Question about purchasing iPhone 3GS for existing AT&T 3G users (1 Viewer)

[nolesrule]

DaveF has it right. AT&T can't afford to subsidize a new phone once a year when the subsidy is amortized over a 2-year period. If they did, eventually there'd be no hope of recovering the subsidy as their customers get in to deeper and deeper debt getting a new phone once a year. There's a reason that early termination fees are so high.

Let's say the subsidy is $200. That works out to $100 a year on a 2-year contract. If you want a new phone after 1 year, you've now been subsidized $400, and paid back $100 through the contract, so you still "owe" $300which you'll pay back through the contract over a 3-year period. Do it again after another year, you're now on the hook for $400. Again the next year? $500. Sooner or later the length of the contract will become overly long and the contract termination fee will be ridiculously high. AT&T will have difficulty recovering the subsidy if they allow their customers to get into debt over a glorified cellphone.

 

[DaveF]

"amortize"
I knew I was missing the right word

 

[TonyD]

last year when my 2g stopped working we went over to Best Buy
and bought the 3g and it started a new 2 years, then 3 weeks later
when that iphone stopped working i exchanged it for a new one and started
another 2 years.

 

[TonyD]

I'm still trying to figure out how my wife and I will get 3gs without paying the crazy price.

she has a moto that is now ready to be upgraded, I have the 3g that I got
at launch last year.

She can get the iphone on her phone number for the $199 or $299.
What we want to do is get the iphone on her line but switch the phone numbers.

any ideas?

 

[Michael_K_Sr]

As I mentioned yesterday, just buy the 3GS as your wife's upgrade, swap the SIM cards, keep the 3GS for yourself and hand over the used 3G to your wife. Problem solved.

 

[TonyD]

I saw that, I guess it didnt compute.

All I need to do is swap the sim cards then, seems too easy.