Print 76 comment(s) - last by ira176.. on Oct 31 at 4:48 AM

If you want to purchase an iPhone from an Apple Store, forget about using cash or a gift card.

Apple is stepping up its efforts to limits resellers from getting their hands on the popular iPhone. Apple wants to crack down on those who buy, unlock and then resell iPhones to consumers.

Of the roughly 1.4 million iPhones that have been sold since its introduction in late June, Apple COO Tim Cook estimates that 250,000 iPhones have been purchased by customers who have the intention of unlocking the phones.

"Customer response to the iPhone has been off the charts, and limiting iPhone sales to two per customer helps us ensure that there are enough iPhones for people who are shopping for themselves or buying a gift," said Apple spokeswoman Natalie Kerris. "We're requiring a credit or debit card for payment to discourage unauthorized resellers."

Cash will no longer be an acceptable form of payment for iPhones and Apple has also reduced the purchase limit from five iPhones per person to two.

Today, however, Engadget is reporting that Apple has gone one step further than just denying cash customers. Apple is also denying the use of Apple Gift Cards to purchase iPhones. For those looking to get a stack of Apple Gift Cards for Christmas to put towards the purchase of an iPhone; you may want to rethink that idea.

Apple recorded 67 percent higher profits for Q3 2007 thanks in part to the iPhone. Apple's crackdown on resellers and those who wish to unlock the iPhone is no doubt a measure to protect the steady cash flow from AT&T.

According to Piper Jaffray analyst Gene Munster, AT&T is paying Apple an average of $18 a month for each iPhone customer. In other words, Apple receives $399 for each iPhone sold plus an additional $432 over the course of a two-year contract thanks to AT&T's exclusivity arrangement.

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RE: Banning Cash?
By BionicBigfoot on 10/29/2007 10:14:27 AM , Rating: 2
They can accept what they want. Check this out from the U.S. Treasury:
Or in Brief:
..."This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise."

RE: Banning Cash?
By Chernobyl68 on 10/29/2007 6:51:42 PM , Rating: 2
wow. you learn something new every day. It just seems wrong though not to accept cash at all. I can see restricting types of cash (toll booths, soda machines, etc) but to not accept ANY cash seems a bad precedent. I dread the day I can't buy anything with actual currency. Then it will truly have no value.

RE: Banning Cash?
By Anh Huynh on 10/29/2007 7:29:48 PM , Rating: 2
I await the day where strip clubs will have a magnetic card swiper.

RE: Banning Cash?
By emboss on 10/30/2007 12:35:06 PM , Rating: 2
"Can I get stamps, too?"

RE: Banning Cash?
By rushfan2006 on 10/30/2007 2:06:39 PM , Rating: 2
I made my post before I saw yours -- good info, I'm with the other guy a little shocking....(in honesty I think this is stupid that you are allowed to NOT accept legal currency but of course I don't make the laws).

I guess my economics professor 10 years ago was right when he said half joking "to understand the laws of the US -- just know that they are written head to toe to benefit and protect business, if it protects the consumer that's just an extra bonus".

"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
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