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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: Apple will have a problem...
By Murst on 10/29/2007 11:21:48 AM , Rating: 3
Just because Apple puts something like this doesn't mean that it is valid.

On July 18th, 2007, in Douglas vs. Talk America, the judge ruled that a company simply cannot change its terms of service (by posting an updated version on their website).

Link: http://pub.bna.com/eclr/0675424_071807.pdf

Although this was not about gift cards, it wouldn't be a stretch to consider this as a precedent for all similar wording in contracts.

In any case, Apple still has NOT changed their terms and conditions, and according to Apple's latest terms and conditions, you can use the gift card to purchase the iPhone.


By crystal clear on 10/29/2007 8:37:46 PM , Rating: 2
Apple has the $$$$$ to fight you in court with those high priced lawyers who certainly know "How to get their way around-& get what they want".

For them both lawsuits & courts are part of daily routine,nothing new that would upset them.

For the ordinary buyer LAWYERS are an expensive affairs-they certainly dont come cheap.

Nor do these ordinary buyers have the TIME for such things & look for a PRACTICAL & CONVIENIENT solution for such things.

The example you gave even though relevant doesnt always hold in every court/state-interpretations by judges/jury vary or differ.

Gift card holder/s dont hold cards worth 10s of thousand dollars per person.
Indivisual claims are very small indeed..

Yes a class action suit started by some lawyer out to make a big buck is possible,but the outcome is ....wait & see....
certainly a long & time consuming process....the results unknown.


"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

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