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All Your iPhone 3G Questions Answered

By Sam Costello, About.com

With the announcement of the new iPhone 3G, there’s a lot of excitement, but also a lot of questions — everything from the standard "how much does it cost" to the more complicated questions about upgrades and new rate plans. This page has you covered with the answers to all your iPhone 3G questions.

When Can I Buy One?

July 11 in 22 countries. Later in the year in another 48 countries.

The phone goes on sale at 8 a.m. local time on the 11th.

How Is It Different from the First-Generation iPhone?

Compare the features and prices of the first-generation iPhone and the iPhone 3G.

You may also want to check out the iPhone 3G glossary entry.

How Much Does It Cost?

For customers who qualify for subsidized pricing, the iPhone 3G costs US$199 for the 8GB model and US$299 for the 16GB model.

Wait a Sec - Subsidized Pricing?

Those very low iPhone 3G prices are not Apple's list price for the phones. Rather, AT&T is subsidizing the price of the phones to spur sales and is offering those low prices to customers who meet certain conditions. Those conditions are a bit complex, but they boil down to this. You're eligible for the subsidized prices if you've had:

  • A first-generation iPhone with a service contract from AT&T, though you'll pay an $18 upgrade fee
  • 24 months of AT&T service since your last upgrade
  • A standard calling and data plan plus that costs $68.99-$98.99/month and have been in contract without a phone upgrade for 21 months or more
  • A standard calling and data plan that costs $99+/month and have been in contract and not upgraded your phone in the last 12 months
  • You're a new AT&T customer
    • See what I mean about complex? It gets even more complex in some cases, but those scenarios should cover most people. If you don't qualify for the subsidized price, you'll have to pay full retail price for the iPhone 3G.

      Check your upgrade eligibility at your AT&T account.

      So, What's the Non-Upgrade Price for the iPhone 3G?

      If you're not a previous iPhone owner or don't qualify for the upgrade price, you'll pay US$399 for the 8 GB iPhone 3G and $499 for the 16 GB model.

      Later in the year, you'll also be able to get the iPhone 3G without an AT&T contract for US$599 and $699 respectively.

      What Are the Rate Plans?

      Because the iPhone 3G includes support for the faster 3G data standard (offering speeds about twice as fast as the EDGE connection in the first-generation iPhone), AT&T has raised its rate plans for the new phone.

      AT&T's iPhone 3G Rate Plans for Individuals

      What Is AT&T's Business Rate for iPhone 3G Plans?

      Where Can I Buy One?

      Just like with the original iPhone, you’ll be able to buy the iPhone 3G at AT&T and Apple stores. There will be no online sales of the phone at its launch due to the new activation procedure.

      OK, What’s the Activation Procedure?

      Glad you asked. The iPhone 3G activation procedure is fairly different from the original phone.

      How Do I Set Up the iPhone 3G?

      The process is very similar to setting up the original iPhone. Check out my step-by-step guide to the iPhone 3G set up process.

      Upgrades for Current iPhone Owners

      There are two options for current iPhone owners who want to upgrade to the iPhone 3G:

      For owners who bought their iPhone after May 27, 2008

      For owners who bought before May 27, 2008

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