Finally, a piece of news we can actually do something with. AT&T today announced its pricing structure for the next iteration of Apple's
iPhone -- which you can plunk down money for come 8 am, July 11th. There's not much that's surprising here -- new customers and those eligible for an upgrade will be able to nab the phone for $199 (8GB) or $299 (16GB), while "early upgraders" will have to fork over $399 or $499, all with a two year contract and $18 upgrade fee, of course. The telco says a no-commitment version of the phone will be available for $599 and $699, though it looks like that will come after the initial launch. AT&T appears to be leaning pretty heavily towards the all-in unlimited plans, but there are options if you don't want to go that route. We've sorted out the basics after the break, and included AT&T's "iReady" video -- certainly good for a few chuckles.
Notes:
- iPhone 3G will be available for $199 (8GB) and $299 (16GB) for iPhone customers who purchased an iPhone prior to 7/11, customers activating a new line with AT&T and current AT&T customers who are eligible for an upgrade
- Existing AT&T customers who are not currently eligible for an upgrade discount can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement.
Individual plans:
| Price | Voice | Data | Night and weekend
| Additional minutes |
| $69.99 |
450 |
Unlimited |
5000 |
$0.45 |
| $89.99 |
900 |
Unlimited |
Unlimited |
$0.40 |
| $109.99 |
1350 |
Unlimited |
Unlimited |
$0.35 |
| $129.99 |
Unlimited |
Unlimited |
Unlimited |
N/A |
Family plans:
| Price | Voice | Data | Night and weekend
| Additional minutes |
| $129.99 |
700 |
Unlimited |
Unlimited |
$0.45 |
| $149.99 |
1400 |
Unlimited |
Unlimited |
$0.40 |
| $169.99 |
2100 |
Unlimited |
Unlimited |
$0.35 |
| $209.99 |
3000 |
Unlimited |
Unlimited |
$0.25 |
| $259.99 |
4000 |
Unlimited |
Unlimited |
$0.20 |
| $259.99 |
Unlimited |
Unlimited |
Unlimited |
N/A |
| $359.99 |
6000 |
Unlimited |
Unlimited |
$0.20 |
(Up to 3 additional iPhone lines can be purchased for $39.99 apiece, or $129.99 each on the unlimited plan).
Text messaging plans are as follows (for individuals):
| Price | Text messages
|
| $20 |
Unlimited |
| $15 |
1500 |
| $5 |
200 |
For family plan customers (family plan customers may also select individual plans for each line):
| Price | Text messages
|
| $30 |
Unlimited |
$0.20 (per message)
|
Pay per use (no plan selected)
|
Reader Comments (Page 1 of 2)
jeff @ Jul 1st 2008 11:46AM
But they don't say if the FAN numbers will work. Also they are not budging an inch on data for the family. Verizon and Sprint are starting to get it, why not ATT.
LV @ Jul 1st 2008 11:52AM
$400 & $500 is what you charge someone who's not eligible for an upgrade? Un-F****N-Believable, thats crazy, I thought I was going to get an iPhone this time around, but Im not payin no damn $500....*sheesh, thats half way to a mac...smh, not even worth it....
Jeff @ Jul 1st 2008 12:50PM
Remember - This is how any phone works now. Be happy they are offering ANY discounted price off the non contract price if you're not eligible. THAT does NOT happen with any other phone. You pay contract price or full price - there IS no in between.
I feel your pain. I bought a Q back in April because I could not justify the 399 or 499 for the iPhone - which I really wanted. Now this new iPhone - I'd love with some of the new stuff it does, and I could justify 199 or 299, but I'm not eligible for upgrade. I'm actually considering cancelling the line, paying the ETF and then buying the iPhone! I'd actually save about 25-50 bucks to do that!
I understand your complaint, but this is how it works already. AT&T is being nice to even offer any discount for those not eligible.
Ph4r @ Jul 1st 2008 12:04PM
Where is the news about FAN? This is what I really want to know, even if not my Hardware discount, do we still lose our service discount?
Dave @ Jul 1st 2008 2:30PM
I can almost guarantee that the FAN numbers will not work...The didn't work on the first iPhone, but who knows.
I distinctly remember the last time I checked that although foundation account numbers do help, since AT&T jacks up data usage pricing for corporate users all it basically lets you do is break even (with a comparative individual plan). ATT Premier used to be sweet when they basically had the "unlimited upgrading" on handsets (as long as you just renewed for 2 more years from the date of getting a new phone).
Honestly, I hope people don't buy a lot of these (especially initially) because it will make ATT and Apple rethink their pricing on this mediocre device. The fact that the introductory truly "unlimited plan" starts at $90 and doesn't even include text messaging is ridiculous.
The text messaging part of this may be the largest scam of it all, since ATT charges $15 for 1500 messages of ALL TYPES (including MMS) for all other phones, and has a "corporate only" texting plan (I think it's called B2B texting) which gives 1500 (text only, no MMS) messages for $10 a month. If you get this phone and sign up for this plan, you are truly getting scammed.
Jeff @ Jul 1st 2008 3:06PM
Dave, you are correct - the last time around, the FAN discounts did not apply. I believe they are this time.
As to pricing on "Mediocre" device... First of all, it's not all that "mediocre." Yes, it has shortcomings. But they obviously are working on those - look at the strides already made.
But more importantly, this all about supply and demand. It's obviously a more expensive phone to build than others, given the technology - so that will drive the price up a bit. But the demand is huge. Apple has played this well. Strong marketing, strong features and benefits (touchscreen iPod marketing. If you have an iPod and a phone - why not have both with touchscreen) and Apple has a huge following.
Supply and Demand has driven the price of this up.
Dave @ Jul 1st 2008 5:25PM
All I can say is that one would hope, in an economy that is definitely uncertain (especially if Obama is elected - people can argue with me as much as they want but socializing medicine will put health insurance companies even further down the toilet, if not into bankruptcy. That mixed with a Countrywide housing bailout, $300 billion farm bill, and an increase in unemployment and welfare benefits will lead to a massive devaluation of the US Dollar)
That people are more prudent about what they blow their money on. This might seem like a rant but when the average US consumer savings rate is NEGATIVE, I don't see why so many people should be flocking over this phone.
glynor @ Jul 1st 2008 12:07PM
Hmmm... This doesn't look good at all. There's no way to get a regular Family Plan ($69.99) with ONE iPhone (and one regular, non-data phone) for $99.99 per month?
I currently have a regular individual AT&T individual plan (with an old phone and expired contract, so I would certainly qualify for the upgrade) and a GoPhone (for myself and my wife). I was planning on switching to cell-phone-only and dropping my landline, with the family plan and one iPhone. It looks like if I want to get the family plan though I'd need to buy two iPhones, which we have absolutely no need for.
Seems a bit absurd. Wouldn't other people want to do the same thing?
Jason Peterson @ Jul 1st 2008 12:12PM
You can have a regular family plan, they are just showing you two iPhones. and you can also receive FAN discounts now.
glynor @ Jul 1st 2008 3:22PM
Is there any official confirmation on this?
From this info on AT&T's web site, it looks like to get a Family Plan with one iPhone and one regular phone that I'll have to get two individual plans (one iPhone @ $69.99 and one regular at $39.99) which is $10/month extra for no reason.
mike @ Jul 1st 2008 12:36PM
I think I am being dumb but I am confused. I bought an iphone in december, am not eligible for an upgrade with at&t, will i get the $199 and $299 pricing?
socalfrank @ Jul 1st 2008 12:39PM
If you bought an iPhone last year (which was not subsidized) are you elegible to "upgrade" now?
Iscariote @ Jul 1st 2008 2:16PM
No. Check your account page on wireless.att.com to see when your upgrade is available.
badqat @ Jul 1st 2008 11:22PM
Yes...all previous purchasers will be eligible for a subsidy. In fact, according to at&t, I'm eligible for ANY handset upgrade right now...
Jeff @ Jul 1st 2008 12:50PM
You can have a Family Plan with any kind of phones.
The new iPhone plans are not any different than current PDA plans. You have to stop thinking of it that way. The only difference is they are requiring you to take data. That's it.
A regular PDA (BlackBerry) is going to be voice plus data. If that's a 750 plan and a personal data - that would be $69.99. iPhone will be $69.99 for 750 minutes and personal data. Same thing! This is not any different.
Therefore, your Family Plan can be a 2100 minute plan for $100 and that will include your iPhone. Your wife's RAZR will be another $9.99. Your iPhone will be $30 for data, your wife's RAZR - $15 for data. Unlimited Text for the Family - $30.
And yes, FAN discounts DO apply. (At least that's what I've been told.)
It all narrows down to the iPhone is basically being considered a PDA - so it's getting the same pricing. Only they are requiring it be activated with both voice and data. Everything else is the same. There is no "iPhone" specific plan.
Ted @ Jul 1st 2008 1:30PM
Looks like I can save money on two iphones by not getting a family plan. Do they allow you to do that if you have more than one phone on your account? If you have more than one phone on your account, they don't make you have a family plan do they?
I mean, I can get two Iphones, one for my wife, and one for me, at $69.x2 and the 1500 text message each at $15x2. Thats only $168+tax.
Where as the cheapest family plan with 2 iphones and text messages is gonna cost you $199.98 + tax????? Am I right?
Jeff @ Jul 1st 2008 2:11PM
Ted:
Yes, you can do that. But that's two 450 minute plans - just 900 minutes. If you do a Family Talk Plan, you can share 1400 minutes (key word here is share. You do not both have 700, you SHARE 1400.) and have unlimited Data for 150. Plus, you can add unlimited Family Talk Texting for 30 - Bringing the total to 180.
So let's break it down.
Your way:
Each phone has 450 minutes, 5000 n&w, unlimited data, 1500 messages - for $170 plus tax and fees.
Family Talk:
Together you both have 1400 minutes to share (500 more than your way), unlimited n&w, unlimited data, and unlimited texting - for $180 plus tax and fees.
With Family Plan - for just an extra 10 dollars, you now have an additional 500 minutes, Unlimited Nights and Weekends, and Unlimited Texting.
See how this works? (Can you tell I do this for a living? LOL)
Dave @ Jul 1st 2008 11:26PM
Jeff, I know you do this for a living and all, but $90 a month for 700 min with unlimited text/data is still pretty f'n expensive...
Ted @ Jul 2nd 2008 11:43AM
Jeff,
I don't come up with the same #'s as you do when I add up the family plans vs. individual plans.
You say the 1400 minute unlimited data, unlimited texting for 2 Iphones will only cost $180 + tax.
Well when I add it up, it goes like this.
$149.99 for the family plan.
Then it says, "Up to 3 additional iPhone lines can be purchased for $39.99 apiece"
so that for the second lines $30 data and $9.99 for the addition line on the account.
This doesn't include any SMS text messages yet, and my total is already at:
$189.99
Now we have to add unlimited texting for the family plan, because really that is the only option they give you for family plan texting.
$30
Grand total of:
$219.99 + taxes.
OUCH. $219 vs. $180 and all I get is 500 more minutes for $40?
Not sure where you where getting your totals from????
Ted @ Jul 2nd 2008 12:25PM
Jeff.
My appologies. I just read where the FamilyTalk include the First "TWO" lines.
Man, how confusing all of this is!!!
:-)
Jason @ Jul 1st 2008 1:24PM
OK, so in case my other comment that says "WHAAAAA...i don't get a discount! WHAAAA!!!" shows up, i just reread the article and this is what I gather from it .
For EXISTING iPhone users with active ATT accounts, as long as the phone was purchased before 7/11/08, you will receive subsidized pricing on the iPhone 3G.
For EXISTING ATT customers that are NOT iPhone users, you will have to pay the inflated 399/499 pricing to upgrade if you are not eligible to upgrade yet.
So thats what I take from it, again if my "Poor Me" post appears, please disregard as I skimmed the article too fast...I suck.
Jeff @ Jul 1st 2008 2:11PM
Yes, but the "inflated" 400/500 pricing is ALSO a discount. Read further and you'll find that eventually there will be a NO contract price of 600/700.
Iscariote @ Jul 1st 2008 2:11PM
On your account page on wireless.att.com you can check and see when you're eligible for an upgrade. It seems to be 18 months after you switched to the iPhone plan, if you did that.
I understand subsidies and don't want to come across as a whiner, but a lot of us bought iPhones WITHOUT A SUBSIDY from AT&T and now are still forced to wait for a subsidy on an iPhone 3G as if we're trying to double dip, when really a lot of us are waiting for our first subsidy from AT&T.
Iscariote @ Jul 1st 2008 2:35PM
Whoa, on my wireless.att.com page they changed the upgrade wording. It used to say "eligible for upgrade January 11th, 2008", now it reads:
"MY NAME, 123-456-7890
This line is eligible for equipment discount pricing when you sign up for a 2-year service agreement. You can take advantage of our no-commitment pricing option, with the exception of iPhone which requires a 2-year commitment. "
So maybe AT&T is being really nice about this to current iPhone customers.
Matt @ Jul 1st 2008 1:56PM
Well with the ETFs At&t has in effect, u can cancel your contract and re-sign up for a cheaper price than the 400 or 500 dollars for existing AT&T customers
Iscariote @ Jul 1st 2008 2:12PM
This is correct, though you'll lose your phone number if you care about that.
ron @ Jul 1st 2008 2:12PM
i'm a little confused about the family plan rates. when i sign up on a family plan with 2 iphones, does the monthly charge include both phones or is there an additional $39.99/month for the second phone?
Jeff @ Jul 1st 2008 2:21PM
It includes both iPhones.
An AT&T Family Talk plan with 700 minutes costs $69.99 for 2 phones. Personal Data for the iPhone is $30 per phone. That comes to the $129.99 for 2 iPhones on the Family Talk Plan.
I really wish AT&T had not broken the plans down like this. It's too confusing. It's easier to understand it if you picture it as "business as usual" with the exception of Data being required. It really is.
rahsaanmoore @ Jul 1st 2008 2:27PM
actually you will pay taxes on the phone and on the service plus an activation fee of 36 dollars so keep that in mind. it will come out around $560 after taxes for an 8gb so just pay the 600 and be on your way. ATT has thought of everything...yes just like the borg
ron @ Jul 1st 2008 2:27PM
thanks jeff. i was talking to the att rep who handles the corporate discount for my company. he said that my discount will only apply to the monthly on the family plan but NOT apply to the $39.99/month for the second phone. is he just misinformed?
Jeff @ Jul 1st 2008 2:35PM
I BELIEVE that your discount will apply to the Data as well. So it will apply to the $30 for data on the second iPhone (or $45 if you go with enterprise) but not the $9.99 portion of that $39.99. I will have to check, because prior to iPhone3G, discounts did not apply to iPhones at all. Only the voice portion.
This is new. So everyone's learning as we go along.
cwcanty @ Jul 1st 2008 2:28PM
can you really end your contract then re sign up right away? Verizon makes you wait 6 months before you can come back I believe.
Rob D @ Jul 1st 2008 3:14PM
Is it just me or do these plans SUCK!!!
Jeff @ Jul 1st 2008 4:04PM
It's just you - kind of.
They are no different than my current Motorola Q. They are no different than if you buy a BlackBerry, Tilt, Treo, or any phone that's considered a PDA.
My Q is $69.99 per month. It's $39.99 for my 450 minutes and $30 for my PDA Personal Plan. That's the way that all plans are currently set up for AT&T.
It only sucks because on my RAZR I had - I only paid $15 for data. It was a regular phone using regular data. I moved to a PDA and now I pay $30 for essentially the same usage.
carlo2 @ Jul 1st 2008 9:42PM
It's kinda weird but the plans DO suck.
I pay 34.99 for unlim data which *includes tethering* my n95, includes unlim texting and mms, and all that mobile to mobile stuff. I got onto that plan when they were still deciding what to do with PDAs.
My plan is sort of special in that sense, but for 30.00 a month, what are you getting that you wouldn't get with a regular 19.99 unlim mediaNet plan
I guess an iPhone, and if it works for you then okay, but I'd demand tethering or at least including substantial texts.
Sleep @ Jul 2nd 2008 4:35AM
$30/month for data is the STANDARD At&t plan now for smartphones. Please don't compare to grandfathered plans. I know someone with a $2.99/month unlimited data grandfathered plan and so by this logic, every data plan in existence today would be suxors. $15/month for data is the standard price for At&t on regular phones. The iphone is rightfully classified as a smartphone.
Nate the Prophet @ Jul 2nd 2008 5:38PM
NO, you guys are WRONG! Although $30/month is the standard 3G unlimited data rate, with any other PDA phone or even Blackberry, you can cancel that data plan at any time. With the iPhone, the data plan is MANDATORY!
The iPhone is different, AT&T just wants you to believe it's not so that you're not mad about the subsidy issue.
I think this is crap. I'm an AT&T customer, not eligible for an upgrade (though it's been over a year), and if I want an iPhone not only do I have to pay the extra $200, but I STILL have to pay the $720 data fees over two years.
No one can tell me that an additional $720 in data fees and a 2-year commitment from me--an existing customer--isn't every bit as valuable as it is from a new customer. I'll gladly pay any remaining "stipend" that I received on my piece of crap phone from last year, I can guarantee it's well below $200.
As it is, Apple and AT&T have lost a sale from me. This is just too expensive. I can buy a brand new computer at these prices!
Rob D @ Jul 1st 2008 3:14PM
Is it just me or do these plans SUCK!!!
youngcalihottie @ Jul 2nd 2008 11:17PM
its just u. they r the same as any other pda + data plans.
Joe Castagna @ Jul 1st 2008 3:22PM
There are a lot of things that could be going on here. One question that needs to be answered is who are we buying the phones from? Is apple selling the phones to ATT. If so then apple is not giving us the discount ATT is. If apple is selling us the phone right out and we are only paying ATT for the contract than this whole thing is completely whack but if ATT is selling us the phone (whom is buying the phone from apple) ten I can get why all this is happening.
I go further into this in my blog:
http://thewastedyouth.blogspot.com/2008/07/this-is-bull-shit.html
David @ Jul 1st 2008 3:42PM
how will this coincide with apple? how much will they be selling phone at? I'm sure AT&T will not le employee buy this at the 2 yr price
Fernando Rubio @ Jul 1st 2008 3:49PM
What's FAN??
Nick @ Jul 1st 2008 4:11PM
I guess to unlock it for TMO i'll have to pay $600... What is the ETF if I sign up and pay $200 and then cancel?
swamishreeji2006 @ Jul 1st 2008 4:15PM
Wht if you are already a AT&T customer ? can i still buy the phone for $199 and upgrade that line for 2 more years ?!?
please leave a comment ! :)
Brad @ Jul 1st 2008 6:05PM
log on to your ATT account to see if you are upgrade eligible
Paul @ Jul 1st 2008 5:14PM
What if I am a AT&T customer but I am on a corporate plan? Can I buy the $599-699 and just move over my sim chip? I know I can do this with other brand phones (HTC, Nokia, etc..). I don't have control over my plan so I cannot just change it to a iPhone plan. I just want to swap my sim chip.
Dee @ Jul 1st 2008 6:57PM
OK, lots of questions that werent answered as of yet....
1. If you take the $259 unlimited family plan that includes 2 iphones, does that mean a 3rd iphone is added onto this plan for $129?
In comparison with taking a 3000 fam plan for $209 for 2 iphones and adding a 3rd phone for $39? Am i correct or do i have this all wrong??
2. For the unlimited texts of $30, is that PER iphone in the family plan?
confoooooosing!
badqat @ Jul 1st 2008 11:28PM
$30 unlimited texting across EVERY phone on the family plan.
Jeff @ Jul 2nd 2008 10:48AM
A 3rd iPhone added to an unlimited plan is only listed as $129.99 because it will be unlimited. All unlimited phones are $99.99 for voice. The reason the Family Plan exists is because of the extra add-ons you can put on.
A family can have 5 iPhones - all with unlimited Voice and data. Each Phone essentially ends up being $99.99. So why take the Family Talk Plan? Because, for $30 - your WHOLE family on that plan can have unlimited text messages. That's Unlimited Texting for just $6 per phone! Without the family talk grouping, that would $20 per phone.
It's the one little bit of savings you get in an unlimited minutes Family Talk Plan.
craig_andresen @ Jul 1st 2008 11:08PM
This is BS. After hearing Apple's announcements that the iPhone3G was going to be more "affordable", I was all excited and now AT&T has to jump in and screw us from the backside. I, too, hope that people hold off on buying these. I don't know how I could possible justify paying $90 (including text messaging) for the same plan I could have had with the old iPhone for $60/mo---and all this is with only 450 minutes. That's $360 more per year than previous plans which is RIDICULOUS. Knowing AT&T, they'll probably want to charge $20 or $30 per month to access the GPS in the iPhone like they do with the Curve. I'm a longtime AT&T customer (8.5 years), but I'll be looking elsewhere and at different phones unless they reconsider this pricing.