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AT&T initiates $100 trade-in program for smartphones, pushes non-iPhone handsets

post #1 of 28
Thread Starter 
AT&T announced on Tuesday that it will begin a trade in program in May, with the initiative targeting existing smartphone users who may be on the fence about moving up to a new model or .

bell


Starting May 1, device owners can take their handset to AT&T to receive a credit of at least $100 to put toward the purchase of "any smartphone AT&T sells."

While the rules of the promotion stipulate the trade in must be less than three years old and in good, working condition. The credit, which may come out to more than $100, can be applied to any AT&T handset, including those priced at $99.

Interestingly, the carrier points out three possible smartphone buys that consumers can take advantage of: the Samsung Galaxy? S 4, BlackBerry's Z10 or the 32GB HTC One. Apple's iPhone is notably absent from the list, but it appears that the handset is included in the promotion.

Although no end-by date has been announced, the company said the offer is available for a "limited time" only.
post #2 of 28
Higher commissions. Higher need to promote.
post #3 of 28

Obviously Samsung is paying for the by-name recommendation.

post #4 of 28
Quote:
Originally Posted by chabig View Post

Obviously Samsung is paying for the by-name recommendation.

What about BB and HTC?
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
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post #5 of 28
You can probably get a better deal from Gazelle, who have been doing this for years with post-paid mailers. And you can do it when you want. No special promotion.
post #6 of 28
Quote:
Originally Posted by dasanman69 View Post


What about BB and HTC?

There's a reason for those. HTC makes and provides the best android phone/experience and BB provides a different choice/platform.

 

Samsung? 0.

post #7 of 28
These phones are a hard sell. You can barely find the iPhone on either of the 3 major carriers sites. Even when they list the best selling phones Verizon leaves the iPhone off the list even though there are no other phones that sell more than the iPhone on their network.
post #8 of 28
AT&T won't explicitly mention the iPhone; f@#$*&% back-stabber.
post #9 of 28
Quote:
Originally Posted by lightstriker View Post

AT&T's won't explicitly mention the iPhone; f@#$*&% back-stabber.

They lost phone subscribers this past quarter, what do you expect them to do? How many have fled to another carrier? Who's the back stabbers?
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #10 of 28
This is clearly targeted at android.

Interestingly even the dollar amount is biased towards android. for up to $100, it would only make sense to sell an android, since any iPhone less than 3 years old you'd never need to sell as a trade-in but instead could sell for (usually much) more on the open market. look at how much the iPhone 4 goes for on eBay, a 2 year and 9 month old phone, vs. ANY used 2 year old android.
post #11 of 28
Originally Posted by dasanman69 View Post
They lost phone subscribers this past quarter, what do you expect them to do?

 

I dunno, push the phone that sells the best and which people actually want instead of useless crap?

What sort of question is that?

Originally posted by Relic

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Originally posted by Relic

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post #12 of 28
Quote:
Originally Posted by Tallest Skil View Post

I dunno, push the phone that sells the best and which people actually want instead of useless crap?


What sort of question is that?

Ummm they have been and they're still number 2 and losing ground. Time to rethink that tactic. Plenty of people buying 'useless crap' over at VZW.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #13 of 28
Quote:
Originally Posted by lightstriker View Post

AT&T won't explicitly mention the iPhone; f@#$*&% back-stabber.

The deal applies only to smartphones. The iPhone is a genius phone...it stands alone.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #14 of 28
Originally Posted by dasanman69 View Post
Ummm they have been and they're still number 2 and losing ground.

 

Looks like they're explicitly doing the opposite of what you're saying. But then again, I read the article.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #15 of 28
Quote:
Originally Posted by Tallest Skil View Post

Looks like they're explicitly doing the opposite of what you're saying. But then again, I read the article.

Now they're doing the opposite but I still see plenty of "what's better" AT&T iPhone ads. I remember when many here defended AT&T like they do Apple and now how many have fled to another carrier at first chance?
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #16 of 28
Originally Posted by dasanman69 View Post
Now they're doing the opposite but I still see plenty of "what's better" AT&T iPhone ads.

 

Oh, the "Only AT&T lets you talk and surf on your iPhone 5" ones? I guess so. But you never see it on their website or pushed in stores.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #17 of 28
Quote:
Originally Posted by Tallest Skil View Post

Oh, the "Only AT&T lets you talk and surf on your iPhone 5" ones? I guess so. But you never see it on their website or pushed in stores.

How many more people are watching TV versus how many visit the AT&T site or stores?
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #18 of 28
Originally Posted by dasanman69 View Post
How many more people are watching TV versus how many visit the AT&T site or stores?


So how do you think they buy the phones, then? They go to an AT&T store and are sold away from the iPhone by the employees.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

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post #19 of 28
Quote:
Originally Posted by Tallest Skil View Post


So how do you think they buy the phones, then? They go to an AT&T store and are sold away from the iPhone by the employees.

Seeing as how 80% of smartphones sold on AT&T are iPhones their salespeople either aren't doing that or they're very bad salespeople.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #20 of 28

The reason AT&T and other carriers push other phones is simple:  they don't cost the carrier nearly as much in subsidies as an iPhone does.  

 

(Sprint said that the iPhone cost them on average 40% more than other smartphones to subsidize.)

 

Subsidies are a big drag on carrier revenues and cash flow.


Edited by KDarling - 4/30/13 at 7:01pm
post #21 of 28

This isn't really rocket science.  The carriers are going to promote phones that they make money on, not ones that they lose money on.

 

Both AT&T and Verizon had record losses (multi billions of dollars) last quarter primarily due to iPhone sales.

 

Apple makes AT&T and Verizon pay them more money for iPhones than they can sell them for.

 

 

AT&T and Verizon can survive these losses because they make the money back on the contract.

Contracts cost the same for Android and Apple users.

 

So if you own a store and your options are:

 

A)  Make a lot of money on your product + Make some money on the 'delivery' product

B)  Make a lot of money on your product + lose a little money on the 'delivery' product

C)  Make a lot of money on your product + lose a lot of money on the 'delivery' product

 

Which of the above options do you promote?

 

On a 2 year contract a carrier may make @$2000 on their network service, so they are willing to take that $300+ dollar loss selling you an iPhone if that is the only way they are going to get you on a contract.   They would far rather make $2000 for their network AND make another $100 (or break even) selling you another brand.

 

Its also why AT&T always gets mixed reactions on news and has a much lower p/e than their competitors.  They have the highest iPhone percentage.  The more phones they sell in a quarter, the higher their losses are relative to the competition.

 

If Apple structured things so the carriers made more money selling iPhones than Android phones- you betcha the carriers would be marketing the iPhone more prominently than the phones that make them less money.

post #22 of 28
My impression, having spent too much time waiting in my local AT&T store, is that they are happy to sell you an iPhone but if you come in and ask the salespeople they will steer you towards other phones. The iPhone display is even crammed in a corner of the store instead of front and center.
post #23 of 28
Quote:
Originally Posted by Tallest Skil View Post


So how do you think they buy the phones, then? They go to an AT&T store and are sold away from the iPhone by the employees.
Yeah, they go into an AT&T store AFTER seeing a commercial on TV. What, do you think they miraculously forget why they went there between the couch and the mall parking lot?
post #24 of 28
Originally Posted by Cash907 View Post
What, do you think they miraculously forget why they went there between the couch and the mall parking lot?

 

People aren't the brightest, and when they're specifically sold away from the iPhone…

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #25 of 28

Just the sort of "partners" you need! Ugh!

 

Apple needs to run it's own telco in the US and tell verizon, ATT and Sprint to stick it up their respective noses! :)

 

Apple's cell plan $19/mo.  -everything unlimited with the latest iteration of the iPhone, no contracts! Verizon, Sprint, ATT get last year's model only! :)

post #26 of 28
I went into our local Verizon store to buy my wife's iPhone 5 for Christmas. I was deluged by Samsung banners and displays. I had to hunt for the iPhone display which I found tucked into the very back corner of the store. Ironically, the five of us in the store at that time were all buying iPhone 5's.
post #27 of 28
Obviously they're promoting the phones that need promoting. AT&T wants to sell ALL their phones, naturally. They don't need a promotion to sell iPhones. So they pump up the others because they don't want stock sitting on their shelves.
post #28 of 28
"Apple's iPhone is notably absent from the list, but it appears that the handset is included in the promotion."

Here's why: A Samsung buyer pays US carriers the same total (contract plus phone) for Galaxies as iPhone 5s. Carriers pay much less to Samsung than to Apple. Let's say $100 less. Samsung won't say; Apple gets about $450. Whatever that difference is, a Samsung buyer has paid that much more than the iPhone buyer.

And ATT made that much more off the cheap plastic phone buyer.1hmm.gif
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