iPhone 3G Owners Will Have to Pay Full Price for the Next Model

There's bad news for iPhone 3G owners: upgrading to the iPhone 3G S is going to be more expensive than you might think.

Apple is advertising that the 16 GB version of its next-generation model will sell for $200, but that price is only for those new to AT&T or who qualify for a discount on their next device. These subsidies come only after many months of being a customer, and anyone who used their upgrade discount to get an iPhone 3G does not yet qualify for a new one.

Without the discount, a 16 GB iPhone 3G will cost $400, while the 32 GB version will sell for $500.

It should be pointed out that there is nothing unusual about this; it's standard procedure for virtually every wireless carrier to only give their customers subsidies after 18 months to two years of service. Still, many iPhone 3G users are complaining. 

Those who can't afford the additional cost of a new iPhone can console themselves with the operating system upgrade for the current model that will be released next week. This will bring most of the new features in the new model to the current one.

More about the iPhone 3G S
Apple's next smartphone will be an evolutionary rather than a revolutionary model. Its feature set will be improved, but not dramatically so.

It will have twice the Storage capacity, support for recording and editing video, and a handful of other features, like MMS support. Still,  iPhone 3G S will have much in common with the current version. The outward appearance isn't significantly different, and the screen resolution will remain the same.

The release of the third-generation iPhone will happen on June 19, and it will be available in back and white casings.

Source: InformationWeek