I suppose when you agree to subsidize the cost of a popular consumer product it buys you a little leverage in how said product is sold. That's the only reason why I can think that Steve allowed for AT&T to end home activation of the iPhone. This isn't a small step backwards, it's an orbital free fall. From here on out, every new purchase of an iPhone will require ten to twelve minutes of quality time with an expert who will rip out your soul, give it to AT&T, and then press the phone's on switch.
Ten to twelves minutes, per phone! Does anyone remember bread lines?
Whereas standing in line for a new Apple product in the past usually only took a few hours, this arrangement will usher in a new era of Soviet style queueing. Nevermind that last year I was able to activate it in three minutes in the comfort of my own home. Tens of thousands of us did this without any problems, but maybe that was just a fluke. After-all none of us are fully trained expert technicians who are skilled in the ways of turning a phone on for the first time. Only AT&T can provide that kind of experience and know-how.
I used to hate AT&T for all it's dropped calls and day-late text messages and voice mail delivery, now...well I don't know what you call bile inducing rage against stupidity.
Join the fray by reading through and commenting at the end.
i feel your pain and disgust. i just H O P E some whiz kid is at work on sabotaging this process. i want an UNLOCKED iPhone!
While I'm not as disgusted with the change, it really bothers me that Apple has seemingly "given in" to AT&T by not only forcing us to go into a store to activate our phones after the revolutionary idea of home activation provided by the original iPhone (I activated mine while sitting outside a Starbucks in Santa Clara on a park bench), but also the raise in price of unlimited data. Sure, make the argument that 3G upgrades on AT&T's network don't pay for themselves, but I doubt AT&T is low on cash after all those new subscribers.
The other thing that pisses me off about AT&T is the lack of MMS on the iPhone. Yes, Apple hasn't included an MMS app or any sort of support, but AT&T has ultimately screwed the pooch on this one by simply sending me a text message with an unclickable URL to viewmymessage.com and a username/password combination that is near impossible to remember. The end result is that when people send me picture messages, I completely ignore them. And I don't see any news of improvement for the 2nd release of the iPhone OS.
Oh well, at least we get cheaper next generation iPhones. And completely worthless 1st generation iPhones to boot. Awesome.
Its certainly going to help stomp on the grey market of unlocked phones.
Another thing that really is kind or irking about the new "cheaper" iPhone is that while the device is cheaper by $200, the service plan went up $15/month ($5 for SMS that used to be free and $10 extra for data) which means that buying a new phone will save you $200 up front but cost you an extra $360 over the course of the 2-year contract (and that's not including taxes).
Bah, suck it up. It's not a big deal. And it's not like it just got *worse* than other phones' activation routines.
12 minutes with AT&T vs. 3 minutes in iTunes is not enough to get worked up about. Maybe if I was an IT guy who just ordered 1000 of them for my employees, then yeah. But for the average consumer? Meh.
I guess no one's considered simply holding off a few days? Maybe waiting for the lines to die down a little? I suppose using an iPhone 1.0 has suddenly become torture.
> which means that buying a new phone will save you $200 up front but cost you an extra $360 over the course of the 2-year contract
I guess the good news is that it's legal, whereas using cocaine is not. Don't do drugs kids, otherwise you'll bake your brain and possibly be offered a job in upper management at AT&T.
> 12 minutes with AT&T
You're assuming it will only take 12 minutes. I have yet to get help from anyone at an AT&T store and it took less than 30 minutes. This is like Apple forcing new iPod owners to take a ten minute safety course from Best Buy's Geek Squad before being able to play a song.
This will not have any effect on the grey market. It just means where ever the handset is bought from, one will still have to queue to have a "communications expert" activate your phone.
AT&T - now with more Stalin.
One hopes the same stupidity doesn't invade other overseas carriers.
Perhaps it'll be easy enough to unlock them without needing to activate through AT&T. As a happy T-Mobile customer (one of the only, or the only other U.S. 3G network provider) I would like an iPhone but there's no way in hell I'm switching to AT&T. Considering the reason I never got any sort of smart phone before was cost, I'd sure like to get this new cheap iPhone. I'd like to also take advantage of T-Mobile's unlimited calls/minutes over wifi feature for ~10 bucks. *dreams*
It's the price they paid to AT&T to get the price down so they can saturate the hell out of the market before anybody else has time to catch up. Greg, if you pay me the $200 price difference I'll stand in line and wait up to 15 minutes for your phone to be activated so you don't have to.
“Man alone is born crying, lives complaining, and dies disappointed.” - Samuel Johnson
Does the activation have to happen at an AT&T store? I agree that losing the home activation is pretty lame, but I was assuming it could at least be done in an Apple store.
Apple stores can be a bit much sometimes, but there is no deeper level of hell than an AT&T store. I can't imagine Apple would subject us to that much suffering.
Again.
Apple going mainstream to wrangle more customers means wading in the swampy rot that is mainstream channels, prices, hold times, and lining up for your own bar of solid gold hardtack (no, not the Newton, silly) which comes at a cost (and lack of features) to everyone.
…especially to those what stick with T-Mobile. ;)
All indications report that you can buy and activate the iPhone 3G at the Apple Store or if you are a masochist, at the AT&T store.
AT&T had to fight for this agreement because of the huge amounts of users buying the iPhone and unlocking it. There is NO way AT&T is going to allow their subsidy to be abused like this.
This 3G iPhone will cost you MORE than the 1st Gen iPhone was sold on day 1. People need to remember that this $199 iPhone is not a cheaper deal. After two years of service the first iPhones cost $979 (cost of phone + data service plan) while the iPhone 3G costs $1,039 (cost of phone + data plan + SMS).
I'm not saying the extra $60 isn't worth having a new iPhone with new features, but it's not cutting the price in half, Steve Jobs says it is.
I'm as excited about summing up the payments as the next guy, but when you add up money across a couple of years, don't forget to discount cash flows.
With 3.5% savings I can get from my bank, difference between plans comes at $250.
>Does the activation have to happen at an AT&T store? I agree that losing the home activation is pretty lame, but I was assuming it could at least be done in an Apple store.
It can but I don't see how that's going to make it go any faster. As Luke said, "Apple going mainstream to wrangle more customers means wading in the swampy rot that is mainstream channels."
I used to like Apple more when it was just 4-5% of us.
> This 3G iPhone will cost you MORE than the 1st Gen iPhone was sold on day 1.
Unless the battery has similar longevity to Willard Scott's friends then I don't see any big benefit to upgrading.
The sad thing is more people WILL stand in line because.... more people are standing in line. The image of lemmings and a cliff come to mind.
"The commercial opens with a dystopic, industrial setting in blue and gray tones, showing a line of individuals (of ambiguous gender) marching in unison. They are moving through a long tunnel monitored by a string of televisions.The commercial opens with a dystopic, industrial setting in blue and gray tones, showing a line of individuals (of ambiguous gender) marching in unison. They are moving through a long tunnel monitored by a string of televisions."
From 1984 wiki
It sounds like the old process might still work. Just depends if you can get the Apple Store employees to let you leave without activating there.
From an internal ATT memo (on Gizmodo):
Activation Process
The new 3G device will be activated in store in both AT&T and Apple stores. Customers must accept AT&T and Apple Ts & Cs, sign a 2-year agreement, and select the data plan for the iPhone 3G before leaving the store. The current iTunes activation process will no longer be required for iPhone 3Gs, however a short tether process to unbrick the 3G device will be performed in all AT&T stores (tether cords will be provided). Apple stores will also perform this tether process, however in the event that a customer's device is not tethered in the Apple store, their device will be inoperable until they get home and tether through iTunes. Prepaid and Pick Your Plan will not be allowed on the 3G device.
The SSK has been modified to allow customers interested in the iPhone 3G to enter their information, select rate plans and data plans, and print a document that will allow COR reps to quickly access the customer's information in OPUS and save time for data entry in the activation process.
Link
It does not take 10-12 minutes in an AT&T store to activate an iPhone. In my case it took over an hour. I bought my phone earlier this year, and for some reason (cannot remember) I had to take it in to have it activated. I do remember standing at the counter for over an hour, getting later and later for an appointment, though. Not fun.
In Europe 80-90% of cell phones are bought unlocked. I am sure that this will have to be the case for iphones in Europe. Otherwise it will not fly..
I'm honestly more angry that Apple threw away its leverage with AT&T and succumb to the mold that is the US carrier market. Apple was the last stretch of a hope for something resembling a sane business model when it comes to cell phones in the United States. Yes, it is not any worse than any other provider, but is that what we expect from our beloved Apple? I'll upgrade eventually, but not on day one, and I will bitch and complain while I'm doing it. Then I'll go home and drink the kool-aid.
> It does not take 10-12 minutes in an AT&T store to activate an iPhone. In my case it took over an hour.
This is exactly what I'm talking about.
I don't expect the experience to be much, if at all better in Canada dealing with Rogers as opposed to AT&T but I'm happy to spend 12 minutes waiting so I don't have to hack my phone anymore.
>…to hack my phone anymore.
Dude, we hear you. Those who, like you, had problems and actually ended up buying 2 or more because of bricking problems, well, we feel for you.
Without checking, here's to hoping Canadiae gets a shot at official phones (Rogers or not!)!
I just checked. Canadians get to buy via FIDO or ROGERS.
Personally, I feel like everyone is missing the point here (except maybe Greg for once, which is shocking!). I'm not so concerned about the price increase in the data plan (even though it is a bit annoying), it's the loss of control for the consumer that bothers me. With self-activation, we didn't have to activate our phones the way AT&T wanted us to. We didn't have to deal with the corporate bullshit. We did it the easy way, through iTunes, which is better for the consumer. We had the control.
Just think about what it would be like if Apple suddenly removed all iTunes Plus songs from their catalog, went back to only DRM tracks, and charged slightly less per song. Oh, and you had take your iPod/iPhone to the Apple Store before it would play any of those songs.
Now I understand that in order to get the iPhone subsidized, Apple had to give something to AT&T. And of course there's the whole unlocking ordeal which isn't good for AT&T's business. But I'd rather pay $399 for an iPhone and activate it myself without a 2 year contract extension than save $200 and be locked into their rules.
> ...it's the loss of control for the consumer that bothers me.
I understand that by having AT&T finance everyone's phone it's going to increase Apple's market share like hockey stick but I can't recall a time when Jobs caved to make it harder for consumers, not easier. Up until now I'd say that Steve has partially fought to keep these matters as simple and hassle free as possible but not with this new deal.
Imagine having to agree to separate user agreements for each movie studio and recording label that has content available in the store. There's no way in hell Apple would agree to that.
As far as contracts go, I spoke with a rep at the AT&T store last July when I picked up the iPhone and asked about the contract.
That person said that no non-"Go Phone" style service is without a contract, signed or not. If you set up an account and phone with AT&T (again, sans the Go Phone bullshit), then you are be default under a 2 year contract with AT&T. Cancelling that service (or switching to another carrier, etc.) will invoke the cancellation of contract fee. The fee at that time was a not unusual $175+ per line.
I hope this clarifies. …and I hope I'm still right about it. YMMV.
Greg, I'm sure that the Apple Board of Directors shares your 5% sentiments. Cut 'em some slack. 95% of the people out there don't give a frak about all this stuff anyways. I trust Apple. I trust Steve. Even if that means letting some sheep into the cool kids club.
> Greg, I'm sure that the Apple Board of Directors shares your 5% sentiments.
I know! I talked to Al this morning and he's all like, "10-12 minute sigh up?! Hold up y'all thats a hanging chad just waiting to happen."
And I said, "Al time for you to open your lockbox of whoopass and give Steve some global warming."
Then we played Halo.
> I trust Apple. I trust Steve.
And that is why Apple will happily extract endlessly large amounts of money from you and why it's "just fine" to have to wait (at all). Respect? Sure. Trust?
I Don't Think So.
Not to sound like a corporate tool, but does anyone wonder if maybe we lost the trust of AT&T and Apple? I mean it was never suggested that unlocking these phones was allowed yet many of us did so as if it was our inherent right. Whether or not it should be is a separate discussion, but the fact remains that we knew what the rules of the game were and we broke them.
What would you do if you gave your customer base your trust, only to have them fuck you over and not follow through on their service plans?
Apple has a responsibility to AT&T and vice versa. Is it any surprise why companies are so paranoid about piracy, exploits, hacking, phreaking, etc? Because the mass public will steal if and when given the chance. You can criticize the strategy (cough *Microsoft*) but don't blame companies for reacting.
Why even bother if you can't activate it at home?
I see this as a move to gain market share. Seems to me the iPhone is more of a platform than a device now, or that it's a device that is a platform. Whatever way you look at it, once the iPhone has gained a crapload of market share, then Apple has more power to change the game. What happens when a significant portion of AT&T's revenue depends on the iPhone?
I'm beginning to think this is short term pain for long term gain. I'm pretty sure Apple has an end game in mind, and this is the path they have to take to get there.
Could Apple buy AT&T? I wonder...
Here's what I don't get – Why does this new 3G phone have to be activated at all? I'm speaking about those out there who are moving from the first iPhone to a new one - can't you just, like adults in every other country, swap your SIM card from your old phone to your new one and then deal with swapping the accounts services around later through the web site?
I mean, really, you aren't activating anything. If you already have service to your house and you get a new phone, you just plug the thing in. Your SIM card is supposed to work the same way, just drop it into your new phone, and go.
How can this not be the case?
Oh. Wait. AT&T you say? Well, that explains this insanity.
Kev, I think it's not the case because:
1) You're switching plans from an Edge plan to a 3G plan, complete with a different pricing structure for the data package.
2) You're initiating a brand new 2 year contract. Yippee!