What's the difference between buying from Apple or AT&T?

[RetiredInFl]

Something is (legally) wrong there. If the law requires sales tax for one company on the full price it should be the same for the other. The only thing I can think of is MAYBE because it was shipped to the store for you rather than being purchased directly from store stock at the AT&T store there is some "loophole" that allows them to get away with it. If I was Apple I'd "drop a dime" on AT&T with the revenuooors.

 

[RetiredInFl]

What does "since it is their plan" mean? Sales tax is on SALE of physical merchandise and should be the same for both. Your sales tax that you paid is for the phone and has nothing to do with a "plan." I'd be curious to find out the REAL reason for the difference. Obviously AT&T knows what they are doing.

I got it from Massachusetts and in MA att, since it is their plan, can charge tax on any price they want, while apple can only charge on the unsubsidized price. Again this is what an Apple and AT&T rep told me.

 

[Figbash Acrobat]

How about how AT&T handles refunds within the 30 day period? They supposedly offer the FULL refund, right? And if it is ordered through the website, does the 30 day return period begin once it's shipped or once it arrives?

It seems someone implied, even if bought from AT&T, you can still go to the Apple store for any hardware issues for the full year warranty, no?

 

[roffir]

What does "since it is their plan" mean? Sales tax is on SALE of physical merchandise and should be the same for both. Your sales tax that you paid is for the phone and has nothing to do with a "plan." I'd be curious to find out the REAL reason for the difference. Obviously AT&T knows what they are doing.

Ok heres how I understand it. (Hard to explain) AT&T are the ones giving you a "deal" as in if you sign 2 years with them you'll get money off (subsidized plan). AT&T are the ones giving you a deal in exchange for a contract. So essentially they are charging you 199 or 299 depending on phone size. Apple is selling their phones for 599 and 699 to their customers. That's it . So their tax are on those prices. AT&T will again give you a break through apple, but it is att&t losing that money in exchange for a contract, not Apple. Again, I don't think this is right but this is the excuse used in Massachusetts.

 

[Figbash Acrobat]

How about how AT&T handles refunds within the 30 day period? They supposedly offer the FULL refund, right? And if it is ordered through the website, does the 30 day return period begin once it's shipped or once it arrives?

It seems someone implied, even if bought from AT&T, you can still go to the Apple store for any hardware issues for the full year warranty, no?

bump

 

[Techlover90]

I'm also a newbie at this, but what kind of info do I need to set up a new at&t contract and porting my number?

-Social Security #
-I.D
-Credit Card
-Billing address/home address/personal info
-Previous account number from Verizon that I'm porting my number from

Am I missing anything?

 

[phillydude411]

why does apple make you open the shrink wrap/box in the store? I want to gift it to my wife unopened and untouched... Mine was shipped and was not opened

 

[Figbash Acrobat]

why does apple make you open the shrink wrap/box in the store? I want to gift it to my wife unopened and untouched... Mine was shipped and was not opened

Good question. I'd like to know as well. Honestly, I've heard from some that you don't have to open it there, and that you do from others. Not sure what's up.

 

[Fernandez21]

the difference is that if you buy from at&t the rep will get the comission, while if you buy from the apple store, apple will get the comission.

 

[Figbash Acrobat]

the difference is that if you buy from at&t the rep will get the comission, while if you buy from the apple store, apple will get the comission.

Wow...that's....interesting. And makes the world of difference to me! I do hate AT&T employees....and Apple employees!

Shoot. Now what? 😕

 

[BlondeBuddhist]

Always go to the source, I hear AT&T cuts it stuf with baking powder.

Ha!

I have bought iPhone's from both (3g & GS from AT&T), iphone 4 from Apple store. I can tell you the experience was night and day. It's not that the AT&T staff was rude, but more or less they just didn't care. It was "oh you want an iphone, good for you, here it is, gimmie the cash and please see yourself to the exit as soon as possible".

Buying from Apple made me feel as comfortable as I've ever been when leaving $330 poorer. Now, it sounds as if your buying online, so this may or may not apply to your situation.

I know that I will never buy an Apple product outside an Apple store, ever again (unless I "have" too). I bought my MacBook at Best Buy in February (thought an hour drive was too far), and they cared even less about my thousand dollars. I am now contemplating upgrading to MBP for the extra RAM, due to my increasing interest in iMovie/ film creation. My local MacMan store (very nice people) has offered me $650 to for my MacBook to trade up to a Pro. I see the Apple store has a MBP refurb for 1019.00, so I am debating whether to just buy that outright and do what I wish with my MB, or go for the trade up and pay $1200 minus $650 trade in. Any ideas?

(I know I drifted there but point is buying from apple is a great experience.)

Blonde Buddhist

 

[ToroidalZeus]

the difference is that if you buy from at&t the rep will get the comission, while if you buy from the apple store, apple will get the comission.

That's true, also if you buy it from ATT then get it exchanged by Apple, you will no longer be able to return the phone and get your money back because ATT won't take a phone with a different serial number.

IMO for delivery speed, it seems like ATT is the more fair company to order from since everyone gets put on the same (online) list because ATT isn't shipping any phones to stock the stores vs Apple who is splitting there phones between the priority list and direct online orders.

 

[SAD*FACED*CLOWN]

I got it from Massachusetts and in MA att, since it is their plan, can charge tax on any price they want, while apple can only charge on the unsubsidized price. Again this is what an Apple and AT&T rep told me.

The receipts posted above are for two different models one was a 32GB and one was 16GB I'm not sure why those images were posted because they both were charged at the 6.25% sales tax rate which confirmed what I was told by the apple store in Boston

 

[roffir]

The receipts posted above are for two different models one was a 32GB and one was 16GB I'm not sure why those images were posted because they both were charged at the 6.25% sales tax rate which confirmed what I was told by the apple store in Boston

Wow. ok let me help you with the math. Im not sure why its hard but here goes...
For the first receipt at apple, the subtotal was $299.99. AND 6.25% of $299.99 is $18.75, while 6.25% of $699.99 is $43.69... Which is what they charged me. Therefore Apple taxed on the $699.99 price.

Now for the att store, I paid $199.00. 6.25% of $199.00 is 12.44. Therefore they charged me tax on the subsidized $199 price.
Get it now?

So either the person you talked to lied to you, or you didn't call at all (My bets on that one). Let me know if that wasn't clear enough.

 

[S1njin]

FWIW, Apple will give you more status updates (prepared for shipment being one of them) and will be more timely w/ email status. ATT will give you less info as your order plods through the system.

For the OCD, the Apple transaction makes you feel better.

 

[squeakr]

Apple doesn't make you open it in the store. If you want it to remain sealed for another person to open, just tell them it is a gift and you would like the receiver to open it fresh, and they will leave it sealed. What I was referring to with Apple asking me to open it, was because I was activating it in store and they wanted me (the user) to be the first to open, or at the very least have the option to be the first to open. AT$T didn't even give the option. As someone else stated they just were like give me the money and then next!!!
As for the other question, yes even if you buy from AT$T you can have everything handled in store at the genius bar or through Apple Care. In fact, call AT$T and unless it is an east fix, they will transfer you to Apple Care to handle the issue.

 

[Figbash Acrobat]

Thanks, squeakr. So all they have to know is that you're upgrade eligible by looking it up in AT&T's system, and you should be able to just pay the subsidized price and walk out to activate at home, right?

 

[vant]

Wow. ok let me help you with the math. Im not sure why its hard but here goes...
For the first receipt at apple, the subtotal was $299.99. AND 6.25% of $299.99 is $18.75, while 6.25% of $699.99 is $43.69... Which is what they charged me. Therefore Apple taxed on the $699.99 price.

Now for the att store, I paid $199.00. 6.25% of $199.00 is 12.44. Therefore they charged me tax on the subsidized $199 price.
Get it now?

So either the person you talked to lied to you, or you didn't call at all (My bets on that one). Let me know if that wasn't clear enough.

Tax loophole based on resale.

Situation #1:
AT&T buys the phone from Apple for $599 (example). They are charged 0% tax because states do not charge tax on items you plan to resale.

AT&T sells you the phone for $199 because they eat the $400 cost to encourage you to sign the 2 year. Tax is on the $199.

Situation #2:
Apple sells the phone to a customer. The customer pays Apple $199 and AT&T pays Apple $400. There is no resale in this transaction. Thus the full sales tax is charged.

 

[amishsteve]

Taxes Must Vary by State

I purchased two phones at the AT & T store in CA and paid tax on the full value of the phones. I inquired about purchasing the iPhone 6 at the AT & T store today in Phila. PA and was told I would pay tax on the full value of the phone. Which is $650.

But when I went to the Apple Store website, it showed as only taxing the subsidized price of $199 not $650 as the AT & T store down the street. Now we'll see when I actually get the phone what I was charged.