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AT&T screwing Apple out of sales?

DCIFRTHS

DCIFRTHS

macrumors 65816
Original poster
Jan 25, 2008
1,406
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Had a chat with an AT&T rep online, and I was told that I can not get a Next phone in the Apple store. it has to either be a subsidized (2 year contract) or a fully unlocked phone (at full price).

Has anyone bought a phone at the Apple store using the Next pricing plan?

The Apple website doesn't show the Next plan when attempting to place an order either.
 
DCIFRTHS said:
Had a chat with an AT&T rep online, and I was told that I can not get a Next phone in the Apple store. it has to either be a subsidized (2 year contract) or a fully unlocked phone (at full price).

Has anyone bought a phone at the Apple store using the Next pricing plan?

The Apple website doesn't show the Next plan when attempting to place an order either.
Click to expand...

I'm positive the next program won't be available at BestBuy or other electronic stores either [correct me if I'm wrong] because carriers have to give commission to who ever is processing the order.

They are able to offer commission on the 2year contracts because Carriers did make ton of money thanks to their high priced phones. Now that the fee's have been split, the consumer is paying for the phone over monthly payments and paying the carrier for their service plan....from which I don't think carriers can afford to share their profits.

I could be entirely wrong but thats what I speculate.

last time I checked Bestbuy did not have the JuMP program available from T-Mobile....only their 2 year subsidy was available.
 
goobot said:
How is this screwing apple exactly? I doubt apple allows carriers to offer such in their stores.
Click to expand...

Apple will sell less phones if the AT&T Next/Verizon More equivalent program takes off. Add in the lost Apple Care contracts, and you have le$$ money coming in the door. Not exactly someting Apple tales lightly...

Apple is getting full price for the phone regardless of what the customer pays. IMO, Apple would be making a mistake not allowing the carriers to offer all of their plans in the Apple stores - and online.

Okay. The title of the thread was a bit "National Enquirer", but it pissed me off that I couldn't get Next through Apple, so I started the thread.

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Samunlocks.net said:
I'm positive the next program won't be available at BestBuy or other electronic stores either [correct me if I'm wrong] because carriers have to give commission to who ever is processing the order.

They are able to offer commission on the 2year contracts because Carriers did make ton of money thanks to their high priced phones. Now that the fee's have been split, the consumer is paying for the phone over monthly payments and paying the carrier for their service plan....from which I don't think carriers can afford to share their profits.

I could be entirely wrong but thats what I speculate.

last time I checked Bestbuy did not have the JuMP program available from T-Mobile....only their 2 year subsidy was available.
Click to expand...

I'm not saying that I believe them, but BB employees I have spoken to claim they get no commission off of the cell phone contracts. They get "recognition" from what I was told, and whatever that means. I think it's the extended warranties they get bonuses for.
 
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Why does it matter? Apple sells I phones regardless of where they are bought and how they're bought.
 
You think Apple doesn't get money if a carrier sells an iPhone? What do you think Apple donates them the iPhones?
LOL I think they get paid plus the carriers all sell AppleCare as well. So I don't think Apple is losing anything.
 
rablat said:
You think Apple doesn't get money if a carrier sells an iPhone? What do you think Apple donates them the iPhones?
LOL I think they get paid plus the carriers all sell AppleCare as well. So I don't think Apple is losing anything.
Click to expand...

Agreed. Apple only loses out when the carriers DON'T push the iPhone. Last time I was in a Verizon store, the sales folks were very heavily pushing Android phones. Carriers can make more money on them VS the iPhone.
 
It's going to be very interesting to see what happens at the next iphone release.

Will people have to go to their carrier to buy Next/Edge/Jump phones or will some program be worked out with Apple or BestBuy or others? Will non-contract phones be offered on launch day or will those be delayed? (these are rhetorical questions if it wasn't obvious)

The move towards breaking subsidies out of the phone plans and offering phone financing to lessen the sting of buying a phone outright will have some secondary effects. We already see this to some degree with phone resales where you have to worry about the phone getting blacklisted when the seller doesn't pay it off and quits making payments after selling the phone.
 
The information is incorrect, at least for the Aventura, FL Apple Store.

I gave a friend the info on the NEXT program and he called AT&T to switch to the family share plan and get a 5s. The operator on the phone specifically said he could go to an Apple Store and pick up the phone through NEXT because he would be clarified as eligible in their computers that are linked to AT&T.

Well, at first the salesperson at the store didn't hear of anything about being able to do so, so he was tentatively denied. Through our persistence that he indeed should be able to purchase a phone at the store, the salesperson checked with a couple of more people and was himself surprised that it could be done. I guess we were probably one of the first people to request this option at the store since only a few people recognized the option.

If Apple says no at first, keep asking to see if anyone else in your store knows more.
 
Steve686 said:
The information is incorrect, at least for the Aventura, FL Apple Store.

I gave a friend the info on the NEXT program and he called AT&T to switch to the family share plan and get a 5s. The operator on the phone specifically said he could go to an Apple Store and pick up the phone through NEXT because he would be clarified as eligible in their computers that are linked to AT&T.

Well, at first the salesperson at the store didn't hear of anything about being able to do so, so he was tentatively denied. Through our persistence that he indeed should be able to purchase a phone at the store, the salesperson checked with a couple of more people and was himself surprised that it could be done. I guess we were probably one of the first people to request this option at the store since only a few people recognized the option.

If Apple says no at first, keep asking to see if anyone else in your store knows more.
Click to expand...

So you only paid tax on the phone, then?
 
rablat said:
You think Apple doesn't get money if a carrier sells an iPhone? What do you think Apple donates them the iPhones?
LOL I think they get paid plus the carriers all sell AppleCare as well. So I don't think Apple is losing anything.
Click to expand...

Was you message aimed at me?

Also, I didn't know that AT&T stores sell Apple Care. Are you sure about that?
EDIT: Looks like you are right! Cool.
 
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I got my iPhone 5S and iPad air using the next option with AT&T. I purchased it at a corp store as well. Couldn't at the apple store.
 
DCIFRTHS said:
Apple will sell less phones if the AT&T Next/Verizon More equivalent program takes off. Add in the lost Apple Care contracts, and you have le$$ money coming in the door. Not exactly someting Apple tales lightly...
Click to expand...

It's unlikely that they can do anything about this. Apple wouldn't bother doing business with AT&T if they weren't making money off it. I don't think Apple has the leverage to strong arm AT&T into doing their bidding.

DCIFRTHS said:
I'm not saying that I believe them, but BB employees I have spoken to claim they get no commission off of the cell phone contracts. They get "recognition" from what I was told, and whatever that means. I think it's the extended warranties they get bonuses for.
Click to expand...

A lot of sales people will tell you whether or not they work on commission. If they don't, you can probably google it. The question comes up somewhere and a former employee responds.
 
thekev said:
It's unlikely that they can do anything about this. Apple wouldn't bother doing business with AT&T if they weren't making money off it. I don't think Apple has the leverage to strong arm AT&T into doing their bidding...
Click to expand...

Apple was able to strong arm AT&T AND Verizon into allowing them access into the carriers valuable database of customers, and also allow Apple to offer direct technical support to the customer. Not sure why Apple wouldn't be able to resell a seemingly innocuous plan that the carrier offers...
 
DCIFRTHS said:
Not sure why Apple wouldn't be able to resell a seemingly innocuous plan that the carrier offers...
Click to expand...

I didn't say they could or couldn't sell it, and it may not be as one sided as you think. I said that at this point they will not pull the iphone from AT&T over something like that. The initial investment to get things up and running with AT&T was paid long ago, and it's likely that they still represent a profitable customer. The terms themselves specify "qualifying smartphones" rather than all. They probably exclude any that break the business model of that plan due to upfront costs.
 
xcrunner said:
So you only paid tax on the phone, then?
Click to expand...

Yes. The same way you do the NEXT upgrade through AT&T.

It is brand new so don't expect it to be challenge free getting Apple to get it all worked out.

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ahfu25 said:
I got my iPhone 5S and iPad air using the next option with AT&T. I purchased it at a corp store as well. Couldn't at the apple store.
Click to expand...

Apple Stores are authorized to sell them to NEXT customers(they collect state sales tax only). You have to get a knowledgable rep to handle it.

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DCIFRTHS said:
Had a chat with an AT&T rep online, and I was told that I can not get a Next phone in the Apple store. it has to either be a subsidized (2 year contract) or a fully unlocked phone (at full price).

Has anyone bought a phone at the Apple store using the Next pricing plan?

The Apple website doesn't show the Next plan when attempting to place an order either.
Click to expand...

Try a different AT&T rep on another call. It IS possible. I went with a friend to Aventura Apple in FL to get it done and they weren't aware themselves that you could do so. But eventually someone with the right information came through and got it done.
 
Steve686 said:
Yes. The same way you do the NEXT upgrade through AT&T.

It is brand new so don't expect it to be challenge free getting Apple to get it all worked out.

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Apple Stores are authorized to sell them to NEXT customers(they collect state sales tax only). You have to get a knowledgable rep to handle it.

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Try a different AT&T rep on another call. It IS possible. I went with a friend to Aventura Apple in FL to get it done and they weren't aware themselves that you could do so. But eventually someone with the right information came through and got it done.
Click to expand...

Just tried again. Here's an excerpt from my chat. Obviously names have been changed.

Me: Is the Next plan available in the retail Apple sotres?
AT&T Rep: Yes, it is.
Me: I was told earlier that it wasn't???
AT&T Rep: I'm sorry, but that plan can only be set up at an AT&T store.

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thekev said:
...I said that at this point they will not pull the iphone from AT&T over something like that...
Click to expand...

I agree, and I never implied or suggested that either.
 
How is it going to work for someone who already has a Next phone and wants to upgrade when the new iPhone comes out?

Don't they have to give ATT their old Next phone back?

Think Apple's going to want to get into collecting them for ATT?
 
DCIFRTHS said:
I agree, and I never implied or suggested that either.
Click to expand...

I wasn't intentionally going for an overly extreme example. Their next phone plan is really kind of a marketing gimmick. Aside from the iphone, I suspect the limitation applies to many of the Android and Windows phones that are comparable in pricing. It may simply not add up to the desired margins for AT&T. Apparently someone else on here had some luck getting that approved. I hope you get yours approved.
 
True, but I'd guess the majority of phone owners will be trading theirs in when they upgrade. To me, this will make upgrading at places other than ATT difficult.
 
aristobrat said:
How is it going to work for someone who already has a Next phone and wants to upgrade when the new iPhone comes out?

Don't they have to give ATT their old Next phone back?

Think Apple's going to want to get into collecting them for ATT?
Click to expand...

They will probably provide return shipping boxes. If you don't return the phone, you get charged. Just a guess...
 
Stupid att are dumbass with their cheap crap android phone. I am will to buy my iPhone at apple store that is final for me. I never will buy any **** android phones from stupid phone carriers.
 
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