AT&T Moves Up Upgrade Eligibility for iPhone Customers

If you’re a gadget fanatic and early adopter, and you picked up an iPhone 3GS last year, AT&T has some pretty sweet news for you coming out of WWDC today where iPhone 4 was announced. Normally, when you sign up for a two-year contract and pick up a subsidized device, you aren’t eligible for an upgrade until you’re nearing the end of that contract. AT&T has decided to do you a favor, if you can consider it that, by moving upgrade elibility just a little earlier.

Steve Jobs announced at WWDC today that if your contract expires any time in 2010, you will be eligible for the new iPhone at two-year contract prices immediately. So if your contract is up in November or December, you’ll still be able to get the new iPhone 4 at the entry-level price when it becomes available on June 24.

On the bright side, you don’t have to feel left out when all your friends and neighbors are rocking the latest iPhone if you’re just past halfway through your contract. The downside is that you’ll be locked into AT&T’s death grip even further, and let’s not forget about that massive $325 cancellation fee for new contracts or upgrades after June 1.

Everything else is par for the course. There is a new two-year contract you’ll have to sign your life to and the $18 upgrade fee, which is a ridiculous fee, but there isn’t much that can be done about that. If you are upgrading, and you already have the unlimited data plan, you will get to keep it and carry that over to your additional two years of service.

While AT&T is eating some cost by allowing early upgrades at the full subsidized price, it’s a smart move for the carrier. Over the long term, AT&T rakes in quite a bit throughout the life of a contract with its new, limited data plans. And with rumors of iPhone exclusivity being up by next year, it’s smart of the carrier to lock down customers for as long as it can.

About The Author

Marc Flores

Marc has been a mobile fanatic for the better part of a decade and has had more devices pass through his hands than he would care to count. Originally from Los Angeles and briefly in San Francisco, Marc now lives in Brooklyn where, unlike Will Park, he longs for simpler times and simpler technology. All the while, he writes about gadgets and wireless technology as he tinkers, hacks and ultimately breaks most of his gadgets in the process. Marc has written about the mobile industry for Boy Genius Report, MobileCrunch, Laptop Magazine and has had his work appear in the Wall Street Journal, Gizmodo, CrunchGear and more.

confused

If you picked up a "3GS last year" wouldn't that mean your contract wasn't up until 2011, making this whole article not apply to you?
Iphone 4

well then your SOL
don

Someone needs to get their facts correct. It's not the contract expiration, but the eligible upgrade date. That is the contract expiration date minus six months. So say your contract is up next May (2011), subtract six months, if that date is on or before Dec 31, you can upgrade by buying a new iPhone at the lowest price. You still need to sign a new 2 year contract.
mark

if you have an iphone and live in the US, dial *639# from your iphone, you will get a text back from AT&T telling you if you are eligible or not
Jeff Cohen

i have a 3GS i bought it the day it came out last year and my upgrade for my contract is not until Feb 2011 so even though I am an early adopter and I want the new iPhone 4 I am not able to get it at the subsidized price. I agree with @confused because they are 100% correct, no one with the 3GS would be eligible. Can anyone help me?!? Please!
BYEX

I just got the 3GS last month and i'm not eligible…. this sucks i should have just waited instead….
lars

"It's not the contract expiration, but the eligible upgrade date. That is the contract expiration date minus six months. So say your contract is up next May (2011), subtract six months, if that date is on or before Dec 31, you can upgrade by buying a new iPhone at the lowest price. You still need to sign a new 2 year contract."

Thanks to "Don" for posting this above
Chris

if memory serves… the 3 gs only came out a year ago… so that means that it was june when the earliest ones were bought. so only the early early adopters are eligible. so very few 3gs people can upgrade.
jkhweb

Let me know what you hear on this. I'm with Jeff. Bought a 3GS on the day it came out and the system tells me Feb, 2011. Nobody with a 3GS would be eligible for the full subsidy with this logic. If it is similar to last year though, you can get a partial subsidy now. Meaning, $499 instead of $299 (Full price is $699). So they'll give you $200 off instead of the full $400. I hope I'm wrong on this though.
andrew

hey my gf upgrade is FEB 2011, will she be able to get it? for 199$
cstpierre

Yeah, my question is that I am on AT&T, but on month to month (no contract – since I moved my phone of a business account to a personal account, there is no contract). Can I get the new iphone by signing up for a new contract?
Stef

I have a 3gs, went to AT&T yesterday. I got it in October 2009, meaning my contract is up October 2011. I did the *639# thing and it said I wasn't eligible for upgrade until March 2011. The associate at AT&T told me that, for me to upgrade, it's gonna cost $399 for the 16 gig and $499 for the 32 gig.

I don't know about you guys, but I'm not paying $400 for a phone. I don't care if the screen on my 3gs screen is shattered, it still works. I'll hold off til March 2011, thanks.
JohnnyBSurfing

Thanks to Mark! I just did the call *639# call and recieved my text back immediately.
"As a valued customer, we can offer you an upgrade witha new 2-yr commitment and an $18 upgrade fee.
I pre-ordered my 3GS 32Gig & Picked it up at the AT&T store the day they came out June 21st I think? So Thanks everyone we are in, Wooo-Hooo, Retinal display, Jinga, Flash Photos, &
Face Time here we go!!!
KNP

I also pre-ordered my 3GS but not eligible for an upgrade, how is this possible (according to the *639# call)… how is that possible?
guest

yes u can if theres no contract!!!!
Billy

I'm eligible for an upgrade on 08/07/10 but I do not have a Iphone currently. Would I still qualify for the two year upgrade cost? or do I have to pay the 200$ early upgrade fee plus the price of the phone?
leslie

I bought my 3GS on the day it came out and am not eligible either. I really do not understand. Is this completely random or are they favoring those of you with more expensive monthly plans?
iPhoner

Leslie is correct. Primary 3gs accounts are eligible, but any secondary lines (in our case, one family talk plan 3gs) is not eligible until Feb 2011.
Mary

I have a family talk plan, and purchased the 3gs when new, we are not allowed to get the 4 until Feb, 2011, or pay $399, I am so ticked
Beth

My upgrade date is November 2010 and I was turned away and told can't upgrade to an iphone until November because my actual contract date is May 2011. So let down. Seems to be a lot of misleading info flying around.
Jeff Burleson

I am in the same boat. Got the 3GS the day it came out and signed the new 2 year contract. After talking to 5 people from AT&T (on phone and in store) someone finally told me that the problem is that I am not a "Valued" customer because I do not spend enough money each month. I can't upgrade because I have a discount on my bill and the bill is not enough for me to be considered a "Valued" customer (BTW, they actually used the word "valued." This is ridiculous!!!!!!!! I have a phone number to the support group in the "Office of the President of AT&T" flood them and maybe we "non-valued"customers can get some service. 1-866-220-8446
Joshy

do you necessary have to own an iPhone 3g o 3gs to qualify to the 6 month early upgrade to buy the iPhone 4 with the good price ($199 16gb) or it doesn't matter which phone you currently own…
Matt

I preordered a 3GS last year and they want me to pay 700$ to upgrade to the iPhone 4 it says. My dad did the same thing and he was able to buy an iPhone 4 for 299. Explain that one. I HATE AT&T.
Joe

I got the iPhone 3G 8gb and downloaded the 4.0 software. This update made my phone extremely slow and makes me extremely frustrated. Is there any policy regarding this? Like perhaps we can get an early upgrade to the iPhone 4 for the lowest discounted rate?