Online iPhone Sales and iTunes Activation...Dropped

Submitted by Dennis Metzcher on Tue, 06/10/2008 - 15:15

Great, we'll be spending more time with sales people when we buy our new 3G iPhones this summer, according to Ars Technica.

...AT&T and Apple are doing away with both the online ordering and iTunes activation of iPhones and are getting rid of iTunes activation, both of which have been confirmed to us by AT&T's PR folks...According to AT&T, the change is occurring based on feedback from customers, many of which "wanted to complete purchase and activation in one step so they could walk out of the AT&T store with their iPhone up and running."

While I agree that it would be nice for some customers (I am not one of those customers) to be able to purchase and activate an iPhone in one easy step, inside the Apple or AT&T store, many customers are going to hate standing in longer lines waiting for a salesperson to activate their phone. How do I know this? I'm one of them. And, I'm an AT&T customer.

The iTunes activation was a great feature, and actually worked really well. I was amazed at how easy it upgraded my data and voice plans, and activated the phone, all in about five minutes. People raved about it. I raved about it.

I think we all know the real reason behind this, and it's not customer satisfaction. AT&T wants all the iPhones sold to be used on their network, and Apple is going along with it. C'mon, AT&T...just be honest with us. You don't want the iPhones sold and then SIM unlocked so that they can be used on another carrier's network. While I understand that you are probably subsidizing the iPhone's new price, I can't understand why you wouldn't simply sell it at a higher price to those consumers who want to use it on another network. Oh, wait...I get it...if you did that, you'd have to admit that there are customers that actually want to use it with another carrier.

What's the sad part about all this, you ask? Well, AT&T will be annoying their new and existing customers (me) while, at the same time, doing little or nothing at all about the people they have actually targeted. People who want to use an iPhone on another network will find a way. The simplest way I can think of is to simply buy an iPhone, with a new AT&T contact, and then cancel the contract within the 30-day cancelation period. Pay the cancelation fee ($175), and simply keep the iPhone. You've still paid almost $400 for the new 3G 8GB model at that point, but you have your iPhone and can unlock it for use on your own carrier's network.

This is a foolish move, and may teach both Apple and AT&T a lesson in customer satisfaction.

(That having been said...I'm getting the new 3G iPhone. I'll just have to be content with pissing and moaning in line at the Apple store.)

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