AT&T Gets Greedy with iPhone 3G Pricing

After weeks of rumours and guesses sorrounding the release of Apple iPhone 3G on July 11, AT&T has finally revealed its pricing plan.

As you’d expect, I am not happy. And so aren’t a lot of people. Here’s the lowdown:

You can get an iPhone 3G 8gb for $199 or 16gb for $299 only for

  • iPhone customers who purchased before July 11
  • Customers activating a new line with AT&T
  • Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

If you don’t qualify for an upgrade discount, like us, you’d pay $399 for 8gb and $499 for 16gb iPhone 3G.

The above prices are available only with a 2-year contract with AT&T.

Wait, there’s more. The real kicker is in AT&T’s pricing plan.

AT&T is increasing the price of the data plan from $20/month to $30/month for 3G network. And it doesn’t include the 200 SMS messages.

Check out the detailed price comparison tables in AppleInsider that accurately shows different options and how much more AT&T has hiked the price of various data plan options.

As you can see, getting a family plan? It’s gonna hurt some more. Now, see if you can get the same clear picture from AT&T’s pricing charts.

With my current plan not eligible for an upgrade discount until Mar 31 2009, a 16gb iPhone 3G will cost me $499 + $30×24 + $18 (activation fees) = $1237 + tax! If we decide to bite the bullet and get one, this will be our most expensive toy. And we don’t even have 3G coverage at where we live.

If I am so peeved about AT&T and it’s pricing, you might wonder why bother buying one? My wife and I did resist the temptation last time around. But, the talk of $199 & $299 again rekindled our interest.

Plus, take a look at this iPhone 3G guided tour! (video link)

iPhone 3G

Do you blame us for getting tempted to snag one on July 11th?

Apple’s ad says ‘Twice as fast, Half the Price’. I say half the price, my ass.

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19 Responses to “AT&T Gets Greedy with iPhone 3G Pricing”

  1. Andrew@Fredericksburg Lawyer July 1, 2008 at 8:48 pm #

    I’m sort-of glad that I’m locked into a Sprint contract for another year. At least that means I won’t be tempted to get an iPhone right now. And maybe by next summer there will be an even better version!

    Andrews last blog post..Nationwide Trademark Protection

  2. Michael July 2, 2008 at 3:40 am #

    I have the first iPhone and won’t be upgrading to the iPhone 3G, I don’t have 3G coverage and I don’t need GPS (I don’t leave the house that often). The price isn’t that much of a problem for me, since the first iPhone wasn’t subsidized I can still get the iPhone 3G for it’s $199/$299 price and the extra $15 per month I would be paying for data and text messages isn’t that much. I just don’t see much value in the new iPhone compared to the old iPhone, especially since the old one is going to get the new software.

    Michaels last blog post..iPhone 3G Guided Tour and iPhone 3G Pricing Details

  3. K July 2, 2008 at 2:32 pm #

    Andrew, you might be in a much better position next summer but didn’t Apple sign up with AT&T exclusively for 5 years? I think AT&T will try till squeeze every penny out of that deal as much as they can. But, it will depend a lot on Apple to keep this excitement going. This time the 3G and GPS has people excited. Wonder what could be next?

    Michael, you are right. I have played with the thought of just buying the older iPhone with the new software that’s gonna flood ebay and craigslist after July 11. 🙂

    Garry, much appreciated. Let’s see if it can hit the front page. 🙂 Great to see you over here buddy.

  4. mike@Record Retention July 3, 2008 at 2:00 pm #

    all i can say is im glad my phone (which has unlimited data/texting/500 anytime/unlimited after 7pm/mobile2mobile) only costs me $30/month + tax. Oh, and its on sprint. Can anyone top that? @_@

  5. Jerry@Risk.Management July 3, 2008 at 2:02 pm #

    all i can say is im glad my phone (which has unlimited data/texting/500 anytime/unlimited after 7pm/mobile2mobile) only costs me $30/month + tax. Oh, and its on sprint. Can anyone top that? @_@

  6. Jerry@Customer Satisfaction Surveys July 3, 2008 at 2:03 pm #

    all i can say is im glad my phone (which has unlimited data/texting/500 anytime/unlimited after 7pm/mobile2mobile) only costs me $30/month + tax. Oh, and its on sprint. Can anyone top that? @_@

  7. Mark Sierra at July 3, 2008 at 11:09 pm #

    Now this gets my blood boiling when companies think they can milk their consumers for all their worth. I’m no economist, but for crying out loud, is it so bad to try getting less money from MORE people, than a lot of money from fewer people?

    I have a Samsung BlackJack II that I love using. Problem is, I’m on a tight budget and therefore can’t justify the expense of getting the unlimited data plan AT&T offers. I mean some of us aren’t Garry Conn. 🙂 So I’m not using my phone to its fullest, but I can live without the other stuff. I can’t see how all that data transfer has to be so high (which I don’t really believe it has to be).

    Mark Sierra at MeAndMyDrum.coms last blog post..NicheAdsense Themes For WordPress

  8. Madhur Kapoor July 4, 2008 at 12:30 pm #

    It will be interesting to see what the pricing will be in India.

    Madhur Kapoors last blog post..Let a Monkey Handle Your Music Collection

  9. Larry @ Commercial Lighting July 7, 2008 at 10:42 am #

    Yikes… nice increase without including TXT. They are really pushing theri weight around with this update.

  10. liv@Wholesale Products July 11, 2008 at 4:52 pm #

    Boo! I heard about this. That’s why I’m hesistant to get it… I’m going to wait a few weeks and see if its worth getting.. Even though it is so pretty!

  11. Susan@New Wordpress Themes July 14, 2008 at 7:42 pm #

    Eek, that’s a lot of money!

    Susans last blog post..Green with Envy Reloaded

  12. Louise@Great Appetizer Recipes July 22, 2008 at 12:53 pm #

    Ouch, that’s a pretty penny. I try to buy unlocked phones off of ebay whenever I can so I’m not beholding to any one carrier.

    Louises last blog post..Layered Cold Crab Dip Appetizer Recipe

  13. Mark August 21, 2008 at 8:02 am #

    but does it have copy/paste option (unlike iphone)?

  14. Hitesh September 3, 2008 at 1:23 am #


    Now, I am giving second thought to iPhone as it is available with EMI option as well. Saw this info on Airtel site (


  15. K September 3, 2008 at 8:38 am #

    Hitesh, it is expensive in India any way you look at it but atleast this makes it a little easier to get it for a lot of people. Thanks for sharing this info. Between, have you looked at our iPhone blog?

  16. iPhone 3G January 20, 2009 at 8:57 pm #

    Well you can’t have my phone anyway 🙂

    iPhone 3Gs last blog post..100 million App Store downloads a month

  17. Martha August 24, 2009 at 3:40 am #

    the iPhone 3G looks very cool and feature packed. i will be saving some of my allowance to buy that phone.

  18. Jana October 21, 2009 at 11:41 pm #

    Iphone 3G have the best features among all the phones that i have owned. the iPhone is also very classy and stylish.