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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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you dont get the business guys
By cwb4tx on 10/29/2007 11:08:11 PM , Rating: 2
Apple gave ATT exclusivity for 2 reasons:

1) ATT agreed to help insure the CELL PHONE software was STABLE. Apple is not a cell phone company and had to rely on a primary cell network + software to be a good product. If Apple had just went their own way with an independant product it would likely have had many more problems on all networks, each unique to that networks supplimentary services. In other words it may easily have been a complete failure and everyone here would be gossiping at what a mistake it was for apple to get into the cell phone arena. Motorla STILL make sutter fools of themselves with a lot of cell phone projects. Trust me, I worked for them and then with them for a lot of years on this stuff..

2) the ATT deal enabled Apple to account for the cost of the project with intent to order from ATT. It costs a HUGE amount of money to develope a cell phone. It's more complicated than a desktop because it has to have 20X the processing power (per pound) AND have much better battery life than the most efficient laptops (again per weight) It also has to perform ALMOST all the functions of a laptop.

If I were a stock holder of Apple and I saw that they were losing millions on subscription fees to ATT via hacked phones making it outside the ATT network I'd be upset. You would be to. Stockholders and net profits are the endgame here, how many or you work simply because you like it and dont care if you get paid or get a rasie. Apple deserves to be applauded for their sucess and the rants here are whining for the most part (I DO agreee the gift card contract issue is pretty valid though..)

Nuff Said..

"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive
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