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.
Further Reading
- iPhones Only at AT&T, Apple Stores, Yahoo! Finance
- Attention, iPhone Shoppers: Not All AT&T Stores Are Created Equal, Peter Burrows, Byte of the Apple, Businessweek
- Caveat iPhoner: Not all AT&T stores are created equal, Cyrus Farivar, MacUser
- Price Fixing, Wikipedia
Join us on Facebook. Follow us on Twitter.
Dan Knight has been using Macs since 1986, sold Macs for several years, supported them for many more years, and has been publishing Low End Mac since April 1997. If you find Dan's articles helpful, please consider making a donation to his tip jar.
Recent articles by Dan Knight
- 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
- Best 17" MacBook Pro Deals
- Best iPod classic Deals
- Best eMac Deals
- Best MacBook Air Deals
- Best iBook G4 Deals
- Best iPad Deals
- Best Classic Mac OS Deals
- Best Apple TV Deals
- More deals in our archive.
About LEM Support Usage Privacy Contact
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.
Favorite Sites
MacSurfer
Cult of Mac
Shrine of Apple
MacInTouch
MyAppleMenu
InfoMac
The Mac Observer
Accelerate Your Mac
RetroMacCast
PB Central
MacWindows
The Vintage Mac Museum
DealMac
Deal Brothers
Mac2Sell
Mac Driver Museum
JAG's House
System 6 Heaven
System 7 Today
the pickle's Low-End Mac FAQ
Affiliates
Amazon.com
The Apple Store
The iTunes Store
PC Connection Express
GainSaver
Parallels Desktop for Mac
eBay

