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AT&T: $199 iPhone 3G Price Not For All

Dallas — The $199 and $299 prices announced by AT&T and Apple for the 8GB and 16GB versions of the iPhone 3G won’t be available to everyone, AT&T announced.

When the iPhone 3G goes on sale July 11, the $199 and $299 prices will be available only to the following customers when purchasing the device with two-year service agreement:

  • iPhone owners who purchased their current iPhone before July 11;
  • customers churning to AT&T from another carrier; and
  • current AT&T customers who are eligible for an upgrade discount.

AT&T’s existing customers who are not eligible for an upgrade discount must pay $399 for the 8GB model and $499 for the 16GB model. These customers can hold off buying until they become eligible for an upgrade discount. Eligibility is usually determined by the amount of time remaining on a current contract and payment history, AT&T said.

In the future, AT&T will offer a no-contract option for $599 for the 8GB version and $699 for the 16GB version.

Current AT&T customers who upgrade to iPhone 3G will pay an $18 upgrade fee. New AT&T customers will pay the standard $36 activation fee.

AT&T also said it is posting “Get iReady” tips and frequently asked questions at for people interested in buying the phone. The site also includes a link for customers to check their upgrade eligibility and other wireless-account information.