Video: Trying to buy an iPhone with cash
posted at 7:56 pm on November 3, 2007 by Bryan
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It can’t be done. ZDNet tried, with predictable results. The bottom line is that Apple has instituted a limit — you can only buy two iPhones. And they’re using your name and credit card number to enforce that limit. It’s their answer to the unlocked iPhone issue.
You don’t have to be a rocket scientist to connect the dots. Apple has relationships that its contractually bound to protect and must do whatever it can to eliminate the gray market. As far as unique indentifiers go, credit cards are a pretty good token for authenticating someone’s identity. At the very least, Apple is probably retrieving (from the credit card) and keeping the name of every person who buys an iPhone. This way, when you go to buy another one, they can see if an iPhone has already been purchased by someone with the same name. But then comes the question of whether they are retaining your credit card number as well. How could they not?
After all, there are lots of people with the same name and the odds are pretty good that certain names have already exceeded their quotas. But certain names coupled with certain credit card numbers. No way. The credit card number is quite unique and if Apple’s database shows that two iPhones have already been purchased by someone who’s identity was authenticated with the same credit card, that would be a red flag against selling them a third phone.
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well… wait… why is it only 2 per person? are they short on supplies? what’s the deal?
j_ehman on November 3, 2007 at 8:10 PM
…how was on Apple’s Home Page?
Zorro on November 3, 2007 at 8:12 PM
It says on the $50 bill in front of me “this note is legal tender for all debts, public and private”
It is against the law to refuse a cash payment for any transaction.
Lawyers, opinion please?
redshirt on November 3, 2007 at 8:16 PM
Another instance of taking it out on the little guy…much like limiting Sudafed because some morons are using it illegitamtely.
Didn’t Apple come out with some signal they send out to disable hacked iPhones? I thought they did…
JetBoy on November 3, 2007 at 8:18 PM
So, Allah, that plan to convert recyclables into iPhoneage isn’t working out so well?
How many cans would it take?
bbz123 on November 3, 2007 at 8:20 PM
It is crap like this that made Apple such a loser in the computer industry.
Wade on November 3, 2007 at 8:21 PM
I had the same thought.
LordDaMan on November 3, 2007 at 8:22 PM
No its not illegal to not accept cash.
lorien1973 on November 3, 2007 at 8:23 PM
That’s a shame, AP.
I had just loaded an envelope with a few Franklins to send your way.
harrison on November 3, 2007 at 8:24 PM
Here I was thinking about buying a Mac. Oh well not now. Guess it’ll be another Dell.
boomer on November 3, 2007 at 8:25 PM
There goes the plan to get all three of you iPhones for Christmas.
steveegg on November 3, 2007 at 8:29 PM
So now my wife can just email a Jobsian cooltalker to find out if my iPhone is in the Champagne Room?
Stephen M on November 3, 2007 at 8:30 PM
Just imagine if all that energy they invest into screwing their customers would be channeled into making their products cheaper…
factoid on November 3, 2007 at 8:33 PM
anyone know whats up with michelles site ? seems to be afu.
ajmontana on November 3, 2007 at 8:35 PM
twilight zone music in the background
.
Next you will need an eye scan or embedded chip to purchase anything.
.
Rev 13:17
And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
abinitioadinfinitum on November 3, 2007 at 8:36 PM
This is the US Treasuries explanation of why this is legal.
muyoso on November 3, 2007 at 8:37 PM
http://www.treas.gov/education/faq/currency/legal-tender.shtml#q1
Link didnt work on last post.
muyoso on November 3, 2007 at 8:37 PM
Eliminate the grey market? How are they going to stop the Europeans from selling here? I’ve already seen them on eBay advertised as “unlocked European” models. WTF are they really trying to do?
liquidflorian on November 3, 2007 at 8:44 PM
OT WTF is LSU Doing?
abinitioadinfinitum on November 3, 2007 at 8:45 PM
Yes I do believe Apple has to accept CASH.
Me thinks a few commerce laws as are being broken.
But then again I just found this link from the US Treasury that says Apple is in the clear unless specific States say differently.
I would also think you could make a case for discrimination?
I bet they take pesos.
186k on November 3, 2007 at 8:51 PM
Yes. Looks like the answer is here for WordPress to fix.
Wade on November 3, 2007 at 8:55 PM
It’s like those stupid commercials that single out check writers or those purchasing with cash as backwards and inconvenient. I personally hate writing checks, but do I really need to use my card to buy a cup of coffee? Pulling two bucks out of my pocket and laying it on the counter is faster than setting my coffee down, reaching into my back pocket, opening up my wallet, taking out a card, swiping it, putting it back into my wallet and then putting my wallet into my back pocket again and then picking my coffee back up. If you get your coffee over the counter then you could eliminate “setting the coffee down.” I guess this is a sign that I need some reeducation or “treatment” to correct my poor attitude. The correct attitude being I should agree to submit to assisting all businesses to rake in as much money as quickly each day as possible by walking into the store with my card already in hand and submitting to the cattle line!
JellyToast on November 3, 2007 at 9:01 PM
Well, it may be legal, but this is exactly why I pay cash as often as possible. I hate to sound paranoid, but I loathe the thought that all my transactions are out there in some database to be used, reviewed, or analyzed by unknown others.
Also, once I buy your product, I am free to do with it whatever I want. Otherwise, I haven’t really bought it, I have just leased it. Come to think of it, itunes has that same issue, limited burning of songs you supposedly “own”
I guess Apple is evil.
redshirt on November 3, 2007 at 9:01 PM
It’s back up.
steveegg on November 3, 2007 at 9:02 PM
AP, if you are running the the Marathon tomorrow, don’t bring iPod, they are banned.
Wade on November 3, 2007 at 9:21 PM
http://video.google.com/videoplay?docid=1070329053600562261&q=endgame+site%3Avideo.google.com&total=240&start=0&num=10&so=0&type=search&plindex=5
jummy on November 3, 2007 at 9:25 PM
Apple has its head up its @$$ with regard to the iPhone.
The sole reason they’re trying to prevent the grey market for unlocked iPhones is because Apple gets an unprecedented amount of money from AT&T for each iPhone-based account that is established. Like 3x more than other vendors get for hawking their cell phones through AT&T or any other carrier.
Mindcrime on November 3, 2007 at 9:31 PM
My wife just pointed out that if the iPhones have GPS, they’re able to link who bought the phone to the phone, and viola! They know where you are and who you are with no less than a 50% probability. Pay cash and there is no certain proof that the phone and the paid-for up-front service points to anyone specifically.
I wonder how much “co-operation” there is here between Apple/AT&T and some obscure branch of an obscure government agency…
Then there is the disappearance of the efficacy of cash in the process…
I wonder if that same obscure branch of some obscure government agency is tracing tinfoil hats as well. I’d hate to be outed just because I bought a roll of aluminum foil.
Tinfoil hats aside, why else would anyone ever limit their sales of any product or service they make and provide?
Just for the Hell of it, a few dozen people need to swap phones and service for a month or so just to see what sort of havoc ensues, and which agency rears its ugly head to put a stop to it.
Next step: National ID necklaces with GPS, video and audio recording, and a built-in taser. You’ll need to watch your eating habits, whom you have sex with, how good an aim you are with your weapons(if you dare expose what and how many you own to your ID necklace’s sensors), and your bathroom habits, or else ZZZAAAPPPP!!!
Woody
PS: George Orwell doesn’t have the market cornered on the future. Put two and two together yourself and vote accordingly.
woodcdi on November 3, 2007 at 10:07 PM
Apple gets 18$ per month per iPhone, that’s $432 dollars per phone account over a 2 year contract, more than the actual phone itself.
So, if people unlock their phones, Apple loses money.
Article Link
Personally, I think it’s a load of cr@p. But then, the entire cell phone service industry in the States is a load of cr@p. I much prefer the plans I had available to me when I was back in Asia.
Mindcrime on November 3, 2007 at 10:13 PM
Bryan, in your infinite wisdom, please, if you will, answer my question.
Why would anyone want an iPhone?
I mean, I once owned a Apple, a Mac and after the initial excitemen, it became boring pretty fast.
What’s the attraction? I don’t get it!
Why buy a product that makes you jump through hoops?
Kini on November 3, 2007 at 10:36 PM
You are absolutely correct, sir or madam, which evah may apply.
Asia is light years ahead compared to us.
Kini on November 3, 2007 at 10:39 PM
@ Kini on November 3, 2007 at 10:36 PM
The reason people use macs are because they are very simple and very convenient to use. OSX crushes other operating systems in the intuitiveness of the interface and the ease of use. Also, it just looks pretty. Sure it can’t necessarily do as much as other operating systems, but what it does, it does extremely well. As for the iphone, I think it is a piece of garbage, as other phones do better things for less money, such as the phone I just bought.
muyoso on November 3, 2007 at 11:15 PM
You’re not just buying a phone, you’re buying a service plan which they want the ability to bill you for monthly.
Pablo on November 3, 2007 at 11:20 PM
Roger that! My point is, as good as the features are in the iPhone, it’s a closed system. Apple has not learned its lesson from the past and it should be an open architecture system.
Kini on November 4, 2007 at 12:20 AM
[Editor’s Note: The video is not currently available. We apologize for the inconvenience.]
Seems like they’ve been “gotten to” by Apple.
greggish on November 4, 2007 at 12:21 AM
I wonder if it would be a good idea to get a “fresh” credit card each year, to help avoid anyone’s accumulating a lifelong record of my purchases.
Kralizec on November 4, 2007 at 2:10 AM
-
Amen to that, and not just for phones but for electronic gadgetry in general. Once in a while it crosses over into stupidity (like talking toilet seats) but in general it’s paradise on earth for gadget freaks.
Herikutsu on November 4, 2007 at 3:24 AM
It’s times like this I’m glad I’m the only person in the entire world with my name.
I’m also glad I don’t really want an iPhone.
askheaves on November 4, 2007 at 4:14 AM
Ok, so did the chick in the bikini that smashed the crap out of an iPhone pay with a credit card? If so, she only has one more she can destroy or she’ll need to go into identity theft to satisfy her iPhone smashing fetish!
Just sayin…
Liberty or Death on November 4, 2007 at 5:09 AM
I work for a competing cell phone company. Let me explain…
The iPhone is being sold through AT&T and Apple. AT&T has exclusive rights to provide service for the phone.
A very bright 17-year-old and other tech geeks found a way to hack the iPhone’s software to allow it to be used with other GSM carriers (T-Mobile, for example – it even worked with overseas carriers). Apple found this to be hugely problematic, of course, having the exclusive agreement with AT&T. When activated with another carrier, AT&T isn’t getting that money, of course.
Apple CAN use their discretion to not accept cash for these items. Yes, cash is legal tender, but as a private entity, they can choose not to accept cash if they wish. They have decided to do just that. They are doing everything they can to keep people from hacking the phone and using it with another carrier.
This has become wildly unpopular, of course, with people who think they have the ‘right’ to do as they please with the phone, even though their terms and conditions from Apple state otherwise.
…thus ends today’s lesson.
flyawaybird on November 4, 2007 at 6:05 AM
I had an uncle Ask Heaves.
saint kansas on November 4, 2007 at 7:41 AM
Screw the iPhone. I’ve seen too many complaints about it, AND, you have to sign up with AT&T and their cruddy network. I’m snapping up the iPhone killer from Verizon due to be released in a few weeks… for HALF THE PRICE of an iPhone, plus, a $50 rebate to boot!
http://www.verizonvoyager.org/category/review
SilverStar830 on November 4, 2007 at 11:44 AM
Name plus the last four digits in the credit card. Simple.
Seixon on November 4, 2007 at 11:46 AM
I’m totaly out of the loop with my still-going-strong “Nokia 5190″, thank you!
Woody
woodcdi on November 4, 2007 at 12:17 PM
Last I checked, by law, you can’t refuse cash… Are they saying the legal tender of the land isn’t good enough?
RustMouse on November 4, 2007 at 8:43 PM
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