This is really short-sighed
June 9, 2008 1 Comment
I was reading this interview with ATT CEO Ralph de la Vega over on the NY Times, and came across this really dumb thing:
Current iPhone owners can upgrade now, but then they’ll be locked in. Because the first iPhone was sold without an upfront subsidy, current users are welcome to buy a new $199 or $299 3G iPhone.
But there are catches. First, they will have to agree to the new $30-a-month data plan, replacing the $20-a-month plan associated with the first iPhone models. Also, they will then be locked into a two-year contract and, as with most subsidized cell phones, they won’t be able to upgrade to a new phone at a subsidized price until their contract nears expiration.
So if you think you may really want next year’s iPhone, you may not want to upgrade now.
So if I understand this correctly, if I upgrade my current iPhone I am locked in to the unit for two years. Does this also apply to new customers? The article does not say one way or the other.
I was thinking of upgrading my iPhone but this two year lock in seems really short-sighed to me. ATT is leaving money on the table.
Oh and about the subsidy, I paid it since I paid $500 for my iPhone.
Updated June 11th, 2008 – More about the new pricing and lock-in.