iphone 3gs

As expected, today Apple announced a new iPhone, one that boasts faster operation and data speeds, a built-in compass, voice activation, a 3-megapixel camera with auto focus, and video recording and editing capabilities.

Since the rumor mill was churning out its speculations, I speculated on whether or not I would pony up the cash for a new model even though I purchased myPhone 3G in February.   Based on what I saw on the features list, I’m definitely interested in an upgrade.   For as much as I use the iPhone camera, a better camera with focusing and white balance abilities is a huge plus.   And who doesn’t like a faster device?

But then I heard about the fine print: there is a set of prices for new AT&T customers and a set of prices for existing AT&T iPhone 3G customers.   Those of us already in contracts with the carrier would have to pay $200 more for the particular model of iPhone we would purchase.   The same 16 GB iPhone 3GS that would cost a new customer $199 would cost me $399.

iphone pricing

Any chance of Apple or AT&T getting me to fork over more cash for a new iPhone are nil now.   What percentage of existing iPhone 3G customers does Apple and AT&T expect to pay twice the retail price of the phone to upgrade?   I assume this decision is that of AT&T.   I’m not a business major, but this decision seems like it is slamming the door on a potentially huge stream of additional revenue for both Apple and AT&T if many existing iPhone 3G customers like me are unwilling to pay the doubled price for the new phone.   Instead of forcing us to pay the additional price, which will likely be unlikely for many or most iPhone 3G owners, why not extend our contracts two years from whatever point we are in our contract and allow us to pay the normal price for the phone?   We’re still locked into a contract, but now the contract is even longer, so that’s additional monthly revenue for AT&T, no?

I imagine there will be a significant amount of pushback from iPhone 3G owners.   As a result, perhaps this policy will fall.

Furthermore, what’s with AT&T not offering MMS (multimedia messaging) until late summer and no date for tethering ability?

Those small digs at AT&T from Apple today during the keynote were well deserved.   What a spectacular fail for AT&T today.