Your Cash Isn't Good Enough For Apple's Precious iPhone
Four benjamins will no longer get you an iPhone, now that Apple is requiring credit cards for all iPhone purchases. The new policy, which is billed as an anti-piracy initiative, also prevents customers from buying more than two iPhones per visit. Apple claims the policy went into effect this Thursday, however we received the following tip more than a week ago:
I witnessed a distressing situation at my local Apple Store this morning: a customer who wanted to buy 2 iPhones (for her and her husband) was denied the sale, because she wanted to pay with cash. One employee claimed it was due to "the registration system", stating "it requires a credit card" which is totally bogus. Another employee said it was part of an attempt to prevent people from buying several and unlocking or exporting them. They also said that checks and gift cards are no longer accepted for iPhone purchases, and that he credit card has to have the customer's name on it.Apple disclosed this week that up to a quarter-million consumers may have unlocked their iPhones, some with the help of resellers. Apple previously allowed individuals to buy up to five iPhones at once.
Apple Limits Sale of iPhones: Two Per Person and No Cash [AP]
(Photo: Boris Veldhuijzen van Zanten)
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Hmmm very un-apple. But I guess at $18/mo per iPhone subscriber (per Ars Technica), Apple is missing out on a huge chunk of money for each unlocked phone ($432 over the life of the two year contract).
This may be a problem come Christmas time, with people gifting iPhones to other people outside their family if the CC used is supposed to be the customer.
I suppose the next step if Apple continues to see the unlocking continue is mandatory in-store activation a la AT&T.
Apple is not the altruistic endevour they blow themselves up to be.
They're souless whores who have now determined that legal tender isn't their bag. But racking up $800 in credit card debt and paying an additional percentage is just hunky dory.
Maybe they get a kickback form CCs too...
i don't understand this noncash policy. What does the credit card have to do with anything? Even if it was bought with a credit card, it can still be resold.
On another note, many Apple people seem to be anti-Microsoft but alot of things Apple is doing lately seem like things Microsoft does/did to stifle competition. Is this policy also in place at the At&t stores as well as the apple stores?
@bravo369: But this way they can track people using their CC number and prevent them from buying more than a certain amount.
To me this is all only because they did that contract with AT&T. They should not have locked the phone to just one carrier. But as we can see, demand finds a way. Get ready to see enormous sales soon from france where they have to sell it unlocked by law.
Agreed - the fact that you have to use a credit card really has no bearing on Apples ability to do anything once the transaction has been made.
It's not as if they're going to track the phones a few months later, see that they're not activated, trace the owner of the credit card used to purchase them, and then somehow prosecute them.
Two at a time is perhaps a problem for resellers - a credit card requirement is hardly a problem though.
Does apple really thank that this will stop people. I mean, think about it, if people are smart enough to crack the stupid phone, don't you think they're smart enough to get around the no-cash roadblock.
I never owned an apple before but always had a bit of respect for the company. The more I hear these stories, the more greedy Apple seems...no different than any other huge company.
I am sure you'll see them do something to gimp those phones from ever coming within 500 miles of American shores.
People should just wait until the iPhone launches in Europe. The grey market will be flooded with unlocked iPhones. Screw you, AppleT&T. Hahaha.
Watch the user base growth starting to dwindle. While I'd say other Apple products were hits, this iPhone is starting to look more like a loser...
Maybe this couple needs to be introduced to some more sophisticated phones. In particular, I would suggest the BlackBerry Curve or anything made by HTC, which features the latest in smartphone innovation: tactile feedback. They can have as many of those suckers as they want.
@sunnfun: But if they hadn't locked the iPhone to a carrier then one of their big selling points wouldn't have been available. The visual voicemail feature required support from AT&T to implement. I'm sure that AT&T required lock-in if they were going to invest in developing that feature on the back-end. If Apple hadn't gone that route then visual voicemail probably wouldn't have even been created since the chances of convincing most of the major carriers to support it would have been extremely difficult.
@azntg: I wouldn't call it a loser but I agree that adoption will dwindle. Personally I might consider an iPhone for my next phone when my current one dies, but since my current phone is less than 6 months old I don't see that happening anytime soon. I may just wait for a second or third generation iPhone to see what the offer. But I'll definitely consider it in the future, just not any time soon. I'm willing to bet that a lot of people feel the same way, especially with regards to all the knock-offs that companies like Nokia, Motorola, LG, etc. are already starting to roll out.
Can a store legally refuse to accept cash?
Is this even legal? Can they refuse to take legal tender in a transaction in the U.S.?
What a racket. This kind of crap is why I refuse to upgrade past even the most primitive Tracfone cell phone. Until there's a "Virgin America" of the cell phone industry, the consumer-hostile cell phone industry and its droids in Bangalore can kiss my ass.
So are they not going to have visual voicemail in Europe?
Is it really that good of a function to give up everything else most so called smartphones can do at half the price?
This all goes back to Apple producing overpriced minimalist garbage and using it's sway over the ApplexCORExS out there to justify selling a gimped product at an inflated price.
According to the Treasury Department, private businesses can refuse cash since there are no federal laws forbidding such. However, state laws may apply.
@bravo369:
The non-cash rule allows Apple to refuse to sell phones to people who have been flagged as buying large volumes of them.
The should officially unlock this thing. I totally understand the CC only purchase but locking it to one carrier, never. Whatever happened to "the customer is always right?" What if I don't like AT&T and prefer another network? Its just disappointing really.
I've never had cash flat-out refused as a form of payment before, but a large A/V store here in town called Ultimate Electronics gave me a *huge* hassle about making a small purchase with cash, up to the point I finally put the item I was going to buy onto the counter, said "Never mind." and left.
In my case, though, I think it was because they push hard for customers to get a line of credit with the store. In fact, the checkout area had just as many credit application kiosks as it did registers. To me, that was a pretty big red flag. I'll probably not return there in the future.
@Shijirou: One of the big reasons it's not unlocked is that one of the main selling points Apple pushes is the whole visual voicemail thing. The carrier had to make changes on the back end to support this new way of navigating through voicemail and Apple had to convince a carrier to do it. I'm sure that AT&T only offered to support it on an exclusive basis. Same thing probably goes with the exclusive carriers picked in the other countries where the iPhone is going to be made available. This is probably why it's taking so long for it to show up in those markets. Remember that Apple likes to control the whole user experience, so they want to ensure everything including visual voicemail works the way its supposed to. If you unlock an iPhone and use it on another carrier then visual voicemail won't work, and Apple doesn't like that. And since Apple had to convince a carrier like AT&T to support visual voicemail and AT&T likely forced the exclusive tie-in, there's no incentive for other carriers to implement it unless/until unlocked iPhones reach a critical mass. But then there seem to be plenty of people out there who couldn't care less about visual voicemail.
Quite frankly, Apple's iPhone isn't good enough for my cash. I need something that will work out of the box with my company's Exchange server (which I manage, BTW).
Windows Mobile 6 FTW.
Yes it's perfectly legal for Apple to refuse cash. The only time legal tender comes into play is in the case of debt. As you don't already owe a debt to Apple since you haven't purchased an iPhone yet, they can deny any payment they want.
As for them denying anyone a sale of the iPhone for purchasing more than 2, it's very unlikely. Limiting 2 per purchase is not the same as 2 ever. I like how everyone calls them greedy pigs like Microsoft and then acts as if they are going to turn down sales.
Oh and there's no iPhone shortage, making it even less likely they will.
@Shijirou: lmfao... "the customer is always right" is the biggest load of crap and was never true. I see more wrong customers than right ones.
I don't agree with this cc thing though. They cant flag people for buying too many because I have to imagine its illegal to track customers purchases without their permission (via a club card or something similar)and to me, a CC would be what Id be using to resell phones anyway. I'd use my AMEX card with a cash back bonus and make an even larger profit (and not have to walk around with cash)
@humphrmi: Yes, it's legal for them to refuse cash. If you look closely at your money, it says, "This note is legal tender for all debts, public and private." Since they haven't given you the iPhone yet, you don't owe them any money, so they can refuse to sell an iPhone to you.
Now, if you were at a restaurant, you've received your goods before they ask you to pay, so you owe them money. They cannot refuse cash in that case (and if they do, the debt is invalidated).
As if I didn't need an extra reason to dislike them...
@IphtashuFitz: That might be true but I have been using my unlocked iPhone with T-Mobile for a while now and I love it! I don't miss Visual Voicemail; the other non-exclusive features of the phone are defintely worth it. It might not be for everyone (Some might like their crackberries better) but it's a cool phone no doubt. In the end I think this whole lock-in is going to hurt Apples Image; so they will eventually sell the Phone unlocked , I'm sure. I for one travel a lot out of the country and AT&T's plans are prohibitively expensive compared with T-Mobile. Plus I can use cheap prepaid sims abroad. I have seen people pay $700 for unlocked iPhones to be used outside the US. The demand is there.
Guess Ars Technica was right. The only way AT&T and Apple will sell phones unlocked is through the legislative system and they aren't going down without kicking and screaming in the process.
They want to track who is doing what so they can come back on you later incase your unlock your iPhone.
My bet is that they will place, or already have placed a call home feature in the iPhone's firmware, that will call back with the serial number and they will know who had purchased and unlock it.
They might even use this information to prepare litigation against a person.
There are a few businesses that refuse cash. Can you buy a plane ticket without a credit card?
Yet another reason why I will be sticking with HTC. This big fit that apple is doing with this phone is rediculous. I have been in the cellular industry for years and there has never been a phone manufacturer that has done what apple has done to keep control of a device. I am an Apple fan when it comes to my computer, but for my phones, my money goes to HTC. I recently picked up a HTC TyTn II, which is much better than the iPhone. I have had phones with no keypads, not my cup of tea, I like having actual keys. I also like adding my own applications to make my phone better.
HTC FTW!
I'm disturbed by this for a number of reasons. First, a lot of people have gift cards, and would prefer to use them. That's the whole point of a gift card.
Second, cash is supposed to be 'legal for all debts, public and private'. To refuse to allow cash...makes me wonder if someone shouldn't be contacting their local Attorney General.
Third, there are a lot of people trying to limit credit card usage. that's hard to do if you're forced to use it.
Of course, I'm one of those crazy people who has a cheap phone which is used to just...um...talk to people.
What's the big deal if people buy your product and then do whatever the hell they want with it after the product becomes legally theirs? Honestly, I've seen the iPhone, I've used the iPhone...hell, it's just a phone and not a very intuitive one at that. I've been trained for the past 35 years to push buttons to dial. Why do I have to re-learn something I've done pretty well at for 3 1/2 decades. Also, I've had wi-fi on my pda since the palm tx, why do I need it on my music player? Jeezus people, are we all just cattle?
I too thought it was illegal to not accept US Currency at a "brick and mortar" store.
There is no reason to not accept cash, just require proof of identification when buying an iphone.
@WraithSama: Wow, Ultimate turned down a cash sale? I think I would have pulled out my checkbook.
@ShadowFalls: On what grounds?
@b-real: Yes, they don't like it though. You can depending on airline use Western Union or even Paypal. As for cash the last time I did it I had to drive to my closest airport (60+ miles) to have the counter complete the ticketing process that I started on the phone. Exact change only.
According to Wikipedia:
The right, in many jurisdictions, of a trader to refuse to do business with any person means a purchaser cannot demand to make a purchase, and so declaring a legal tender other than for debts would not be effective.
That being said, it's still a fairly questionable move on Apple's part. I wonder what their actual motivation is, as they aren't actually going to create scarcity through this policy. Perhaps those who cannot obtain a bank account are not viewed as wanted customers.
Heh, I can already see the news article now:
Girl Breaks Down Crying in Apple Store
Today a local 12 year old girl broke down and cried inside a local Apple Store when the store staff told her than the Apple Gift Cards she had collected from various relatives for Christmas could not be used to purchase an iPhone...
I'm pretty torn over whether manufacturers and retailers etc should be able to attach these kinds of terms to simple sales.
But I am not at all torn over my ability to raise my middle finger in the form of refusing to take part. No, you may not have my dollars.
In fact, !@#$ you Apple, and !@#$ you AT&T. Apple for turning into everything I hate about Microsoft, and AT&T for... well, it's AT&T. That one is pretty simple. Take everything you like about cute kittens and/or puppies, and you'll find none of that associated with AT&T.
@doormat: News at 12: Local girl finds out big business is not looking out for her. She then goes and finds out that there are in fact companies who are glad to sell her a phone with same features and less hassle...
So people still think the iPhone is cool, huh? I'm taking guesses as to how long before the trendiness wears of and the Paris Hilton-wannabe's of the world realize what their stuck with. Can I just buy a solid gold, Dolce & Gabana S gizmo for the same effect, or would that be less cool to the people who like this thing?
A couple weeks ago, I saw my first one outside the context of an Apple Store. My first thought was, "Wow this guy's an idiot."
Leiterfluid: There are many activesync clients for Symbian, such as Mail for Exchange and Roadsync. I'm using exchange on my N75 now, and it's great with the 3G on the phone.
they are preventing a few idiots from paying $400 dollars for only a phone? wow, so its a priviledge to pay for overpriced crap as they are doing you a favor? WTF?
So, just buy them online and use the one-time credit card numbers that are available from most CC companies.