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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 maverick85wd on 10/29/2007 1:49:44 PM , Rating: 3
Quite... but also, most people don't care. One of my friends has an iPhone and I was telling him about the whole third-party software debate, the whole AT&T upset, and basically why I don't own one. His response was basically that his iPhone worked fine, that he didn't mind AT&T, and that he loved it, even after I tried to explain what his iPhone was capable of if Apple would allow others to unlock it's potential. Basically, he didn't understand that the ability to install third-party software could open up new functionality that he had never thought of... most people don't really know what it's all about so they don't care. Apple wins. :-/

on a side note, I would love an iPhone but refuse to put up with their over proprietary mind-set. Apple has wonderful products that are very innovative, but they are a little over-priced and they don't allow the user the freedom to do what they want with their products. Too bad to, they have such potential.


RE: Why Apple Why?
By Anh Huynh on 10/29/2007 3:25:02 PM , Rating: 2
Everyone I know with an iPhone is happy with theirs.

Third-party apps are nice, but for the most people, me included, the wow factor doesn't last that long. I installed apps, didn't use anything besides the default iPhone apps. A lot of my friends are the same.

The third party apps are nice to have but not necessary a necessity. Not to mention the apps crash the iPhone like hell.


RE: Why Apple Why?
By maverick85wd on 10/29/2007 4:10:08 PM , Rating: 2
it should still be up to the user whether or not they are used... bricking someone's phone because they have third-party software installed is, in my opinion, unacceptable.

but I see where you're coming from


RE: Why Apple Why?
By Anh Huynh on 10/29/2007 4:18:18 PM , Rating: 2
Yes, but if they "officially" allow it, users will turn to them for repair, warranty when the third party applications kill their iPhone.

Users will not blame the application, they will blame Apple.


RE: Why Apple Why?
By maverick85wd on 10/29/2007 4:57:02 PM , Rating: 2
there is quite a difference between saying the warranty is void if third party applications are installed and releasing an update that renders your phone permenantly disabled if you use third party software.

and if they didn't brick phones with third party software you may actually have legit software companies produce some useful applications that are well written and actually do NOT harm your phone


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