AT&T iPhone Q&A for Employees

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Engadget mobile (http://www.engadgetmobile.com/2007/04/25/iphone-qanda-for-atandt-employees/) posts an internal AT&T employee Q&A document on Apple's upcoming iPhone.

The document essentially rehashes known information but the highlights includes:

•*Availability June 2007
• 4GB $499, 8GB $599.
• Available in Cingular company-owned retail stores, direct mail, Apple stores, and Apple.com
• "No subsidies are being offered on the phone at this time"
• Access to Cingular's MyAccount via the device and the iTunes site.
• Rate plans will be detailed closer to launch

[atari1356]

Nothing new there, but good to know it's still on target for June.

[papaburgundy]

you can access itunes?

[shecky]

you can access itunes?

you administer and sync the iphone thru itunes the same way you administer and sync an ipod thru itunes.

[LillieDesigns]

I hate when I already know "breaking news."

[craigverse]

Access to the iTunes site? The iTunes site is the iTunes store. It's not as if you'd have access just to see what you can't buy... right?

Nevermind, I missread it. You can access your cingular bill info through iTunes running on your computer. That sounds like a good thing though. Yay.

[papaburgundy]

just misread it, thanks.

[mikeinternet]

• Access to Cingular's MyAccount via the device and the iTunes site.


that doesn't mean you can pay your bill through itunes? does it?

[05elstonc]

Some people may disagree, but no subsides is fantastic news. I am sure cingular wanted to subsidize the hell out of the phone in order to push more units up front and therefore reduce the bargaining power of Apple on affordable and fair Voice and Data plans.Furthermore this is the real cost of the hardware + Apple's 20-30% margins. This is amazing! So much technology in $500 and $600 .5" package. Not $1k+ that many people originally thought. Now Apple can make price cuts whenever they want without consulting with Cingular. Now that Apple has put a stake in the ground about retail pricing they can demand that cingular make a fair and streamlined Voice+Data system.

Also being able to manage my cingular account through iTunes is great news, this means Apple will have an impact on the steps and we should see a MUCH improved system to sign up for service for a phone purchased in an Apple Store on through Apple.com.

[runplaysleeprun]

Ah, I made a post about this and was beaten by 2 minutes. bummer.

[PlaceofDis]

i guess its good to know that nothing's really changed so far.
and as we get closer to launch i'm guessing we'll be hearing more and more details from things like this. since they're going to need/want the employees up to speed on the device once its released.

[Sandfleaz]

No subsidies, thats good for Apple stockholders!

[05elstonc]

No subsidies, thats good for Apple stockholders!

How so? Either the consumer pays the full price or AT&T pays full price. The only way would be if Apple gave cingular a discount for buying in bulk.

[bidwalj]

agree.....this is great news for people already on contract. wont have to deal with cingular to get this phone. also, it makes more sense for people signing up for new service to get a subsidized phone now and sell it to purchase the iphone. atleast that way you get some kind of price break.


Some people may disagree, but no subsides is fantastic news. I am sure cingular wanted to subsidize the hell out of the phone in order to push more units up front and therefore reduce the bargaining power of Apple on affordable and fair Voice and Data plans.Furthermore this is the real cost of the hardware + Apple's 20-30% margins. This is amazing! So much technology in $500 and $600 .5" package. Not $1k+ that many people originally thought. Now Apple can make price cuts whenever they want without consulting with Cingular. Now that Apple has put a stake in the ground about retail pricing they can demand that cingular make a fair and streamlined Voice+Data system.

Also being able to manage my cingular account through iTunes is great news, this means Apple will have an impact on the steps and we should see a MUCH improved system to sign up for service for a phone purchased in an Apple Store on through Apple.com.

[05elstonc]

agree.....this is great news for people already on contract. wont have to deal with cingular to get this phone. also, it makes more sense for people signing up for new service to get a subsidized phone now and sell it to purchase the iphone. atleast that way you get some kind of price break.

Right! There has to be a benefit for consumers if they are required to sign a 2 year contract. Without a subsidy as bait cingular needs to give something. I am sure Steve is pushing as hard as he can, he has upheld his end of the bargain, an amazing phone, now cingular needs to pony up the goods.

[BlakTornado]

Still no news on when it will be released anywhere else in the world =\

[GanleyBurger]

www.IphoneRumors.com:eek:

[Cygnus311]

and everyone thought the PS3 was priced too high at these prices...

[Egomaniac]

How so? Either the consumer pays the full price or AT&T pays full price. The only way would be if Apple gave cingular a discount for buying in bulk.

The question is "What is the total price of phone + 2 years of service?". Historically, the phones have been dirt cheap (sold at a loss), with the hardware loss recovered via locking people into astronomically high rate plans. Because every carrier is using that strategy, and consumers are usually incapable of thinking more than a month ahead, they don't realize the extent to which they are being raped. For instance Cingular's current unlimited data plan is something like $60 / month, on top of the already-expensive voice service. When I found that out, I started second-guessing the idea of getting an iPhone.

But from this email, it sounds like Cingular may be introducing new plans specifically for the iPhone. This can only be a good thing -- it sounds like you might pay more up-front for the iPhone, but get cheaper service plans. In the long run, this could potentially yield a much cheaper phone than the competition.

I for one am completely willing to fork over $600 for a phone, if the monthly charges are lower. I'm tired of the current "free phone, but $120 / month for the service you need!" crap. This is especially true of Cingular's data service, which is abolutely ridiculous -- I used to have unlimited data access for $20 / month, so Cingular's prices are astronomical. And, of course, it wouldn't make sense to have an iPhone and not get data service... here's hoping they do something more sensible with the price.

[05elstonc]

But from this email, it sounds like Cingular may be introducing new plans specifically for the iPhone. This can only be a good thing -- it sounds like you might pay more up-front for the iPhone, but get cheaper service plans.

I for one am completely willing to fork over $600 for a phone, if the monthly charges are lower. I'm tired of the current "free phone, but $120 / month for the service you need!" crap. This is especially true of Cingular's data service, which is abolutely ridiculous -- I used to have unlimited data access for $20 / month, so Cingular's prices are astronomical. And, of course, it wouldn't make sense to have an iPhone and not get data service... here's hoping they do something more sensible with the price.

I agree completely, that is news indicates that Cingular is reconsidering its data and voice plans and may be willing to be the low cost leader in the industry in order to drive consumers to Cingular for good. $20 for unlimited Data seems like a great place to start.

[twoodcc]

Nothing new there, but good to know it's still on target for June.

i agree. hopefully more info will be available closer to launch

[richard4339]

The data plans are horrific on any carrier... Verizon wants more per month for data than I pay for 3 lines of service! And Cingular is more expensive than Verizon.

My contract with Verizon is up in June, and I was seriously considering an iPhone... its still the same up-front cost as the Treo 700 would be for me (which I was leaning towards before the iPhone) with a new contract. The thing is, I don't know if I want to deal with Cingular...

[05elstonc]

They just announced a new NYC store that will be in the Meat Packing District. WOW 3 apple stores in NYC is pretty amazing.

[Darkroom]

• Access to Cingular's MyAccount via the device and the iTunes site.


i wasn't aware that you could access the iTunes website with the iPhone... that's pretty groovalicious...

[jblodgett]

The question is "What is the total price of phone + 2 years of service?". Historically, the phones have been dirt cheap (sold at a loss), with the hardware loss recovered via locking people into astronomically high rate plans. Because every carrier is using that strategy, and consumers are usually incapable of thinking more than a month ahead, they don't realize the extent to which they are being raped. For instance Cingular's current unlimited data plan is something like $60 / month, on top of the already-expensive voice service. When I found that out, I started second-guessing the idea of getting an iPhone.

But from this email, it sounds like Cingular may be introducing new plans specifically for the iPhone. This can only be a good thing -- it sounds like you might pay more up-front for the iPhone, but get cheaper service plans. In the long run, this could potentially yield a much cheaper phone than the competition.

I for one am completely willing to fork over $600 for a phone, if the monthly charges are lower. I'm tired of the current "free phone, but $120 / month for the service you need!" crap. This is especially true of Cingular's data service, which is abolutely ridiculous -- I used to have unlimited data access for $20 / month, so Cingular's prices are astronomical. And, of course, it wouldn't make sense to have an iPhone and not get data service... here's hoping they do something more sensible with the price.


A year ago, when I bought my cingular 8125, the phone itself was $299 -- and by buying it at the same time I signed up for a 2-year plan, I got a $50 rebate. By also agreeing to sign up for the cingular data plan at $39.99 a month- I got another $50 rebate.

Are you interpreting this to mean that any joe blow can log into the Apple store and buy an iPhone? i.e. -- even as a current cingular customer with over a year left on my plan- I could buy an iPhone and switch to it as my main cell?

I am not sure I have seen anyone confirm that - and I don't quite interpret this information that way. I suspect a person who buys the iPhone will still have to buy a 2-year plan from Cingular.

[shamino]

This Q/A caught my eye:
Q: If a customer is at the end of their contract prior to launch and want to wait to upgrade, what should I do?
A: If a customer is at the end of their contract or is no longer on a contract and wants to wait to upgrade the phone, we will allow this. QA scores will not be reduced for allowing the customer to wait to extend their contract in this scenario.
How magnanimous. They will permit customers to choose to not renew a contract if, and only if, they say they are waiting for an iPhone. And if the customer wants to wait for any other reason, they are supposed to do what? Break his legs so he can't leave the store? Hold his children hostage?

And if the customer flat-out refuses to renew at that moment, the support person is actually penalized!

Maybe all carriers do this, but this seems like an incredibly sleazy corporate policy. This is something I'd expect from a criminal syndicate. I guess I've just answered my own questions - wireless carriers are criminal syndicates.

[jblodgett]

My apologies...

I totally missed that portion of the internal document that said, "An existing customer can purchase the iPhone for the same price as a new customer." Of course-- it looks like to do so you have to "re-sign" for 2 years.

Oh well, that is still good news for me.

Goodbye home phone in June.

[Gators Fan]

Question: Will the subscriber need, in addition to a "plan" from Cingular for telephone service, an additional "Internet-access" plan (similar to what's now required to use a Blackberry)? If so, that could be the deal-breaker for many would-be users.

[SiliconAddict]

I'm sorry but even if this wasn't tied to Crapular, and wasn't a version 1.0 device from Apple who has no experience with cell phones; I'm NOT spending half a grand on a phone. Just as I'm not spending half a grand on a game system either. $300 is the absolute MAX I would spend on a device that is going to get bumped around, manhandled, used, probably dropped occasionally while I'm trying to do something, etc. The phone would look like a fashion model who got her face smashed in by Mike Tyson by the end of the year. I'm not intentionally hard on my phones, but I do USE them.

[SiliconAddict]

i wasn't aware that you could access the iTunes website with the iPhone... that's pretty groovalicious...

Note that its the iTunes WEBSITE. http://www.apple.com/itunes/

Which has nothing to do with any contend.

[nbs2]

[/INDENT]How magnanimous. They will permit customers to choose to not renew a contract if, and only if, they say they are waiting for an iPhone. And if the customer wants to wait for any other reason, they are supposed to do what? Break his legs so he can't leave the store? Hold his children hostage?

And if the customer flat-out refuses to renew at that moment, the support person is actually penalized!

Maybe all carriers do this, but this seems like an incredibly sleazy corporate policy. This is something I'd expect from a criminal syndicate. I guess I've just answered my own questions - wireless carriers are criminal syndicates.

It is general corporate policy - the best way to increase earnings is to push consumers to extend contracts/buy new items/etc. This must be a big enough deal to ATT that that they are willing to cut their employees some slack while people wait for the launch (which also hints that ATT is expecting a pretty large response).

Pushing your employees to make sales isn't the nicest thing, but selling to the customer sometimes demands putting pressure...

[jesteraver]

still only 4gb and 8gb version.

yup i'll be waiting a while for like 16 or 32gb version

[matticus008]

agree.....this is great news for people already on contract. wont have to deal with cingular to get this phone.
Why? No subsidy doesn't necessarily mean no contract. If the only way to get the iPhone is to sign up for Cingular service, you'll still have to deal with Cingular. It's just like buying a phone on Amazon. The service signup is part of the checkout procedure.

A year ago, when I bought my cingular 8125, the phone itself was $299 -- and by buying it at the same time I signed up for a 2-year plan, I got a $50 rebate. By also agreeing to sign up for the cingular data plan at $39.99 a month- I got another $50 rebate.
The phone was also subsidized. The unlocked version of that reference design sold for $550-600 a year ago (I always look at the market price when considering to sell my phones). I purchased a similar device (an MDA Vario) about two years ago, when the unlocked and unsubsidized ones were retailing at well over $700. In the end, I decided to keep it to wait for the iPhone.
even as a current cingular customer with over a year left on my plan- I could buy an iPhone and switch to it as my main cell?
You could buy an iPhone and start a new contract effective that date, like all other midterm upgrades.
They will permit customers to choose to not renew a contract if, and only if, they say they are waiting for an iPhone. And if the customer wants to wait for any other reason, they are supposed to do what? Break his legs so he can't leave the store? Hold his children hostage?
I don't think that Q&A means what you think it means. There's certainly no iff in it. It's a CSA question asking what to do (in other words "do I do what I'm expected to do--get them to renew--and how do I go about offering the iPhone to them?"). They can't stop you from choosing not to renew your contract; this is not a Q&A for customers.
And if the customer flat-out refuses to renew at that moment, the support person is actually penalized!
What else is new? CSAs compete on customer retention and get incentives for number of contracts signed (and penalized for losing customers). You might recognize these as commission-based pay if their wages were based on this performance. These are the typical bonus incentives for motivation (and to cull the herd of underperformers), and I'd venture a guess to say that most major retailers do it (extended care warranties, for example). Since this is an internal document, of course they are going to be concerned about whether they should try to get a renewal that day or whether they can commit customers to iPhone preorders.

The answer to both of those questions is "no" and that's illuminating, if you're a member of the target audience.

[nagromme]

One more Positive vote here :) I do NOT want a subsidized phone to save me a couple hundred up front, only to pay through the nose every month FOREVER.

I WILL accept a contract in exchange for lower monthly rates. That's how my DSL, web hosting, and most other services work. As long as the monthly rates are low enough, I will deal with a 12- or 24-month commitment.

[jblodgett]

I'm sorry but even if this wasn't tied to Crapular, and wasn't a version 1.0 device from Apple who has no experience with cell phones; I'm NOT spending half a grand on a phone. Just as I'm not spending half a grand on a game system either. $300 is the absolute MAX I would spend on a device that is going to get bumped around, manhandled, used, probably dropped occasionally while I'm trying to do something, etc. The phone would look like a fashion model who got her face smashed in by Mike Tyson by the end of the year. I'm not intentionally hard on my phones, but I do USE them.


How much would you spend for a full-screen iPod with a multi-touch screen? $250? $300?

How much would you spend for a phone with an on-screen multi-touch keyboard, all the apple OS goodies, etc. $250? $300?

Combine them both and you've got the iPhone.

Personally, I think it's price point is about right. It's probably a bit overpriced, but so is everything apple designs/manufactures.

[jblodgett]

Question: Will the subscriber need, in addition to a "plan" from Cingular for telephone service, an additional "Internet-access" plan (similar to what's now required to use a Blackberry)? If so, that could be the deal-breaker for many would-be users.


I would imagine that is how it will work.
Sure - you can probably pass on the data plan, and just use the phone and the iPod.

But then you won't be able to use the cool picture-voice mail function! :P
As I've said way too many times- when I bought my cingular 8125 last year- I bought cingular's data plan for $39.99 a month. I would guess the data plan will be about the same.

Now-- in reality- that's not a tremendous cost - if you really need it. If your life/business depends on your ability to access your emails- then that cost is not prohibitive. If you aren't depending on the ability to read/respond to emails whereever you are, whther you are near a computer or not- then it's probably an excess.

Ultimately, I decided I just didn't need it that much -- and cancelled it. The phone still works. I can still get my emails and everything via wifi. I can still sync it with my computer/calendar. I still have all my contacts/etc. But I can't be walking through the airport, scrolling through the emails that just downloaded after I turned my phone back on anymore. And I have $40 more in my pocket each month.


I have a hard time believing cingular/AT&T is going to suddenly abandon their data pricing plan, just because of Apple's phone -- unless Apple is giving AT&T a portion of the proceeds of each iPhone sold.

[Eriden]

More than a few positive comments from people who are assuming that iPhone's unsubsidized price somehow means that Apple & Cingular will be offering a great deal on the accompanying rate plan. AT&T/Cingular has the worst value in the data plans they currently offer. I don't see them suddenly changing their ways to offer iPhone customers great voice/data packages.

Apple's attitude regarding the iPhone has and continues to be one of promoting the device as a revolution in the mobile communications arena worthy of premium pricing. There has been zero substantive evidence suggesting that their approach to monthly rates will be anything less than premium as well.

Until Apple & Cingular actually release the pricing scheme for the iPhone voice and data plans, I'm reserving judgment on whether the device will be a real revolution. And to the poster who mentioned waiting for a 16 or 32 GB version.. I'm with you. For serious video-iPod functionality, 8GB seems less than optimal and 4GB seems downright laughable.

[thtech]

Yesterday I called Apple inc and told them that stores in my local area where providing false information to customers. this memo provides the answers to all the information that was being speculated by the AT&T employes

[peharri]

I'm having difficulty believing Cingular will offer a discount rate plan.

So it'll be unsubsidized, but as Cingular and Apple have confirmed separately, it will also be locked to Cingular. Great. Worst of all worlds. Unless you're Cingular.

[Rod Rod]

This is good news. The train's running on time and all.

I'm glad this thread hasn't devolved into a debate about the existence of the iPhone, and also that everyone so far has had the good sense to not claim it's "outdated before it's even released."

[i_am_a_cow]

Now-- in reality- that's not a tremendous cost - if you really need it. If your life/business depends on your ability to access your emails- then that cost is not prohibitive. If you aren't depending on the ability to read/respond to emails whereever you are, whther you are near a computer or not- then it's probably an excess.

That is a huge cost. How much does Cingular make on that? The internet and email aren't just for white collar jobs anymore, they are for real people, and real people can't afford to pay $80 a month for a cell phone with limited minutes. That is very expensive. In other countries it costs far less than that for internet/voice usage. Why should you pay $50 for internet at home, plus $25 for home phone, plus $39 for (slow) internet on your phone plus $39 for voice? That is outrageous, not to mention that you are tied up in the plan.

I recently saw an ad for Qwest that said "Qwest Highspeed only $50/month for life!" These companies are killing us. 1.5 Mbps download (it didn't guarantee that for uploads...) at $50 is a ripoff, and so is $39.99 for garbage internet on your cell phone. People like you who say "well it isn't that bad" are limiting the advance of better communication technology in the future by letting these ******** corporations charge you up your ass for poor quality services.

Apple is supposed to release a video conferencing iPhone in the future (I remember hearing about Steve Jobs testing it or whatever), but who the ***** wants one of those if everyone doesn't have one, and how is everyone supposed to get one if the ******** phone company (not companies, we deregulated, remember?) charges enough so that only the upper middle class can afford them?

The same thing happened with normal cell phones. Cell phones are somewhat necessary now to keep up with everyone else, because everyone has a cell phone, and poor people have to bust their asses to afford low quality services. This isn't cool.

[jblodgett]

That is a huge cost. How much does Cingular make on that? The internet and email aren't just for white collar jobs anymore, they are for real people, and real people can't afford to pay $80 a month for a cell phone with limited minutes. That is very expensive. In other countries it costs far less than that for internet/voice usage. Why should you pay $50 for internet at home, plus $25 for home phone, plus $39 for (slow) internet on your phone plus $39 for voice? That is outrageous, not to mention that you are tied up in the plan.

I recently saw an ad for Qwest that said "Qwest Highspeed only $50/month for life!" These companies are killing us. 1.5 Mbps download (it didn't guarantee that for uploads...) at $50 is a ripoff, and so is $39.99 for garbage internet on your cell phone. People like you who say "well it isn't that bad" are limiting the advance of better communication technology in the future by letting these ******** corporations charge you up your ass for poor quality services.

Apple is supposed to release a video conferencing iPhone in the future (I remember hearing about Steve Jobs testing it or whatever), but who the ***** wants one of those if everyone doesn't have one, and how is everyone supposed to get one if the ******** phone company (not companies, we deregulated, remember?) charges enough so that only the upper middle class can afford them?

The same thing happened with normal cell phones. Cell phones are somewhat necessary now to keep up with everyone else, because everyone has a cell phone, and poor people have to bust their asses to afford low quality services. This isn't cool.


I hate to rain on your parade, but nothing in life is free.

Apple and AT&T aren't in the business for charity. They are in the business to make money. Nobody is saying that you, or anybody else, has to buy an iPhone. Nobody is saying you have to sign up for AT&T's $40 data plan. This isn't communist China. If you don't like it - you don't have to buy it.

These items will sell for whatever the market will allow. At their release, they will sell like crazy - and Apple/AT&T will be fully justified in their price. As they die down some, no doubt incentives will be offered to keep people buying. That is called free-market economy and it is one of the things that makes the USA great.

I don't think these types of prices are "limiting" anything. You want the technological market to move forward you have got to have some competition. Right now there is NO competition for apple's iPhone. 9 months from now there might be. 2 years from now there might be 10 different iPhones. Remember when the Motorola Razr first came out? They were expensive as hell. Now you can get them for free.

[matticus008]

I recently saw an ad for Qwest that said "Qwest Highspeed only $50/month for life!" These companies are killing us. 1.5 Mbps download (it didn't guarantee that for uploads...)
It doesn't guarantee anything, up or down. Consumer Internet bandwidth is a "best case" rating. If you're getting poor speeds, too bad for you--if you need guaranteed and dedicated bandwidth, you have to pay for a SLA.
People like you who say "well it isn't that bad" are limiting the advance of better communication technology in the future by letting these ******** corporations charge you up your ass for poor quality services.
And you would suggest what as an alternative course of action? The price is set at what people will pay, plain and simple. If you want to boycott Internet service in general, have fun, but the rest of us need it more than we need the $40.

If you want lower prices, you'll need to stir up competition in the provider-side market place while simultaneously providing profit vectors. The companies aren't going to get into an unwinnable price war if they have no other source of revenue. The US telecommunications infrastructure is very old and very extensive--part of the problem with being first is that it means you're not always the best. It was more expensive per unit the first time it was done, and it covered more area--in other words, we already spent a huge amount of money on it, and spending a huge amount of money to replace it will take a lot more time and money.

I'd welcome lower prices, too. But I'm not suffering from a delusion that prices are going to get cut in half and bandwidth will double just because people want it.
Cell phones are somewhat necessary now to keep up with everyone else, because everyone has a cell phone, and poor people have to bust their asses to afford low quality services. This isn't cool.
Isn't that the definition of poor? If you can't afford what average people can, you're poor. If you can afford it more easily, you're wealthy. That's never going to change. Only the standards change.

Once, "poor" meant that you couldn't afford decent, healthy food. If "poor" now means that you can't afford a $600 phone or a flipping data plan on a cellular telephone, that sounds like progress to me. A basic cell phone with pay-as-you go service is accessible to nearly everyone. Complaining that poor people can't afford premium and luxury goods is a bit ridiculous.

Are telecommunications products overpriced in this country? Sure. Is there a huge income gap? Absolutely. Should the less fortunate have guaranteed access to basic services and the ability to survive? Definitely. Does that include cellular data plans and high-priced luxury electronics? Of course not.

[Cult Follower]

I really like to hear that it is on track, but I want to know more.

[sew214]

Forgive me if those are obvious questions, but I've been trying to find the answers to these questions but I don't understand a lot of computer jargon. Thanks in advance for your help!

1) Does the Internet work on iphone anywhere that a cellphone works? Or does it only work wirelessly? In other words, would I be able to use the internet in a car, if I'm not in range of a wireless connection?

2) I am a current Cingular customer. I will be halfway through my 2 year contract in June. Will I be able to buy the Iphone with this contract? Would I just extend my current contract for 2 years? Or would I have to purchase a NEW contract and buy out my current one? I hope that's not the case.

Thanks!

[igetit]

I wish T-Mobile offered the iPhone. I currently have a Blackberry Pearl and my unlimited data package is only $19.95. Nevermind I had a company cell phone with Cingular service and honestly "What a joke" :rolleyes: . I ended returning it and getting my own Blackberry.

[seashellz]

well, I hope APPLE doesnt screw this up like they did with HP-
HP gave them very good "prescence" in places you wouldnt expect.
COSTCO, FRED MEYER, other middle brow store.
HPs arm reaches everywhere, far beyond where APPLE can go, for now.
Very dumb mistake.