iPhones below cost. Legit?

Discussion in 'iPhone' started by Traxan, Mar 21, 2008.

  1. Traxan macrumors member

    Mar 2, 2008
    I see ads like the one below on Craigslist all the time, and wonder how they can do this. Are they legitimate?




    Requires a new two year contract with a voice plan of $39.99 and up. Plus $19.99 internet service plan. We have two locations in the bay area. Call us today!!!

    Unlocked iPhone Included:
    *120 nintendo games
    *200 3rd party applications
    *Unlimited free ringtones
    *Free customizing themes
    *Free Iphone for dummies ebook
    *Free case
    *Free car charger
    *Full Time technical support
  2. thegoldenmackid macrumors 604


    Dec 29, 2006
    dallas, texas
    they don't look extremely legit.

    A. You aren't using AT&T
    B. If it's unlocked, shouldn't you get your own warranty
    C. You cant guarantee the age of the phone, if they are unlocked and "new" - they would still not be new and sealed
    D. You won't have a warranty, unless the seller gives you receipts from their respective purchases from AT&T or Apple
    E. Unlocking, isn't that hard

    They are selling phones below retail, their isn't really a "wholesale" price, since Apple and AT&T are the only ones that can sell them, so you can assume the retail and wholesale prices are the same, meaning these at best are refurbs, otherwise the company isn't going to make a profit
  3. SFStateStudent macrumors 604


    Aug 28, 2007
    San Francisco California, USA
    Be careful with Craigslist...

    since there are so many scams out there. The most recent involves a very real looking PayPal payment received in your PayPal account of $2500 and you need to ship your computer to the UK and it must go UPS Global Express. So, you send everything off thinking that PayPal will release the funds after the UPS tracking number is emailed to the BUYER, and there's no response from PayPal or the BUYER. Next thing you know you contact PayPal via phone and they have no record of a $2500 transaction pending. Meanwhile, your computer is landing at some airport in the UK and your out $2500 that you never received, shipping charges for your computer $175, and the computer is now in the hands of the THIEF! Don't set-up your iPhone account over the internet; that should always be done on iTunes; be careful giving out your credit card information to a website that is not https//; these are just warnings from someone that has bought and sold a bunch of stuff on Craigslist and eBay, and I don't want to see you get scammed! :cool:
  4. SFStateStudent macrumors 604


    Aug 28, 2007
    San Francisco California, USA
    Good point "thegoldenmackid"...

    those iPhones are definitely "used" how else would you get an "unlocked iPhone" "If it's TOO Good To Be TRUE, then it probably is!" :eek:
  5. slapguts macrumors 6502a


    Jan 10, 2008
    At least we know where all the cheap refurbs went.
  6. stupendusboi macrumors member

    Sep 8, 2007
    hey, these deals are the real thing. I got my sidekick 3 for free last year with these "scams". Its just like activation with the cellphone company through a different store. You still get warranty from their store. But when you see their store, if its a run down shack, i would suspect something wrong, but where i got it, it was a nice clean store in a middle of a popular shopping plaza.
  7. kdarling macrumors demi-god


    Jun 9, 2007
    First university coding class = 47 years ago
    Can't speak to whether or not the stores are legit, but the prices definitely aren't "below cost".

    Even Apple never charged more than $250 for a replacement 8GB from the start.

    Nowadays an 8GB probably costs them less than $200 to make. (Yes, it's a guess.)
  8. 3247 macrumors regular

    Feb 9, 2008
    That's the catch: You need to make a two-year contract at a minimum of $ 59.98. This is how they can make the lower prices.
    Unlocking the iPhone and then selling it may or may not be legal.
    However, this really sounds very illegitimate. I don't think Nintendo make their games available for iPhone, so the games are pirated.
    The same is probably true for some of the 3rd party apps and ringtones.
  9. thegoldenmackid macrumors 604


    Dec 29, 2006
    dallas, texas
    yes, but as we all know, Apple is a lil' different. There is no MSRP there is just RP, occasionally Fry's will knock $10 and Best Buy give away Time Machines at really cheap, but for the most part Apple is consistent things cost the same in Best Buy, the Apple Store, your local authorized reseller and at the Online Store

    Also, like I said above, the iPhone is only avialable (in the U.S.) at TWO RETAILERS (officially), this makes the chances of it being resold somewherelse a lot less then your sidekick

    They could sell it below cost, and make money off other things, but thats a hefty price to pay, considering that you aren't legally licensed to resell iPhones from Apple with any contract besides AT&T (in the states) Meaning that if you were to break the contract and refuse to pay the ETF (early termination fee), going to court would be fun (for Cupertino)

    Nintendo clearly hasn't licensed the games for this and they probably don't have the rights to profit off of these. But, the two year contract is def. how they would make money.

    In the end, I would ask for their contract to be sent over and ask for the condition of the phones. If the phones are refurbs or near new and the ETF isn't that much say $50 (which is really cheap), you might as well just go look for AT&T refurb. Remember that if the ETF is greater then $150 then you can just buy a refurb from Apple at the same price. You risk getting crappy service and coverage and being stuck with a ridiculous ETF ($500+) and then you have a good iPhone that wont get service.

    I would stay away and avoid the legal messes you are bound to get into w/ :apple:

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