AT&T Drops Price of iPhone Upgrade- For Some
In the face of an outcry, AT&T announced Wednesday that it will lower the price for some iPhone owners looking to upgrade from the 3G to the new 3GS.
According to the AP, some 3G owners, who would have had to pay $399 to upgrade, will now pay the same price ($199) as new customers for the 16GB version of the device. The low price will apply for customers who would have qualified for the "new customer" price between now and September; those who won't become eligible until after that will still have to pay the higher price.
The disparity is in place because AT&T subsidizes the purchase price for every iPhone, and has not been paid enough through monthly fees from customers who have not owned the phone for long.