October 27, 2007 4:20 PM PDT

Bring a credit card if you want an iPhone, and you only get two

Apple has apparently instituted a credit card-only policy for iPhone sales at its retail stores in order to guarantee supply for the holidays and frustrate potential resellers, according to multiple reports.

Would-be iPhone buyers must now present a credit or debit card if they want to take home an iPhone, and they're also now limited to just two units, as they were on iPhone Day, according to The Associated Press. The AP quoted an Apple representative explaining the move as a way of making sure there are enough iPhones for the holidays and to prevent unauthorized resellers from flooding the market.

It's not clear whether the same policy applies to AT&T stores. I e-mailed the Apple representative quoted in the AP report late Friday evening and haven't heard back.

Before Thursday, when the policy was implemented, you could walk into any Apple store and plunk down cash for up to five iPhones. While the concerns about supply are harder to gauge from a distance, the credit card policy seems designed to make sure buyers leave a paper trail.

You can't really enforce a purchasing limit if the customer pays cash. How would Apple know if I walked into the downtown San Francisco store this afternoon and bought two iPhones with cash, then drove over to the Stonestown Galleria or down the road to Palo Alto, and picked up two more? Would-be unlockers might also be wary about using a credit card to pay for their purchases, even though unlocking isn't illegal. Apple is definitely paying attention to the market for unlocked iPhones, estimating earlier this week that 250,000 people have purchased an iPhone with the intention of unlocking it from AT&T's network.

Apple is apparently well within their rights to refuse to accept cash, as outraged as our resident libertarians might feel. U.S. businesses don't have to accept cash if they don't want to, according to the U.S. Treasury's Web site, unless there is a state law that specifically requires them to accept cash.

I'm sure there are at least a few people who were thinking about equipping their family of four with iPhones this Christmas. The reports make it sound like the restriction will just last throughout the holidays, but that hasn't been clarified as of right now.

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Add a Comment (Log in or register) 133 comments (Showing first 20 comments)
What kind of a brain washed moron would use iPhone!!
by Info_Max October 27, 2007 5:17 PM PDT
Really, What kind of a brain washed moron would use iPhone!! I mean as a phone iPhone is no better than any other mobile phone. So the main advantage of iPhone as hyped by Apple is supposed to
be that it gives you access to the Web.
I have used iPhone for a month now and I must say this is one of the grandest false advertising I have seen based on the claim that iPhone
gives you good access to the web.

After all:

1- Who wants to look at the web via a 3inch screen!!! Most web sites are ABSOLUTELY not functional, usable, via a display
screen of less than 12 inches.

2- But MOST IMPORTANTLY: how the HEK are we supposed to fill a form at a web site via iPhone? After all the Keyboard of the damn thing
is on the same screen through which we are looking at the web. To fill a form via iPhone is even slower than typing a SMS message. It is
absolutely retarded. I mean a form that would take 1 minuet to fill via a normal computer (laptop) will easily take 20 minuets to fill via
iPhone!

Apple (Big Media in US) call this progress?
Amazing, Japanese give us Prius that gets 60Miles per Gallon thus cutting our gas bill by 70%, French gives us TGV that enables us to
travel center city to center city in lap of luxury & fast & for 1/3 cost of flying, what do we get from USA (Apple) a mobile phone with useless
access to the Web and priced 3 times of a typical mobile phone.
Reply to this comment View all 11 replies
More than 1 card?
by gwilliamp October 27, 2007 5:30 PM PDT
I have more than 1 card so surely I can buy twice as many as I have cards (NOT that I would because, they are ......)?

Further to this, I prefer to use cash. NO SALE!

A stupid policy that is as well thought out as DRM. All they are doing is criminalising the decent majority. It will fail as their target group will quickly work round it.

This and their OSX BSOD makes them look DUMB.
Reply to this comment View reply
Legal tender???
by Grasor October 27, 2007 6:06 PM PDT
Isn't it illegal to not accept legal tender i.e. Cash?
Reply to this comment View all 4 replies
sure lovin my 8525
by aSiriusTHoTH October 27, 2007 6:07 PM PDT
I'm sure lovin my HT 8525, right about now. Will love it a lot more when I get my 8925.. and pay half less than an iphone and get 50% more features...
Reply to this comment View all 2 replies
Explain libertarianism to this author
by nicmart October 27, 2007 6:20 PM PDT
Libertarianism is a political philosophy that addresses the power
of the state over individuals. It has nothing to do with retailers
demanding credit cards. In fact, a libertarian would support the
right of a retailer to enforce whatever rules he wishes in the
selling of his party to willing buyers.
Reply to this comment View all 2 replies
Starting to rethink converting to Apple? :(
by LarryLo October 27, 2007 6:50 PM PDT
I am willing to forgive the crazy high prices they charge for hardware because I get a great OS, and I know they will hold the price forever and a day. But then they start trying to control how I pay and how much I buy, because of some people using their products in ways they were not intended....well I think back to Guy Kawasaki talking about how Apples first mac was meant to be a "spreadsheet database and word processing machine, and they produced a desktop publishing machine by mistake". Apples original success was exactly because they let people do what they want with their hardware.

Since Vista came out, I have been waiting to buy a MAC (a Mac pro or a macbook pro when either is refreshed) In that time I watched Apple as a company, all the great new products they put out and I got more and more excited. Lately though the excitement is fading. Between this silliness, the iphone locking relocking, and third party apps for iphone and ipod touch. I am seeing an alarming trend. Apple seems to be drunk with its own success and seems to taking their customers and potential customers (like me) for a ride.
Reply to this comment View all 2 replies
iPhone over-hyped
by OmegaWolf747 October 27, 2007 7:50 PM PDT
I'd much get a T-Mobile Sidekick or a RIM Blackberry with large displays and built-in QWERTY keyboard. I do a lot of text messaging, so these would be of more use to me than the iPhone.
Reply to this comment View all 3 replies
iphone hooplah
by chonnom October 27, 2007 7:50 PM PDT
*yawn*
I lived in East Asia for tha past 8 years and I cam back to this kind of nonsense. You people are paying big bucks for 3-5 year-old technology. Heck, my Korean phone (Samsung), that I paid $200 for had a 4 megapixel camera. My Japanese phone had a 2.5 inch screen and a bar-code reader (Japanese ads in public places have barcodes that you can scan if you see something you like; no more "what was the phone number again?"). Both countries are 3g and Korea is working on the next step. I never had a dropped call until I came back the US. Richest country in the world and we can't even get out phones to work right.

iPhone owners. Congratulations on your status symbol; have fun using it with the inferior network that's as slow as molasses.

FYI:
http://www.portfolio.com/views/blogs/the-tech-observer/2007/07/19/dispatches-from-the-next-generation-eye-opening-korean-cell-phones?addComment=true

http://www.nttdocomo.com/technologies/present/index.html

I'll spend the $400 for a phone in the US when I can watch TV on it like I did on my J-phone or use the internet at break-neck speeds like I did on my K-phone. iPhone, no thanks; I'll wait until the service catches up with the phone's tech before I think about buying it.

Just my 2 cents.
Reply to this comment View all 4 replies
Apple Self Destructing
by partytildawn October 27, 2007 7:58 PM PDT
Is Apple attempt to self-destruct? Apple has spent the last 12 months attempting to alienate itself from its entire customer base, and it seems to be reaching that point quickly over the iPhone. I will never purchase another Apple product again until the entire management team from top to bottom are fired.
Reply to this comment View all 8 replies
I hate whiny people
by Nodack October 27, 2007 8:03 PM PDT
It sounds like Apple is being smart to me and making sure the
iPhones get into the hands of the right people instead of people
trying to resell them for profit.

Good job Apple!

It also gives you whiny people something else to complain
about.

Whine, whine, whine. Apple is so mean blaa, blaa, blaa.

Cey me a river.
Reply to this comment View reply
the real reason
by spacemanspitt October 27, 2007 8:48 PM PDT
The real reason they are limiting the consumers is to stop the phone hacking. About 2 weeks ago Apple released a firmware upgrade, which fixed the security holes. One of course being the ability to use the iPhone on other networks (thus to export to other countries). The second was to fix a hole which allowed users to hijack phones and then to spread viruses and to use it to spy on people (including the camera and all the files). By limiting the amount of phones a user can purchase they hope to halt the hacking... or at least slow it till after the holidays - no sense scaring the consumer who makes or breaks your company... if they only knew ;)

You can bypass their restrictions by pretending you owned a mail company, but still using your home address (123 main st, becomes 123 main st box 142) and using prepaid credit cards (but different names), like the ones they sell at grocery stores, then ordering online.

SpacemanSpitt
rpg-exploiters.com
Reply to this comment
Really that big of a deal?
by stansz October 27, 2007 8:48 PM PDT
is this really that big of a deal? i mean how many of us are legitimatly going in and buy 2+ iphones?

i can understand why apple is protecting themselves...but i think its futile, i mean few years down the line the iphones are going to be fully unlokced with available third party software..they are just holding onto it a little bit longer

i perseonally would never buy an iphone..blackberry if i wanted something for work and email...i have htc 710 with a great qwerty keyboard and windows mobile 6 which (albeit a little slow) works fine....i dont surf the web from my cell phone, i only use the wifi to sync my email and chat on msn ...it plays mp3....

i dont see anything in the iphone that cant be foudn in other, cheaper phones (aside taht its by apple)
Reply to this comment View all 2 replies
Doesn't get libertarians
by rdupuy11 October 27, 2007 9:22 PM PDT
Libertarians would support the rights of any two parties to interact and trade as they see fit to negotiate and that includes Apple.

The author is completely off base, and apparently doesn't understand libertarianism at all.

Apple has the right to do this...I find it unfortunate at a personal level, because I'm not going to buy an iPhone precisely because I don't want AT&T service.

But I would never imagine a single libertarian that I have ever met, who would have desired that the government pass a law to force Apple to engage in business that they don't want. That isn't libertarianism....that is liberalism.

This author needs to buy a clue.
Reply to this comment View all 2 replies
The REAL reason...
by ev61 October 27, 2007 9:26 PM PDT
iPhones are sold below cost. Every iphone sold causes apple to lose money. Everytime that phone is activated and used on the AT&T network, Apple is paid, by AT&T. Every month, apple gets a percent of the monthly bill. So, if these phones are being sold by 3rd parties and activated on the AT&T network, there really would be no complaint from apple, but when they are not, they lose money on the hardware.

The reason I won't get an iphone is it doesn't run a slingbox app, so I will continue to use my ipod touch and my motorola q.
Reply to this comment View all 2 replies
pre-paid credit cards
by rdupuy11 October 27, 2007 9:44 PM PDT
Paper trail....it won't be long before someone uses prepaid credit cards to buy an iPhone. It's not that hard.

Now whats going to be funny, is when you go to buy an iPhone for your personal use, and Apple decides not to sell you the phone. What if you bought one for you and your wife, and you buy a 3rd one for your daugher as a graduation present.

Won't that be hilarious when they won't sell you one.

You will just have to wonder about Apple and their brilliance when that happens.

I walked into the Apple store on my way home from work on Friday to get Leopard, and they wouldn't sell it to me...I was too early. Well, I had things to do, so I left....empty handed....just marvelling at their brilliance on that move.

Sometimes you let a sale walk away...and you lose the sale.
Reply to this comment View all 5 replies
Unlocking issue still open
by J.G. October 28, 2007 2:22 AM PDT
I want to clear up a glaring misconception about unlocking cell phones. There is not a decision by the U.S. Supreme Court holding that unlocking cell phones is legal. Nor are there any lower courts decisions saying that. In fact, no courts have considered the issue so far. What does exist is an opinion by the Librarian of Congress saying he thinks that unlocking cell phones does not violate the Digital Millennium Copyright Act. However, it is not certain he has the authority to make that determination, rather than Congress or the courts. That is the current state of law regarding the issue. To say otherwise is a gross overstatement.

I don't believe Apple's new policy regarding selling iPhones will impact legitimate buyers very much. My understanding is that store personnel can check a buyer's purchase history and conclude that he is or is not a reseller.
Reply to this comment View reply
I say NO to iphone and leopard as well !
by Fborba October 28, 2007 5:39 AM PDT
I had decided to buy the first Apple notebook after they went Intel compatible and give it a try. That would be 2nd half of 2007. Iphone was in my kids desire list as well. After "apple&ATT" showed their jaws on mandatory monthly plans & no discounts I DID CHANGE MY MIND NOT ONLY ABOUT IPHONE BUT ABOUT APPLE ITSELF. I'M NOT BUYING ANY APPLE PRODUCTS. Congratulations to France who has a law against LOCKING PHONES.
Reply to this comment View reply
An apple a day keeps the buyers away
by crusadex October 28, 2007 7:44 AM PDT
What a dense company.I have 2 ipods and they are way overrated.
To say you can't spend your cash on them?
sounds like they want to be able to track buyers in some scheme to keep them from using the beloved Iphone with other carriers,or at the very least to get demographics for marketing purposes.
bleh
Reply to this comment
Much ado about nothing
by emag October 28, 2007 8:52 AM PDT
It's legal, it isn't the first time it's been done, and it's easy to circumvent. Apple's marketing people need to get a life....and another job.
Reply to this comment
That's bullshit
by gwhitham October 28, 2007 9:09 AM PDT
It figures. A company puts out a product and then tells you how you have to pay for it. Who cares if it is a credit card or cash. You are being forced to use a credit card company. Sounds to me like Apple is in bed with the banks. You will not be able to buy a iPhone if you do not have a credit card. Fine then...I won't buy an iPhone and definately will not consider any Apple product now or ever. I don't need Apple.
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