The latest word on those AT&T iPhone 3G S upgrade prices come via businessweek, and their article states that AT&T has climbed down from their original upgrade pricing rules.

Of course the only way of knowing if an upgrader benefits is to check out their eligibility via their online account. The revised AT&T iPhone 3G S upgrade rules state both the 16GB at $199 and 32GB at $299 will be available immediately to anyone who is to become “upgrade eligible” by September’s end.

Upgraders who become eligible in October or after might be able to gain half of the full $400 subsidy which means you get the iPhone 3G S for $399 and $499 while those without any eligibility will pay the full $599 and $699, for more hit up the link.