Is Apple and AT&T at War?

[iPhonejunkie3]

Interesting blog below from iProng. Is Apple and AT&T at war? What does this suggest about the status of the exclusivity arrangement?



The war between Apple and AT&T : iProng Magazine

Taken together with this link from the Washington Post, what does this say about early upgrading? Wait and see?



washingtonpost.com

[cjvitek]

I think this is BS.

The upgrade policy is nothing new to the iPhone. AT&T has always had a two year upgrade policy. The modified it slightly last year to help iPhone users, but there is no reason to feel that would would, or should, have to do the same thing this year.

Truthfully, the people whining about "I can't upgrade" need to read the contract with AT&T before they signed it. No, you can't. You can't upgrade to a new iPhone, you can't upgrade to a Blackberry, you can't upgrade to an LG - nothing. To think that AT&T is targetting iPhone users and trying to screw them reeks of arrogance.

If AT&T offers an early upgrade option (something they have never offered in a blanket fashion to other phone users like they did last year to iPhone users) than it is a bonus - but it shouldn't be expected or demanded!


Chris

[Joe McG]

OK, so I've been seeing Chris' argument on alot . . .

I understand that the cost of the phone is partly subsidized over a certain time period. However, you can't use that argument without looking at the numbers.

I was with Tmobile for 4 years until I got an iPhone in January. I upgraded several times with them. Their subsidy was spread out over the first 11 months and was basically done with the monthly charges for the PHONE SERVICE.

In the case of AT&T they are subsidizing it over an 18 month period. At the same time, they are charging a required $30 per month iPhone data fee. This was increased $10 for the 3G to subsidize for the phone. HOWEVER, they are still getting the $50 - $100 per month for PHONE SERVICE on top of that and do not have to pull the subsidy from that at all. Not only that, their phone service is MORE EXPENSIVE than Verizon, Sprint, and Tmobile. THIS IS DOUBLE (TRIPLE) DIPPING.

Not only that, but their text messaging rates are enormous compared to Tmobile!

While I know that it is reasonable for AT&T to make iPhone users wait 12 months to wait for an upgrade, 18 months is too long and is not inline with Apple's product cycling, so something needs to be done.

P.S. If you really want an iPhone 3GS, just buy it, and sell your 3G on Ebay. They're selling between 200 - 400 dollars right now.

[cjvitek]

Different carriers, different pricing plans, different subsidy plans...different scenarios.

Some carriers subsidize the phone more than other, some have cheaper plans more than others. You can't compare them directly - it is comparing apples and oranges.

AT&T subsidizes phones more than Verizon (and I think more than Sprint, not sure about T-Mobile).

If you don't like AT&T's policies, don't sign a contract with them. As simple as that. Don't sign a contract, then complain when AT&T adheres to the terms of that contract. Yes, if you want the iPhone in the USA, you need a contract with AT&T (or buy an unlocked phone via Ebay) but still, no one is forcing you to sign it.

AT&T doesn't answer to Apple - to say "it isn't in line with Apple's product cycling" is ludicrous. They are two separate companies - why don't you tell Apple to get in line with AT&T's contract upgrades? That arguement makes just as much sense.

[iPhonejunkie3]

Here's another interesting perspective regarding whining iPhone 3G nerds:

iPhone Nerds Whine That They Can't Get Free Stuff (AAPL, T)

[The_Reptile]

Cold war - yes. It's probably got to do with exclusivity and AT&T's inability to upgrade it's network fast enough. Any accountant could figure out how many months are required in a commitment to allow for the upgrade to the new iPhone 3GS. Any DBA could write a SQL script to change the setting in all iPhone owner's accounts to change the MMS setting. AT&T has known that Tethering was on its way and could have had a plan ready with pretty marketing data. And AT&T also knew that a $99 3G was on it's way and could have had new rate plans ready. Since all of this is routine then the only reason why they don't have things done yet has to be a feud.

[bandman77]

I hate the 2 year upgrade term. I am 3 months away from my 2 year upgrade, and they will not allow me any leeway. It can just be frustrating. I would pay slightly more in order to bypass that 3 month time waiting period too.

[iPhonejunkie3]

A similar story from pcworld:

Apple to AT&T: Drop Dead - Business Center - PC World

[iPhonejunkie3]

Wall Street is very happy with Apple's WWDC keynote announcement:

AppleInsider | Wall Street responds favorably to Apple's WWDC announcements

[cjvitek]

One other thing. People with iPhones are acting like this is targetting them. This is a standard AT&T policy. You don't hear LG users complaining when a new LG phone come out. You don't hear Blackberry users sayins AT&T hates them when a new Blackberry comes out. What makes iPhone users so high and mights that they think they deserve special treatment?

Chris