We’ve compiled a how-to guide that works the system, and will net you an iPhone 3G on July 11 for about $199, and leave you without any contract at the end of it all.
The process only requires that you (or someone you can borrow) does not have active service with AT&T. Want to know the steps? Read more to find out.
Update: Our links have been updated to take advantage of a $50 coupon that AT&T is offering on PDA Phones. The process is the same as before, but now, the deal is even better than ever!
First, why would you want to do this?
Several reasons, really.
One, you may be an iPhone hacker, looking to get an iPhone 3G that isn’t tied to contract. This is the cheapest way to do that, by a good few hundred dollars.
Two, if you have an original iPhone under contract, using this method nets you an iPhone 3G without a contract reset.
Three, you may want to buy one for use on another carrier. While iPhone 3G will undoubtedly be locked to AT&T at launch, hackers will undoubtedly begin working to unlock the device for use on other carriers.
Four, you may be on AT&T prepaid service. While we can’t guarantee that iPhone 3G will work on GoPhone plans, there is evidence to indicate that it will.
Five, you want an iPod touch that just happens to be the latest cell phone as well. It’s just as cheap, and leaves the door open for you to sign up for service later.
Here is what you need for this process:
1) Someone without an active AT&T account.
2) A first-generation iPhone. It can be used.
We have tested this guide up to the point of purchasing the iPhone 3G. According to AT&T’s guidelines for upgrading to an iPhone 3G, there should not be any issues with this guide.
See, as a part of Apple’s re-negotiations with AT&T, they put in one requirement; anyone with an iPhone on their account, is entitled to upgrade to the new iPhone 3G as if they were a new customer. We are going to exploit this as a loophole.
Step 1: Setting up a new account with AT&T.
The first step is to sign up as a new customer, but not with an iPhone. Instead, you need to order online using this link (which takes you to AT&T’s online store) and get a phone without any mail-in rebates. We stress that you should use the above link and not order from a third-party store, for reasons that will complicate this guide (but trust us, order direct using the above link).
Update: Now you really, really need to use this link. It gives you a $50 discount when ordering.
We suggest buying a refurbished AT&T Tilt as your phone of choice. This is a good phone because it is heavily discounted, and there aren’t any rebates. More on this later.
When your phone arrives, set it up with the new service plan that is bundled with the phone. Make a test call.
Step 2: Activating the first-generation iPhone.
Now, we’re going to take the first-generation iPhone and activate it.
(If this is a used iPhone, then go to your nearest AT&T store and ask for a new SIM card (they’re free). Insert the new SIM card into your iPhone.)
Next, connect the iPhone to iTunes. Follow the iTunes activation process, and be sure to chose the option to upgrade from your existing phone. iTunes will then transfer service from the phone you received from AT&T… to the particular iPhone.
Step 3: Buy the iPhone 3G.
Now, by activating the first-generation iPhone on your account, that makes you upgrade-eligible for iPhone 3G. Upon July 11, you simply need to wait in line, flash your iPhone to the store representatives, and walk out the door with iPhone 3G for $199 (or $299 if you chose the 16 GB iPhone).
Step 4: Cancel service. (Optional).
For this, you will have to wait exactly 30 days. On the end of the last day of the first month, call AT&T and tell them you wish to cancel service. It may be best to do this after the local AT&T store closes in your area.
Why? Because AT&T has imposed a requirement that you return your iPhone within the first 30 days, if you wish to cancel service. So, we simply wait until it’s not possible to return the iPhone 3G on the 30th day. This prevents you from paying for a second month of service.
You will have to pay a $170 early termination fee ($175 less $5 pro-rated for the first month).
Step 5: eBay the first AT&T phone, and the iPhone. (Also optional).
Remember that phone that we bought from AT&T, before activating the first-gen iPhone? Well, to recover the cost of the early termination fee, and one month of service… we’re going to sell that first phone.
Now it starts to make sense why we suggested the HTC Tilt. First, it’s cheap. Second, it’s popular. And, third… it’s easy to unlock! Unlocking a phone easily adds $50 to $100 to the cost of a device like the Tilt, so being able to do it easily is just a free bonus.
Also the lack of a mail-in rebate means you don’t have to hold onto the device for six months to get part of your money back.
Finally, you can eBay the first-generation iPhone. Unlocking that as well will increase its eBay value.
The result? The “profit” in selling the two under-contract devices for a no-contract price on eBay will cancel out the ETF and the first month of service. Of course, based on eBay prices, which are variable… we can’t say with certainty that you will wind up with a net cost of $199 for iPhone 3G. However, it should come close.
Here’s the math, in case you’re wondering:
AT&T Tilt Refurb price with 2-year contract: -$99
Activation Fee: -$36
One month of service: -$70
Early Termination Fee: -$170
iPhone 3G 8 GB: -$199
Total Costs: -$574
eBay value of AT&T Tilt Unlocked: ~$380
$574 – $380 = $194… that’s less than the price for an iPhone 3G, and you now have no contract. You can then sell the iPhone 3G, or activate it on another line of service.
And, of course, there is one more thing.
We do caution that while this is kosher with AT&T policy, this guide will probably become very popular, very fast. It is possible that AT&T will impose a limit of today on iPhone owners to establish service, and be able to buy an iPhone 3G at $199/$299.
It is unlikely however, that AT&T will make such an announcement retroactive. So, sign up for service today and hurry up! It’s not likely that AT&T will allow this deal to continue for folks that activate iPhone after the 11th.
But, what about?
The most common feedback we received in testing about this guide was the following: “How am I going to do this with my iPhone that is already under contract with AT&T?”
Simple. Have someone else establish service with AT&T. You put your iPhone on their account, and they then upgrade from Tilt, to iPhone, to iPhone 3G. Legally speaking, you’re giving your iPhone to someone else for a week, and putting your existing AT&T account on another device (like, that super-cheap phone your friend just got from AT&T).
We aren’t here to debate the ethics of this procedure, we just figured it out, put it in motion, and are all doing it ourselves. The idea stemmed from the fact that folks at PhoneNews.com all use iPhone 3G on GoPhone Pick Your Plan accounts. This is something supported by iPhone, but AT&T has prohibited on iPhone 3G.
We will note however that iPhone 3G is the only device in the industry that is not for sale without a contract of some form, and that anti-consumer practice at launch is something we feel is unacceptable. While iPhone 3G will eventually be available without contract (and probably on prepaid as well), we feel it is not reasonable to prohibit such sales from day one.
I need an iphone 3g 8GB for pakistan . How much it will cost me without contract ?
The above article is incorrect. The reason why I know is because I work for AT&T. The individual states that you first go buy a refurbished phone, but when you do that you sign a contract. Then he goes on to saying for you to get a new sim card and place it in your iphone and activate it through itunes. Guess what, you sign another contract. Then after that, you go into an AT&T store and get your new 3G iphone. AT&T will let you get another one, but gues what….you will have to sign another contract. Now, you can get an iphone 3G for FREE is if you purchased your iPhone after May 27th from AT&T then you will get a free upgrade to the 3G iPhone when it will arrive on July 11th. Go to the link below and it will let you konw. As for as this article is concerned about you not getting a contact, is if the system glitches or you cancel. http://www.mobilewhack.com/swap-your-old-iphone-for-the-new-3g-iphone-for-free/
Keep in mind from the posting above that if you cancel you are canceling your 3G iphone contract. Because when get the refurbished phone you sign a contract and that one carries over to the iphone and then that one carries over to the 3G iphone. So if you do cancel, you’re canceling your service. So you end up with no service and a phones you can sell on ebay.
… or an iPhone 3G you can use on GoPhone prepaid for only $20 a month.
Wow. @spades…. 2 of the most cryptic posts I’ve seen. I really don’t know what you are adding to the discussion. I will not reply to your reply.
I think Spades first posted trying to assert that, as an AT&T Employee, he/she “knew” that the process failed….
… And then realized that the process has worked, but wanted to hold the higher ground of feeling righteous.
Christopher Price I like your post but you failed to understand my post. What im trying to say is….it’s doesn’t work. It never worked. The second post is showing you that if you did the steps above your canceling your service.
Christopher Price. I see you read my post but you failed to understand it. In plain english it never worked and it wont work.
Spades, I’m sorry, but you’re just plain wrong. It did work. It has worked. I have the iPhone 3G that proves it… as do many others that have their iPhone 3Gs now.
All we have to do is wait 30 days and cancel service. We pay the ETF and now have an iPhone 3G for $199 (after selling the Tilt on eBay). After 30 days of service, AT&T can’t ask for the iPhone 3G back.
Chris-I’m confused for many comments. What is the cheap way to get Iphone 3G now w/o contract and w/o monthly $30 more for Iphone? I have TMobil at the end of 2 year contract.
AT&T Tilt (Refurb) – is out of stock – perhaps many people read this & bough them all
Just to clarify guys…if we are going to cancel…then we cancel on the 30th day from when we get the Iphone 3G right?
Has anyone got any problems while upgrading from the newly activated iPhone (first generation) to iPhone3G most recently? What I mean is that, is there a restriction of 90 days before which you cannot upgrade from newly activated iPhone (first generation) to iPhone3G?
There isn’t a restriction in place for people with first-gen iPhones upgrading to iPhone 3G. However, there is a 90-day restriction for those with an iPhone 3G, from “upgrading” to a new one. This was imposed to prevent gray market sales of the device.
Hi Chris
Is it possible to use unlocked iPhone 1st gen that I got from eBay
for step 2 ?
Thanks
You would be activating the iPhone after July 11, and as such there is no guarantee that you will be upgrade-eligible for iPhone. Aside from that, yes it could work.
Hi Chris
Thank you for your suggestion
Unfortunately, I’m not eligible for $199 price
BTW, I can upgrade to Tilt phone (refurb) at $0 cost
b/c at first step I’d ordered Blackjack 2
Do you think I can make a profit by get Tilt
and ebayed both of them after 30 day and pay $175 ETF
Do you see any hole?
^
^
^
sorry for the post
I misunderstood about $0 cost
Actually I have to pay $349 🙁
So I think I’ll return it with in 30 to avoid ETF
Its over guys – stupidly, I waited for the lines to shorten to get my 3g. But, after waiting 2 hours in line, the price came up as 399 for me – maybe att has figured things out, or maybe its because i activated my 2g iphone the day b4 launch, and the cutoff day was earlier than launch day…..regardless, att wants the tilt back to be able to get the 199 pricing. I think i’m gonna pass, and just cancel the whole thing.
Truly a shame… i did kinda want this thing…
So could I do pretty much the same thing with my pantech duo i already have? Borrow (or buy) a 2G iPhone, transfer service from my Pantech Duo to the iPhone, walk into the store and buy the 3G iPhone for $199 with no contract? Then sell the Pantech online along with the old iPhone?
thanks
no you cannot – they will charge you 399
I’m a current att customer but Im not eligible for an upgrade, my mom however, is available for an upgrade on her account. We have different accounts and plans.
If she would to buy the 3G iphone using her upgrade on her account, would I be able to just insert my sim and use the iphone on my account?
I’m just wonder what is the point of registering in person? will the phone be lock to that specific number or just provider?
Can I upgrade my Blackjack II data only contract to an iphone 3G. I have it less than 30 days. Will they make me add a voice plan? Will they charge me full price?
i want to know how can i get a iphone 3g for 199 because i live in camden arkansas
Umm. i hate to tell you all but my buddy skipped almost all these steps and will walk away with the same thing. You don’t need a first gen iphone to get a 3g…so just buy one and sign the contract. wait 30 days and cancel. you pay the exact same cancellation fee as in this guide and you end up with a 3g iphone without a contract. i don’t really understand why you need a first gen phone at all…
I”m an idiot for even bothering to answer you. READ the article and maybe you will understand. I hate people who “hate to tell us idiots how stupid we are” when they HAVEN’T EVEN READ THE ARTICLE!!!!
AFAIK, if you start new service with AT&T on a new account, you first billing cycle will end approximately 20 days from the day you start service. So, you’ll pay a prorated charge for that month and anytime you cancel service after that, I believe you pay a whole months service charge irrespective of if it is within the first 30 days or not. Your plan sounds good, but AT&T just won’t cancel the new iPhone service over the phone until they are done checking if the iPhone has been returned.
Has anyone had any luck canceling service over the phone before returning the iPhone?
“Christopher Price on July 15th, 2008, 11:41 pm Again, you are incorrect on this point. We’ve re-iterated several times… you only have to return iPhone 3G if you cancel service within 30 days. Once you are out of the iPhone 3G return period, you are subject to the ETF, but do not have to return the phone.”
I talk to AT&T and this will not work- If we keep the iphone after 30 days we have to pay ETF + additional cost on top of $199 for 8G
I think I wait until 8/9-8/11 see if any one be able to return pay $170 for ETF & still keep the phone
Loc, whoever told you that was simply incorrect. Check the forums:
https://phone.news/forums/index.php?showtopic=3238
Everything we posted in the article has worked fully.
Well I went to three apple stores and they would not sell me one without signing a contract. I have a pay as you go Iphone. I was told by all the stores and 2 ATT customer service people that it doesn’t work with pay as you go and that I couldn’t buy one without a contract even if I payed more.
Nick, as has been reported in the article… the no-contract pricing for iPhone 3G is not yet available. AT&T and Apple are waiting for supply constraints to subside.
Also, Apple and AT&T employees have been trained to say that iPhone 3G does not work on prepaid… even though it certainly does, which we’ve proven in other articles that you can find by searching PhoneNews.com. My iPhone 3G is on prepaid right now…
I was wondering if this process still works?? If so, it doesn’t have to be over online right? Because theres an AT&T store that gives out free phones with 2 year contracts.
i’m hussein and i live in uae in dubai and i need 3 iphones without contract for me and my dad and my bro so how can i get it anybody plz just i need a guide thnx
Is the same with me, i live in Europa where now they are selling the 3G for about 1300 $. My question is what can i do to get the iphone 3g without this contract. BTW i don’t have the first generation. Any advice ?
hi
I dont understand when we upgrade,doesn’t it mean to bring back the first gen to store?so whats the meaning of selling it?
Naji, the only people that “surrender” the first-gen iPhone to the store, were customers that purchased an iPhone within 14 days of the iPhone 3G. They were cut a special deal that let them upgrade at no extra cost.
Everyone else got to keep their first-gen iPhone, flashing it to the sales rep at the store was simply for proof that they owned an iPhone.
However, the deal is no longer valid, so it doesn’t really matter now.
Hey Christopher,
I was wondering if it still works the guidelines that you’ve described in July? Please let me know…
Thanks!
As I’ve said multiple times in the comments, the workflow no longer works. Any iPhone 2G activated after July 11 is not considered upgrade-eligible at the $199 price point.
So having read all this, why can’t I just go into an ATT store, buy the 3g phone, wait til the 30th day, and then cancel service and then not returning the phone based on their 30 day return policy? why go thru the hoops and loops of getting a contract and do all that other stuff?????
Dima-ATT said you have to more than $175 for Iphone.
Any one buy Iphone from this website http://superbargainland.com/cat42.html?
16g for $399.99. It seem like a scam & to good to be true
I will buy 16G for $400 w/o contract
Nice scheming, but let me clarify a few things for you.
1) You didn’t include the cost of a $400 1st gen iphone
2) The cost of unlocking your Tilt at a dealer
3) The fees/dues imposed on you from paypal and ebay for selling
Sum it all up, and you’ll have shelled out $700 for a phone that is readily available on express/buy it now ebay from power sellers/stores for $600. And you have time saved for you.
1) At the time of this writing, 1st gen phones were available for about $200 – the price has gone up since then because 3g is not yet unlockable…
2) tilt unlocked for free = xdadevelopers (google it)
3) sell it on craigslist
wow what a referall link. I spotted it the 1st second. Here is a real question. Can I just just activate 3 new lines in the store, cancel service from home by calling ATT retention department in the 1st 30 days, then just not return the phones. It should work and I would ony have to pay the start up fees. I used to do this with Nextel all the time. I made a lot of moeny on ebay doing this. How do Apple and ATT track that you have returned the unit? And doesnt the 700$ that the phones are going for on ebay look pretty sweet if thsi did work?
I still don’t understand why people think we would be interested in hiding referral links. There’s nothing wrong with getting credit for putting together a good deal. Not one person that has noted this, has given a valid reason why they are noting it.
I don’t understand why people hold this to a different standard than any other referral program…
[…] from Craigslist and eBay, you can also try this method Get an iPhone 3G w/o a Contract for $199 « How to Create Free Custom Ringtones for Your iPhone in 5 Easy Steps Leave a […]
Can’t you just buy directly the iPhone 3G and cancel the contract on the 30th after the local AT&T store closes?
$36 Activation fee
$199 iPhone 3G
$170 ETF
$70 first month bill/service
Total $475
I am just asking this because I want to keep the Iphone. Of course, it will be a brand new AT&T Customer. Is it also safer to cancel the service on the first day AFTER the 30 day is over so you definitely get to keep the phone no matter what?
There’s no harm in trying to cancel on the 30th day. I haven’t heard anyone really rejected. Worst-case, you can just say that your iPhone is in a condition that makes it un-returnable (physical damage, etc).
Actually, I was wrong. If I cancel on the 30th day, there is no ETF. So, it is even cheaper. Tho they may definitely ask for the Iphone back which they have every right to. Hmmm. Worst case I can just pay the ETF and say it is un-returnable like you say Chris. I think I am going to do this 🙂
1.Get an new AT&T account
2.Get an Iphone 3G
3.Cancel on the 30th day
$36 Activation fee
$199 iPhone 3G
$70 first month bill/service
Total $305
Am I missing something here? Except feeling guilty? It is a weird feeling. You don’t want to do it but then you cannot really buy it without a contract unless you spend $800 on Ebay which is supporting someone who did something like you plan to do. Ayyyyyyyyyy
Yes, you are missing something. If you keep your iPhone 3G, AT&T will charge you an ETF, even if you cancel within the first 30 days.
AT&T always charges an ETF for customers in the trial period, when they don’t return the phone.
I already have iPhone 3G. I used to be able to go back to Apple and upgrade my line again to buy another iPhone 3G (at $499) and sell it to my friend so he doesn’t need to renew his contract.
Just recently, Apple upgraded their system and when I try to upgrade my line again to get another iPhone 3G, the system does not let me buy it.
If I activated a 2G iPhone to my current line, so that in their system is shows I have a 2G iPhone instead of the 3G, do you think I would be able to buy another 3G at the Apple Store? For maybe even $299?
Again, no. Any iPhone 2G activated after the launch of iPhone 3G does not qualify for the new customer price.