I ragged about how AT&T is raping iPhone 3G owners who want to upgrade to the iPhone 3G S earlier today but I couldn’t resist the temptation… When I first tried to pre-order this morning, it said I would have to pay $699 for the 32GB. I tried again a few minutes ago and it was saying “only” $499.

So I cracked and pre-ordered the new 32GB iPhone 3G S. Total price including taxes: $560.16. Nowhere it mentions anything about activation fee and upgrade fee although it wanted to charge me an extra $36 for this when I first tried to pre-order this morning. I assume AT&T will charge this to me at some point, in which case I will ask them not to as this bill clearly doesn’t say anything about these fees.

That’s an expensive purchase and I really didn’t plan on spending that much but a couple things make me feel better about it. First, I will probably be able to get a couple hundred bucks from my current iPhone 3G as I will sell it unlocked. Second, my accountant will write this off of my taxes next year, so all in all, it shouldn’t cost me too much.

There were several delivery options. I took the free one as it said it would be delivered by June 19th. This or waiting in line for 3 hours like I did last year at the store? It’s a no brainer.