Apple Denies Cash, Gift Cards for iPhone Purchases
October 29, 2007 9:42 AM
comment(s) - last by
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."
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.
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.
This article is over a month old, voting and posting comments is disabled
RE: Apple will have a problem...
10/30/2007 12:29:14 PM
Any transaction is, essentially, a contract. The details of which can be pretty much anything, including "payment only accepted in the form of ...". If you don't like the agreement, don't proceed (ie: don't buy the iPhone).
It's different in the case when money is owed - if you owe an entity money, they cannot (in a contractual sense) refuse cash to settle the debt. This is why restaurants, for example, pretty much have to accept cash. If they don't you can simply walk off - you still owe them for the meal of course, but since it is they who have refused legal tender for the debt, they can't hit you for anything other that the debt owed at that point in time (ie: no interest, "administration costs", etc). Essentially the debt is frozen at the time they refused payment.
This does create a slight loophole, in that you can make a contract and then simply refuse to pay in anything but cash. If the seller then sues you for breach of contract, the decision will almost certainly go against you, and you will legally be in debt to the seller, a debt for which the seller must then accept cash for. Of course, you'd have to be stupid to do so since you'd probably get hit up for costs as well, but the option is always there.
In the case of a retail sale, the contract is the customer offering to buy an item. There's various implications to this, such as the price tag shown in the isle holding little legal weight. The seller can refuse the offer on pretty much any grounds - it's the last one left, the person is wearing a green shirt, it's raining, etc etc. They can also refuse it if they don't like what's being offered in exchange. Importantly, there is no contract until the seller accepts the offer, which is taken to be after they have accepted the payment (which is *after* you have handed over the form of payment, so if you hand over a fake bill and the seller spots it, there's still no contract yet). Until then, there is no contract to breach, so there's no loophole there.
The best you could do would be to get the seller to explicitly sign a bit of paper saying that they'll give you an iPhone for $400 (or whatever the price is now), take the iPhone, and then try to pay in cash. Note that it's important that you take the iPhone, otherwise you'll have to sue them for breach of contract, which probably won't work out so well ...
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
iPhoneSimFree Team Releases iPhone 1.1.1 Unlocker, Unbricker
October 11, 2007, 12:52 PM
Apple Sells 525,000 iPhones in Three Days
July 2, 2007, 12:00 PM
HP to Launch Smartwatch Designed by Michael Bastian
August 1, 2014, 9:59 AM
New Qi Version 1.2 Allows Wireless Charging From 2 Inches Away
July 31, 2014, 3:53 PM
HTC J Butterfly Announced by Japan's KDDI, Packs LTE-A Carrier Aggregation
July 31, 2014, 2:34 PM
T-Mobile Subscriber Numbers Surpass 50 Million, Sees Q2 Profit of $391M
July 31, 2014, 12:24 PM
Verizon Wireless Launches 5.7", 960x540 LG G Vista Smartphone for $400 Off Contract
July 31, 2014, 11:02 AM
Mini-Me: Xperia Z3's Petite Companion, Xperia Z3 Mini Leaks
July 31, 2014, 9:40 AM
Most Popular Articles
Facebook Will Force Android, iOS Users to Use Messenger App This Week
July 29, 2014, 11:26 AM
Ford's Extensive Use of Aluminum in '15 F-150 Results in $395 Increase for Base Models
July 28, 2014, 3:02 PM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
T-Mobile CEO John Legere is on the Warpath Again; Introduces $100, 10GB Family Plan
July 28, 2014, 10:12 AM
UK Drivers Must Now Give Their Cell Phones to Police After a Crash
July 29, 2014, 4:37 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information