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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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Apple is retarded
By wwwebsurfer on 10/29/2007 10:56:58 AM , Rating: 2
All I see is Apple, thinking their phone may tank, signed a super-exclusive contract with ATT. In said contract ATT kicks back almost the profit of the iPhone over 2 years.

However if Apple was sure their phone would succeed they should have just opened it up for any network, sold 5x as many and had so much profit from selling apps and 5 different chargers and FM transmitters that only fit the iPhone that they don't need ATT.

Oh yea, that's not how Apple does business. I forgot that they like to make everything proprietary, make sure it only works on their system with their software, gyp their customers with overpriced hardware, undercut their faithful with price drops and stifle creative use of their hardware by making sure they get bricked.

Screw you Apple and your uninnovative products.

RE: Apple is retarded
By joemoedee on 10/29/2007 11:22:20 AM , Rating: 2
I think it's quite the contrary as far as why they went with the exclusive deal.

If they felt they wouldn't sell many through an exclusive offer, they wouldn't have gone exclusive.

Apple knew they had a high demand product. Do I fully agree with all their tactics? No.

They shopped it around to the carriers, and ATT/Cingular put up the best deal. Any money Apple gets from contracts is pure profit, as there is no "cost" to them for it. Increase the sales of the phone twice as much, and they still made less money versus the exclusive deal. (I forget the cost numbers, but I know they certainly do not profit $400+ from each phone sold.) It would take a lot of Java apps and chargers to make up $400+ in free money per phone sold.

They never seem to be able to win in the minds of the tech-consumer with this phone. First its too expensive.. then they cut the price and they're creeps for doing so. Can't replace the battery... etc, etc.

My view? It's a novelty. I want a cell phone to be... a phone. If I need access to my email, I'll get on my computer. If something in that important... they'll call me. If I need the web, that's why I have my laptop and my desktop. I don't need a digital leash. :)

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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