If you pay retail, you aren't under contract

[mlass]

If your paying Retail (no discounts) your not entering a Contract. The reason for a Contract is that AT&T will make back there money that they discounted, so you would buy the Phone (2 years of service). You can buy any phone from AT&T online right now with no contract, but you pay an average of $200 more (8525 sales for $599 and $399 with 2 year contract).

Also, I have owned 2 phones that required Data Plans. You can cancel Data Plans, but you will pay for Data that you or the phone uses.

 

[Ocala]

If your paying Retail (no discounts) your not entering a Contract. The reason for a Contract is that AT&T will make back there money that they discounted, so you would buy the Phone (2 years of service). You can buy any phone from AT&T online right now with no contract, but you pay an average of $200 more (8525 sales for $599 and $399 with 2 year contract).

Also, I have owned 2 phones that required Data Plans. You can cancel Data Plans, but you will pay for Data that you or the phone uses.

What you're saying is true regarding all other phones, but I don't think the rules are not the same for the iPhone in particular.

 

[mlass]

What you're saying is true regarding all other phones, but I don't think the rules are not the same for the iPhone in particular.

Why would they change it for the iPhone. It would hurt sales.

 

[El Carbonite]

Why would they change it for the iPhone. It would hurt sales.

Because the iPhone is non-subsidized.

 

[mlass]

non-subsidized would mean no need for a contract if full price is paid. At&t clearly states that the 2 year contract is for a discount.

""eligible for reduced equipment pricing when you sign up for a new 2-year service agreement""

 

[UnseenLlama]

If your paying Retail (no discounts) your not entering a Contract. The reason for a Contract is that AT&T will make back there money that they discounted, so you would buy the Phone (2 years of service). You can buy any phone from AT&T online right now with no contract, but you pay an average of $200 more (8525 sales for $599 and $399 with 2 year contract).

Also, I have owned 2 phones that required Data Plans. You can cancel Data Plans, but you will pay for Data that you or the phone uses.

Even though you are paying retail price, AT&T will require you to sign a 2 year agreement. Simple as that.

 

[soloudinhere]

For the 50th time: the iPhone IS subsidized. What AT&T is doing is effectively making everyone a "new" customer by requiring a 2 year contract. This creates an "invisible" subsidy. There is no way the retail price on this phone is LOWER than existing smartphones. Stevie J. has never undercharged for a product in his life. Apple is getting a $200 kickback in subsidy from AT&T on the pretense that it appear that there is no subsidy.

If a blackberry curve can sell for $749, no way steve would price his premium device less than that. There HAS to be a subsidy.

 

[iJohn]

For the 50th time: the iPhone IS subsidized. What AT&T is doing is effectively making everyone a "new" customer by requiring a 2 year contract. This creates an "invisible" subsidy. There is no way the retail price on this phone is LOWER than existing smartphones. Stevie J. has never undercharged for a product in his life. Apple is getting a $200 kickback in subsidy from AT&T on the pretense that it appear that there is no subsidy.

If a blackberry curve can sell for $749, no way steve would price his premium device less than that. There HAS to be a subsidy.

Now here is where the confusion for me and many others starts. I understand and acknowledge that a 2-year contract has been said is required, but does that mean a NEW 2-yr. conract only, or does an extension (which is free) count as a 2 yr contract.

 

[soloudinhere]

Now here is where the confusion for me and many others starts. I understand and acknowledge that a 2-year contract has been said is required, but does that mean a NEW 2-yr. conract only, or does an extension (which is free) count as a 2 yr contract.

An extension is permissible, but it allows them to treat you the same way as they could if you were signing a new 2 year contract, since effectively you are. Thus, everyone becomes a "new customer" and the invisible subsidt comes in. If they refuse to sell it to anyone who doesn't extend or sign a new contract, then the appearance of a discount isn't possible since no one knows what the real price is. Hence, the phone is subsidized but everyone thinks it is not, which is what steve wants. That way he gets his cake and eats it too.