iPhone 5 costing me an ADDITIONAL $200...WHY?

[wdbradley3]

I bought an iPhone 4 the day it came out, the next year, bought the 4S, the day it came out and paid the full, $649 for it.  I have also paid for the iPhone 5 the day it was available, and, although Apple states it is priced the same as the 4s, I was charged $849 for it.  When I complained to Apple, they stated that AT&T was the one adding the additional $200 in. 

Not understanding why I'm getting ripped off, I've had to buy each phone at full price, have belonged to AT&T for over six years, never changed my plan, and...get rewarded by getting ripped off for...WHAT?

I've written the State Attorney General, BBB, and FTC and FCC about this flagrant rip-off, and, see that there is a class-action suit being formed, so, will join that.

What other actions need to be taken?

Thanks.

[21stNow]

What capacity did you buy?  Did you go to Apple's US website? 

It sounds like you got the 64GB capacity iPhone 5.  Check your order to see what's actually on there.  There is no way that one 16GB iPhone 5 would cost $849 due to an AT&T policy.  The early upgrade fee does not apply to your situation and is $250, not $200. 

Let us know what your receipt/invoice/order confirmation says.  It sounds like it is Apple's problem to straighten out.

[wdbradley3]

Yep, the 64 GB Black one, could not get in to either the AT&T or Apple sites, ordered it with the Apple Store App on my iPhone 4S.  It correctly showed my Unlimited Data Plan and Family minutes plan, and was $849, compared to the same size, same plan 4s, which only cost me $649.  I've erased my personal data and order #, but, this is actual order.

[21stNow]

OK. If you got it for $649 last year, you got it at the early upgrade price. It sounds like you aren't eligible for early upgrade this year, so you had to pay full price of $849.

I would think that you would have been eligible for early upgrade, though. You may want to call AT&T to find out about your early upgrade eligibility.

[cousintim]

How long does it take to qualify for early upgrade eligibility?  It's been less than year since the 4S was released.

[wingrider01 ACE - Geek]

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cousintim wrote:

How long does it take to qualify for early upgrade eligibility?  It's been less than year since the 4S was released.

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20 months for full upgrade, have heard variable os up to 16 months for the early upgraded of discounted price + 250

[dwill05]

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cousintim wrote:

How long does it take to qualify for early upgrade eligibility?  It's been less than year since the 4S was released.

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I think it's 6 months into the contract to be eligible for the early upgrade price.  Before that, it's full price.

[wdbradley3]

Welll...Since Apple didn't change the pricing on the phones from 4s to 5, I should be paying the same price (full) that I paid for the 4s.  I don't need to pay an additional $200 "fee", just because AT&T wants to charge it.  They make plenty of money off of me and my family, with two phones and two iPads.

[sandblaster]

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wdbradley3 wrote:

Welll...Since Apple didn't change the pricing on the phones from 4s to 5, I should be paying the same price (full) that I paid for the 4s.  I don't need to pay an additional $200 "fee", just because AT&T wants to charge it.  They make plenty of money off of me and my family, with two phones and two iPads.

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You did not pay full price for the 4s. Looks like you got the early upgrade discount which for whatever reason you are not getting with the iPhone 5. 

[21stNow]

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dwill05 wrote:

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cousintim wrote:

How long does it take to qualify for early upgrade eligibility?  It's been less than year since the 4S was released.

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I think it's 6 months into the contract to be eligible for the early upgrade price.  Before that, it's full price.

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I'm five months into my contract on my main line and qualify for the early upgrade pricing on the iPhone 5.

OP, as I mentioned earlier, the full price of the 64GB iPhone 4S and 5 is $849.  The $649 is the early upgrade (partial discount) pricing.

[drumn_bass]

You can only get 1 early upgrade and then you'll need to wait for a full upgrade after 20 months or pay a full price (so it's not like everyone can do an early upgrade every 6 months. Standard upgrade, in 6 months you can do an early upgrade and then no early upgrades until your next standard upgrade in 20 months). $849 is the full price for that model, early upgrade gets you $200 off discount + the new 2 year contract. Good news though, since you thought you were paying the full price every year at $649, when next iPhone comes out you'll be able to buy it for $399 with a standard upgrade, so it'll even out.  

[wdbradley3]

OK...I paid the full price for the 4 in June, 2010, full or early update price for the 4s in October, 2011, and REALLY full price for the 5 in September, 2012, all the while having a 2-year plan...

Seems I would have been eligible for a cheaper price in over two years?

[stclair49]

How are you going to sue someone for something you haven't received or paid for??

[drumn_bass]

You signed a 2 year contract last year when you did an early upgrade, and that means you were in an other contract before that since you didn't qualify for a full discount.

[wdbradley3]

Nope, have not changed any contracts or signed any new ones.  Nothing that I signed in buying any of the iPhones was about the contract.

[dwill05]

[Per Guidelines:  Keep it Relevant and Appropriate].That AT&T didn't allow early upgrades? I'd imagine that fr a legal standpoint, AT&T doesn't have to allow early upgrades at all. They are probably within their rights to say that no one gets an upgrade until their full contract is fulfilled, just as Verizon does.

I always get amused that people believe that people believing that not getting a new iPhone at the cheapest price is something that the court system will remedy. I'm curious what the claim of damages would be for the suit.

[21stNow]

When you get phones at the early upgrade price (which you did with the iPhone 4S), you commit to another two-year contract.  If you ordered this phone online from AT&T, they won't send the phone unless you accept the terms and conditions in an email that they send.  I don't know exactly how the process for accepting the terms and conditions goes if you order from Apple, but you are still starting another two-year contract.  AT&T doesn't give any discounts (small or large) on handsets without a two-year contract.

The reason that you aren't seeing the full upgrade pricing is that you don't finish one contract before starting a new one.  If you actually waited 20 months between phones, you would see the new customer pricing.

[Jazzyjag]

It's $350.00 early termination fee for IPhones.

[Jazzyjag]

I purchased the 4S the day it came out and i paid for the early upgrade $250.00. now my full upgrade isn't till 5/13 witch is 5 months before the 2 years.

[21stNow]

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Jazzyjag wrote:

It's $350.00 early termination fee for IPhones.

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It's $325 minus $10 for each month of service completed.

[Irish Rose ACE - Guru]

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dwill05 wrote:

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cousintim wrote:

How long does it take to qualify for early upgrade eligibility?  It's been less than year since the 4S was released.

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I think it's 6 months into the contract to be eligible for the early upgrade price.  Before that, it's full price.

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You are correct about the 6 month period. Although AT&T hasn't allowed early upgrades for everyone as they have done in the past. Seems that those who did manage to get an early upgrade for the new iPhone this year are really lucky.

[Irish Rose ACE - Guru]

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wdbradley3 wrote:

Welll...Since Apple didn't change the pricing on the phones from 4s to 5, I should be paying the same price (full) that I paid for the 4s.  I don't need to pay an additional $200 "fee", just because AT&T wants to charge it.  They make plenty of money off of me and my family, with two phones and two iPads.

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 AT&T still has to recoup the cost of your last subsidized upgrade. The only way they do this is over the 2 years of your contract. If they allowed everyone to upgrade early, AT&T would never get the money back from the last subsidy.

[wdbradley3]

Appreciate all the comments, got a response from AT&T and they are only going to be charging me the $649, not $849:

From: "AT&T Email Business Customer Care for Wireless" <icare301@amcustomercare.att-mail.com>
To:
Sent: Tuesday, September 18, 2012 3:19:51 PM
Subject: Re: Wireless from AT&T Customer Email -
Dear Bill,
 
Thank you for contacting AT&T about your wireless service. I will be
more than happy to assist you with your inquiry regarding upgrade of
your line ending in xxxx and costs for the new iPhone 5 today.

I am truly sorry about any frustration you have experienced. I apologize
for any inconvenience this may have caused you. I understand the urgency
of resolving this quickly for you and I will work diligently to promptly
resolve your concern.

The line ending in xxxx is currently under commitment from
10/07/2011-10/07/2013. Right now this line is showing as not eligible
for the standard upgrade cost. But, this line is eligible for the
'early' upgrade pricing on the iPhone 5.

He goes on to list the early upgrade price, which is $649 for the 64 GB phone.

Thanks.