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

Posted:
in General Discussion edited January 2014
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 .

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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.
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Comments

  • Reply 1 of 28
    Higher commissions. Higher need to promote.
  • Reply 2 of 28
    chabigchabig Posts: 623member


    Obviously Samsung is paying for the by-name recommendation.

  • Reply 3 of 28
    dasanman69dasanman69 Posts: 12,976member
    chabig wrote: »
    Obviously Samsung is paying for the by-name recommendation.

    What about BB and HTC?
  • Reply 4 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.
  • Reply 5 of 28
    pedromartinspedromartins Posts: 1,333member

    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.

  • Reply 6 of 28
    genovellegenovelle Posts: 887member
    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.
  • Reply 7 of 28
    AT&T won't explicitly mention the iPhone; [email protected]#$*&% back-stabber.
  • Reply 8 of 28
    dasanman69dasanman69 Posts: 12,976member
    AT&T's won't explicitly mention the iPhone; [email protected]#$*&% 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?
  • Reply 9 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.
  • Reply 10 of 28
    tallest skiltallest skil Posts: 43,399member


    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?

  • Reply 11 of 28
    dasanman69dasanman69 Posts: 12,976member
    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.
  • Reply 12 of 28
    AT&T won't explicitly mention the iPhone; [email protected]#$*&% back-stabber.

    The deal applies only to smartphones. The iPhone is a genius phone...it stands alone.
  • Reply 13 of 28
    tallest skiltallest skil Posts: 43,399member


    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.

  • Reply 14 of 28
    dasanman69dasanman69 Posts: 12,976member
    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?
  • Reply 15 of 28
    tallest skiltallest skil Posts: 43,399member


    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.

  • Reply 16 of 28
    dasanman69dasanman69 Posts: 12,976member
    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?
  • Reply 17 of 28
    tallest skiltallest skil Posts: 43,399member


    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.

  • Reply 18 of 28
    dasanman69dasanman69 Posts: 12,976member

    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.
  • Reply 19 of 28
    kdarlingkdarling Posts: 1,640member


    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.

  • Reply 20 of 28
    froodfrood Posts: 771member


    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.

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