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AT&T’s $199 iPhone 3G Price Not For Everyone

AT&T says that the $199 and $299 prices it announced with Apple for the 8GB and 16GB versions of the iPhone 3G won’t be available to everyone.

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.