How to get an iPhone for $300. Or: How to get AT&T to subsidize it.

Think the iPhone is too pricey and you’re getting screwed by AT&T for being required to agree to a contract just for the privilege of owning one? If you’re not a current AT&T customer, you may be in luck! Just don’t run out and get the iPhone just yet.

According to this thread, even current AT&T customers are “allowed” to buy an iPhone, they just need to re-up for 2 more years. That is, even if they’re not eligible for a subsidized upgrade, they can get one because, as some sites have reminded us (1) the iPhone’s not subsidized.

“But, SRC, why does that matter to me? Didn’t I just tell you I’m not an AT&T customer?”

So, become an AT&T customer before you buy an iPhone! You can sign up, get a phone free or cheap (or make money make $50) and then get the iPhone on Friday as a “current customer”. Send in relevant rebates, sell the old phone and profit. Cha-ching! iPhone for $300 less.¹

Directly from AT&T’s own faq:

Q. I just upgraded my phone recently. Are there any penalties or restrictions for upgrading to iPhone right away? A. No. Everyone can upgrade to iPhone right away.

A couple caveats with the amazon link above: make sure you read the terms of the agreement. Specifically make sure your iPhone plan is priced higher than the one you sign up for or you may get stuck with a $250 charge. Send in your rebates and be diligent in tracking them. I’ve had great success with my amazon rebates, but it never hurts to be sure.

In the end, I’m going to make $175 on that w810i from rebates. I’m planning on selling it on eBay for around $150 or so.² This process should net me $325 at the end of it all. Taxes included, the iPhone will cost me $320. Not too shabby.

Update: A few months later, and I’ve got all my rebates back. All told, I made about $475 on the deal. $275 in rebates and $200 on the phone sale. Considering my iPhone was only $499, not too shabby.

Footnotes

1. Don’t blame me if this doesn’t work for some reason. I’m taking the same risk you all are taking by trying this. It pays to be diligent if you’re met with resistance. Know your facts, have documentation of rebates and make sure you don’t give up. I’m 99% sure this will work for me. I’ll post back with reports of success. Or failure.↩
2. Or you can choose to keep it and just have it as your “beater” phone for when you don’t want to take your iPhone out. That’s the best thing about GSM phones, IMHO. Just move the SIM card to another phone and you’re set.↩