This is a discussion on Love the IPhone but hate AT&T... within the iPhone forums, part of the Apple iPhone category; Originally Posted by iphonenut slow down there, turbo. look, if you don't want one, don't get one. i don't know ...
ATT is using the "Gauge and Gouge" business model... First you gauge the demand (let it build to a point that's busting) then gouge the customer for all it's worth. That's why they're not releasing the rates until the last week. By now there are enough folks who would pay anything just to get the phone. Get 'em locked in and then if demand subsides (due to network overloads, pood customer service, etc..) offer lower "incentive" rates to new customers. Thankfully ATT does not sell gas.![]()
I wrote a long post a while back about this issue, but I'll say it again. Don't get lost thinking that the game being played in the mobile phone market is about margins. This is an EXTREMELY competitive and pretty much fully developed market. The whole game between the service providers (ATT, T-Mobile, et al) is MARKET SHARE!!
These companies spend HUGE money per each customer they take away from a competitor. That is the entire reason ATT wanted this deal. Not because they could gouge anyone. It's because they can use this take customers away from their competitors. If they gouge people then they undo the most important thing they accomplish.
Rob Honeycutt -
"Outside of a dog a book is a man's best friend. Inside of a dog it's too dark to read."
- Groucho
Most Corporations don't really care about the future...only about the next 3 or 4 quarterly dividends to shareholders. Hence the cutting of thousands of jobs, dumping long term employees and shipping the jobs to India...quick profits ignoring the results of crappy customer care by folks who speak broken english.
So once they have their 2 year commitment..it's on to the next customer. If you don't like it - divorce is only $175.00 away...and they make money there too... I am a former ATT then Cingular customer and I can vouch for 100% crappy customer care (5th place if I remember). It just grouches me to think I have to deal with the devil to get what I want....but life is mostly like that after all ...![]()
About what my company does; Buy Sell Merge Fire Hire Lay Off anything to put a penny into the pocket of the invester. Ask for the iPhone I will be willing to pay $20 for the MediaMax Plan, but wouldn't pay $40 for the PDA Plan until 3G is on the phone and can tether it to my laptop.
Most well managed companies have business plans from the next quarterly earnings report to 10 years from now. The ones that don't are the ones that go under. ALL companies have to lay off people sometimes. That's what makes a company survive. Allthough you can get really bad publicity doing it.
Just recently Circuit City was in the news for laying of 3500 employees before an earnings report. What most people don't know is that Best Buy ended up laying of almost as many. It's just the way they did it that kept the negative PR off. Circuit City laid their employees off one morning with no warning and no pay decrease. These people had to "reapply" for the jobs they just had minutes ago. Best Buy offered their employees other positions in the company that fit in their downsizing plan.
I'm with Robhon on this. It is all about market share and they cannot afford to screw themselves on this deal.
It depends on how absurd the plans are. If they're $100/month, then no. If they're $40/month, then yes.
I've had nothing but good service from Cingular for the last five years. If the At&t change maintains the same service I've experienced from Cingular, then I'm sure I'll be just as happy in another five years.
I've had cingular for 3 years and at&t since 1996 before that. I like cingular the best for one reason only: rollover minutes. That feature alone makes my plan the cheapest in the industry. I have 3400 rollover minutes and can never use them up. I will admit one thing though, cingular's internet service always sucked. I hope that part is going to improve.