Ending the Whining about AT&T and the iPhone 3GS
Wow, I really hope I am not making a habit out of this whole blogging thing, but the people of the tech world are just making me so angry at their stupidity, that I just have to enlighten them. Today, I am referring to the iPhone 3G to 3GS upgrade cost, and AT&T’s recent cave.
Note: In this article, I will refer to AT&T, but most of this information is applicable to any carrier
Let’s start with the basics. The original iPhone was an unsubsidized phone. That means that you paid the entire cost of the phone, and AT&T paid Apple a certain amount over the life of the contract, and that is how Apple made a good chunk of their money. When you terminate a contract on an unsubsidized phone, AT&T only loses the amount that you were paying them for the service, which to them is all profit. So you paid for the service, and when you terminate the contract, you don’t get any more service, so AT&T doesn’t lose anything. (more…)
