I’ve always said that AT&T isn’t the shining star for customer service or appreciation, however given the fact that they hold the cell phone that I must own, it is something that I tolerate. AT&T, much like the other cell phone companies, would much rather piss you off than actually help you. Since the iPhone was released, AT&T has held the exclusive right to sell the device within the United States. Up to now AT&T has had its ups and downs, but for the most part they were doing okay. They took care of first-gen users by allowing them to move up to the 3G at the given price, but basically everything else that you experience is all Apple. But like I said, that’s up to now.
Yesterday Apple released the new iPhone 3Gs, a faster, more feature rich edition of the iPhone 3G that is making Apple fanboys drool world wide. Voice Command (finally), Compass (umm finally?), 3.0MP Auto-Focus camera with video and video editing, faster processor, 7.2MBps HSDPA, it’s awesome. To be honest, I am trying real hard not to like it, because I am as poor as a internet blogger/student can be. I was thinking of selling some stuff but I am holding off…because I want to see what AT&T will do.
When the iPhone 3G was released, AT&T (whether at the behest of Apple or not) took care of first generation iPhone users by allowing them to upgrade to the 3G with the new customer price of $199 and $299 respectively. This was a great move on both Apple and AT&T’s part because this opened up ownership of the new device to the group of people who are guaranteed to buy it again. Rather than sulking away, waiting for the upgrade eligibility day to come, these people are out buying the iPhone 3G for a reasonable price. However, I was rather surprised to see that AT&T is not doing the same thing this time around. Instead, AT&T is insisting current users under contract must pay anywhere from $399 to $699 for their 3Gs. Awesome job AT&T, shut out a solid consumer base who just so happen to be your loyal subscribers.
Though the best part of WWDC today was Apple going ahead and pressing on with the release of the iPhone 3.0 software and the iPhone 3Gs despite AT&T not being ready to support two of it’s key feature, MMS or data tethering. As I read that during the live blog I was reading I was not only proud of Apple, but pretty happy with how embarrassed AT&T should be. At the time of a major product launch, and a major software update, AT&T cannot support MMS? Something that it supports on its other devices. Some have their guesses as to what it may be, but AT&T are sticking by their guns for now and saying that MMS is to be expected by the end of summer. As far as data tethering is concerned, AT&T has said that it will support it, but has given no definitive timeline.
This years WWDC was a great show for Apple, but a wake up call for AT&T. Rumors have been swirling around for quite sometime that Apple has been shopping a custom iPhone to Verizon, and perhaps thats a good thing. That, coupled with the increasing number of iPhone users taking their software unlocked phones to T-Mobile (and T-Mo welcoming them with open arms) should be a wake-up call to AT&T. Go out of your way to get new customers sure, but don’t forget the ones that pay the massive bill every month. Compliment the quality products you carry with quality service and support.
I just want to comment on AT&T Charging $399 to $699 to existing iPhone 3G users wishing to upgrade to 3GS, that’s actually the full retail cost of an iPhone, not the $199/$299 you pay when signing a new two-year agreement with AT&T, which subsidizes the cost of your first phone purchase.
If people want to upgrade, they’ll just have to wait until their contracts are up (or cancel and pay $200), and then sign another 2-year agreement to receive a discount or pay the full price .
That’s not what I am saying. What I am saying is that if AT&T allowed current users to upgrade to the iPhone at the subsidized price they would not only keep loyal customers who want to be up-to-date with their favorite technology, but they would also sell A LOT more units.
AT&T is effectively alienating a huge base of consumers who want to buy the product but won’t pay an unreasonable price for it.
The way it works with AT&T is you are allowed an upgrade usually one year from the day of your new contract. This is fine and all, however, for most of us who went for the iPhone 3G on launch date (July 12th), we have to around and twiddle our thumbs until our time comes. I remember with the iPhone 3G it was exactly as you described it Jorge, if you owned a normal iPhone, you were allowed the upgrade. Guaranteed profit should not be pushed aside….especially when that guaranteed profit is also current profit….