Is AT&T Price Gouging for Early iPhone Upgrades?

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News Posted: Tue, Apr 5 2011 11:49 AM
We don't know what AT&T did to lose its exclusivity grip on Apple's iPhone devices, but one thing's for sure, the wireless carrier isn't doing itself any favors by jacking up the price of early iPhone upgrades by $50. It may generate some additional revenue in the short term, but once the contract is up, does AT&T really want to give subscribers more reasons to jump ship?

Starting last Sunday, AT&T subscribers have to pay an additional $50 premium for an iPhone 3GS or iPhone 4G. With the $50 price hike added in, here's how the early upgrade pricing shakes out:
  • 8GB iPhone 3GS - $299
  • 16GB iPhone 4 - $449
  • 32GB iPhone 4 - $549
Those are all $250 higher than the subsidized price that new customers are eligible for. According to reports, the $50 price hike also applies to Android and Windows Phone 7 devices.

"As mobile device become more sophisticated, their cost goes up," an AT&T spokesman told ComputerWorld in an email. "This change reflects the increased costs, while still allowing us to offer customers the latest device before they qualify."
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rapid1 replied on Tue, Apr 5 2011 12:05 PM

"As mobile device become more sophisticated, their cost goes up," That is funny a 3GS is not more sophisticated it is left over stock. A 4G will be the same in 2 months At&t is just trying in entirely the wrong way to clear inventory. I don't know how this makes any sense to accomplish this, but many thing At&t does make little to no sense to me anyway, so par for the course?

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Sounds like At&t is simply punishing their customers in one more way.

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so much to look forward too if the tmobile merger goes through........ seems ATT will do anything to get more money out of people. They are just pushing people more toward the verizon iphone.

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"ATT will do anything to get more money out of people."

LMFAO, u mean less? :D

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AKwyn replied on Tue, Apr 5 2011 8:12 PM

inspector:
LMFAO, u mean less? :D

You said it, this will likely turn away AT&T's customer's then make a profit. If anything they'll try to jack up the prices of T-Mobile phones when they "merge". And days later, when they don't have a single customer left, they'll wonder what the reason is when it's obviously in their face.

 

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OSunday replied on Tue, Apr 5 2011 9:57 PM

Actually guys, AT&T is trying to scare customers away so their crippled network will be able to support the influx of new customers if they ever acquire T-Mobile ;)

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rapid1 replied on Tue, Apr 5 2011 11:23 PM

Yeah but O'Sunday T-mobile already has there own subscribers (if of course any stay), there own towers, and there own cellular/wireless frequencies.So the customers should be ok, the question is as Taylor points out and I was saying when this whole thing came out will any stay. As from what I am seen with both customer and corporate outcry on several sides is I doubt it.. Of course there are also a lot of people who have no clue this is going down at all. I would say much larger than we think realistically. So those who have no clue think there getting a great deal on a cool new phone going to T-Mobile.

I made it a point to go in and ask the other day. The representative's in the store either did not know, or knew but professed to have no clue what was going to happen. Some of them looked like Deer in some head light's when I asked and they realized what I was saying was true.

So if there employees don't even know by from what I saw about 60/40 the 60% not knowing, then the public is way behind that, and most likely will be until well after it is done if it all goes through.

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HHGrrl replied on Wed, Apr 6 2011 10:19 PM

Sounds like AT&T needs a lesson in how to KEEP customers....it keeps doing so many things to lose them!

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im so glad i dont have to deal with this... living in england at the moment so i go through Vodafone :D will be back in the states real soon though but i gets military discount :D lol

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