Originally Posted by lilgunther
As an adult, I have the ability to refrain from lowering myself to name calling and keep this to an honorable respectful response and simply state that I agree that, after they lowered initial price from the intial price of $599 to $399 the 3G was released at a cheaper price than the 2G.
It was sold cheaper due to the subsidy. If you purchased the original iPhone you were able to walk in and out with signing a contract. if you bought the iPhone 3G you had to sign a contract where the monthly fees and requirements were explained to you and written out on the contract. This is how all US carriers sell phones. This exists outside of AT&T, outside of the US and long before the iPhone came to pass.
This fact was widely advertised in global marketing that the new 3G did more for less $. Perhaps you recall that this was one of their big sales campaigns? I do not recall a single add that said, thanks the new price was due to AT&T deciding to subsidize the phone. They simply advertised a lower price.
They advertised the purchase price. The price you pay at checkout, not the TCO. To think that the 2-year contract or monthly fees meant nothing to AT&T is silly. Did you really think that it costs under $200 with profit for the iPhone?
While there may have been information buried in fine print if you dug around, it was not promoted in any advertisements I saw, nor was it clearly obvious in the store. In fact when I purchased mine, they simply said sign here on their handy little pad for a new 2 year contract which would be same as you had before.
What part of 2-year contract is hard to understand? Why would you be signing a contract that you didnt read or be signing a contract at all if you thought you had already paid for the device free and clear.
There wasn't any big contract to read. Granted, as an adult, it is my responsibility to read fully investigate and understand any contract I am signing. I generally do take the time to read and in the future will do the same with Apple. Unfortunately, I made the mistake of having a higher trust level with Apple, and honestly did not expect a fine print Gotcha. And you can pin it on AT&T or Apple, but I purchased it at the Apple store and only dealt with Apple representatives.
The point of a contract is to legally bind you to an agreement. You purchased a $700 item at $200, which AT&T pays Apple for each month, and AT&T wanted to be relatively certain that they get their money. There is nothing atypical or underhanded about it.
BTW, each Apple Store had an AT&T rep to finalize your account if you did not set yourself up at home before going to the store.
To be clear, I never saw a "full unsubsizided price" comparison at that time. They did not offer the option to buy one with out subsidy, only that it was this price. I do not feel I should get something for free, I am just very dissappointed that this year, instead of just purchasing the phone and signing the new 2 year contract like I did last year, I have to wait 6 months or pay extra. Seems to me, I already did that by being in line for the first one and paying more for it than the rest of the public did 2 months later.
not to sell the device as unsubsidized, like they do most of their devices. They chose only to sell it as a subsidized device requiring a 2-year agreement. One which you admittedly signed. There is no skullduggery, just a life lesson to lesson to be learned about being aware of business decisions.
The original IPhone wasnt subsidized. AT&T paid Apple each month for each month you had service with them. If you were new to AT&T because of the iPhone then Apple got a little more each month. This was profit sharing, something that AT&T liked but most carriers did not. It allows the carrier to pay nothing up front and requires the cellphone vendor to keep their device as useful as possible, especially old ones, as a canceled plan or switch to another device means no more monthly payouts. This is great for the consumer for takes away a lot of control from the carriers who have grown accustomed to strong arming vendors. Its rumored that AT&T made Apple agree to another year of exclusivity to get rid of the failed worldwide profit sharing model. I wish it has stuck as this wouldnt be discussed, though your initial HW price would likely be higher.
I am simply very dissappointed that, as a fiercely loyal frequent buyer, my genuine enthusiasm for their new product finds me having to wait 6 months to pay the price a new customer gets.
Enthusiasm does mean that we should be to ignore our legally binding contracts. I also dont see how someone can be loyal if they are trying to skate on their signed commitment. A new customer has no debt to AT&T, the same way that people who were with AT&T under contracts with any other phone were not able to get either iPhone at the "new customer/upgrade eligible price when you signed on.