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.
Where I can buy iPhone 3g without contract? I mean give the address or website of it.
How can i purchase Apple Iphone 3g with out contract
hello christopher
My brother is staying is US and i m in India an he is using AT&T service but not iphone 3G
so how can he get iphone 3G for me without contract ?
or recommend me best way to get iphone ?
thanks i will wait for your reply..
Will this still work for the iphone 3g s?
[…] so called no contract iphone guide revealed? How To: Get an iPhone 3G for $199… Without Contract! (Updated) | PhoneNews.com __________________ to err is human, to really fuck things up takes a […]
I atractted to i phone but i did live in indonesia will the packages offered works far me??
And if it works how should i order..
Abd how bout the after sales services?
[…] thought he was just buying mass phones on his account.. and later canceling.. i was close. How To: Get an iPhone 3G for $199… Without Contract! (Updated) | PhoneNews.com […]
How can i get an iphone 3G ? I am living in Vietnam?
I am not sure this is for real but at this site http://www.mobilebuyz.com/iphone.html they say no contract required to buy a 3gs 16g for $189.00, I am suspicious
Bill i checked out your link and it does seem like there’s something rather fishy about this website, but it says its some kind of auction site. i really dont know tough, i wish they were for real .
yeah did somebody ordered from this website…. this would be awsome… cant find anything about them on google or so… that sucks… is this real or fake? what do u guys think?
It is OBVIOUSLY fake, I don’t know how you could possibly think this is real… Go ahead and get scammed if you don’t believe me.
This is on the home page, tricky use of words could be the scam.
At Mobile Buys we only sell new products. We never sell used or referbished.
In addition, we do not sell contracts for any of the major carriers and ——-therefore do offer / require —-you to sign a contract when purchasing one of our phones.
Regarding the Mobile Buys link, it seems they order the phones in bulk and then resell them. They do not unlock or do anything to them. So, you basically get a new AT&T-locked iPhone without service.
The only thing I can think of is that the price of the phones in bulk is low enough that they can sell them at lower prices and still see a profit. Imagine now how much AT&T is gaining from their sales then. 🙂
All major credit cards have purchase protection plans. If you get scammed and never get the product, then you can always cancel the charge and open a legal case against the vendor.
Now, the issues I have with the site are:
1) It is new. The domain was created on 2009-07-08. So, there is no history of people being scammed or not.
2) The checkout is not secure/encrypted. That’s a no-no for me.
3) The contact e-mail is bradwestin@live.com, but there is no address registered. Just the city (New York, NY, 60901), and the phone number is fake 555.5551211.
4) The dedicated server IP address is 69.2.40.118, which is hosted by Trace Security in Baton Rouge, Louisiana as a Registered and Active Website.
So, make your own conclusions. My general rule is that if the deal looks too good to be true, it probably is.
Hey, i am basicall from india n my grandpa is in san hose, california right now. i told him to get me an iphone, but he says that he is only getting an iphone 3gs with the at&t connection whereas at&t does not provide connection in India. Please tell me a simple way to buy an iphone 3gs so that i can then unlock it here and use it with an indian carrier.
hellow friends
i wanna buy a new iphone 3gs 16gb, i can pay 300$ for it
m from Pakistan
if any body wants to help me i shall b very thankfull to him or her..
please contact with me at
syedirtiza2003@yahoo.com
i need it very much
i hope someone will helps me,
hellow friends
i wanna buy a new iphone 3gs 16gb, i can pay 300$ for it
m from Pakistan
if any body wants to help me i shall b very thankfull to him or her..
please contact with me at
syedirtiza2003@yahoo.com
i need it very much
i hope someone will helps me,
hey hai i want to an iphone 16gig.i can pay 400$ for it from zambia.i will some assistance with shipping it over here your help will be highly appreciated.
gardnerxen@yahoo.com
I really need Iphone 16GB, but I want to buy this phone to use at Cambodia, can I buy it in price 199US?please tell me! thank you!
sorry guys. this doesn’t work. i used to work at the apple store, and just having the old iphone doesn’t qualify you for the new one. it has to do with your plan’s upgrade history. Also, they don’t tell you this, but if you cancel your plan without returning the iphone, they bill you for the full price of the iphone.
good try.
Hi,
I found this site. Can anyone tell me if its a scam?
Apple iphone 3Gs 16GB
http://digital-deals.co.uk/
thanks
To George;
UK Apple iPhone 3G S for 310gbp = about $530usd before applicable taxes. Doesn’t really seem like much a a deal.
My son wants an iPhone 3Gs so he can take pictures and video. He does not need a phone. Can I:
1) buy iPhone 3Gs at AT&T store for $199
2) return on day 30 and pay the ETF of $175.
3) Keep the phone without service paying $199+$175+$70 first month contract?
Will I be able to update the iPhone software if I don have a contract with AT&T?
Thanks.
Is that work?
Did Att fix that?
does we really get an iphone 3G at 99$ without any contract.if not, then what it costs.
Going through all this crap to save 20 bucks 🙂
Damn… You guys are cheapskates… Imagine someone swindling you out….
Actually at the time it was $175, not $20. And, once again, folks (you aren’t reading the comments, people), this deal has been dead for about a year and a half. It doesn’t work anymore.
this is waaaaay to complicated too much work without guarantee – ton of work for little reward & ton of risk
Hey everyone I work for apple there is no way that you will be able to get an iphone for 199 or 299 or 399 depending of the model with out being on a contract
They are selling them at some apple stores now because of the release of 3Gs but at a no contract price which is between 500 and 800 for all the iphones
There are no ways of getting an iphone for the contract price without just taking the contract, or if you cancel there is a fee, and if you cancel your credit card you will have bad credit score and you will have your service provider after you.
Any site out there that is offering a deal is a scam
Just wait for the iPhone 4th gen we are working on it right now it will be amazing
@Cameron Aziz;
Yes, let’s all smoke some crack and wait for the 4th Generation iphone to come out.
We want our phones now you loser! We don’t wanna wait. I will become a street walker if I have to, so I can get my iphone and call my family to tell them about my new job as a hooker.
You can get Unlocked iPhones here! Brand new with warranty and everything at least check it out.
what if opening a new account charges me too much for the deposit ?
I want to get an Iphone without contract ,also i don’t have socialsecurety number i am internatinal student here, please let me know if there is anypossiblity to got it
Please help me guys, by answering this question.
I have a Tmobile contract.I want to buy an iPhone 3gs and use it with tmobile. I will buy at AT&T store for $199. Then I want to terminate my contract after one month; also by that time I will unlock the phone etc. I will pay the monthly fee and the ETF ( $199+$175+$70 approx).
Will I be able to keep the iphone? How much will it hurt my credit score?
Any help would be greatly appreciated.
Muna, keep in mind that iPhone 3GS units shipping today cannot be unlocked without a tethered jailbreak. Whenever the phone loses power, it must be reconnected to a computer to bypass the bootloader on the device.
However, that said, doing it the way you described will work, and assuming you pay all the bills, will not harm your credit score. If you pay the Early Termination Fee owed, there is no debt and thus it has no effect on your credit score.
The only affect to a credit score that would have, would be the temporary ding to your FICO score from the credit check used to setup the account. Again, pay the bills off when you’re done, and you’ll be fine.
this is a really stupid article
either the author is a complete moron or he if fúcking with the morons
here is shows that you buy the “Tilt” for $100 and sell it on ebay unlocked for $380
virtually a $280 profit
why not do that twice and use that money ($560) to buy an iphone for $600? the unlocking software is now free
sorry, i meant:
why not do that twice and use that money ($660) to buy an iphone for $600
crap, my math…. lol
Hi, I just want to ask if this method still work (today is November 14 2009). Thanks
Hi,
I am a US citizen, moved to India 2 years ago, so have no personal residence address there right now. I just broke my iphone today! I got it before I left US so it would’ve been 2 yrs old Feb 2010! How do I replace it with minimum cost? I still do have a checking account and a credit/debit card that I use from US. I bought it fair and square the first time, but really didn’t know about the covers until recently, when it was rattling its bones while vibrating, from being dropped too much. Finally, it croaked today. I have no problem getting it shipped to a friend and getting it here. But can I do that from here or at some point do I have to go into a store myself?
If so, is Ebay an option ever? Sorry, I’m writing a book..
Please help!
**** this how about i buy one with a contract a
I thing that is a smart plan because I have pay $350 for my own I am going to give it back to the at&t
I have a Sony Ericsson Xperia X1 and i want to buy a iphone. Please let me know what could be the price of iphone 3GS 8gb and 16gb in USA, without a contract.
Not impressed at all. This is just so obvious that everyone probably already thought of. Of course the information changed over time because the at&t tilt is now valued at 350-380 but is ONLY selling on ebay for $160. So this information is irrelevent.
do you have to pay for the upgraded iphone or is that just free ?????
Don’t buy the iPhone with the plans to terminate the contract and keep the phone. While you will be able to buy the phone for $199, and the early termination fee is $175…AT&T will NOT allow you to cancel the plan without returning the phone unless you wait 2 months. Not only this, but you’ll have to pay for 3 months of service since they charge you at the beginning of the month. Thus, $199 +$175 + $300 (approx 3 months worth of service) = $675 or more. At this point you can easily pay for the phone outright at $550 at Best Buy or $600 at the Apple Store.
Turns out I kind of took advantage of this loophole without even knowing it. I bought the first iPhone and was super stoked and happy with it. I thought the iPhone plan was very reasonable – unlimited data, and 200 txt msgs, for $20. When the 3G came out, I obviously was as excited as everyone else, and was even more excited when I learned of the upgrade claus in the original contract. So I went and waited in one of those long lines that were on the news. And it wasn’t until I was signing up for the new 3G that I found out the 3G data plan was $30 a month, and it didn’t include any texts. I decided to go with it since I had skipped class (I was taking a summer semester), and took work off to wait in line all day. So I got my new baby, and loved it. I went home, unlocked my old iPhone, sold it on eBay for around $500, and was stoked that I was in the positive. But, I was still a little miffed, because ATT changed the iPhone plan, to include 0 txts, and cost $10 more a month. As it turns out, my bill ended up being about $30 more a month. With the more expensive data plan, and then having to by texts…. I went from a $70/month bill to about $100/month bill. By just about the second month of having the new iPhone, all the excitement and giddyness had worn off, and I starting thinking that, I didn’t get a sweet hook up having an iPhone and being able to upgrade, at the promotional cost. I would be paying $400 more a year on the new contract, so over the 2 year contract, thats nearly $1000 more then I would have paid just keeping the original iPhone. They have to re-coop the actual cost of both phone somewhere… so minus the $500 that I got for my unlocked iPhone, thats still like $700 ($300 iphone + more expensive service plan) that I would be paying for the 3G. It pissed me off a little, how apple had made this revolutionary device, and ATT and the greedy assholes, are all about just making money. So, I cancelled my plan after 30 days, which back in the summer of 2008, would make it so you didn’t have to return the phone. I paid the $175 cancellation fee, and turned around and unlocked the 3G, and sold it for $700 on eBay. So with the $1200 I made, and the $535 (3G, 2 months of $30 a month more service, cancellation fee) I had to pay, made it so I came out with roughly $665, but if you consider that I paid like $400 for the original iPhone.) I really only netted $265. But, then didn’t have an iPhone. So I got a new plan with Verizon, and have been patiently waiting for apples contract with ATT to be fulfilled, so they can open up to the rest of the market. So I put the $265 I came out with into an iPod Touch, and I basically only ended of having to pay like $50 for it. And now that I realize it, I am rarely in spot where I don’t have wifi, and in the rare occasion that I end up in that situation, I just borrow one of my buddies iPhones 😉
So if anybody actually just read that… you now know my story of taking advantage of ATT, when I realized that there whole plan all along was to take advantage of us, to make us pay more money for service. So they not only re-coop the hit they take selling the phones from $200-$300, they end up with more money than they would have ever gotten, sticking with just standard practices of letting only new customers get the discounted price. Since the 3GS came out, so soon after the original 3G, they couldn’t let the 3G customers upgrade, with the new customer price, because they counted on the contract period of time, to re-coop, then rake in the money.
Can’t wait for the iPhone to open up to all markets!
Iam looking for 3g 16 gb unlocked iphone since last week .I didn’t get any store which contain this.So,am waiting to have good place for me.
To everyone saying AT&T pys “peanuts” or the iPhone, it’s simply wrong. Maybe instead of ring a cheap bastard you should try backin up your assumptions with real information. As an AT&T employee (non-corporate) I can tell you that the iPhone costs more than $200 let unit. We lose money on New activations an Upgrades, that’s why the termination fee is $170. It recoups the cost. AT&T doesn’t begin making money off of you for nearly 6 months which is why alot of stores don’t payout comissioms on activations or features
for 6 months. Just so you all know before shooting your mouths off.
hey i am living in india n i want to know tht my friend is coming to usa n i wnt to know tht whether he can purchase an iphone for me from there n bring it back to india….and also i wnt to know tht wt will be the price for this i wnt iphone 3gs 16gb….plzzzzzzzzzzz let me know