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Thread: Why to NOT buy an iPhone 3G

  1. #1
    iPhone? More like MyPhone navalynt's Avatar
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    Default Why to NOT buy an iPhone 3G
    Please follow my logic:

    The first generation iPhones were sold at full retail price so Apple was paid upfront. Even selling through the AT&T Store it was full retail price. If the phone was not actually activated with AT&T ... big deal. Apple would miss out on a little bit of a kick back off the rate plans but had already profited from the hardware.

    It has always been the policy of wireless carriers to charge early termination fees. Most of the time there are also clauses for having to return the equipment if you cancel the service within the first three to six months (if you bought the equipment at a subsidized price). Otherwise the carrier (which has already paid wholesale price for the phone) ends up losing a LOT of money!

    Therefore, when the iPhone 3G hits the stores and the only prices available being the AT&T subsidized prices it can be assumed that you will need to:

    • Sign a new 2 year contract or extend your current contract by another 2 years.
    • Be subject to a very stiff penalty, probably in excess of $300, if you cancel within the first six months without returning the iPhone
    • Be subject to the AT&T cancellation fee of $175 on top of any unreturned equipment charges if cancel past the first 30 days.


    Now, when you consider all of the above how exactly would 3G iPhones become available on eBay or the forums?
    1. Someone though they could get away with canceling the service, not realizing that they had already given AT&T enough personal information to send them to collections and smear their credit.
    2. The phones are stolen.

    Those are the only two scenerios I could think of. If stolen, as soon as they realize the phone is missing they are going to check inventory and blacklist the missing IMEI number rendering the phone a glorified iPod Touch. That could take a few weeks to do depending on how often physical inventory takes place.

    Is it worth the risk? I wouldn't trust any iPhone 3G sold for a price less than $700 as that would be needed just to cover the cost of obtaining the phone in scenerio 1 above. Even then I would still be skeptical. There are plenty of alternatives to the iPhone out there which are much more reasonably priced if you don't want AT&T service for the next 2 years.
    Last edited by navalynt; 2008-06-15 at 09:24 PM.

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  3. #2
    Green Apple
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    Those are all very good points.I don't think sales are going to be like the 1st generation. I can't see 2-3 million people switching over to At&t just for an iPhone. Can anyone else name a phone manufacturer that puts these kinds of restrictions on their devices?
    I can only imagine what companies like RIM ,Palm and Motorola think of Apples tactics.
    I think Apple has a lot to learn regarding Mobile phones.

  4. #3
    so basically your saying dont buy the iphone cos its a contract phone and theres no way of sneaking out of your contract?

    fair dos

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    iPhone? More like MyPhone owensdus's Avatar
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    If this guy new anything, he would realize that there are 60 some other countries getting the damn thing, and in these magical countries they outlawed contracts.... WOW now these people will make a little profit off it it and put them on ebay. Do your research, all that stuff you posted is just off apple.com.

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    Green Apple
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    I don't think that's what he is saying at all. Name one other phone that you can't walk right into the store and pay full retail price without contract?
    If he is willing to pay for it,It's his business personally if they didn't stick us with a substandard carrier like At&t they would not have this problem.

  7. #6
    As these may be valid points, realize this:

    Apple spends millions of dollars on sales marketing/strategy and I can assure you what ever plan they have come up with to sell this beast will work - they will hit their projected sales goals and make butt-loads of money. We the people will buy.

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    Quote Originally Posted by cpjr View Post
    As these may be valid points, realize this:

    Apple spends millions of dollars on sales marketing/strategy and I can assure you what ever plan they have come up with to sell this beast will work - they will hit their projected sales goals and make butt-loads of money. We the people will buy.

    That's like saying every product line is a success. We know this is not true and Apple has learned this many times in the past. People are going to buy.Apples targeted sales is like 10 million iphones? lets say it's 5 Million I don't think 5 million people are going to switching over to At&t to buy an iphone.

    I'm buying 2 of them.I'm gonna sell one. use that money to pay the termination fees and switch over to T-mobile.

  9. #8
    iPhone? More like MyPhone Sirius389's Avatar
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    *mistake*
    Last edited by Sirius389; 2008-06-15 at 08:00 PM.
    -Nicole

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    iPhone? More like MyPhone navalynt's Avatar
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    Quote Originally Posted by owensdus View Post
    If this guy new anything, he would realize that there are 60 some other countries getting the damn thing, and in these magical countries they outlawed contracts.... WOW now these people will make a little profit off it it and put them on ebay. Do your research, all that stuff you posted is just off apple.com.
    And in those "magical countries" how much was the iPhone selling for? Over $1,000! Do some research yourself buddy!

    Besides which they did not outlaw cellular contracts, just locked phones. European carriers, just like American carriers, can still contract a phone if they are going to subsidize the price but must offer the phone at a retail price and unlocked so a customer can use that phone with most GSM carriers throughout Europe and rest of the world. Of course there is no reason to sign a contract if you are going to pay full price for the phone.

    If you ever tried to sell a first generation iPhone on eBay you would know that the net has been flooded with foreigners (from countries that have made it illegal to sell locked phones) trying to buy iPhones from the United States because it costs half of what it costs for them to get an unlocked iPhone from their local store.

    With the iPhone 3G launch outside of the United States I'm predicting that in those countries where phones must be unlocked one of two things will happen:
    1. The retail price will be absurd, like it is now, so Apple doesn't lose any money if you don't activate the phone.
    2. The retail price will be subsidized, like it is with AT&T, but with a shorter term contract and higher fees: both cancellation and unreturned equipment fees.
    Last edited by navalynt; 2008-06-15 at 09:23 PM.

  11. #10
    Green Apple
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    Quote Originally Posted by navalynt View Post
    And in those "magical countries" how much was the iPhone selling for? Over $1,000! Do some research yourself buddy!

    Besides which they did not outlaw cellular contracts, just locked phones. European carriers, just like American carriers, can still contract a phone if they are going to subsidize the price but must offer the phone at a retail price and unlocked so a customer can use that phone with most GSM carriers throughout Europe and rest of the world. Of course there is no reason to sign a contract if you are going to pay full price for the phone.

    If you ever tried to sell a first generation iPhone on eBay you would know that the net has been flooded with foreigners (from countries that have made it illegal to sell locked phones) trying to buy iPhones from the United States because it costs half of what it costs for them to get an unlocked iPhone from their local store.

    With the iPhone 3G launch outside of the United States I'm predicting that in those countries where phones must be unlocked one of two things will happen:
    1. The retail price will be absurd, like it is now, so Apple doesn't lose any money if you don't activate the phone.
    2. The retail price will be subsidized, like it is with AT&T, but with a shorter term contract and higher fees: both cancellation and unreturned equipment fees.

    Good point the prices on those iphones outside the U.S. will be absurd I just sold a 4GB iphone used on ebay to guy in London for $340.00 plus shipping.He told me it was still over $100 cheaper for him to buy it in America than UK.

    I would rather sign the contract cancel it and pay the termination fee. still less than $1000.00 which probably what the 3G is going to cost on ebay
    Last edited by bargsbeer; 2008-06-15 at 09:49 PM.

  12. #11
    Livin the iPhone Life Apple iPie's Avatar
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    Thats wrong! U are talking about America only! In a few countries,iPhones will be sold WITH OUT a contract!

  13. #12
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    Yes they will be sold without a contract in some places but the price is going to be insane!
    especially Europe.

  14. #13
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    Quote Originally Posted by bargsbeer View Post
    Yes they will be sold without a contract in some places but the price is going to be insane!
    especially Europe.
    Thats life. They will be unlock-able,I hope.

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    hmm what to do...
    sell my amazing 1.1.4 iPhone which is basically like my life and wait it out for the new one or wait until the new one is released, depending on 1st gen sell prices on july 11th, either list it or wait a week or so and see how things change.

  16. #15
    i agree that the london guy got his american iphone for less than he could here (the UK). exchage rates are in our favour.

    if i could buy a new 3g iphone from the states for $800 i would..thats around 400GBP....im sure if i wanted to buy an offline iphone here (if it was available) it would cost over 500 ($1000+)...

    so buying from a guy in the US who has terminated and paid off his contract, and a little profit on top, would be quite popular from buyers in the UK. but how could we be sure he isnt screwing his own credit over and sending a phone which will soon be blocked? if theres almost a $1000 at stake, this will happen.

    fortunatley my contract is due for renewal, and i'll get my 3g iphone on launch day! (and put my old one on ebay!)
    Last edited by thesharkfactor; 2008-06-15 at 11:21 PM. Reason: spelling

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    Livin the iPhone Life redcard's Avatar
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    Quote Originally Posted by bargsbeer View Post
    I can only imagine what companies like RIM ,Palm and Motorola think of Apples tactics.
    I think Apple has a lot to learn regarding Mobile phones.
    RIM, Palm and Motorola are probably wishing they had the balls to do what Apple did.
    To live, you have to lie

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