This is really short-sighed

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.


One Response to This is really short-sighed

  1. Pingback: New iPhone and MobileMe previews « François Schiettecatte’s Blog

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