, and if we ever go under or cancel this offer, we will give you the book in PDF format for free."

      That is to say, I'm probably never buying one.

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      - Michael T. Babcock (Yes, I blog)
    16. Re:BooHoo by imapopsensation · · Score: 3, Insightful

      What is it about a some iPhone users that makes them think that the general rule of lending and new product pricing doesn't apply to them? When a new product comes out, its costs more. Borrowing at interest or signing payment contracts sometimes offsets that new product price so you an get that new product smell. Getting it at new user price requires a two year contract, and a new customer opp for ATNT. When a new car comes out, you can get 5000 back for signing a 60 month lease to 8% interest. It happens with every manufacturer and every new product, period. Instead of wasting time iWhining about it, why not look at the monarchy subscribed to when you buy a closed phone, from a single service provider, with a limited (selective) development platform, with a single outlet for purchasing things? Shouldn't this be more concern then most shiny thing in the room?

  2. never should have given the retro price cut by Lehk228 · · Score: 4, Insightful

    So the issue is that a new model has been released and only people who are eligible for a new phone can get it at a discount? Apple never should have caved on the iphone price change retroactivity, now they can't improve anything without the existing users demanding free upgrades for life.

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    Snowden and Manning are heroes.
  3. Or.. by Wovel · · Score: 3, Insightful

    How every other carrier and every other phone works. Just because they were generous when the 3G came out, does not obligate them to do so again.

  4. iPhone Users? by sthomas · · Score: 5, Insightful

    Looks like only one user was upset in that forum. The rest all saw the logic and understood what a subsidy is used for.

    1. Re:iPhone Users? by Anonymous Coward · · Score: 5, Insightful

      Really, I just bought an iPhone in February, and will be amazed if I can get a discount beginning February 2010 or even August 2010, and I understand completely. I could sell my phone right now for $400 easy, so it wouldn't make any sense for AT&T to sell me the better version of my phone for $200.

      Stuff like this makes Slashdot look silly too, a massive jump to conclusions over a small minority shouldn't be news.

  5. Really? by Anonymous Coward · · Score: 5, Insightful

    'We have to mount a vigorous campaign to change this policy.'

    A vigorous campaign? Really? I'm sorry, but in this context, the author simply sounds pathetic.

  6. Holy Shit by yerktoader · · Score: 5, Insightful

    The general consensus here on Slashdot so far:

    1)"tsfroggy"(RTA) agreed to his/her terms in a contract and has to deal with the pricing like everyone else.

    2)A past discount is not an obligation for a future discount.

    3)"tsfroggy" is a whiner.

    4)AT&T is clearly in the right on this, even if the pricing is too high.

    I must say, Congrats gentlemen. I'll be interested in seeing how long this lasts in this particular thread.

  7. Re:Whoa! ATT sucks balls? by ScrewMaster · · Score: 3, Insightful

    This is totally out of left field. It's a good thing the US is chock-a-block with better wireless carriers and the iPhone is portable between them.

    Very funny, and for some reason it makes me want to throw up.

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    The higher the technology, the sharper that two-edged sword.
  8. Re:Slap in the face? WTF? by ScrewMaster · · Score: 3, Insightful

    When did we as a society get our collective sense of entitlement?

    It started sometime back in the mid-sixties, and it's been all downhill ever since.

    --
    The higher the technology, the sharper that two-edged sword.
  9. Bingo! by King_TJ · · Score: 3, Insightful

    Honestly, given the current state of our economy, I'm surprised more people aren't ashamed to post such nonsense.... Even though we don't yet know exactly what will be in the latest revision of the iPhone, all indications point to a few relatively minor tweaks, like a built in compass and ability to use the faster tier of 3G cellular data network. Oh, and likely a faster graphics processor, which is nice -- but did anyone honestly have issues with it updating too slowly before? This will only matter for some games that want to push the envelope a little further with how much you can do on a phone. FAR from a necessity, especially for those of us who'd rather play "real" games on a home computer or console system anyway!

    Heck, I bought one of the very early 1st. gen. iPhones, and I didn't WANT to go to the 3G model. The version using the slower EDGE network was about $10 cheaper per month to keep a contract on, and I thought it had a more "solid" feel to it than the plastic-backed, sloped wedge shape of the current model. But finally, when mine started acting up, outside the warranty period, it just made more sense to buy a new phone.

    If you can get past the pointless "keeping up with the Jones'" attitude for a minute, I fail to see why a 3G iPhone owner would be that compelled to rush out and upgrade at all? Those that have that irrational need to "show off" by having one first? Well, let them pay full retail price!

  10. Re:Slap in the face? WTF? by Bloopie · · Score: 5, Insightful

    How does one user complaining about upgrade policies on a forum, with almost all the other users thinking the policies aren't so bad, qualify as a "collective sense of entitlement"?

  11. Re:Why not just add to your term by MBGMorden · · Score: 3, Insightful

    Because you're essentially running up "debt" that way, that the phone company is going to take longer and longer to recoup. When they give you a discount on that phone, they're essentially loaning the money for a set time. Asking for a year's extension on that time costs them. Imagine if a customer did that every year as the new models came out. They extend their contract to 3 years now. Next year they're up to 4 if they switch out. Pretty soon they're racking up owed contract years that they'll either newer get to, or they're going to have to eventually wait out for an extremely long amount of time before they can get a new phone.

    I mean honestly, if this guy is whining now about this model - do you honestly think he's going to get this one and then wait THREE years (an eternity on the cell phone market) before picking up the newest model? No, he's going to want the latest and greatest every time. If he wants that then fine, but he needs to cowboy up and pay the full price.

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    "People who think they know everything are very annoying to those of us who do."-Mark Twain
  12. Not Crybabies.... Fanboys. by PC+and+Sony+Fanboy · · Score: 4, Insightful

    Bunch of crybabies.

    No, its a bunch of rabid apple fanboys who want to piss away more money to apple, but can't stand the idea of paying AT&T a little extra cash for the contract they willingly accepted.

    I'd be upset too, if I didn't know that apple released new products yearly with their masterplan of planned obsolescence.

    1. Re:Not Crybabies.... Fanboys. by ScrewMaster · · Score: 4, Insightful

      Bunch of crybabies. No, its a bunch of rabid apple fanboys who want to piss away more money to apple, but can't stand the idea of paying AT&T a little extra cash for the contract they willingly accepted. I'd be upset too, if I didn't know that apple released new products yearly with their masterplan of planned obsolescence.

      No argument from me.

      --
      The higher the technology, the sharper that two-edged sword.
  13. usury. by Anonymous Coward · · Score: 3, Insightful

    Actually, the terms were *always* onerous and unfair. It's just that there was never a phone available that really made people say "i want that" often enough to notice that they were getting shafted.

    Now the iPhone is out and it's become the banner to rally behind.

    Frankly, I think it's too much for the phone companies to be allowed to sell the phones. They've shown they can't play fair when they have that ball. Twice. Once with the regular phone market, and now with the cellular phone market.

    They probably ought to be forbidden at this point from selling the phones at all. If people want to finance their phones that should be their own business.

  14. Confused Definition by afabbro · · Score: 4, Insightful

    'This is ridiculous and slap in the face to long-time loyal iPhone customers like me who switched from T-Mobile and the only reason was the iPhone,' writes one unhappy iPhone customer.

    Long-time? Even if you bought an iPhone the day it was released (June 29, 2007), you are not yet at the end of your initial 2-year contract. How "long-time loyal" can you be?

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    Advice: on VPS providers
  15. Re:anonymous coward angry over first post by Trahloc · · Score: 5, Insightful

    This is perfectly normal, they give a $200 discount so people sign a 2 year agreement. A few give reduced discounts before the contract is up but a majority only give discount prices when your out of contract. Anyone who doesn't understand this and feels its a 'slap in the face' should grow up, it's not like they hide this fact at signup.

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    The Goal: A long simple life filled with many complex toys.
  16. Re:anonymous coward angry over first post by harryandthehenderson · · Score: 3, Insightful

    How is AT&T supposed to make money giving away subsidized phones before they pay back the ones they've already subsidized?

    The overpriced data plan that they force you to sign up for?