Old to new iPhone: AT&T upgrade policies

AT&T will be offering various breaks to current iPhone owners to induce them to upgrade to the new iPhone 3G, which debuts July 11.

The new models will cost $200 less than comparable first-generation iPhones—potentially leaving those who recently bought the older model stuck with a fairly new, already outmoded phone.

Anyone who bought the original iPhone on or after May 27 will be able to return it and receive a refund on the price difference between comparable new and old iPhones, minus a 10 percent restocking fee.

"We just want to be fair to customers who were very, very late purchasers of the 2G iPhone," said AT&T spokesman Mark Siegel in an interview. Anyone who merely bought earlier—including merely "very late"—will be out of luck on the returning their iRelic and receiving a refund on its price difference with the new model.

Refund or not, anyone who upgrades from original to 3G iPhone will have to sign a new 2-year contract that begins when they take possession of the new phone. And, as we previously reported, they'll have to pay $10 more per month for the data plan. Those who hold on to their old iPhones won't see a data-plan increase—even when they renew their contracts, according to Siegel.

AT&T is taking a quiet approach to publicizing these policies. Siegel maintains they've been in effect since the new iPhone was introduced. Yet there's no mention of them in the iPhone press release or on AT&T's Web site.

—Mike Gikas

Comments

[Maureen]

I am a business columnist and couldn't be more disappointed with both AT&T and Apple at this point. I think they are both case studies of the NON example of customer service which to me is unthinkable in this recession. They make a great pair, one points fingers at the other and neither resolves your problem. The previous responses are correct--if something happens to your iphone (like say dropping it in the bottom of our boat which had about an inch of water in it which deadened the phone) you are SOL. It cost me several hundred dollars for a replacement phone (which I now find out is one of their "reconditioned" ones). Took it home and it immediately dropped just about every call in/out of my home. Took it back, they replaced it (this time without charging me)which meant of course I then had to once again to through the hassle of setting it up again (now 3rd time). Took it home and SAME PROBLEM. Dropped calls right and left. Called AT&T now who said, "Oh come into our store you probably just need a new sim chip"--so on down I drive to their store. They replace the chip,I drive back home and SAME PROBLEM--one dropped call after another. Now I call AT&T main customer service tech people. They put me through to a "tech" expert who proceeds to tell me they have had tower issues in my area (FYI-Sammamish, WA one of the major population areas in the Seattle area!) and are in the process of installing a new tower that "should fix the issue". I said, so when can I expect to have a working home at my home? "Oh we can't tell you that, we don't know", I said incredulously --"as in next week, next month, in a few months?" "When will I have a working cell at my home?" He didn't know. He said they would look into it and call me back. That was about ten days ago. Three days ago I call the local AT&T store again (Issaquah, WA), my call was answered by a woman who breathlessly said, "we only have two employees in the store right now and we are jammed, can I call you back?" I said, I will only be here for another hour, she said, "no problem, you will hear back from us within the hour". Needless to say no call back was made to me. Not within the hour. Not ever. Yesterday, I made what is now my 5th trip in my vehicle to either an AT &T or Apple store over this issue. Their response--you probably need to return the 2nd replacement phone back to Apple, you know they only give you reconditioned phones, its probably the phone. No I am not kidding. At this point, I suggested they get me in touch with someone (anyone?) who actually cared and might help me figure out whether or not there is actually service coverage at my home (since this seems to me anyway to be the obvious problem as the phone calls don't drop when I am driving down the freeway). I was on the phone with them (standing at the AT&T desk) for over an HOUR. I want you to know the issues is STILL UNRESOLVED. They tell me there is a "case" with resolution date for Friday--I'll let you know but I am not holding my breath. Its hard to believe in this recession these companies care this little about customer service. Oh and I forgot to add--the woman manager in charge in the Bell Square mall Apple store who initially handled my first phone dead in the water request treated me like total ----. Surely this isn't how Steve Jobs wants his customers treated? This after, foolish me, I have purchased at least 6 ipods over the years.

[dick]

AT&T/Apple are at it again. My new, new iphone (September '08) was stolen last week, they won't give me a break on replacing it for the existing model and to upgrade to the new model is $599. I'm so disgusted with both companies as everything is either a fight or a wait. To be clear, the phone is good but not that good, and there are better, faster, easier to use alternatives being release daily, with no contracts! Bye bye Apple and AT&T!

[mike]

I bought an I-phone and it would not make phone calls before I left the store. they said because it was opened they would not retun it(they opened it!) after filing them to BBB, consumer affairs and the FCC they took it back but continue to bill me for service!

[JoElworth]

Beware if you lose your IPhone or if it is stolen. The replacement cost is $399 and neither Apple or AT&T will waive this. They don't offer insurance so you are just out. Your only option if you don't have the $399 to get a replacement Iphone is to pay the $175 early termination fee (obviously a less expensive option). Buy a phone that offers an insurance plan!

[Tyler]

In the way the iphone is booming,reducing the price will also add an advantage iphone to compete with other brands.

[Tyler]

In the way the iphone is booming,reducing the price rate will also add advantage to compete with other big brands.

[Pak IT fotum]

The same with buying a new phone that is not an iPhone you have to extend your contract

[Patricia]

In response to Yeti, the current iPhone plan is not, nor has it ever been $30 or more. This is the data plan being referred to, not calling plans, and not to be confused with data plans for other devices such as Blackberrys or Palm handhelds.

With the increase in the iPhone data plan cost there will be no negligible savings in spite of the decreased initial cost of the phone. By the time a 2-year contract has expired, you will have paid for the phone a nearly a couple of times over.

[Yeti]

All ATT 3G phone plans are at least $30 so this is not an abnormal increase in comparison.

The same with buying a new phone that is not an iPhone you have to extend your contract. If i go into the store today to get the Samsung Sync ill have to extend my contract and if I'm not eligible for an upgrade ill have to pay more for the phone upfront.