The Apple Core

Jason D. O'Grady & David Morgenstern

Only AT&T corporate stores to carry iPhone

By | June 15, 2007, 6:13am PDT

Summary: A friend at a third-party AT&T/Cingular-only authorized franchise store with 15+ locations has confirmed that they will not be permitted to carry iPhone. Apparently there’s a legal issue regarding the relationship between Apple, AT&T/Cingular and the corporately-owned (versus the franchised) stores. Apple is not allowing any discounts on iPhone because of anti-competitive laws. Because the franchised stores [...]

Cingular Retail SignA friend at a third-party AT&T/Cingular-only authorized franchise store with 15+ locations has confirmed that they will not be permitted to carry iPhone.

Apparently there’s a legal issue regarding the relationship between Apple, AT&T/Cingular and the corporately-owned (versus the franchised) stores.

Apple is not allowing any discounts on iPhone because of anti-competitive laws. Because the franchised stores didn’t want to guarantee that they won’t discount, Apple is blocking them from selling iPhone.

This particular authorized franchisee will have a kiosk set up to direct people to the AT&T Web site if interested. They will also be offering steep discounts on phones like the new RAZR, giving people a more cost-effective option and capitalizing on the extra foot traffic that iPhone is expected to generate.

If you’re in the market for an iPhone and aren’t near an Apple store or AT&T/Cingular corporate store, you’re only option is to order online.

I’ve also been told that sales reps have been threatened with termination if they’re found holding iPhones for “potential” customers. If there’s a paying customer standing there, the phone must be made available

I’m also hearing that each AT&T/Cingular corporate store is receiving 300 iPhones.

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Topics

Jason O'Grady is a journalist and author specializing in mobile technology. He has published six books on Apple and mobile gadgets and his PowerPage blog has been publishing for over 15 years.

Disclosure

Jason D. O'Grady

Jason D. O'Grady is the creator and editor of O'Grady's PowerPage, which has been publishing mobile technology news since 1995. He maintains an advertising relationship with the following legacy advertisers on the PowerPage:

  • Amazon Associates
  • Google Adsense
  • Tekserve
  • Advertising on the PowerPage is brokered by a third-party agency (BackBeat Media) and he recuses himself from these negotiations.

Biography

Jason D. O'Grady

Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984.

He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging. He has been a frequent speaker at the Macworld Expo conference and a member of the conference faculty. He also co-founded the first dedicated PowerBook User Group (PPUG) in the United States.

After winning a major legal battle with Apple in 2006, he set the precedent that independent journalists are entitled to the same protections under the First Amendment as members of the mainstream media.

O'Grady is the author of The Nexus One Pocket Guide, The Droid Pocket Guide, The Google Phone Pocket Guide, and The Garmin nuvi Pocket Guide (Peachpit Press), the author of Corporations That Changed the World: Apple Inc. (Greenwood Press), and a contributor to The Mac Bible (Peachpit Press). In addition, he has contributed to numerous Mac publications over the years, including MacWEEK, Macworld, and MacPower (Japan).

When he's not writing about Apple for ZDNet at The Apple Core, he enjoys spending time with his family in New Jersey.

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RE: Only AT
tomlin21-24319035676893835085146735905770 11th Oct
It truly is genuinely stimulating give very good final results you may have authored for us. Plenty of individuals must recognise that these critical details can materialize to anyone. You have gotten nfl store uncovered to me a increased outlook now.
0 Votes
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Price fixing
otaddy 15th Jun 2007
Wow, so they are conspiring to keep the price high. Sounds like a good deal for their customers!

Gosh, its too bad Im with another carrier.
0 Votes
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SOP
frgough 15th Jun 2007
Apple never allows price discounts from their MSRP. If you do, they'll yank your resellers license.

That's why Mac dealers will offer bundles instead (buy a Mac, get a printer for free).
0 Votes
+ -
Local store visit
007baf 15th Jun 2007
I went in to an ATT store (I'm guessing it's corporate - I hope so!) to see if they had a waiting list like I'd read online. Indeed they do. There were only about 5 folks on the list for an iPhone. If your 300 phones per store number is accurate, I've heard it might only be 20 phones, than I guess I'll get one. www.danmosqueda.blogspot.com

I am looking forward to the visual voice mail feature and having an "iPod" vs using my LifeDrive.
0 Votes
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follow-up
007baf 15th Jun 2007
The store I visited was a franchise. The local corporate confirmed your story. No lists - that'll get you fired. I'll probably wait for the hoopla to pass and than think about geting one.
0 Votes
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Apple discounts?
tic swayback 15th Jun 2007
Any word on whether Apple will be offering their usual education and military discounts on the iPhone?
0 Votes
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mil discounts
007baf 15th Jun 2007
Actually, ATT is obligated to a mil/fed employee service discount (usually in the 15% range), but not on hardware. Apparently there is a telecom act requiring the discounts in order to get gov biz.

Great question. Of course, the libs at Apple probably don't care too much about military since the AF has outlawed QuickTime due to security issues. I think Macs are verbotten at this point too. Of course the leadership all use BlackBerry, with some Treos thrown in.
0 Votes
+ -
Please tell me some good VoIP enabled mobile phone.I am using Vyke for making national and international calls(as well as sms) through VoIP.Its very cheap.You people can also use it and get the benifits.Till now i was calling from pc-phone now i want to buy a VoIP enabled mobile so that i can use it anywhere.So please guys help me out....
if u wanna see abt vyke visit https://www.vyke.com/
0 Votes
+ -
RE: Only AT
tomlin21-24319035676893835085146735905770 11th Oct
It truly is genuinely stimulating give very good final results you may have authored for us. Plenty of individuals must recognise that these critical details can materialize to anyone. You have gotten nfl store uncovered to me a increased outlook now.

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