AT&T Raises iPhone Upgrade Fee

AT&T is raising fees for customers who want to upgrade their iPhones before their contracts expire.

When the iPhone 4 debuted, the carrier offered a discount for iPhone 3G and 3GS customers seeking an early upgrade to a newer handset. Now, AT&T will charge an additional $50 for early upgrades or replacements.

Android Central reports on the price fluctuation for all iPhone upgrades: 3GS units, previously $249, will now be $299; 16GB iPhone 4 units, previously $399, will bump up to $449; 32GB iPhone 4 units, previously $499, will henceforth cost $549.

VentureBeat explains why AT&T has chosen to penalize early upgraders:

The company might have shot itself in the foot by offering that cheaper upgrade option. Any massive change in the upgrade fee for the iPhone would end up causing a huge public backlash against the company. AT&T likely chose to increase the price incrementally to see if it can recoup some of the costs of subsidizing the iPhone 4 — and the next version of the iPhone.

But it's not just iPhone owners. AT&T's upgrade fees will apply to a variety of contracted smartphones. "AT&T has now confirmed that off-contract early upgrade pricing has increased by $50 for all smartphones including the iPhone 4, iPhone 3GS, Windows Phones and Android devices," according to Boy Genius Report. Customers who sign a one-year contract for any of the aforementioned devices (minus the iPhone) will see a whopping $150 fee with their upgrade.

“Only customers who are not yet upgrade eligible or who do not want to sign a contract are impacted," AT&T said, according to Boy Genius Report. "As mobile devices become more sophisticated, their cost goes up. This change reflects the increased costs, while still allowing us to offer customers the latest device before they qualify. We’re happy to discuss individual account and upgrade needs one-on-one with customers.”

Comments

[Clare53]

07:21 PM on 04/06/2011

I have only used AT&T. My phone gets no service at random times is my house. Once I got no service for almost a month and convinced them not to charge me. Every time I call they same the same thing, that a cell phone tower is degraded in my neighborhood. They told me for a month they were fixing it. Then I finally got service. That lasted for about a week. They told me I didn't have service because a tower in my neighborhood was degraded but that I had two towers on either side of me within 2 blocks. Then they told me it was because my phone was a year old and if I upgraded I would get better service. And of course I had to pay them to buy a phone. They think that somehow makes sense.I don't believe one thing those people tell me. I was going to switch to Sprint but they don't have rollover minutes. So I just keep putting it off. My internet speed is also slow, but it is never AT&T's fault. It's always my wireless router's fault or my computer's fault.

[samuraifrog37]

05:02 PM on 04/07/2011

These are ALL common provide with ALL servers. iPhone cool but I havent bought one and I seem to be O.K. Drove by a Apple store today and line around the block. Very funny people !!

[Samiiam]

04:19 AM on 04/11/2011

Heard same stories, ie towers were faulty or were being improved "shortly". The answer, iPhone 4 from Verizon, so far. Clear phone calls and quick web searches, wow! I just
Felt like I invented the wheel.

[Johnd139]

12:27 PM on 04/06/2011

Good ole Ma Bell !!!! A winner for decades!!

[stewbacca]

12:13 PM on 04/06/2011

My AT&T store gave me a $200 store credit to offset the early upgrade penalty.

[Bennett Johnson]

10:48 PM on 04/05/2011

I used this website http://iPhoneUnlockWizard.com and i managed to unlock and jailbreak my iPhone and iPad quite fast! I got some other free stuff? you can try it too if you want!

take care,
Bennett

[weiss1929]

07:49 PM on 04/05/2011

I begin to ask myself if it is really important to own an AT&T smartphone or if an consumer cellular combined with my iPad, or a midi combined with the iPad would be just as good!!!

[madeashell]

05:24 PM on 04/05/2011

ATT is now only a name. They were bought by SBC in 2005, who only kept the name. Who would buy a phone or service from a company called SBC and known to have a bad rep? Which is why, after 26 years of service I bailed out of the company, changed careers, and have a better life.
ATT does NOT and never has cared about the small end user-they only the want the big bucks business users. I find it quite alarming that so many small users will stand in line and pay outrageous prices for a phone that will last-what-6 months before it is upgraded, over-priced, and still has lousy service. ATT does not care about us-they only care about $$$$$$$$$$$$$$$. Take a hint and find another provider.

[Louis286]

03:14 PM on 04/05/2011

If you want to stick to AT&T for trying to suck every last dollars out of your pocket just jailbreak your iphone,ipad and itouch and get all you apps for free plus free calling apps. When they try and suck evey last dollar from you. You do the same to them and deny them every dime you can.

[Louis286]

03:03 PM on 04/05/2011

I am a T-Mobile customer and this exactly the reason I despise the fact that there is a possibility I might become a AT

[jacobisrael]

02:37 PM on 04/05/2011

While internet speeds in the REST of the world are INCREASING, AT&T-land finds their speeds DECREASING:

http://thenextweb.com/asia/2010/01/19/south-korea-tops-the-world-in-internet-connection-speed-again/

To summarize, Korea's speed, which was ALREADY MUCH higher than ours, increased 16%. Japan, which was MUCH higher than ours already, increased 11%. Lil' ole' Hong Kong's speed increased 13%, Romania's 12%, Sweden's 6.2%, Ireland 73%, Denmark 8%, the Czech Republic 23%.

And the USA???

MINUS 2.4%!!!!!!!!!!!!!!!!!!11

[netzwerg]

03:12 PM on 04/05/2011

USA is #29 now: http://netindex.com/download/allcountries/

Not good.

[jacobisrael]

07:52 PM on 04/05/2011

With AT&T running the show, we should expect nothing less!!!

[stewbacca]

12:15 PM on 04/06/2011

AT&T data still 2x faster than Verizon iPhones, according to a story today on huffpo

[Allen Bouchard]

02:13 PM on 04/05/2011

That's odd: Verizon pays me to upgrade my phone early.

[Fredday]

02:06 PM on 04/05/2011

If you're an AT&T customer, you are part of the problem.

[slc1950]

02:00 PM on 04/05/2011

I just called AT&T this morning on another matter and asked about this as I've gotten a new iphone every year. I use it mainly for work and it gets really used. Anyway, the rep knew NOTHING. ZIP. Hadn't gotten any info nor had her supervisor. Gotta love it.

[moonchild62]

01:57 PM on 04/05/2011

This only really affects those who always need the "latest and greatest." I'm perfectly happy with my 3GS and see no reason to upgrade. I had the 2G, skipped the 3G, will most likely skip the 4G, and by the time I need a new phone for some reason, I'm sure it will be well after my contract is up and it's time to renew. This phone does everything I need and more.
If you need to upgrade your phone every 12 or 18 months to always have the latest model, then I guess you need to be willing to pay the price.
There are many other things about AT&T I could complain about... like charging more for usage rates.

[Angelus2007]

02:58 PM on 04/05/2011

I am the same way, I had the 3G, skipped the 3GS and got the iPhone 4, will probably skip the 5 (I am eligible for the full upgrade in November, but will probably wait unless the iPhone 5 is so much better than iPhone 4).

[stewbacca]

12:16 PM on 04/06/2011

I agree, however, one of our phones died a horrible death and to replace it before the 2 year contract ended, you gotta pay the early upgrade fee. So not everyone who ends up paying the upgrade fee is somebody who needs the latest and greatest.

[VeroucaSalt]

01:56 PM on 04/05/2011

For those who don't know about it, check out CREDO mobile.... I did, & haven't regretted the move yet :)

[tyger]

01:40 PM on 04/05/2011

AT&T has been a horrible service for too long. This is why I did not buy the iphone and only the wifi ipad. Good thing apple is now dealing with verizon.

[vinman043]

01:46 PM on 04/05/2011

I have had AT&T (not an iPhone) for a year and a half and have had not one problem. I have never had a dropped call. There is no static. I'm happy and will return.