iPhone Early Cancellation Fee $175

[Cleverboy]

What not just call the article "Nothing Changes, Still $175 to cancel all cellphones, SAME AS ALWAYS!"

Exactly. I don't know why Apple haters talk about "fan boys" so much when apparently "fan boys" and "fan girls" often have nothing to talk about, but to complain (it's almost like Steve needs to start handing out golden calfs).

All this complaining over something so basic gives me a headache. Moreover, this is just ANOTHER case of some mystery rep talking out of their ass. NOTHING has been shared about the new plans, and I think ANYONE would be very foolish to think ANYTHING being said today, should be taken in leiu of reading over every bit of contract documentation when the new plans are announced. Nothing burns my butt more than people talking arguing about "might be", especially when the "might be" is business as usual. Same goes for REQUIRING a data plan. Just listen to Andy Ihnatko on the Apple Phone Show podcast. Does a Blackberry require a dataplan? Um, YES. Why? Because many less than intelligent customers will wonder why many of the "features" don't work, otherwise. Sigh. Anywho.

~ CB

 

[Ugg]

I was at the cingular store today with my brother so he can pick up a new phone since his old one broke.

While I was there I asked what the pricing plans will be for the new iphone. He told me that the voice and data plans will remain the same as their other pda phones with only one difference. With other smartphones, only the voice plans are bound to a 2 year contract. The unlimited data plan ($30) can be stopped whenever if you so choose that you don't need it. For the iphone, the data package (if you choose to add it) will require a 2 year contract too. You won't be able to cancel it like on the other smartphones.

Voice plans with data will start at $70 and go up from there depending on minutes required. Those who already have smartphones now, won't be affected, but those who don't, get ready to hand out an extra $30/month in addition to your current plan if you plan on getting this phone.

Your first post and it's all negative.

 

[edoates]

Doesn't sound negative to me...

I was at the cingular store today with my brother so he can pick up a new phone since his old one broke.

While I was there I asked what the pricing plans will be for the new iphone. He told me that the voice and data plans will remain the same as their other pda phones with only one difference. With other smartphones, only the voice plans are bound to a 2 year contract. The unlimited data plan ($30) can be stopped whenever if you so choose that you don't need it. For the iphone, the data package (if you choose to add it) will require a 2 year contract too. You won't be able to cancel it like on the other smartphones.

Voice plans with data will start at $70 and go up from there depending on minutes required. Those who already have smartphones now, won't be affected, but those who don't, get ready to hand out an extra $30/month in addition to your current plan if you plan on getting this phone.

Another poster said the above was negative. It doesn't sound negative to me; speculative, maybe since ATT has not announced rate plans as of Jun 23 6:59PDT. I'm hoping the above speculation is in fact, correct in the main. That means, the voice and data cost of switching to the iPhone for existing PDA customers is NULL, other than prolonging ones commitment for two more years. For voice only customers, like me and my RAZR, it means on adding the unlimited data charge.

I have no problem with a 2 year data charge commitment: the iPhone is no better than my RAZR without it: it's just another phone. And the $175 cancellation fee has been the norm for Cingular for some time.

Will Dire Straits reform and record "I want my I-phone?"

Ed

 

[jbh001]

No, AT&T is not "traditionally" subsidizing the phones. However, they ARE "giving" us what they deem is the equivalent of $100 of service in exchange for our signing a contract. What they deem "$100 of service" may well be "the fact that they have dirt on Steve Jobs and forced him to allow the iPhone only on AT&T's network".

I highly doubt AT&T "forced" Steve to do anything. This would imply that Verizon backed out of the deal because AT&T had better "dirt" with which to extort Steve Jobs. That notion is nothing but laughable.

Or, it may be ammortized costs of upgrading their network to support the new iPhone features.

This is more plausible and probable, and could also be a reason Verizon backed out. If AT&T requires a 2 year contract for cell/data service on their network, perhaps it will be about that long for them to recoup that $50 million they spent to upgrade their network for the iPhone. Perhaps we'll start to see pay-as-you-go plans after that.

Pretend the iPhone were a $600-700 phone, and AT&T subsidized it down to $500-600 with contract.

But it's not, and they haven't. So pretending that it is and that they have is irrelevant.

In all this speculation, has everyone forgotten that the iPhone is also an iPod, and a video iPod at that, and that those functions will work fine with iTunes with or without AT&T, Verizon, Sprint, or any other cell phone carrier? (Perhaps that is why "cell phone" activation will not be handled at the brick-and-mortar Apple stores, ya think?) Additionally, the iPhone supports WiFi. I will only need AT&T to access the internet via EDGE. WiFi hotspots are becoming more plentiful every day. What other "smart phone" currently available does all this?

So just why did Verizon back out?

VERIZON: "What, you mean they can buy a "phone," use it as an MP3 player, video player, and for WiFi internet access, without ever having to buy a voice or data plan from us? Well, that leaves zero reason for us to subsidize your iPhone. Now, let's look at how we would have to upgrade our network so this iPhone will work... and how that cost will be covered..."

 

[mccldwll]

So, if I walk into an apple store and plunk down my 600 bucks but never activate the phone I guess AT&T is out 175 bucks for a phone I never even used on their network. It's not subsidized...it's NOT NOT. My god how often does this have to be talked about.

That's a myopic view. T is not out because T never sold it. aapl will sell it for $600, but not really a phone until activated by T (for antitrust reasons, I don't think aapl can require activation when it sells, but T can when T sells it). A $175 cancel fee suggests that T PAYS AAPL for right to activate (outright or monthly, consistent w/ aapl iphone accounting). If buy from T, have to activate to buy (look at it as $775, w/ $175 subsidized--net is $600). But it's all irrelevant. It's essentially $600 for a nice ipod/unsupported wifi phone from aapl, and $775 ($175 subsidized) for a fully supported iPhone, from either.

 

[mrtune]

Your first post and it's all negative.

I don't see how my first post is negative? I'm a current smartphone user (motorola q) and what he was telling me is that the iphone will have the same plans available as the other phones do. Only difference being a 2 year commitment for the data plan (where as their other pda phones it can be added or removed at any time). Not really a big deal since I haven't met anyone with a smartphone that chose to skip a data plan.

In the end it's still a phone, competing against other phones. I never really felt iphone would get special treatment in the plan price department, and store employee brought my thoughts closer to reality.

To be truthfull, I'm a verizon customer now, and their data plan is $40, $10 more per month that what cingular charges for their smartphones. The iphone seems like a bargain and money saver to me! Selling my current phone would help pay off the $175 verizon cancel fee and selling my ipod would help ease the pain for the initial cost of the iphone.

Man it will be so nice to combine these two devices!

 

[elgruga]

Unlocking

This phone needs to be UNLOCKED - ****, they all do!
If it can be unlocked, and I cant see why not, it will be a huge success - if not, it will still be huge, but I will be disappointed.......

It all comes down to the first guy who can get one and hack it.

Plus, it must have wi-fi independent of any crappy 'data plan'. Then Jajah is possible. And thats a good thing.

 

[mccldwll]

I doubt it will take someone very long to figure out how to unlock it, but that will not be enough if access to T system is necessary for the updates that aapl has been discussing as a reason for its accounting [I'm sure aapl could have enabled it to update only through itunes, but that would have made unlocking easier. My bet is that aapl is getting $/month from T while on T plan, thus an incentive to keep it on T plan]

 

[savar]

Exactly. I don't know why Apple haters talk about "fan boys" so much when apparently "fan boys" and "fan girls" often have nothing to talk about, but to complain (it's almost like Steve needs to start handing out golden calfs).

The real issue, in my opinion, is the required 2-year contract. Obligatory contracts *never* benefit the consumer in this market, because:

a) prices generally go down over time...yet you're stuck paying the same price for 24 months
b) your life changes...if you move to a place that doesn't get great reception you either cough up the money or just accept the fact you cant make calls

The only reason I can see to want a contract is if you get a subsidy on the phone. Getting a Motorola Q for $80 is a pretty darn good deal. I'm willing to take on the burden of a contract for that deal.

If the iphone is $600 with or without a plan, then no consumer has any incentive to sign a contract. And yet they *have* to, in order to use this phone. The contract is really a hidden cost that people haven't really talked about yet.

So its not the $175 cancellation fee itself (which as fees go on 2 year contracts *is* pretty standard), but the fact that there's a contract all to be canceled. The consumer is getting nothing in return for signing away their rights for the next two years.

This is what I fundamentally hate about the cell phone industry. When your contract runs out, they will sign you up for a new one whether you ask for it or not, whether you bought a new phone or not. If you buy a phone at market price by going on ebay or to some other 3rd party, they sign you for a contract whether you ask for it or not.

It gets me mad enough that I could curse and rant for a long time about it, but suffice it to say that Sprint got a long letter from the BBB when they pulled that crap on me, paid me $200 to settle the matter, and lost me as a customer immediately afterward. I'm on Verizon now, and I'm afraid they will do the same thing, but I'm going to wait and see.

When the iPhone was first announced, there was a lot of buzz about Apple turning the industry upside down and inside out...but its just hot air. They are doing the same crap the other companies do, the only material difference is that they control the pricing. In the end, the consumers still lose.

 

[Ibjr]

Whatever the reason, it's certainly not greed.

/sarcasm

I thought like you until i realized this could allow them to lower the data plan while under contract. It would encourage upgrades when your two years are up and the dataplan hits normal price.