iPhone 3G S Pricing, Explained

iphone-3gs-price.jpgThe new iPhone 3G S is coming out on July 19th. Because it’s a mobile phone, the pricing is really difficult to understand. Here’s the full deal.

All prices below are for the 16 GB model. For the 32 GB model, add $100. For the old 8 GB iPhone, subtract $100.

If you are an existing AT&T customer who has been in your current contract for at least somewhere between 18 and 22 months (it varies by individual), you pay $199.

If you are a new AT&T customer willing to sign a two-year contract, you will pay $199 plus a $36 activation fee, for a total of $235.

If you are an existing AT&T customer who hasn’t been in your current contract for 22 months, and you’re willing to extend your contract, you pay $399.

If you want no commitment and no contract, you pay $599 – plus the $36 if you’re activating it on a fresh line.

You will want to get AppleCare, which gives you decent service beyond the iPhone’s 90-day support period, for up to two years. That’s an extra $69.

Now, this means that most folks who signed new contracts for iPhone 3G models a year ago are not eligible for the lowest possible price. That was in your contract. Your two-year contract only gets you a discounted phone every 22 months. You agreed to that.

iPhone service plans are similarly complicated. Here’s how they break down.

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