Apple to Force In-Store Activation of 3G iPhone

d0b33

d0b33

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We just talked to AT&T's President of National Distribution Glenn Lurie, who gave us all the pricing and activation details for the iPhone 3G, which won't be getting special treatment anymore. It will be using all AT&T's standard voice and data plans, which means $30 for unlimited 3G data for consumers, $45 for business users, on top of voice. Also, no in-home activation for iPhone 3G—it does require a two-year contract, and it will have to be activated in store (at AT&T or Apple Store), which takes 10-12 minutes, meaning that first day line is going to SUCK. And you will have to camp out, since there won't be any online ordering at launch—and Glenn was mum on how many phones there'd be to go around. Updates below.

Supposedly the network will be ready, even if the supply won't be. I asked him four different ways if it was ready for the onslaught of millions of 3G data phones and he said "absolutely" each time, and that they've planned for it. What's unclear is how many units they've planned for the first day. He said they expected "high" demand but nobody knows what the "full demand" will be, in response to my question about meeting demand.

For people who care about the business end of things, the other way that the iPhone 3G isn't special in regards to AT&T anymore is that AT&T subsidizing it like any other phone means that the old revenue-sharing program is out. Basically, other than letting Apple sell and activate the iPhone 3G at Apple Stores, the model is the same they have with everyone else, like RIM or Sammy. More details on everything will be coming from AT&T in the next week or so.

Update: Interesting point from Apple Gazette about ending Apple ending revenue-sharing with AT&T—it means we might have to pay for future feature updates to the iPhone 3G since Apple won't be getting those monthly checks, thanks to those "accounting purposes." Obviously we don't know for sure yet. Besides, SDK might make it a moot point.

Update 2: David alerts us to this bit from Dow Jones' report: "AT&T and Apple are working on a form of penalty for users who don't activate their iPhone within 30 days of purchase." Whoa. Guess that'll cut down on unlockers, eh?

Update 3: Looks like AT&T's dropping the GoPhone plan for the iPhone 3G too. Also, it's been pointed out Apple is still counting its revenue for the phone over the course of two years despite dumping revenue-sharing with AT&T, so iPhoners can probably continue to lord free updates over iPod touchers
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http://gizmodo.com/5014764/iphone-3...ta-activated-in-store-only-no-online-ordering

This is AT&T, wonder if Vodafone will follow suit? :(
 
Erm, in-store activation is a big thing in SA ... I reckon Vodafone phoned up AT&T and gave them the idea
 
LandyMan said:
Erm, in-store activation is a big thing in SA ... I reckon Vodafone phoned up AT&T and gave them the idea
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Yea, I know... just thought Apple would have had a say in this and offer the iPhone without contract to activate at home through iTunes like before.

lol about giving AT&T the idea
 
Doesnt surprise me but it doesnt mean it cant be PAYG in SA (as well as contract).
 
bwana said:
Doesnt surprise me but it doesnt mean it cant be PAYG in SA (as well as contract).
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They'd be limited by Jobs's statement that it won't retail for more than $199 worldwide though, I can't see them selling it for that on PAYG.
 
Syndyre said:
They'd be limited by Jobs's statement that it won't retail for more than $199 worldwide though, I can't see them selling it for that on PAYG.
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Why not? They make money on the actual activation, they make money on the calls and they make money on the data.

In fact they probably make more money fleecing PAYG than contract customers with higher rates.
 
Exactly, 1500k for a new iphone 3g on payg on vodacom with no other oibligations..no way...
 
FoRmFacTor said:
Exactly, 1500k for a new iphone 3g on payg on vodacom with no other oibligations..no way...
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Who says Apple isnt selling the iPhone to Vodacom for $150 per unit? Besides Vodacom wouldnt be actually losing anything by selling a network locked phone without a contract.

. . . maybe they even sell it for less than $199 with a contract?
 
bwana said:
Why not? They make money on the actual activation, they make money on the calls and they make money on the data.

In fact they probably make more money fleecing PAYG than contract customers with higher rates.
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If they get the phone from Apple for $199 or less then I can see them doing it. If they're subsidising it then no.
 
bwana said:
Who says Apple isnt selling the iPhone to Vodacom for $150 per unit? Besides Vodacom wouldnt be actually losing anything by selling a network locked phone without a contract.
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but why would Apple do that? the iphone surely costs more than $150 to produce, look at the pricing of the itouch(ipod) those things are like 4k and they dont have all the features the iphone has, i want to believe you can buy an iphone 3g on voda for 1500, but it just makes no sence...
 
Syndyre said:
They'd be limited by Jobs's statement that it won't retail for more than $199 worldwide though, I can't see them selling it for that on PAYG.
Click to expand...

that $199 is the once off fee you pay after signing your new 2 year contract...
think about it, an ipod touch goes for more than that...
 
hxc87x said:
that $199 is the once off fee you pay after signing your new 2 year contract...
think about it, an ipod touch goes for more than that...
Click to expand...

That's my assumption too. My point is that since Jobs said they wouldn't sell for more than that they couldn't then sell them for more on PAYG.
 
hxc87x said:
that $199 is the once off fee you pay after signing your new 2 year contract...
think about it, an ipod touch goes for more than that...
Click to expand...
I wouldn't be surprised to see that price drop.
 
http://www.gsmarena.com/iphone_3g_for_$199_or_even_free__but_whats_the_catch-news-521.php

iphone 3g pricing
 
The previous iPHONES they had to give a certain percentage to Apple. The service providers for calls made etc, I wonder if they going to be doing the same thing for the IPHONE3G
 
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