AT&T iPhone Pricing: The Good, The Bad And The Complicated

Do At&t execs think they will trick people into spending more money with these overly complicated plans? Make a simple all-in-one plan like Sprint did. It makes sense. But I guess At&t actually being innvoative is too much to ask for. At&t wishes things stayed still, they fear change rather than embrace it and maybe even profit from it. I hate At&t. Steve Jobs, please talk some sense into them and come up with a reasonable all-in-one cell plan. I promise to buy an iphone if you do...

thank god for all you dedicated info junkies. the truth be knowen the faster i get it the happier i will be. also thankyou find it in ct.com always providing opportunities to locate and buy the next toy. gfd (hooked)

AT&T has some of the strangest pricing plans I have ever seen.

Years ago I paid to get out of my Cingular contract. It doesn't look like much has changed with the new name.

AT&T asked for my SS# to even give us a quote on service. And we've been AT&T (SW Bell) customers for about 25 years. This long time Apple user voted with his $100 bill to stay with Verizon. Careful AT&T...Keep making market place blunders and I might move my high-speed internet and drop the land line.

Thank you for the great breakdown.

what a ripp off.

no free lunch.

at&t is the worst company we worked together. billed for sms never sent T-Mobile is much cheaper and reliable

its superb........... it can challenge indian mobile marketttttttttt

i want to see the iphone

This is absurd.. Who said its like tat.. proofless info..

I was excited to hear the new generation iPhone will include 3G and when Steve Jobs announced it will be cheaper than the previous version, I coulnt wait when it is released. However my euphoria soon turned to dismay... the total cost of the iPhone including AT&T subscription is way too expensive to be practical. There are many other touch-screen phones with more features being released on the market. If AT&T & Apple dont revise their marketing strategy, they will find a massive exodus of their customers fleeing to other brands... the simplicity and coolness of Apple is beginnng to lose its appeal!

I question the credibility of this article, it makes no sense. When you buy the iPhone through the Apple store, they don't sign you up for anything, you do that through iTunes when you get home. Thus, the price of the phone is $199, not whatever numbers we're figuring here. Further, all the different plans are no different than the plans offered for all of AT&T phones, thus the fact that it is mentioned here as confusing is actually completely irrelevant. I do believe where it is mentioned that there will be an additional fee per month for using the phone as there was an additional fee tied to the last phone and as there is tied to any phone that uses excessive data. You know, BusinessWeek has some pretty good articles, I should know, I get the magazine every week courtesy of my university. However, I have yet to learn where they get their information from. Do not believe any articles that you read here about vehicles as more often then not, the information is wrong or they have the wrong picture displayed. I really enjoy their articles, especially when they are correct.

There goes my plans for buying the new iphone 3G. Thanks AT&T. You just made me not go for AT&T/iphone.

It seems like efforts to clarify are confusing rather than...clarifying. The pricing structure is indeed complicated.

This is not the Apple way. The phone is great and all, but the ATT network is still piece of junk. Even their 3G.

I'm trying out the new Sprint Instinct. It's only $130 plus they have the $99 all you can eat data and voice plan. And from what I'm told, their 3G network is way bigger than ATT.

I sure am getting sick of Apple. AT&T isn't too far behind. Obviously, I will not be a customer.

I think everyone knows that this is a ripp, but do you think anyone is going to think twice before getting an iphone? They are gouging because they know that they can. Even this analyst says so

http://www.ibtimes.com/articles/20080702/apple-iphone-att-steve-jobs-ipod-subscriber-prices.htm

Yeah right. Let's AT&T announce a simple all in one plan like $99.99 for all inclusive voice and data plan with text messaging.

How many people will scoff at this $100 price ?

May be they should have done that and put the iphone price as $499 as before.

then you guys will say there is no customizations for ordinary users who doesn't care about unlimited data and unlimited messaging..can't have it either way

Thanks for sharing. Apple lost one more prospective customer. Steve, thank AT&T for that.

Pricing comparision for all
New Users:
Old iphone: $399/2-yr contract,$20 dataplan, New iphone: $199/2-yr contract,$30 data plan

Current AT&T Cust with Upgrade Eligibility:
Old iphone: $399/2-yr contract, $20 data plan, New iphone: $199/2-yr contract,$30 data plan

Current AT&T Cust with No Upgrade Eligibility:
Old iphone: $399/2-yr contract, $20 data plan, New iphone: $399/2-yr contract,$30 data plan

Not an ATT Customer:
Old iphone: $399, New iphone: $599 (maybe)

I liked the way you can sign up or upgrade with AT&T until now. Just get the regular deal and free phone and sign up 2 year contact, then buy a iphone and activate it with a new 2 yr contract. It will give you a new 2-yr contract not 4-yr. But with new iphone, you cannot do it. So they are saying that 3G iphone will be for $199, that is not true.

The AT&T plans could be better but its a good thing we dont live in Canada. iPhone plans from Rogers are worse than this.

Dear What,

Will the 3G iphone really be available at the Apple store for $199? Has this been published anywhere for you to make that statement?

This article implies that data is extra ($15/month). It says right on the ATT web site. $69.99 for 450 minutes, 5000 w/e minutes. UNLIMITED data(email/web), visual voice mail, rollover and UNLIMITED mobile to mobile. Why does this seem so confusing? I have virtually the same plan with Verizon (but with a dumb-phone). Same price, but with NO email, NO web, NO rollover. All that would be extra charges. If I could justify buying a $200.00 phone, I would have one in a minute.

I was going to buy the new iPhone to replace my BlackBerry next week. Guess I'll stick with the BB. The $200 penalty is excessive.

APPLE...
ATT...
A RIP OFF
OVER PRICED...

AT&T are definitely trying to use the iphone to jack up their prices on data plans and bring in the profits! The additional charges on things like text messaging is simply ridiculous! Their current mediamax bundles for smartphones include text messaging in the price. Just another example of profit-mongering....

I personally don't find this any more complicated than buying any cell phone from any other company. More minutes means more cost with a separate charge for text. That's it. As with the phone itself, one price for with plan, one for without, and one for unlocked. That's really all there is to it.

I'm getting the iPhone but I'm pissed that they're charging for texting. I can barely afford the $70 they're going to charge. How am I supposed to justify paying $90 just to have unlimited texting? I hope someone comes up with in app to get around this.

All the new iPhones have to activated in-store. Not like the last go around to help prevent unlocking.

The new AT&T plans have made me put my wallet away. I have the original iPhone and love it.

But AT&T is killing me. They seem to be trying to rip me off every chance they get.

Now I have to pay for SMS. Its the top button on the iPhone.

Why is it so freakin' expensive to send and SMS. Its a glorified Instant Message. With the 3G iPhone there will be built-in Instant Message. Why would I pay hundreds for SMS.

I sure hope you can turn that feature off cause I sure will not be accepting or paying for them.

I really like 200 SMS's a month just the right #.

AT&T get your head out of your beehind. I think I will ride out my original contract, thank you very much.

The article lights over a number of confusing figures whereby the plans do follow the provider regardless of the phone. Phone buyers should only expect incremental steps from Apple as always. Open or more open format devices such as the blackberry are what people will by when they get out of the toy market.

I still can't understand how Apple won't compromise to work with other carriers. They've made huge efforts to expand internationally, but make up a very small market share in handsets in the US. Outside of California, I never rarely see iPhones. I'd love to have an iPhone, but will NEVER go back to AT&T after they made erroneous charges to my bill. Sadly, AT&T's horrible service and poor brand are impeding on Apple's brand. I'm surprised Apple doesn't see the iPhone, now with "affordable" pricing, as an inexpensive gateway product that would draw people in to the brand and who may continue to expand in to other Apple products, particularly computers with similar navigation. Nope - sticking with Blackberry and Verizon.

Get the forthcoming Twitterrific iPhone app, or use Hahlo.com if you use Twitter. Both use the iPhone's data connection so you don't have to waste SMS messages.

I'm not buying a new iPhone due to AT&T. I'm a big Apple early adopter but I'm not stupid.

at&t stinks.

i live and breathe macs, but the crappy plans they're offering make it unlikely i will buy the phone. maybe in a year (or 2) when at&t's exclusivity is over.

i still can't believe apple gave into at&t and is making such a pr blunder.

Dear What,
There is no longer at home activation of the iPhone.
ALso, does anyone not realize that AT&T's 3G network is small?
I'm happy with my Samsung Instinct, and my Unlimited Talk, Data, Text, and other goodies for $99.99/month, on Sprint...

The one and only reason I’m not plunking down $299 to upgrade to a 16GB 3G iPhone from my old 8GB is the SMS charge. I’m on a family plan and I only use about 50 SMS per month, but this means paying $20-30 extra per month in addition to the $10 data plan increase. No thanks! Not only is Apple losing sales because of this, but now I am one angry AT&T customer and I will jump ship the first chance I get!

i am a current iphone user, and will NOT be upgrading. sadly, were i to keep my current minutes/data/text amounts the new price breakdown would make my monthly bill $30 heavier! 30 bucks! to get the new *ahem* "cheaper" iphone 3g, that's a hell of a premium AT&T. i don't expect a free lunch but i do expect fair business practices and quality customer service, AT&T sadly has missed the bar on both counts.

and to someone questioning credibility of the article, you do in FACT have to activate your new "cheaper" iphone 3G at the time of purchase, whether at the AT&T OR APPLE store. and sir, you are also mistaken, there is a SPECIFIC iphone data plan that does NOT apply to any other at&t phone,

You are RIGHT ON TARGET!!!!! Can you imagine a wireless bill of which $30 is JUST for data with NO laptop tethering. I mean seriously how much bandwidth will an iPhone really use on their wonderful 3G network? So guess what folks. I was READY to upgrade from my 1st gen iPhone to the iPhone 3G. As a matter of fact I was going to buy the 16GB model. But now after seeing the evil AT&T pricing I decided I will not be buying an iPhone. And further this gives me the option to change carriers since right now I have no contractual obligations with AT&T.

Apple needs to realize that their credibility is directly attached now to AT&T's credibility, which is quite low at this time.

Apple & AT&T should have offered the iPhone 3G with NO CHANGE IN RATE PLAN FROM THE ORIGINAL IPHONE PLAN!!!

Can you imagine how many iPhones they would have sold? Can you imagine how many people would have switched from other carriers to AT&T???

Yup both Apple and AT&T have definitely blown it this time.

Pete

Ps. Just as a note. I am a BIG TIME Apple fan. I own multiple Macs, iPhone etc. So it is hard for me to criticize a company like Apple. But sometimes you have to call a spade a spade.

Look, I'm willing to trash AT&T as much as the next guy, but before anyone cries foul over how much they are charging for the data and SMS plans, you should consider the lessons learned from the original iPhone.

Studies have shown that the owners of the original iPhone used its data capabilities at a substantially higher rate than users of other smartphones. One could surmise that this is due to a couple of factors: 1) the user base of the iPhone is younger/more tech-savy and 2) the device handles these applications so much better than other smartphones that people actually want to use the features, as opposed to only using them when they have no other choice.

The reasons don't really matter. What matters is that AT&T knows (from experience) that iPhone users will consume more bandwidth than other smartphone users and they are charging iPhone users higher rates as a result.

As someone who is very likely to leave Verizon (after about 8 years) to get the new iPhone am I happy about paying these higher rates? No, but that doesn't mean that it's unfair for AT&T to charge them.

Hi Arik:
I find it amusing that Apple would contact you about your temerity to 'diss' AT&T's service and pricing. What, does Apple think, the absence of a few features (SMS) may rain on their 3G's release parade?
If you had to put up with the Roger's Canada iPhone carrier, you would have a true indication of service 'confusion'. Of course, looking at AT&T's prices from a Canadian price perspective, there isn't any 'confusion' - just Roger's greed.

But nary a 'peep' from the Apple Canada surrogate!
Happy 4th,
Terry

I am also pissed with the eligibility clause and now my fiancee and I have to stick to our crappy free nokia phones till next year feb and may before we can upgrade! I am definitely not paying extra money for the early upgrade to a ATT who does not CARE about their current customers and only worried about signing up for new ones, it is kindda of welcome to hell, once you are in, we don't care about you anymore!

With regards to SMS, I was scouting around and found this service call JOOPZ.COM, they allow you to send you and receive UNLIMITED sms messages via the web for about $20 a year, I am not anyway affiliated, just wanting to help to find a solution to encourage customers to stop paying ATT more money if there are treating customers this way.

from a devoted mac user

I agree, AT&T is hitting the customer like they used to do with in the old days with their long distance plans. Not only will they no longer give monthly revenue to Apple (which you would think helps them) they are going to suck more out of the consumer's pocket in the long run. It's like those bad financing plans--tease with something low but the extras cost you in the long run.

I was planning to get an iphone on the 11th, had become an AT&T customer last year specifically because I wanted an iphone but when I had to wait after the first launch I just decided to hold out for 3G. Was excited until this announcement. AS a 1 yr and 4 months customer I'm not eligible for the lower phone price--I will have to pay the $399 or $499 price and of course end up with the much higher rate plan. I really wanted the phone but looking at all the negative comments out there, I'm going to wait to see if they come to their senses.

I was planning on getting an iPhone 3g, but after seeing these rate plans, I'll pass. I'm an AT&T Family Plan customer with no upgrade eligibility till December. It would cost me an extra $200 penalty for the iPhone and then to get the same features I have now with the iPhone I'm looking at about $120.00 a month.

No thanks AT&T. These price plans just scared me away from considering your new U-Verse service too.

I was very excited about the iPhone, until I found that many ATT customers will not be eligible and that the service plan pricing is terrible. ATT is running a shell game with prices. So, forget it.

My mom and my boss both lost their televisions this week. Both subscribe to U-verse and both had the same problem, the video is shot, and both have fairly new TVs. I saw on the internet today that another U-verse customer also lost the video in both of his TVs. In all cases, the TVs are unrepairable. When you spend thousands of dollars, this is costly damage, and I have no doubt that it is U-verse - related. Keep this post in case your TV breaks down all of a sudden.