AT&T to sell new iPhones minus contracts
Apple's iPhone 3G goes on sale July 11, 8 a.m. local time
Computerworld - AT&T Inc. today said it will sell Apple's iPhone 3G to customers without requiring a two-year contract sometime "in the future" at marked-up prices of $599 for the 8GB model and $699 for the 16GB device.
When asked for more information, an AT&T spokesman said today that the company is not yet sharing details about the no-contract deal or laying out a timetable.
AT&T reiterated that the iPhone 3G will be available for discounted prices of $199 (8GB) and $299 (16GB) to certain customers starting July 11, and it clarified which customers will be able to buy it at those prices. "These prices require two-year contracts and are available to the following customers," said AT&T, citing "iPhone customers who purchased before July 11, customers activating a new line with AT&T [and] current AT&T customers who are eligible, at the time of purchase, for an upgrade discount."
The mobile operator, which is Apple Inc.'s exclusive network partner in the U.S., also explained how it will determine whether a customer qualifies for the subsidized prices. "Eligibility for the upgrade discount typically involves a number of factors, including how long you have been in your current service agreement, your payment history, for example, prompt payment of bills, and more," said AT&T spokesman Wes Warnock in an e-mail today. "In general, you are more likely to qualify if you are at or near the end of your current service agreement and pay your wireless bills promptly."
Customers not eligible for the discounted prices will have to pay $499 for the 8GB iPhone 3G or $599 for the 16GB model, and they will still be required to ink a two-year contract with the carrier.
The $300 and $400 differences between the iPhone 3G's subsidized prices and those offered to ineligible AT&T customers and buyers who don't sign a contract are in line with estimates analysts have made about how much the carrier is paying Apple for each device.
AT&T outlined iPhone service plans that include $69.99, $89.99, $109.99 and $129.99 schemes offering 450, 900, 1,350 and unlimited minutes, respectively. As expected, those plans do not include text messaging. To add texting to their plans, iPhone 3G users will have to pay a minimum of $5 monthly -- for 200 messages -- to as much as $20 monthly for unlimited messaging.
AT&T included 200 text messages in the plans for last year's first-generation iPhone, but it has stopped that practice.
AT&T also said that it would start selling the iPhone 3G July 11 at 8 a.m. local time, and it said current iPhone owners with AT&T contracts will be charged an $18 upgrade fee when they signed up for another two-year deal. Warnock said the upgrade charge is standard practice for AT&T; it covers administrative and technical costs, he explained.
Read more about Macintosh in Computerworld's Macintosh Topic Center.
- Big Data, Big Mess: Sound Risk Intelligence Through Complete Context This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Using Cyber Insurance and Cybercrime Data to Limit Your Business Risk This paper examines the challenges of understanding cyber risks, the importance of having the right cyber risk intelligence, and how to use this...
- 5 Tips to Secure Small Business Backdoors in the Enterprise Supply Chain This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Confront consumerization with convergence Virtualization expert Elias Khnaser spotlights the security, compliance, and governance issues that arise when enterprise users "consumerize" with shadow IT and public cloud...
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All Macintosh White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!