Monthly Archives: June 2009

Why the iPhone 3GS upgrade approach is stupid.

This post is focused on the (large) group of strong iphone supporters: mainly people that bought an initial iphone at launch and immediately upgraded to the iphone 3G when it came out.

Here is what it says on the AT&T site when I check for an upgrade:

iPhone Upgrade
As a valued AT&T customer, we can offer you a discounted iPhone upgrade at a higher price, along with a 2-year commitment and an $18 upgrade fee. Please proceed with the online upgrade process for pricing details. You may qualify for a full discount on a standard iPhone upgrade on 07/13/2009

I can currently get the iphone 3GS for $499 – which is apparently the midrange of available prices. So it is sort of an upgrade price. But I can get the full upgrade price ($299) on 7/13 (which I’m guessing is the 1 year anniversary of my purchase of the iphone 3G.)

The annoying thing here is that the iphone 3GS will be released on 6/19 – so I can wait 24 days to upgrade and, presumably, save $200 or I can upgrade now. This is where it gets stupid.

Or I could game the system by buying an iphone 3GS on launch day, return it on 7/13, pay the 10% restocking fee ($49) and then buy a new one for $299. That saves me $150 on the get it now price (or I rent it for $50, depending on how I look at it) and creates a giant hassle for me and a lot of waste for Apple and AT&T. (The iphone has a 30 day return policy with a 10% restocking fee if it is used.)

I understand why AT&T doesn’t give everyone an upgrade all the time, that’s not good business. But sometimes a company should apply common sense, which they have clearly not done. Apple is partly at fault for this – the 24 day gap was created because the iphone 3G shipped a month after its announcement and the 3GS is shipping 2 weeks after its announcement. Apple could have avoided this whole brouhaha by just shipping the 3GS on the 1 year anniversary of the iphone 3G. Sure, some people would have whined about having to wait that long, but no one would be pissed that they aren’t able to upgrade to it.

Or, even more easily, AT&T could say “we’re going to let anyone who is less than 30 days away from their upgrade date” to upgrade on launch day. This would have won a ton of fans and some positive feedback for AT&T being good sports and rewarding the people who buy the upgrade every year and who are presumably great AT&T customers. The cost of letting these users upgrade 30 days in advance is insignificant and it does not set a significant precedent that would damage how phone upgrades are sold in the future. It’s a one time thing to resolve a timing anomaly.

The other benefit is it would likely reset upgrade dates in such a way that there is a lower probability of an 30-day upgrade gap next year assuming Apple continues to release iphone upgrades at the WWDC.

AT&T: if you’re listening (and you’re probably not for a myriad of reasons):

Create some goodwill among your most rabid consumers! It’s 24 freaking days!

Now on Twitter

I’m not wildly enthusiastic about Twitter, but it seems I’ve got to join the cool kids. I’m kind of hoping it goes away, since now I’ll have to switch over to Twitter and link this blog post. Of course, I will also link to Twitter from here – creating the potential of an infinite loop that destroys the universe. Oh and I’ll also link them from Facebook so that it perhaps gets tangled into a gordian knot.

I’m starting to think Twitter is the new Second Life though. You know how it was everywhere and every business had to be in it? And then it just kind of faded out to a couple of nutty academics that still talk about it, but there isn’t much in the mainstream news? I guess Oprah never made it into Second Life and it’s not like Twitter’s graphics are ever going to get compared to World of Warcraft.

Anyway, head on over and follow me on twitter!