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Mike Elgan's picture
Mike Elgan

The World Is My Office

AT&T won't sell me an iPhone at any price

SANTA BARBARA, CALIF. -- After months of cajoling, I finally convinced my wife to buy an iPhone. She went to the local AT&T store today, and was actually turned down. She is, apparently, "upgrade ineligible." She asked if there was any price at which should could buy it, and they said no.
(NOTE: This story has been updated with new information. It turns out that the AT&T store management was confused about AT&T policy, and gave us false information about upgrading. Details at the end of the post.)
Our whole family is on AT&T, and my wife and I both use BlackBerry devices. We pay AT&T well over $4,000 per year for wireless service alone.
I've been trying to get my wife to get rid of her BlackBerry and buy an iPhone 3G so I could use her phone to review App Store software and test various services for my ongoig reporting on the cell phone universe.
Because we're the wrong kind of customer (based on a complicated set of criteria that includes how long we've had our plans and how much we pay), the local AT&T store in Santa Barbara, Calif., flat out rejected us for an iPhone.
My wife asked if there was *any* price she could pay, and the sales person checked with the manager, came back and said no. He told us that we would be turned down at other AT&T stores and at the Apple stores as well.
I had read about Apple's "upgrade ineligible" customer rules on various iPhone enthusiast blogs back in June. But this was reported as being ineligible for the upgrade price, not the phone itself. According to these blog reports, "upgrade ineligible" customers simply get a different price: $399 and $499 for 8GB and 16GB phones instead of $199 and $299. We were willing to pay this. But they said no.
What we found out today is that "upgrade ineligible" means "blacklisted at any price."
The store sales person informed us that we would be eligible for an upgrade in five months (the end of my wife's existing two-year contract), and that we might qualify for an early upgrade on October 7. But -- get this! -- they're not sure whether they'll let us buy an iPhone at that point or require that we upgrade to another brand
I'm inclined to believe that the Santa Barbara AT&T staff is simply misinformed. I've been calling the store, other stores and the national AT&T customer service numbers for the past hour, and nobody is answering the phone.
Stay tuned for updates, which I'll post on this blog entry as I find out more.
In the meantime, has this happened to anyone else out there?
UPDATE #1: I still haven't been able to get anyone at AT&T to answer the phone, but I did discover an "check upgrade eligibility link" for current AT&T customers. By clicking on the link, however, I was taken to a long list of phones I am eligible to upgrade to -- the iPhone isn't on the list.
UPDATE #2: According to a wirefly.com post, here are the elegibility requirements for existing AT&T customers to qualify for upgrading to an iPhone at the discounted prices of $199 and $299. (I still haven't found anything about not being able to buy the phone at all.)
UPDATE #3: I finally got through to AT&T's national customer service number, then waited on hold for about 20 minutes while they tried to get through to the local store. It turns out that store management in Santa Barbara was confused about the policy, and that my wife is in fact eligible to purchase iPhones at the normal prices, plus a $200 penalty for being an existing, loyal AT&T customer.
Final thoughts:
This whole episode has eroded my confidence in AT&T and Apple. Here's what they got wrong:
  • AT&T store management failed to learn basic details about their own upgrade policy, and told a customer (and probably many others) that she was ineligible for an iPhone upgrade at any price; that other stores would tell her the same thing; and that it was uncertain whether she would be eligible to upgrade to an iPhone even when the account became eligible for upgrades in general.
  • It's foolish to nickle-and-dime a $4,000-per-year customer, especially when that customer is trying to upgrade to a much more expensive data plan.
  • It took me two hours to get anyone from AT&T on the phone.
  • When I did call, they made me give my phone number three times.
  • Because my wife's BlackBerry is malfunctioning, she's eligible to upgrade to absolutely any phone immediately -- except the iPhone. Why the iPhone exceptionalism? Why doesn't Apple make sure their product isn't taken off the table when an AT&T customer wants to make a conversion?
  • Apple and/or AT&T act like everyone is a rabid fanboy. But many people, like my wife, are current Windows and BlackBerry users who are merely toying with the idea of becoming Apple customers. When these fence-sitters finally muster up the interest to go give an Apple product a try, and are met with resistance, incompetence and something that feels like Apple snobbery, much more is being lost than a single iPhone purchase. My wife needs a new laptop, too, and might have loved the iPhone and made a total, lifelong conversion to iPhone, and Macs, too. Now she's got a broken phone and needs to upgrade and will probably just get another BlackBerry because she harbors ill will toward Apple. We're also now thinking about switching carriers. We'll have to file this one in the "FAIL" category.

What People Are Saying

Eligible for the upgrade and still unable to get a new iPHone

My first gen. iPhone was lost or stolen in the Madrid airport almost 2 weeks ago. I already knew I wanted to upgrade to the newer phone so I figured a few days without a phone? No biggy.
Well, it has become a major biggy. I don't live close to any Apple or ATT stores and always order online. Apple has cancelled three iPhone orders, saying ATT won't give approval. ATT says the problem is not on their end, they want me to have the phone and I am eligible for the upgrade price. But somewhere in the computer chain there is a disconnect that won't allow them to pair my number with an iPhone, causing Apple's computer to automatically cancel my orders just as they are about to ship. I think that I am not the only one getting treated so shabbily by two companies that should love me.
So I am without a phone for the foreseeable future. My business is suffering because people are unable to contact me at the number that is on all my literature. I can't even change the announcement on my voicemail, or check my messages.
To say I am unhappy about this situation is extreme understatement. But having gotten used to an iPhone and all the groovy apps, I can't imagine moving to another provider. I feel like I am caught between a rock and a hard place...

A Series of Unfortunate iPhone Events (NYC 3GS 2009)

I had HUGE problems just buying a replacement iPhone 3G on the day of the 3GS launch. I decided it would be fun to camp out (since I didn’t work that Friday) and join those waiting for the new phone.

I was third in line from 1:30am! Opening time comes and as they are taking down reservations, several Apple Store employees told me I would be able to actually get the 3GS for $199 – all I had to do was tell them inside.

But the Apple Store employees quoted me an incorrect price on the new 3GS (even after looking up my account info), locked me out of my AT&T account because of too many attempted registrations, and the best part is this faux 3GS they were going to sell me wasn’t even allowable since the quantity in the store needed to match those for the reservations. Bait and switch tactics—just get the customer in the door, tell them whatever and then spring a $400 surprise on them.

I’m very disappointed in my customer service experience at the SoHo Apple store, and heading to an AT&T store I was able to buy another 3G and get my life back in order. I’m going to be in communication with both companies to talk about my experience since this shouldn't happen to anyone else.

Here’s the full story:
http://www.kencutts.com/myarticles/NOGOtoSOHOapple.html

Thank you, I'm not

Thank you, I'm not surprised.

I am also not able to buy a

I am also not able to buy a new iPhone, I walked into the store with my money and they told me to come back in two months. I have been loyal to them for 10 years and now I have to change to another carrier. I can not stay with them if they do not appreciate my business. I was told the same as the others, i can get any other phone, i can come back in a few months, and they also had a great time telling me how everyone loves the iphone, because i should be happy that everyone else has one and i dont? I am glad they didnt let me have one because now i realize it would just as hard to get out of the contract as it was to get in. I will be enjoying a new blackberry in 2 months with another carrier instead of buying an iphone.

let's weigh out what's going

let's weigh out what's going on here. first of all it's not foolish to charge a customer full retail for an iphone that YOU yourself broke. if people weren't so retarded and took care of the device, which they know is really expensive, there wouldn't be any issues. in regards to the idiot who originally posted this thing, the data plans are the exact same as what you had on your blackberry. with that being said, you should get your facts straight before you go and rag on the company about this, that, and the other. often times the employees are regulated on they are allowed to say and what they are told to say. if anyone has ever worked in retail, you know that policies and procedures change on a day to day basis. with that being said, 90% of people who come into the stores could have fixed the problem themselves if they would have just taken the time to figure out the device they "are spending a lot of money on." the bottom line here is that people need to get the facts straight and pull their head out. maybe if people paid attention to detail, they would know exacly what a 2 year contract means and they wouldn't be so angry.

To all the people out there

To all the people out there who don't understand upgrade policy. You can only "upgrade" to a new phone if you have finished a certain portion of your contract and are willing to sign on for another portion of time. You initially start with a company and get a good deal on the phone because you signed a contract saying you'll be with them for a certain period of time. That is how you are able to buy a phone at a subsidized price. If you have not finished that portion of your contract, wireless carriers do not want to fully subsidize the price of the phone. It's not "punishment," it's business. The phones that you buy cost the company much more than the price you pay. That means you cannot just upgrade at any time. The people who do not get that don't understand business. So why doesn't ATT just let you upgrade to the iphone whenever you want, because it will lose them money and make the people who have money vested in them i.e. those guys who are shareholders, very angry.

AT&T is RETARDED

I'm switching providers when my contract is over.
I been a loyal customer for over 8 years.
I wanted the iPhone and I would of paid twice as much. And they still said no!?

Iphone Upgrade

I have been a loyal ATT customer for 18 years. Yes 18 Years through the whole Bellsouth buy out etc. Anyhow, I too wanted to try an Iphone - My Wife got one and I enjoyed it. I was using a blackberry pearl Anyhow, My Phone broke - Literally and physically broke. I needed a new phone so I went to ATT to upgrade. I too was "Upgrade ineligible" for another 3 months. HOwever they would overide but I still could not get the Iphone. Any other phone would be OK. Made no sense to me. I talked to ATT CS and the CS manager, And his manager and they would not budge. My Dilemma as I told them was that I needed a phone and wanted teh iphone. BUT if I got any phone that would take up my Upgrade option. Thus I would still not be able to get an Iphone. DO you beleive they actually told me to get a ATT "GOPHONE" in the meantime for 3 months until they could let me have an Iphone. Well the conclusion to this is that ATT lost 2 long time customers and I will go to verizon and get the Blackberry Touch screen adn be done. ATT policy is ridiculous and frustrating. No Wonder this country is in financial ruin. There is no customer service or personilzed service. everybody from the guy who signed up with the base plan and Me and My Wife who have spend $400 per month with att are the same and no exceptions. DUMB.

AT&T mismanaging customers' needs.

I just had a great experience with AT&T. Last Saturday, December 27th, I went to my local AT&T store with my wife to upgrade to a new Blackberry Bold. I have been an AT&T customer now for the past 5 years. I also wanted to swithch my plan with myself as the prime owner in order to more efficiently handle the phone bills (my wife being the current prime owner of our family plan. Unfortunately, the trasfer of ownership dept closed at 2 PM (it was then 3). Since we both work, neither of us could go to the store during the week but the sales rep informed us that we could come by next sat provided that we call him first during the week to remind him to put aside a Bold for our purchase. (He also ran credit and eligibility checks and informed us that we were in fact "eligible for upgrade"). I called Wednesday to remind the sales rep and after a 3 minute conversation, he said he'll be happy to see me on saturday.
Arriving at the store on Saturday (January 3rd) I told the salesman (same one I've always delt with) I was here for the Blackberry Bold. He looked at me with condescending eyes and said "remember I told you to call me?" I REMINDED him that I called him on wednesday and that HE said everything would be ready. All was not ready as he sold all Blackberry Bolds. He reiterated that I was eligible and sent me to another AT&T store to get my upgrade. After driving 8 miles out of the way and arriving at the other store, waiting in line for 25 mins, the sales rep began the transfer of ownership process. I was given a phone and verified some details when the attendant on the phone commenced to renew my contract. I told her that I was here for an upgrade but she said it is easier this way. Even the store rep said "I will do that." But I could not stop. Before long, I was given a new contract. When the phone was hung up and I began speaking to the store rep, he said I was no longer eligible for an upgrade because I just renewed my contract. Point in mind, the whole reason my wife and I were there was to get an upgrade in the first place. I told him that this contract is null and void because it is contingent upon my upgrade. After reversing the contract (35 minutes) he also told me that I am in fact INeligible to get an upgrade until July 26th. My at&t contract also runs out in February....2010. So I spent 3 hours total to no end. I never got my upgrade and I'm locked in a contract with a company I cannot stand unless I choose to pay $175 early termination fee on EACH of my lines. I suppose I'll wait till my contract expires and get the new Storm from Verizon. They should have all the bugs worked out of it by then.
My main gripe is that AT&T seems to be bound by rules that it's employees distort and don't even seem to understand. I am trying to upgrade to a more expensive phone and a more expensive data plan. I WANT to pay them more.
I suppose I'll bite the bullet and wait till my snare runs out.

AT&T and i phone

I am also in the middle of an awful experience trying to buy an i phone from AT&T. At this point I am turned off of the i phone and I'm thinking about changing my cell phone provider too. I don't understand why Apple or AT&T would want to limit i phone purchases to new or upgrade eligible customers.
Does anyone have a suggestion of a great phone for email/internet use with or without AT&T service? I've been with Cingular (now AT&T) for about 8 years and have never even considered leaving until now.