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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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RE: Why Apple Why?
By novacthall on 10/29/2007 11:21:05 AM , Rating: 5
Apple is control. Get on board or get off, but they're doing their thing with or without you.

It's exactly this mentality (and abysmal customer service) that drove me away from the company in 1997. I haven't looked back, and seeing their behavior under Jobs, I haven't regretted it one bit.

The man's brilliant, don't get me wrong. He's a business man unlike just about any other on Earth. He's also a complete and total control freak, and that just doesn't fly with me.


RE: Why Apple Why?
By omnicronx on 10/29/2007 12:19:51 PM , Rating: 5
quote:
Get on board or get off
And this is exactly why apple users are out of their minds. We are the consumer, we should be in control. Its beyond me that people are willing to pay 600$ for a phone, but you are limited in the way they can pay, use, and or modify it. Any other company would be running for the hills right now. Amazingly this is why apple will remain a niche market on the desktop/laptop market. Only 10% of the population is dumb enough to take their BS!

P.S not allowing gift certificates is the dumbest idea ever, and people should be outraged. I guess I have to look at it from apples perspective though, all those iphone unlocker dealers buying iphones in bulk with their fancy giftcards... give me a break..


RE: Why Apple Why?
By Chris Peredun on 10/29/2007 12:31:15 PM , Rating: 2
quote:
We are the consumer, we should be in control.


As a consumer, I am in control. I can choose to take the $400 that would be spent on an iPhone and take it to a rival vendor or carrier. No one is forcing you to buy an iPhone.


RE: Why Apple Why?
By omnicronx on 10/29/2007 12:57:00 PM , Rating: 3
I have heard this argument many times before, but my point had nothing to do with apple 'forcing' anyone to buy their products. The point is, it will eventually be the end of them. Consumers like to be in control, period.. theres nothing you can say that will budge me on this matter. Even if they really are not in control, people like to at least think they are in control.

Apple does not even try to give the illusion that we have some say in any matter. It was the reason they fell the first time, and it will be the reason they fall the second time. You can only piggyback on ipod sales so long, and the iphone is a long ways away from getting any considerable market share. I will even go out on a limb here and say, if not for the ipod, Apple would no longer be selling computers.


RE: Why Apple Why?
By djcameron on 10/29/2007 3:27:33 PM , Rating: 5
Consumers like to be in control, period..

Hah! You're funny. Consumers are sheep. They are led around by companies like Apple. They walk around with their underwear showing and with the latest gadgets stuck to their head. Why? Because they want to feel special and unique! In the process, they end up looking just like everyone else. Also, because the marketing folks have learned how to control them. Consumers are anything but in control!!


RE: Why Apple Why?
By Anh Huynh on 10/29/2007 1:13:56 PM , Rating: 2
I chose to buy a $400 iPhone and I'm quite content with it. It works great as a phone with a web browser and e-mail client. The onscreen keyboard takes a few minutes to get used to but it isn't too bad. I no longer have a need for a full tactile QWERTY keyboard since I don't have to reply to emails 24/7, since I've stepped down from my position at DT.

And like everyone else I know with an iPhone, I love it. It's simple, small, thin and looks pretty. It also plugs into my car's head unit nicely, with full iPod control and no noise interference. The iPod also pauses music and rings through the car speakers as well.

As a consumer, I chose to buy the iPhone because the other companies didn't offer what I was looking for, for an all-around day-to-day phone, not just a business phone.


RE: Why Apple Why?
By omnicronx on 10/29/2007 1:26:15 PM , Rating: 2
The iPhone is easy, has great features, and as a product is a really cool phone. But the contracts offered are terrible, and the price is too high for having to sign a contract of 2 years. What is going to happen when other companies start making phones with the exact same capabilities, but you get it for 0$ because you signed a 3 year, not so evasive contract?

Apple is not dominating the phone industry, and although i don't know the real numbers, i doubt they have even have 1% market yet.If Apple expects to continue to go country to country with exclusive contracts, and thinks this plan will work in the long term, they are kidding themselves..


RE: Why Apple Why?
By Anh Huynh on 10/29/2007 1:41:35 PM , Rating: 2
I pay $85 a month, thats no worse than what I was paying for my Cingular 8525 with essentially the same plan. The $85 I paid for the Cingular 8525 was with a Student/Employee discount, without it, I'd have to pay close to $100. So the plans are quite fair for what they are.


RE: Why Apple Why?
By omnicronx on 10/29/2007 1:47:54 PM , Rating: 2
Ya, and i pay 75$ Canadian a month, have a data plan, and i got an e6800 for 100$, but it had a 100$ mail in, so it came to $0. Now of course our plans our about the same, but i got my phone for free. When iPhone clones start popping up, apple is going to have to change their business strategy, or they risk slipping into an even smaller niche market than they are already in.


RE: Why Apple Why?
By KingViper on 10/29/2007 2:53:13 PM , Rating: 2
Doesn't compare. I'm with sprint and pay $41 a month for unlimited data, free sprint to sprint, unlimited texts, free nights and weekends, etc. That includes the insurance costs.

Plus my phone was free.

You can't tell me $85 a month isn't any worse than what other companies have to offer.


RE: Why Apple Why?
By Anh Huynh on 10/29/2007 3:21:57 PM , Rating: 2
But isn't that the SERO plan?


RE: Why Apple Why?
By KingViper on 10/29/2007 4:34:21 PM , Rating: 2
Yes, but he was using a student discount before?

I can use any phone I want with this plan, so I don't think that should matter. Also, anyone can get the SERO plan.


RE: Why Apple Why?
By Oregonian2 on 10/29/2007 2:51:42 PM , Rating: 1
quote:
As a consumer, I am in control. I can choose to take the $400 that would be spent on an iPhone and take it to a rival vendor or carrier. No one is forcing you to buy an iPhone.


Just a comment that Microsoft gets absolutely nowhere using that argument about people being free to spend their money on other company's products. Nowhere at all. Zilch.


"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad

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