Why Do Iphone 4 Buyers Expect a Special Deal Just Cause They Bought one last year?

Discussion in 'iPhone' started by nostresshere, Oct 4, 2011.

  1. nostresshere macrumors 68030

    Dec 30, 2010
    I have been noticing so many Iphone 4 users upset that AT&T is not giving them some kind of break on getting an Iphone 4S.

    Why should they? You bought the I4 on a 2 year contract deal. AT&T had to suck up part of the cost of that phone with an assumption they would get it back over the next two years. When you get the next phone, they will have to suck up more of the cost.

    I just do not get why people are upset with them. In fact, it is amazing they are offering the November deal.
  2. Eddyisgreat macrumors 601

    Oct 24, 2007
    Ha. You think this board is bad? You should see the ATT forums. The entitlement mentality will blow your mind.

  3. Chaos123x macrumors 68000

    Jul 8, 2008
    Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

    Well they let us upgrade early with every release so were used to it and now expect it.

    I was thinking AT&T would do this at least one more time to lock in people before a LTE phone comes out next year. Since AT&T isn't even trying to build up their LTE network it would give them another year to do so.

    If I can't upgrade this time, I will just wait it out till a LTE iPhone comes out on Verizon.
  4. FreakinEurekan macrumors 68040


    Sep 8, 2011
    Eureka Springs, Arkansas
    It is in AT&T's best interest to allow a fully subsidized upgrade prior to the end of the contract.

    Scenario A: Customer isn't eligible until the end of their 2-year commitment. Since at that point their contract is over, they are free to choose among any of the carriers. Some will remain with AT&T, some won't.

    Scenario B: Suppose AT&T moved up eligibility to the 18-month mark. Customer still has 6 months on their contract, but they can buy an AT&T iPhone 4S fully subsidized (with a 2-year contract extension). Now the customer's choice is get the iPhone 4S now on AT&T, or wait 6 months and get it on Verizon/Sprint.

    Which scenario benefits AT&T more?

    Personally, my upgrade eligibility date is 11/5/11 - so I hope they offer at least a small amnesty :) but if they don't, not the end of the world to wait a month.
  5. cmChimera macrumors 68040


    Feb 12, 2010
    My bill is 80 dollars a month, and that's at a discount. That's 960 dollars they have from me in one year. How does that not make up for what they subsidized for me?
  6. greytmom macrumors 68040


    Jun 23, 2010
    I bought launch day, and I'm eligible. I'm a valued customer. ;)
  7. btrav13 macrumors 6502

    Apr 8, 2010
    The cost of running their business is a hell of a lot more than just handset subsidy...
  8. dontwalkhand macrumors 601


    Jul 5, 2007
    Phoenix, AZ
    Cell phone towers don't build theselves. Employees will not work for free. Buildings can't be built without materials.

    It is a lot more than just subsidizing your handset.
  9. danpass macrumors 68020


    Jun 27, 2009
    Miami, FL
    if what that poster says is true then that is a bad example lol.

    he got extended for no reason.
  10. Chaos123x macrumors 68000

    Jul 8, 2008
    Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

    Yeah I bet they are paying their employees top dollar. Oh please we all know that most of the money goes to execs and stock holders that don't do any of the actual work.

    Bet most AT&T employees don't even make enough to afford to live on their own.
  11. Gregintosh, Oct 4, 2011
    Last edited: Oct 4, 2011

    Gregintosh macrumors 68000

    Jan 29, 2008
    I think for most carriers, your upgrade eligibility for a discounted handset is typically 18-21 months into a 24 month contract.

    If you are so mad about upgrade eligibility and all those issues, take them out of the equation. Just start buying every phone direct from Apple contract-free and unlocked. No more bitching at carriers, no more termination fees, and you can even take it to any carrier you want whenever you want with 0 penalties.

    If that $649 price tag gives you the shivers, then be glad AT&T or Verizon are willing to eat $450 of that for you, in exchange for a commitment to make it worth their while.

    I've worked for AT&T in the past and they pay competitive wages (every company has to pay market wages to retain the best talent). I don't think there's any AT&T employees working on minimum wage. Hell, even their retail staff gets around $14+ an hour, plus benefits.

    Besides, running and operating towers, expanding infrastructure, doing customer service, etc. all costs money. Big money. Think about it. After the handset subsidy (which takes out $500 out of the $2000 you pay them over the course of a 2 year contract), that leaves them with $62 per month per customer.

    A typical US-based worker earns about $3k a month and costs the company about $4k a month with administrative costs, payroll taxes, etc. included. It takes 65 subscribers to pay the salary of a SINGLE average paid worker.

    Do you know how many workers it takes to run a phone company? A LOT. And they don't all make as little as $36k a year in salary either.

    Yeah, they make some profits, but if they start making exceptions for MILLIONS of customers, how much would that cost them? If there's 10 million iPhone subscribers being given a $450 subsidy every year, thats an extra $4.5 BILLION in lost revenue ($9 billion lost over 2 years, where as the company budgeted for $4.5 billion). That's $4.5 billion the company won't have to build new towers, increase coverage, lower prices of their plans, etc.

    So what the next step is going to be is to cut down on plans, like unlimited internet. Increase costs of minutes and texting etc. But of course every time the company does that to make up the shortfalls caused by bitching customers over handset subsidies, these same people cry foul there too.
  12. btrav13 macrumors 6502

    Apr 8, 2010
    Well that's a stupid assumption to make...
  13. musiciscool macrumors regular

    Jun 8, 2008
    Los Angeles, California
    Att fanboys... Here's why: provider contracts are monopolistic jive! Let us buy the phone ourselves with no data plan requirement? How bout the fact that even a cheap $50 handset locks you into 2 years, whether or not you buy it yourself. Apple makes a product we want, and now we get screwed every time they make a new one? This isnt entitlement on our part, it's on the cell companies thinking they are entitled to lock us into 2 year contracts!
  14. TLewis macrumors 65816

    Sep 19, 2007
    left coast, US
    People whine about this with every iPhone release. It's nothing new, and it'll happen with every future iPhone release. It's as reliable as the sunrise. :D
  15. nostresshere thread starter macrumors 68030

    Dec 30, 2010
    They do offer a $10 phone with no contract. You can quit anytime you want. No contract.

    Or you can pay $600+ for the Iphone and quit anytime you want. No contract.

    Or buy the iphone at a reduced price and sign for two years.

    Bottom line. Your choice.
  16. wingnut8 macrumors 65816


    Jun 8, 2007
    That's what I'm doing. Selling my 3GS. Using that money towards a 4S and then I won't be locked in for the next phone.
  17. cmChimera macrumors 68040


    Feb 12, 2010
    Yeah, it includes charging me 20 dollars to send text messages, when it costs them nothing. They are getting a profit off of my phone bill regardless if I have an iPhone or a Pantech Breeze. The idea that this is a company that can barely make ends meet is a tad bit laughable.
  18. Interstella5555 macrumors 603


    Jun 30, 2008
    Because most people (and even more so for people on here) are whiny, bratty selfish beings that feel like they are entitled to everything they want. Example: I want a new phone. The one I was looking at isn't quite what I wanted or expected, so what do I do?

    Normally, someone would realize it's a just a phone, there will be others coming out, and they should just get the one that suits there needs.

    The people I mentioned however, see this as a personal attack on them, that somehow a company owes them something and that they shouldn't have to exert any effort or monetary amount to get what they want. I signed a 2 year contract? So what, they owe me a phone, preferably free, and if it's not the specs I've been pleasuring myself to for the last 16 months, then they're probably working with Satan...but I'm going to buy the phone, continue to complain about it for 12 months, then rinse and repeat.
  19. TLewis, Oct 5, 2011
    Last edited: Oct 5, 2011

    TLewis macrumors 65816

    Sep 19, 2007
    left coast, US
    Very true. However, complicating all this is the fact that AT&T has, in previous years, allowed some customers on a 2-year plan to upgrade after only something like 20 months. I don't know if AT&T is still doing this, though.
  20. Dr Kevorkian94 macrumors 68020

    Jun 9, 2009
    SI, NY
    Because AT&T likes to give upgrades to people they think they will get more money out of. I have the same complaint and asked here at the forums, and apparently if your phone pays more that $100 then they like to give you an upgrade. So basically someone who signed the same contract at the same time will be getting an upgrade and i am not. Now usually only the primary line is the line that pays the most so the other lines are out of luck. Apparently they have been moving people for this reason, but they have been doing this for a while and its not exactly a policy so that is why everyone thinks they can get one. This includes myself by the way, AT&T costumer service "had no Knowledge of this" and were sorry for the "misinformation" so I'm going to a store.
  21. skidbubble macrumors 6502

    May 17, 2010
  22. pettifogger06 macrumors member

    Oct 2, 2011
    I was wondering what the occupy wall street people were so upset about.
  23. asleep macrumors 68040


    Sep 26, 2007
    Customer retention.

    When it's cheaper to switch to a competitor w/4s, people will leave.

    It's their choice, they made it. Now I get to choose. Buh-bye AT&T.

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