AT&T iPhone 3G Upgrades and Eligibility - MacRumors
Skip to Content

AT&T iPhone 3G Upgrades and Eligibility

by

It seems there's a lot of confusion about iPhone 3G upgrades and activation. Here's what is known at the moment to try to clarify the confusion. All of this applies to the U.S. and AT&T only.

The iPhone 3G is a subsidized mobile phone, which means that AT&T is paying ~$200 to discount the phone down to its final price. $199 for 8GB or $299 for 16GB. The reason AT&T is subsidizing the phone is because they expect to make more than $200 over the lifetime of a 2 year contract. For the iPhone 3G, the contract includes $30/month for 3G data, and at least $39/month for the low end voice contract.

If you currently own:1st Generation iPhone

If you bought it on or after May 27th, you are eligible to receive a free upgrade to the iPhone 3G when it launches. You will also get a refund for the difference in the price.

If you bought it before May 27th, you may buy a new iPhone for $199 (8GB) or $299 (16GB) but will have to sign a new two year contract starting on the day you buy the new iPhone. This cancels and replaces your existing AT&T iPhone contract.

AT&T Mobile Phone (not iPhone)

AT&T generally allows individuals to take advantage of a subsidized phone once every 2 years. A new memo clarifies this point. If you are an AT&T customer, you must either have completed a 24 month contract or meet these requirements to be able to purchase the iPhone 3G for $199/$299 prices:

#1. Customer has had a standard calling plan plus data services costing at least $68.99 a month but no more than $98.99 a month, and who has been in contract (and not had a phone upgrade) for 21 months or more,
or
#2. Customer has had a standard calling plan plus data services costing $99 a month or more, and who has been in contract (and not upgraded) in the last 12 months.
or
#3. A customer with a calling plan and data services of less than $69 who is 21 to 23 months into contract may upgrade for a fee and a commitment of an additional two-year service contract extension.

No upgrade fee is assessed for any customers who are on a month-to-month agreement.

If you are not eligible, AT&T expects to announce the higher unsubsidized iPhone 3G price in the future. This price can be expected to be about $200 higher.

Alternatively, you can cancel your existing mobile phone contract and pay the $175 early termination fee, you will probably then be eligible for the $199/$299 iPhone 3G.

Non AT&T Mobile Phone

If you are under contract with another mobile phone provider, you may be subject to an early termination fee if you cancel your contract prematurely. You will need to contact your provider for those details, but you will be able to get the iPhone 3G from AT&T at the $199/$299 prices. If you would like to transfer your current mobile phone number to the iPhone 3G, you should not cancel your current service. Instead, you should initiate the phone number transfer from AT&T when you buy the iPhone 3G.

What If...

What if I want to buy an iPhone 3G and not use it on AT&T?

There are a number of issues regarding this. First, the iPhone 3G firmware has not been unlocked, despite reports. The final iPhone 3G firmware is said to be different than the current 2.0 betas. So, you may not be able to unlock it at all.

If you are able to unlock it, you won't be able to use the iPhone 3G on any other carrier in the U.S. T-Mobile doesn't support the same 3G network that the iPhone uses. So while you might be able to make phone calls on T-Mobile, you won't be able to use 3G data.

If you must have an iPhone 3G outside of an AT&T contract, here are the steps. Buy an iPhone at $199/$299. Wait 30 days. Pay one month of service. Cancel your account. Pay $175 early termination fee. There, you have an iPhone 3G without AT&T contract. If you cancel your account before one month of service, you will have to return the iPhone to AT&T.

Related Forum: iPhone

Popular Stories

M5 MacBook Pro

RIP, MacBook Ultra

Monday October 19, 2026 9:37 am PDT by
Apple today sent out invites for an experience in Los Angeles on Wednesday, October 28, and the "Pro and tell" tagline on the invitation likely means that the rumored MacBook models with touch-enabled OLED displays will stick with MacBook Pro branding instead of the once-rumored "MacBook Ultra" name. The long-rumored "iPhone Ultra" ended up being named iPhone Duo, so speculation that Apple...
iPhone Duo Trio

Here's What Apple's Apps Look Like on the iPhone Duo

Tuesday October 20, 2026 11:12 am PDT by
With just three days to go until the iPhone Duo is released, Apple is getting ready for the launch. Behind the scenes, the App Store now has screenshots of Apple's built-in apps running on the Duo. We've seen some apps in marketing materials, but images of the ones we haven't seen give us an idea of what it will be like using the iPhone Duo day to day. Many apps are shown in landscape...
apple pro tell logo

Apple Announcing New Products Next Week: 'Pro and Tell'

Monday October 19, 2026 9:05 am PDT by
Apple's Greg Joswiak today hinted at new product announcements coming next week, sharing a social media post that says "Can't wait to pro and tell next week." Rumors suggest Apple is planning to debut the new MacBook Pro with an OLED touchscreen display, an M6 entry-level MacBook Pro, an M6 iMac, an iPad mini with an OLED display. Can't wait to pro and tell next week....
Latest Stories
iPhone Duo 2 Prototypes Include Under-Display Face ID
iPhone Duo 2 Prototypes Include Under-Display Face ID
1 minute ago
Tesla App Gains iPad and iPhone Duo Support
Tesla App Gains iPad and iPhone Duo Support
4 hours ago
Apple Reportedly Boosts iPhone Duo Orders by 44%
Apple Reportedly Boosts iPhone Duo Orders by 44%
4 hours ago
Fortnite Returning to Australian App Store After Court Ruling
Fortnite Returning to Australian App Store After Court Ruling
5 hours ago
Apple Ordered to Open iPhone to Rival App Stores in Australia
Apple Ordered to Open iPhone to Rival App Stores in Australia
5 hours ago
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
6 hours ago
Things Updated for iPhone Duo With Adaptive Layout
Things Updated for iPhone Duo With Adaptive Layout
6 hours ago
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
6 hours ago
iPhone Duo Reviewers Really Miss Face ID
iPhone Duo Reviewers Really Miss Face ID
11 hours ago
Does the iPhone Duo Run Hot? Here's What Reviews Found
Does the iPhone Duo Run Hot? Here's What Reviews Found
13 hours ago
Apple Music's New Look is Now Live on Apple's Website
Apple Music's New Look is Now Live on Apple's Website
13 hours ago
Anthropic Launches Claude Duet, a Proactive AI Agent
Anthropic Launches Claude Duet, a Proactive AI Agent
14 hours ago
What 32,000 Folds Did to the iPhone Duo's Hinge
What 32,000 Folds Did to the iPhone Duo's Hinge
15 hours ago
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
16 hours ago
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
17 hours ago
Apple Support App Updated for iPhone Duo's Larger Display
Apple Support App Updated for iPhone Duo's Larger Display
17 hours ago
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
17 hours ago
iPhone Duo Tips Over on MagSafe Stands When Unfolded
iPhone Duo Tips Over on MagSafe Stands When Unfolded
17 hours ago
Apple Music's New Look Officially Announced
Apple Music's New Look Officially Announced
19 hours ago
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
19 hours ago
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
20 hours ago
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
21 hours ago
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
21 hours ago
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
22 hours ago
Loop Capital Cuts Apple Rating Over iPhone Sales Outlook
Loop Capital Cuts Apple Rating Over iPhone Sales Outlook
1 day ago
Apple Stores in Bordeaux and Lille Looted During French Protests
Apple Stores in Bordeaux and Lille Looted During French Protests
1 day ago
Bluesound Adds Native Apple Music Support
Bluesound Adds Native Apple Music Support
1 day ago
Apple CEO John Ternus Explains What Makes Good Product Design
Apple CEO John Ternus Explains What Makes Good Product Design
1 day ago
UK Proposes New Ways to Help Apple Pay Rivals
UK Proposes New Ways to Help Apple Pay Rivals
1 day ago
WhatsApp Developing In-App Browser for All Chat Links on iPhone
WhatsApp Developing In-App Browser for All Chat Links on iPhone
1 day ago