iPhone 3G US pricing finally revealed

A few days ago we tried to make sense of the iPhone 3G pricing confusion that people have been going through. Well, we are happy to report that Apple and AT&T have finally provided all the answers we need on this front. Pricing for the iPhone 3G will be as follows:

$199 8GB model, $299 16GB model:

• New customers who activate a new line of service with AT&T
• iPhone customer who purchased their phone before July 11
• Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

$399 8GB model, $499 16GB model:

• Existing AT&T customers who are not currently eligible for an upgrade discount.

$599 8GB model, $699 16GB model:

• Customers who want to purchase an iPhone 3G without signing a contract
• Customers who enjoy getting royally screwed

If you are a current non-iPhone AT&T subscriber and want to know if you are eligible for an upgrade, you can find out by logging in to the AT&T Wireless website and checking your upgrade eligibility there. If you aren’t, and you still want to buy a 3G at the $399-499 price point, just know that you will also be expected to sign a new 2-year contract when you make that purchase. Those of you looking to pay the insane non-contract costs, just know that you will have to wait to make your purchase until after the initial launch.

One thing that has me confused though, the non-eligible customers have to pay $200 more than those eligible for an upgrade. However, what’s stopping them from breaking their contract, paying an early-termination fee of $175 or less, and then just buying the phone at $199 with a new contract? I mean sure, there are more steps involved, but at least you save a minimum of $25 - and you will save more if your ETF has dropped in price. Just a thought.