Mac Musings

No iPhones Going to Cingular Stores or Independent AT&T Wireless Dealers

Dan Knight - 2007.06.20

Sorry, fans of the iPhone, but you won't be able to buy an iPhone from your local Cingular dealer when Apple officially launches the device at 6:00 p.m. (local time) on June 29.

You will be able to buy it at the Apple Store, retail or online (and we can only hope this means they'll also be selling AT&T wireless packages). And you'll be able to buy an iPhone at any AT&T retail store - but only at the 1,800 owned by AT&T.

Problem is, a lot of Cingular dealers are franchisees, not company stores, and thus not allowed to market themselves as AT&T stores. According to AT&T, there are 8,000 franchise outlets and other retailers selling AT&T wireless phones and service - and not one of them will be selling the iPhone.

"...odds are, your local Cingular store (until recently, Cingular was the brand for AT&T's cell phone service) probably won't have iPhones," according to Peter Burrows of Businessweek. And that's going to create a lot of confusion and frustration among those who have a working relationship with their local Cingular franchise or simply assume that the iPhone will be available from anyone offering AT&T wireless service.

Greed

It's a horrible example of corporate greed, as is Apple's decision to make AT&T wireless the exclusive iPhone service in the United States.

Apple tempted us all with the iPhone, and then let us know that for the next two years (and more recent sources are saying five!) it would be a Cingular exclusive - thus alienating those who have abandoned Cingular over poor service, those who don't have Cingular coverage, who are locked into other carriers for up to two years, or who are simply happy with the service they're getting from Verizon, Sprint-Nextel, T-Mobile, Alltel, and regional carriers.

Cingular became AT&T wireless, and they're ready to reap the harvest of Apple's innovation - and they're not going to share it with their franchisees. That's like Apple introducing a new Mac and making it available exclusively through its own online and retail stores - but not to any other Apple dealers.

It's wrong (but probably not illegal) to arbitrarily block a franchisee from selling the same products sold in the company store, although there may be some restrictions based on sales volume and training.

Price Fixing?

Bruce Hamilton of the Cingular store on University Ave. in Palo Alto, CA, says five people a day have been asking to be put on their iPhone waiting list - which doesn't exist, as the store is a franchise. He speculates that Apple wants to make sure nobody offers the iPhone for less than its US$499 (4 GB) and US$599 (8 GB) retail price - and AT&T can't tell retailers what price to charge.

That would be illegal. According to the Wikipedia, "In the United States, price fixing can be prosecuted as a criminal felony offence under section 1 of the Sherman Antitrust Act." So rather than allow franchisees to undercut Apple's established retail price, it looks like AT&T is simply refusing to let them sell the iPhone at all.

Well, not completely. There is an AT&T sancationed workaround. Franchisees are allowed to help customers order the iPhone from Apple's online store and sell them AT&T wireless service.

But for those hoping to take an iPhone home on June 29, that's not an option. If they don't go to an Apple retail store or an AT&T company owned store, they're going to be upset at the controlling practices of AT&T and Apple Inc.

Kill Caps Lock, but Leave the Rest of My Keyboard Alone (Mostly), 2012.02.03. It's too easy to hit Caps Lock by accident, but why change a keyboard layout that billions of users are comfortable with?
Is This RIM's Macintosh Moment?, 2012.01.25. In 1996, Apple was in dire straits, but Steve Jobs redefined the company. Now it's do or die time for RIM.
Saying Good-bye to Inkjet Printers, 2012.01.18. Apple has discontinued its $100 printer rebates, but even a free inkjet printer is false economy.
More in the Mac Musings index.

Links for the Day

Mac of the Day: Mac IIfx, introduced 1990.03.19. This 'wicked fast' 40 MHz Mac trumped the 33 MHz DOS world.
February 14 in LEM history: 98: A perfect compact Mac - 00: Extended computer warranties worth the cost? - Making your PC work with your Mac - 01: Customize Microsoft Word - 02: Quadra revives a passion for computing - 03: Real world performance - DIY Pismo screen replacement - Best Mac for writing - 03: Fastest browser on the Mac - 06: 15" MacBook Pro - Impressions of a newly acquired Lisa - Finding and using free WiFi - Apple should liberate OS 9 - 07: New Mac mini cheaper than upgrading a Power Mac - 08: Falling in love with OS X
Support Low End Mac

Recent Content on Low End Mac

Fix Home Button Delay, Tablet the Ultimate Mobile PC, iPad Notebook a Possibility, and More, iOS News Review, 2012.02.10. Also using your iPad at work, two photo editors, a new iPad text editor, Macally's magnetic iPad 2 stand, and more.
White MacBook Goes End-of-Life, Logitech Touch Mouse Supports Gestures, Firmware Updates, and More, The 'Book Review, 2012.02.10. Also MacBook Air better than any Ultrabook, docks for MacBook Pro models, Intel offers improved SSDs, and more.
Mac and iOS Browsers: Options Galore, Freeware Forum, 2012.02.10. Safari is adequate on Mac and great on iOS, but the range of good alternatives is stunning. LEM writers share their favorites.
Apple's Support Lead Shipping, Smartphones Outsell PCs, OS X Ported to ARM by Intern, and More, Mac News Review, 2012.02.10. Also the power of Tex-Edit Plus, Google and Twitter are already censoring the Web, Snow Leopard Security Update, and more.
LogMeIn: Remote Screen Sharing for the Rest of Us, Alan Zisman, Zis Mac, 2012.02.09. Configuring the Mac's built-in screen sharing to work over the Internet can be difficult or impossible. LogMeIn makes it easy.
15 Years Ago Motorola Unveiled the PowerPC G3, Low End Mac Round Table, 2012.02.06. The G3 processor was optimized for real world Mac software and made a big leap forward in efficiency.
Don't Kill Caps Lock, Learning to Love the iOS Keyboard, and an Adaptive iPad Keyboard, Charles W. Moore, Miscellaneous Ramblings, 2012.02.06. The Caps Lock key has a useful function, the iPad's keyboard really is useful, and checking out an adaptive keyboard for the iPad.
More links in our archive.

Recent Deals

About LEM Support Usage Privacy Contact

Low End Mac is an independent publication and has not been authorized, sponsored, or otherwise approved by Apple Inc. Entire Low End Mac website copyright ©1997-2012 by Cobweb Publishing, Inc. unless otherwise noted. All rights reserved. Apple, the Apple logo, Macintosh, iPad iPhone, iMac, iPod, MacBook, MagSafe, Mac Pro, Apple TV, and AirPort are registered trademarks of Apple Inc. Additional company and product names may be trademarks or registered trademarks and are hereby acknowledged.
Advice is presented in good faith, but what works for one may not work for all. Please report errors to .
LINKS: We allow and encourage links to any public page as long as the linked page does not appear within a frame that prevents bookmarking it.
Email may be published at our discretion unless marked "not for publication"; email addresses will not be published without permission, and we will encrypt them in hopes of avoiding spammers. Letters may be edited for length, context, and to match house style.
PRIVACY: We don't collect personal information unless you explicitly provide it. For more details, see our Terms of Use.

Custom Search

Follow Low End Mac on Twitter
Join Low End Mac on Facebook

Low End Mac Reader Specials

TypeStyler 11 is now in the Mac App Store!! -- Special Introductory Price of $59.95!! -- To Buy From The Mac App Store Click Here Now!! Or buy direct from Strider Software.

Don't install Parallels to play poker online! Poker Mac will show you how to download and install a native Mac poker and Mac Casino applications in minutes.

Affiliates

Amazon.com
The Apple Store
The iTunes Store
PC Connection Express
GainSaver
Parallels Desktop for Mac
eBay