Stood in line last year to buy an iPhone 3G, and count yourself a loyal Apple customer? Well, we’re all idiots, because Apple and AT&T just fucked us royally.
The iPhone 3G S is not going to be subsidized for current iPhone 3G customers. If you bought an iPhone 3G last year, the new iPhone is going to cost you $499 for the entry-level 8GB model, $599 for the 16GB version, and $699 for the 32GB.
Don’t believe me? Here it is in black and white on Apple’s website, literally buried in the fine print:
“For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).”
Whether this applies to iPhone 3G customers after July 11, 2009 — the one year anniversary of the iPhone 3G launch — is unclear. Last year when the iPhone 3G went on sale, Apple and AT&T offered subsidized pricing to owners of the original iPhone (and had owned it for a year).
The prices advertised during today’s WWDC keynote — $199 (16GB) and $299 (32GB) — applies to “new and qualifying customers,” which apparently doesn’t include current iPhone 3G customers. I’ve put in a call to AT&T for an explanation.
UPDATE: AppleInsider suggests that AT&T will offer subsidized pricing for iPhone 3G customer after a year of ownership — I think. It is not 100% clear to me that this is what AT&T is saying.
UPDATE 2: I just checked Apple’s online eligibility tool, and it says I must currently pay the full retail price, but on July 30, I “may qualify for a standard iPhone upgrade.” What this means is also unclear. Is it the full $200 subsidy? I bought my iPhone 3G in late July, a couple of weeks after its debut. See the screenshot below.
UPDATE 3: iPhone 3G customers are eligible for the full upgrade price after about 18 months, reports Ars Technica, which spoke to an AT&T spokesman. Depends on the account. For those of us who bought the iPhone 3G in July, we likely won’t qualify for the full discount until December. Arse. It’s actually cheaper to cancel your current plan, pay the ~$175 penalty, and sign up as a brand new customer. That’s not how to treat early adopters. Where’s the nearest Sprint store?

Leander Kahney is the editor and publisher of Cult of Mac.
Leander is a longtime technology reporter and the author of six acclaimed books about Apple, including two New York Times bestsellers: Jony Ive: The Genius Behind Apple’s Greatest Products and Inside Steve’s Brain, a biography of Steve Jobs.
He’s also written a top-selling biography of Apple CEO Tim Cook and authored Cult of Mac and Cult of iPod, which both won prestigious design awards. Most recently, he was co-author of Cult of Mac, 2nd Edition.
Leander has been reporting about Apple and technology for nearly 30 years.
Before founding Cult of Mac as an independent publication, Leander was news editor at Wired.com, where he was responsible for the day-to-day running of the Wired.com website. He headed up a team of six section editors, a dozen reporters and a large pool of freelancers. Together the team produced a daily digest of stories about the impact of science and technology, and won several awards, including several Webby Awards, 2X Knight-Batten Awards for Innovation in Journalism and the 2010 MIN (Magazine Industry Newsletter) award for best blog, among others.
Before being promoted to news editor, Leander was Wired.com’s senior reporter, primarily covering Apple. During that time, Leander published a ton of scoops, including the first in-depth report about the development of the iPod. Leander attended almost every keynote speech and special product launch presented by Steve Jobs, including the historic launches of the iPhone and iPad. He also reported from almost every Macworld Expo in the late ’90s and early ‘2000s, including, sadly, the last shows in Boston, San Francisco and Tokyo. His reporting for Wired.com formed the basis of the first Cult of Mac book, and subsequently this website.
Before joining Wired, Leander was a senior reporter at the legendary MacWeek, the storied and long-running weekly that documented Apple and its community in the 1980s and ’90s.
Leander has written for Wired magazine (including the Issue 16.04 cover story about Steve Jobs’ leadership at Apple, entitled Evil/Genius), Scientific American, The Guardian, The Observer, The San Francisco Chronicle and many other publications.
Leander is an expert on:
Apple and Apple history
Steve Jobs, Jony Ive, Tim Cook and Apple leadership
Apple community
iPhone and iOS
iPad and iPadOS
Mac and macOS
Apple Watch and watchOS
Apple TV and tvOS
AirPods
Leander has a postgrad diploma in artificial intelligence from the University of Aberdeen, and a BSc (Hons) in experimental psychology from the University of Sussex.
He has a diploma in journalism from the UK’s National Council for the Training of Journalists.
Leander lives in San Francisco, California, and is married with four children. He’s an avid biker and has ridden in many long-distance bike events, including California’s legendary Death Ride.
You can find out more about Leander on LinkedIn and Facebook. You can follow him on X at @lkahney or Instagram.