A Twitter discussion on the new iPhone 3GS and upgrade pricing from AT&T

As the afterglow of the WWDC iPhone 3GS and iPhone OS 3.0 announcements faded, I started to feel a little disappointed upon reflecting on what we were actually getting in these updates.

Perhaps I've been eyeing the Palm Pre's WebOS with more than a little bit of OS envy.  I was really hoping Apple would step up and bring some more overall UI enhancements to the iPhone OS 3.0 update.

Don't get me wrong, I love the new camera, compass, voice control, cut & paste (ZOMG!) and all the other fancy new features but I still couldn't help but feel that, ultimately, 3.0 is just a few addons, not a true update to the iPhone OS.

Couple these feelings with the fine print I found on Apple.com's site here: http://www.apple.com/iphone/buy/ and I was quite disappointed.

For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).

I think AT&T will get quite the earful from their customers on this one.  I've transcribed some of my Twitter exchanges regarding this pricing policy and the 3GS in general:

I tweeted my initial disappointment and here are some of the reactions:

kenseto: I'm a bit disappointed by the iPhone 3GS& 3.0 OS.  The update is cool but both could've been a lot more.  E3 had more exciting stuff.  :P

kenseto: Perhaps it's the sticker-shock I'm anticipating if I want an iPhone 3GS from Rogers.  I'm barely 1yr into in my 3yr indenture.

AdamSchwabe@kenseto The 3GS is just a stepping stone to what's next. Push notification apps + compass + voice control + autofocus photo/video.

alkerton@kenseto Usually off contract-prices are $300-$400 higher, so I'd start saving...

alkerton@kenseto annual updates combined with increasingly advanced apps just means "planned obsolesence" in a much shorter time than your contract.

jonfingas@kenseto Thank goodness I can stomach the price hike if necessary (preferably with help from my employer).

BlueGromit@kenseto my thoughts exactly. Left me wanting for more. Maybe I got my hopes up too high.

Then I tweeted the pricing info I found:

kenseto: On Apple.com "to upgrade from another phone or replace an iPhone 3G, the price with a new 2yr agreemnt is $499-8GB, $599-16GB, or $699-32GB"

JasonPegg@kenseto damn! 500 bucks? Can't be that much better!

JasonPegg@kenseto probably cheaper to cancel and get a new ATT contract!

bmore0fme@kenseto whoa...699

nickyp@kenseto at those prices, getting an unlocked phone imported from Belgium seems more interesting!

jkbc@kenseto Not only is it not subsidized, you have to eat a new contract. This is a signal, to me, that AT&T is on the way out as US carrier.

bmore0fme@kenseto how the gonna just make new model and screw us over... I'm calling the company cause I'm not payin 699

jkbc@kenseto It makes sense. Apple creates dissent for AT&T, AT&T gets at Apple for the supposed Verizon rumors. No 3GS for me, how about you?

Naim@kenseto Yeah, that has me holding off.

bkelley@kenseto total BS from ATT