iPhone customers question upgrading

June 11, 2009 2:21:20 PM PDT
Some iPhone customers are questioning why they have to pay hundreds of dollars to upgrade their current iPhone 3G when new customers will pay less for a brand new iPhone 3Gs. The newly unveiled 3Gs will cost between $200 and $300 when it goes on sale June 19. But current iPhone customers who are in a contract with AT&T will be charged $200 or more for an upgrade their handsets with the 3Gs software.

Some users are complain about pricing on Web sites like Twitter.

AT&T says the reason is subsidies which are steep discounts all phone companies to new phone customers who are willing to sign a service contract.