There’s nothing like scarcity to make you want something more. Apple understands this, which is why it tightly controls how many iPhones are available at any given time. Some anecdotal evidence is coming in that its partner AT&T is selling out of iPhones in some of its own stores before Apple stores.
By noon ET today, for instance, at least ten AT&T stores in New York City were sold out of iPhones. Our own CrunchGear editor John Biggs, was turned away from an AT&T store in Brooklyn after waiting in line for hours and was devastated (see his bitter-sweet video where he asks, “Am I a person, AT&T and Apple? What if I was pregnant?”).
None of this is too surprising since Apple stores are bigger and can carry more phones in stock. But is Apple artificially limiting how many phones each AT&T store can sell today? One angry reader, Mark Feldman, suggests as much, detailing his ordeal today at an AT&T store in Waltham, Massachusetts. Excerpt:
The manager got up in front of everybody and asked who was here for an iPhone. He then went on to explain that the store was only able to take orders for iPhones that would be delivered to the store in the next 5-7 days. They would take our money and when the iPhones came in we would get a call to come in and pick them up. If they were not picked up in a week, they would be shipped back and the charges reversed. He also said — and this was the kicker – that he had more iPhones in stock but he could not start selling them until Saturday morning due to his contract with Apple! And those would be on a first come, first served basis. In other words, Apple had manufactured a sell out of iPhones for the first day so as to generate “every store sold out of iPhones” [hype].
It’s one thing to actually sell out of your product. It’s another thing to manufacture a sell out of your product.
I am pissed at Apple for taking me for granted! I loved my iPhone and was willing to shell out several hundred dollars for a 3G on Day 1. I feel used. Like a chump who was turned away so Apple could get a nice sound byte on the news and the Blogs. I am so angry that I am planning to vote with my wallet… I am going to wait and buy the BlackBerry Bold which is coming out next month.
(You can read Feldman’s entire e-mail at CrunchGear).
The artificial shortage theory would hold more water if Apple’s own stores started “running out” of iPhones as well. An alternative theory, assuming that this hold-back policy is effective in other AT&T stores besides the one in Waltham, is that Apple wanted to drive more first-day customers to its own stores where it could control the launch better. The problem, though, wasn’t in the stores, it was when everyone tried to update their iPhone software at once, and found themselves holding a brick instead.
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New Zealand, land of LotR and high-priced data plans
Over at CG we’ve been watching the iPhone pricing plans whiz by, from the onerous Rogers tariff to Vodafone New Zealand’s $200 per month for 1 GB data plan. A lot of folks have been complaining about these prices but in light of these international plans, including nasty plans from Europe, AT&T’s pricing isn’t that bad.
Another interesting point: all of us expecting to waltz into AT&T stores and pick up an iPhone for $199 will be sadly surprised. The $199 price is for new contract-holders only. If you’re an AT&T subscriber you’ll be paying $399 and $499 for your iPhone - about $100 less than the non-contract price. AT&T’s thinking behind this - although a bit mercenary - is clear: there’s not much else in AT&T’s line up that will bring in new customers the way Jobs’ space phone will.
UPDATE - Just to set the record straight, here are the prices straight from AT&T:
$199 /$299: for new customers, current postpaid iPhone customers in good standing prior to July 11, and AT&T non-iPhone customers who are currently eligible for an upgrade discount. Requires two-year service agreement.
$399/$499 (early-upgrade price): for non-iPhone customers who are not currently eligible for an upgrade discount but who want their iPhone 3G now. Requires two-year service agreement.
CrunchGear’s Peter Ha gets a bit more forceful in his defense of the pricing.
I’ve been hemming and hawing about doing this post since last week when AT&T revealed all the pricing info for the iPhone 3G. With the release of Vodafone NZ’s pricing today, I can no longer keep my mouth shut. The Kiwis are paying $190 for 1GB of data, 600 minutes, and 600 texts! Not to mention the fact that if they opt for the cheapest plan ($60), they’ll have to shell out $415 (8GB) or $527 (16GB), respectively. I really want to know what you people are bitching and moaning about over AT&T’s plans? As far as I can see, it’s cheaper than every other country that’s getting the iP3G in every respect. Of course, you might be hammered if you’re ineligible for an upgrade, but you should have known this was going to happen.
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