Apple only accepting credit cards for iPhones?

Sat, 10/27/2007 - 06:48 — Quincy Pince-Nez

Engadget this morning pointed us to the news that Apple was now only selling iPhones to people with credit cards - no Cash/Check money order.  In addition, the limit on phones is now down from 5 to 2 per purchase.

Why? 

According to Apple spokeswoman Natalie Kerris, the official Apple Line is, um:

"Customer response to the iPhone has been off the charts, and limiting iPhone sales to two per customer helps us ensure that there are enough iPhones for people who are shopping for themselves or buying a gift," Kerris said. "We're requiring a credit or debit card for payment to discourage unauthorized resellers."

YEOUCH!  The 1st 1/2 of that statement would seem to be untrue - there are plenty of iPhones out there no one is complaining of store shelves being bare - in fact, Apple will have to ramp up sales (Europe/Asia help) to meet its 10 million by the end of 2008 forecast.  

The second half is a bit more genuine.  Apple has a very real problem with unauthorized resellers.

We've been saying all along that iPhone hacking isn't just a niche market devoted to crazy hackers.  Here in Paris, SIM unlocked iPhones are all over the placeLondon too.  The plummeting Dollar has made an Apple Store visit a requirement for every iPod loving European over the past few years.  Now, iPhones are on the shopping list.  My wife has been hit up numerous times for iPhones on her current trip to New York (hehe).

So what about the MBA's at Apple who came up with the revenue sharing plan?  They are obviously falling all over themselves trying to correct course with things like the 1.1.1 (codename: bricksville) update and this current plan - which will surely stop the problem...  Seriously though (see picture - this isn't going to slow), it is kinda getting scary - the lengths to which Apple is willing to go to to keep people from changing carriers - one shutters to think of what happens next.

What about the analyst's predictions?  Hacking was not a concern for Apple?

Shaw Wu of American Technology Research described the number as "immaterial," representing "only a small group of users, namely hackers."  He is 100% wrong - yet again (who hires/listens to these guys?).  The phone hacking IS a problem for Apple.  The recently announced quarter of a million SIM unlocked iPhones was probably a low "guess".  We use quotes because Apple knows the exact number.  How?  Take Apple's iPhone total sales, call AT&T ask their total iPhones activated, then ask someone in finance to subtract one from the other.  That's how you come up with your "guess".

Apple is probably dealing with about one in five of iPhones getting hacked (geeze - look at our Google ads if you don't believe us!). That is pretty significant - especially if it continues to grow.  As the practice becomes more "accepted" and mainstream, more and more people will jump on board.

Obviously, not only is Apple losing their cut (10-20% of iPhone owner's wireless revenue over 2 years), but AT&T is not pleased.  While most of these phones are heading to Canada/overseas, many more are being used in the States on Tmobile or on AT&T without the 2 year plan.  As we've said before, hacked iPhones are blanketing Europe ahead of their official (more costly) release next month.  The O2s, Oranges and T-mobiles have got to be getting pretty pissed off and want to see some action...schnell!

Hence, today's action.  Apple, you know you could just call the whole thing off right?

 

 

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Comments

Once again proves my point

Once again proves my point that "analysts" are a bunch overpayed pretenders and full of crap. Any mac fanboy could make a more accurate prediction then these guys.

As far as Apple goes, seems like they are not likely to get of the greed-train anytime soon, it's getting worse by the minute, which makes you wonder if the iPhone was such a good idea after all...

Agreed. Just might post

Agreed. Just might post about that very idea...

OMG, I just bought the

OMG, I just bought the iPhone last Sunday on 5th Ave. NYC, thank god I got there in time, because I was paying in cash!

Here is the definitive

Here is the definitive simple solution (i just came up with this as reading the articles, so don't castrate me should there be some innate flaw")
 
step 1:  get large amount of cash (which i guess you store under your bed or in a shoe box or wherever you have it cause you don't believe in banks and you dont have a checking account with visa atm card or because credit card companies are ruining the world so you refuse to sign up for one so that you can make sure you never build up any credit to prove that you can handle having someone lend you stuff thereby making sure you never qualify for a loan someday in order to buy something larger such as a house or car or 100 iphones, or because cash is prettier or because its fun to carry hundreds of dollars in cash around should someone politely ask you for it with a gun or for whatever reason it is that you do not have anything with a visa logo on it)
step 2: walk into apple store with said large amount of cash
step 3: buy yourself 1, 2, or any number of apple store gift cards with cash (each card holds up to 2500 dollars, unlimited number of gift cards can be purchased at one time)
step 4: purchase iphone(s) with gift card
step 5: unlock iphone
step 6: sell iphone on the street next to man with his ad hoc shop which is set up on a picnic blanket, he sells such items as cell phones, emptied used wallets, shoes (not necessarily matching pairs), and your bike

Apple "guessed" 25% (a

Apple "guessed" 25% (a quater, 1/4) of iPhones sold are unlocked, you call it a low "guess", then you say "about one in five of iPhones getting hacked", (1/5, 20%)... hello?

the guess was that 250,000

the guess was that 250,000 out of the total which is 1.4 million so far.  Roughly 17%

 

Which is 1 in 6, not 1 in 5.

Which is 1 in 6, not 1 in 5. ;)

1 in 6 would have been

1 in 6 would have been 250,000 out of 1.5 million.   We were rounding down.

Oh and to all you with the

Oh and to all you with the argument that using cash is a choice, and you don't WANT to pay with a piece of plastic that either is credit or debit, well I have had this problem for YEARS , but it is of a different sort, for you see, I don't WANT to pay for anything with money at all, for I don't believe in a symbolic unit of wealth, you see, I only WANT to pay via bartering no cash, no credit. I give you something with intrinsic value and you give me something equally valuable. Well you can imagine my chagrin when I walked into the apple store with my goat and I was turned down for an iphone. I even explained to the taken aback manager that this was a prized goat raised from a proud heritage, it produced the sweetest goats milk for making delicious chevre cheese, but still NOTHING. Then I thought to myself, maybe they only will trade with produce, being they are apple, so i brought in a basket of avacados and the deed for 1 acre of my avocado farm and said we could mutually profit share. Still he turned me away. F U APPLE, I will NEVER buy anything from you again.

Goatherder, you rock. so

Goatherder, you rock. so hard.

Stupid question here! If you

Stupid question here!

If you sell your iphone, aren't you stuck with a 2-year contract you signed when you bought the iphone  Or does the software hack make the contract go away, too.

You are right!  well here's

You are right!  well here's the answer.  You don't sign a contract until you activate it thru itunes  If you activate it thru a 3rd party mechanism, then you have no contract

 

 

Apple sucks.......they

Apple sucks.......they always have. Trying to corner markets all the time and end up spiting themselves. Fools. Go with Windows Mobile 6, much better, much more secure, and YOU the CONSUMER can choose what carrier you want to use. ATT SUUUUUUUUUUUUUCKS !

If you sell your iphone,

If you sell your iphone, aren't you stuck with a 2-year contract you signed when you bought the iphone  Or does the software hack make the contract go away, too.

Following the success of

Following the success of iPod, Apple announced the iPhone in January 2007. The announcement was preceded by rumors and speculations that circulated for several months.

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