iPhone 3G Hands On, Notes, and Questions

[skcustta]

Thats how it is now. If you cancel your plan before 30 days, you have to return the phone in good condition. iPhone or not.

Correct. That's not to say that it's NOT asinine...but it's the American consumer that has gotten us here. I worked for Sprint when they first launched as Sprint PCS...at that time we had no contracts, and phones cost anywhere from $100-$500...people just weren't biting...and after two years of trying it, Sprint joined the rest of the U.S. providers and went the subsidy route. I think it would be REALLY interesting for a company to try this approach again, 10 years later...I think more people (realizing what crooks the mobile providers here are) would have another look. Oh wait...one company does this already (if unadvertised): AT&T. Oh wait...except for the iPhone. =(

Arn, are you going to do a write up on the logistical nightmare the launch day will turn into if you have to activate in-store? From 3-5 minutes per purchase to 10-15 minutes per phone. Its going to be ugly. Not nearly as smooth as last year. I suppose there is a chance that Apple could not activate them and require a CC for purchase to move things along, but I dont know how likely that is.

I work in an AT&T (company-owned) retail store where the AVERAGE wait time to see a representative is 10 minutes...come in at the wrong time and it could be up to 45! Once you get to the representative? It's going to take longer than 10-15 minutes. It takes at least that long to get your phone, set up things on the computer (faster for existing customers), etc. But then they're going to try to start selling you things: cases, car chargers, Bluetooth headsets, text messaging, extended nights and weekends, VoiceDial, Add-A-Phones, etc...and in some markets...a home phone line, DSL, and Dish Network. I'm not kidding. We are required to talk to you about all of those things. All they see right now is dollar signs. With iPhone 1.0, so much was controlled and dictated by Apple. With 2.0, AT&T has been given a larger role and they will take FULL advantage!

 

[chicagdan]

So let me get this straight:

I cannot buy the iPhone directly from Apple, I have to go to an AT&T store?

I cannot activate my iPhone at home on iTunes like I did with my current model?

No wonder AT&T is not allowing employees to take a vacation for a month. It will take that long to buy and activate the thing.

Point one is wrong, you can buy at the Apple Store, you just have to activate the phone there too.

 

[buckdutter]

There's an interesting pricing paradox here.

On the one hand, Apple has advertised that the (8GB) 3G iPhone will have a maximum price of $199, worldwide, implying that under no condition will it be more expensive than that.

On the other hand, AT&T has claimed (in the legal memo) that "Customers must be upgrade eligible to receive the qualified upgrade pricing" and further that "AT&T has not determined the price of the 3G device for non-qualified upgrades." As I understand, this might include someone who, for example, joined AT&T four months ago, used the signing discount provided at the time to buy a Blackberry, and now wants to buy the 3G iPhone. There may be a lot of people in that boat.

Thus, the two companies are in contradiction. Apple says the phone can't be more than $199, and AT&T says that, under certain circumstances it will be. That's a big problem for both companies, let alone the poor consumer! Either Apple gets hit with false advertising, or AT&T finds some loophole specific to tie-ins (which this technically is: phone + contract) so as to redirect the extra cost into contract fees, i.e. not technically for the phone. Either way, someone will have to budge.

I'm pumped about the 3G speeds, and fine with the extra $10/mo, because it's what I would pay for any other 3G phone with AT&T. But both companies should have been more clear and more coordinated about how pricing will work. Now it's a mess.

It boils down to Apple wanting to steal the thunder and look like the good guys. Think about it, AT&T is giving a 200 subsidy on each phone taking the hit directly. Apple is not doing a thing, they are receiving the same amount of money per device as they are now, but do you really think Apple would give props to anyone but themselves? The inconsistency is all on Apples part,
if they want to keep up the illusion that they themselves are pricing the phone cheaper, it will only confuse and upset the consumer and make AT&T look bad when people have to buy them for more because they have recently received subsidy on a handset.

All could have been avoided if Apple was upfront and said they are allowing carriers to susidize the phone, they could have spun it to make it sound just as good. I blame Apple for making a system/cost structure on the devices that has been around for years confusing to the consumer.

 

[maccompaq]

If I buy 2 iPhones with a family plan, will the data plan be $30 or will it be more?

 

[DN7335]

ATTpple is clearly banking on the the hardcore Apple fans to come out in mass and dump the iPhone1 for the the new iPhone3G. Problem is, the hardcore fans are their smartest customers and they see through all this bait and switch that ATTpple is using. I have no doubt they have the 2.0 firmware ready to go, but if they release it now and everyone upgrades their iPhone1 and its happy with the new features, they won't be going out to buy the plastic iPhone3G.

I actually believe the exact opposite, I think Apple is clearly targeting the NON hardcore Apple fans, i.e. the mass market. That's why the new pricing plan and subsidy is in line with all the other mass market phones. Its to be competitive in up front pricing with the other models to get a larger user base.

 

[skcustta]

If I buy 2 iPhones with a family plan, will the data plan be $30 or will it be more?

$30 per iPhone...no shared/family plan data... =(

 

[DN7335]

How many here would still be mad about the plan price if they were able to get say 10-15% off the plan?

I suggest everyone go to AT&T's Premier site and see if they qualify for a discount.

If the AT&T internal email is to believed the 3G iPhone will be eligible for discounts, taking much of the sting out of the non-specialness of the "3G iPhone plan". They even state that some discounts are able to stack .

You rock, went to the site and I'm eligible for a corporate discount due to where I work. Thanks again!

 

[bmk]

yeah, and what happens if I dont return the phone and cancel within 30 days. they come with the cops to my house to look for it?

Not the cops, probably the bailiffs. I may be wrong but the contract you sign to get the thing in the first place is legally binding and managed by a credit control company so if you infringe the terms you'll probably end up with a zero credit rating, even if you manage to keep the iPhone.

 

[elistan]

It's well known that you can swap the SIM card from one first-gen iPhone to another. A simple activation via iTunes and you're good to go. (Handy if you want to upgrade from a 4GB model to 16GB model, for example.)

It seems reasonable to think that moving a SIM card from one 3G iPhone to another would work similarly (for example, if you get a replacement for a damaged unit through a protection plan.) Then again, it very well could be that AT&T would require you do an in-store activation along with starting a new 2-year contract, eh?

Does anybody have any thoughts on what would happen if you put a working SIM card from a first-gen iPhone into a 3G iPhone? (Let's assume the 3G was purchased and activated normally. No hacking.) Would the 3G iPhone then work with the old SIM after an iTunes activation?

 

[abolition]

I think the Activation process sux.

If you want to give the iphone away as a present or something, do you also have to pay the 2000$ that the 2 year contract costs???

Because if I was to go to an apple store to get an iphone 3g for the above example it will have to be activated and the contract running on my credit card... no?

 

[Teddy's]

No wonder AT&T is not allowing employees to take a vacation for a month. It will take that long to buy and activate the thing.

Yeah, Can you imagine the first person in line getting rejected due to bad credit? *plays wah wah waah waaaah*

Any news in Canadia? I have Fido and I would not like to get a data plan. There is WIFI in almost every place I frequent. Simply as that, If a data plan is required I won't get it.

 

[stagi]

I really hope apple can create a very quick simple in store activation. If not launch day is going to be a nightmare.

 

[thaitillidie]

Apple and their usual shanannigans...

Activation in store + extra 10$ for a 3G service I cant even use + extended 2 year contract.. I WAS considering getting it (despite my other Post on not getting one).. but this is a huge deal-breaker for me..

My Current fee is $60, with only 400 minutes, and I have like 3000 rollover minutes-- I don't use the phone THAT much but I like having it...

Having to active in store will be a pain for everyone, and the fact you can't gift the item for someone not currently on AT&T (but is switching..) is messed up. I was hoping it would be like the last iPhone, you buy it and signup for AT&T in the iTS, but I guess not.

They are expecting people to go through all of this change, for WHAT!? 3G, and GPS.. Maybe if it had an aluminum back, front cam, and at least a 3.5Megapixel cam.. BAH

This is ridiculous Apple .. Its to much trouble, forget the new iPhone.. I'm sticking with my 1st Gen iPhone until you clean this mess up.

PSH

Dude...either you're new to Apple and will have to be financially victimized by them enough times to learn how they operate and not continue making the same compulsive buying mistakes ova 'n ova again or...you missed my earlier post detailing what this fiasco Monday was all about -- either way let's go over it again:

OF COURSE they're expecting "people" to go thru all of these unnecessary changes --- and the "people" they're targeting are the ignorant masses who are stupid enough to fall for yet another one of their classic marketing strategies [henceforth throughout this message pronounced: tricks]!

Look at what they did Monday:
1). They put a plastic backplate on a phone that originally had an aluminum backplate that was the epitome of style, elegance and durability. Mass marketing strategy #1 (don't believe the pure BS you hear about aluminum interfering with the 3G signal)!

2) They responded to consumer complaints by improving the headphone jack yet somehow, inexplicably, ignored the cries 'n moans about a front-facing camera, video-recording capability, voice-dialing/recording, etc etc etc (you know the rest of the features I'm alluding to; I don't even need to mention them by name)!!! Mass marketing strategy #2 (oh and lemme guess: Apple was completely unaware of those other issues, huh? Shyeah, right!)

3) The doozy of them all:
THEY'RE SELLING THIS PIECE O' CRAP FOR ONE HUNDRED NINETY-NINE ONE-DOLLAR BILLS!!! Because they know that every teenager, prostitute, pimp, drug-dealer, crackwhore, serial killer, social deviant, and republican (hehe) on the frickin' planet is now gonna run and buy a "super cool" iPhone. Mass marketing strategy #3. Unfreakinbelievable and so totally self-explanatory.

Meanwhile...we tried 'n true Apple enthusiasts and connaisseurs are just sitting' back laughing our glutes off cuz we know what Apple's up to and most significantly...

WE'RE NOT TELLING!!!


So if you wanna be stupid enough to fall for this, their latest and greatest masquerade of them all, help yourself...go right ahead.

But I, along with my fellow wise and seasoned brethren, will wait...cuz as they say, "...only fools rush forward."

Hope I cleared this issue up for you.

 

[skcustta]

yeah, and what happens if I dont return the phone and cancel within 30 days. they come with the cops to my house to look for it?

It IS an interesting question, that I don't know the answer to (and I work there). Currently customers (particularly those who have ordered from AT&T's website) can do a (pre) 30-day cancellation over the phone through customer service. After the CSR takes care of finalizing the account, they often send the customers to the stores to return their phones so they don't have to ship them back. These customers have ordered online, though, so presumably we have their credit card information on file and could charge them for the unsubsidized price of their phone if they called to cancel their agreement then kept the phone.

If you purchased at retail, then called customer service to cancel...I'm not sure if they are able to do it, or if they are forced to send you to a retail store...or if they would even know if you didn't tell them.

Things are going to get REAL interesting...

 

[Stately]

I totally agree. Apple was special at one time. People who bought Apple knew what they were getting and for the right reasons. There was a sense of appreciation. Now everyone has them because its the cool thing to have. Its frustrating to see someone buy a MACBOOK PRO and the first thing they do is ask you where the internet browser is so they can download AOL AIM (not iChat) and Limewire... then they ask you to show them how to get to the thing that takes pictures.

Yea, its their money but it sucks. OH and teenybopper crowds surfing MySpace and initiating Photobooth sessions inside Apple stores annoy me. (end rant)

I def. agree. It's not that I'm in anyway snooty but people truly don't see the value that is in Apple products. Nowadays you have people that want one just to say they have one. It's like the person who wants a BMW because its a status symbol as opposed to someone who understands all the fine-tuned aspects under the hood and can differentiate between newer and older models by looking at the newly placed curves of the car. I remember when iphone version one was coming out, all the lay people were giving me the excuse that they wanted to wait for the version 2 iphone because Apple needed to get out all of the bugs first. I would just laugh and say HELLO Apple is a COMPUTER COMPANY. There are no bugs virtually, because Apple can send software/firmware updates. I however will be keeping my version 1. It is still by faaar revolutionary compared to any other phone out. I rather have patience and hope version three has a form factor similar to version 1 with all the extra added features. For now I could do without gps. The software update in early July will be phenominal. AT@T's not getting anymore dough from me.

 

[DN7335]

Unless they get bricked by AT&T using the IMEI to track and nuke them.

Which they will.

I don't think you understood what I was saying. The phones that will show up on the grey market will be coming from other countries, not the US so AT&T will have no reason, motivation, or ability to brick them. Unactivated phones will be sold elsewhere and these will be unlocked and available to purchase.

 

[bobertoq]

Feel sorry to say but the new iPhone 3G plastic back feels like the macbook and blackbook.
My current iPhone perfectly match my macbook Pro

utterly wrong approach Apple....

Putting plastic on the back was a good idea. Plastic is cheaper, and you get better reception. What's so bad about plastic anyway? You keyboard keys are plastic aren't they? Maybe a metal keyboard wouldn't be so bad....

 

[Stately]

ATTpple is clearly banking on the the hardcore Apple fans to come out in mass and dump the iPhone1 for the the new iPhone3G. Problem is, the hardcore fans are their smartest customers and they see through all this bait and switch that ATTpple is using. I have no doubt they have the 2.0 firmware ready to go, but if they release it now and everyone upgrades their iPhone1 and its happy with the new features, they won't be going out to buy the plastic iPhone3G.


Exactly . . Couldn't have said it better Kai, couldn't have said it better . .

 

[DN7335]

IMEI is an international identifier. All AT&T have to do is raise it with the CEIR and it gets blacklisted on all operators networks making it unusable. Of course, you can change IMEI if you really know what you're doing and have the tools to do it but I'll bet you they get over 95% of illegal handsets.

First of all, this could happen with current iphones or any other phone for that matter, and it hasn't.

Second, if someone was going to use the iPhone on AT&T network, why bother to buy an unlocked phone? And if you're talking about just a roaming phone, there is no way even if they could that AT&T would brick a roaming IMEI.

 

[BongoBanger]

I don't think you understood what I was saying. The phones that will show up on the grey market will be coming from other countries, not the US so AT&T will have no reason, motivation, or ability to brick them. Unactivated phones will be sold elsewhere and these will be unlocked and available to purchase.

I explained earlier that IMEI is an international identifier and goes into a central database. AT&T may not brick them but the other carriers who are losing revenue will.

First of all, this could happen with current iphones or any other phone for that matter, and it hasn't.

The current iPhone isn't subsidised by AT&T. This one is so it's not cost neutral anymore.

Second, if someone was going to use the iPhone on AT&T network, why bother to buy an unlocked phone? And if you're talking about just a roaming phone, there is no way even if they could that AT&T would brick a roaming IMEI.

Not with you here. The point is this:

You buy the phone from AT&T, you give them your details, after thrity days they check to see if it's been activated, if not it gets bricked. The grey market will be much harder to crack now to the point where it isn't going to be worth it for most people.

 

[OS X Dude]

Meanwhile...we tried 'n true Apple enthusiasts and connaisseurs are just sitting' back laughing our glutes off cuz we know what Apple's up to and most significantly...

That's it - take a previously high-end luxury device for rich/famous people that was riddled with flaws, make it dirt cheap, change the look and fix the little things to keep costs down and say "WOW, now YOU TOO can be 1337 and own an iPHONE!!!!!".

Evil market ploy. Steve Jobs is in fact The Emperor from Star Wars, sitting in an Apple-logo shaped Death Star and laughing.

 

[IlluminatedSage]

apple ought to allow people to buy the phone for full price and self "activation"

this is only going to lead to problems.

Also, what is with the minor tweaks only? Was expecting alot more changes!!! this is kinda a letdown. just 3g and a couple minor tweaks?

i'd love to see the screen slide and a real keyboard. hate screen only.

 

[DN7335]

Point one is wrong, you can buy at the Apple Store, you just have to activate the phone there too.

To be clear, you don't necessarily have to activate the phone when buying at the Apple store, however you DO have to sign the contract with AT&T. These are not the same thing. So, if you sign up but don't activate, you can activate at home via iTunes. However, you've already signed the contract so if you don't activate, AT&T will come after you. That's what they meant by there being penalties if you don't activate within 30 days, they can penalize you because you're under contract with them.

 

[DN7335]

If I buy 2 iPhones with a family plan, will the data plan be $30 or will it be more?

$30 per line/phone.

 

[jrbdmb]

I actually believe the exact opposite, I think Apple is clearly targeting the NON hardcore Apple fans, i.e. the mass market. That's why the new pricing plan and subsidy is in line with all the other mass market phones. Its to be competitive in up front pricing with the other models to get a larger user base.

Correct. And BTW the hardcore Apple fans will buy the 3G iPhone anyhow, just like they camped out to buy the original iPhone ... they can't help themselves.