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July 8, 2008 12:05 PM PDT

Only U.S. Apple retail stores getting iPhone 3G

by Tom Krazit
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If you want an iPhone 3G outside of the U.S., you won't find one at the Apple store.

(Credit: Apple)

While Rogers, Canada's largest wireless carrier, has made few friends with its iPhone 3G rate plans, it's not the only foreign carrier that will have to go it alone with iPhone sales on Friday.

The Internet was all atwitter Tuesday with reports that Apple had decided to pull iPhone 3Gs from its six Canadian retail stores for Friday's launch, apparently in protest over Rogers' decision to not offer its iPhone 3G customers an unlimited data plan. Appleinsider said that Apple made the decision in a Monday night conference call after it grew "disgusted" with the rate plans, which require three-year contracts, offer very few minutes at the introductory rates, and lack the option for unlimited data usage.

While I wouldn't be surprised if Apple isn't very happy about how things have unfolded in Canada (see this piece by Macworld's Jim Dalrymple for a look at the Canadian iPhone zeitgeist), Apple isn't selling the iPhone at any of its retail stores outside the U.S. Canada joins the U.K., Italy, Australia and Japan as countries that will have to rely on Apple's carrier partners in those regions to purchase the iPhone 3G on Friday.

Earlier in the week, independent blogger Daniel Smith reported that Apple was diverting iPhone 3G stock from Canada to Europe in response to the controversial rate plans. Smith left himself a little wiggle room with his report, but it seems safe to assume that Apple and Rogers aren't best friends at the moment.

But given the worldwide launch plans for Friday, it seems a bit of a stretch to assume that Apple has decided to blame Canada for its rate plans when Apple isn't selling iPhones in any Apple retail stores outside of the U.S.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by Vegaman_Dan July 8, 2008 1:30 PM PDT
How can this help Apple's sales of the unit? The only CSP is Rogers, so it doesn't really matter if you buy it at a Rogers store or an Apple Canada store- the CSP is the same. If people go to an Apple Canada store and are told they can't buy the phone there, that seems like a black eye to Apple.


None of this sounds quite right. With less than a week to go to launch, this sort of childish tactic by both Apple and Rogers suggests there is something else entirely going on and this is just a facade. Either way, it really ruins the Apple iPhone experience for Canada and nobody wins there except other CSP's offering competing products.

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by Grey_Hair_guy July 8, 2008 1:52 PM PDT
In some way you are correct with it hurting Apple, although it appears they are trying to show comsumers that they dont stand behind Rogers ridiculous rates. Apple had stated that the phone would be sold for 199, and 299, well Rogers has taken that price and abused it with its ridiculous rate plan. I think one of two things need to happen. Canada needs another provider to go GSM. Or Steve Jobbs should step in and smack around Rogers.
by livecrunch July 8, 2008 1:30 PM PDT
Bloggers started writing as Canadians will not have Iphones at all due to Rogers High Price Plans. But then there was miss understanding! Because there is only 6 apple stores in 4 cities in the whole Canada they did not want to sell Iphone3g there.
I wrote a bit more about it there if you are interested:
http://tinyurl.com/iphonenews
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by fgodden July 8, 2008 1:36 PM PDT
Wrong ! Next Friday July 11th the iPhone 3G will go on sale in Belgian shops, the result of a partnership between Apple and mobile operator Mobistar. And remarkably : as Belgian law prohibits the sale of a cell phone tied to a rate plan, the iPhone will be sold separately and : unlocked ! Any customer can insert any SIM card from any operator, the device will work immediately. At a price though : 525 euros (some 820 US dollars for the 8 GB model, 615 euros (960 US dollars) for 16 GB.

Frans
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by jhollington July 8, 2008 1:52 PM PDT
Bear in mind as well that Tod Maffin from CBC reported almost two weeks ago that he had been quite specifically and directly told by Apple that the iPhone would not be sold in Apple Retail Stores.

It appears, in fact, that Apple *never* intended to sell the iPhone in Apple Retail Stores outside of the U.S. With the new in-store activation requirements, I suspect they just felt that the complications of training their staff and integrating their systems with the various carriers probably outweighed the benefits provided by the few available retail locations.

The bottom line is that this is not news -- merely an attempt by some disgruntled Rogers customers (of which there are many, and for understandable reasons) to rumour-monger by distorting an existing situation.

Lastly, if Apple is so "unhappy" with Rogers' data rates, why are they not similarly unhappy with every other country with comparable, if not *higher* rates. I've heard no rumours of Apple pulling or diverting stock from New Zealand, Portugal, Mexico, or Germany, all of which have much more expensive iPhone plans than we do here in Canada.

The main reason there is such angst over Rogers' rates in Canada is because we're incessantly comparing ourselves to the U.S. rates, which are actually the *best* of any of the iPhone-carrying nations.

In reality, Rogers' data rates have *improved* about 900% over the past month even on their most basic data plans..... 200MB for $100 has now become 300MB for $30, for instance.
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by sureshot1981 July 8, 2008 2:53 PM PDT
Wow....do you work for rogers? I think this is the first boast i've seen for Rogers...the 50,000 people that signed the ruinediphone petition must be out to lunch....nah i don't think so.
by atomicfirefly July 8, 2008 5:13 PM PDT
First if you would be so kind as to give a quick overview of the plans from these countries that would be helpful. Second, it is right to compare our rates with a country whose wireless sector through a combination of regulation and competition has produced a fair market for wireless services. Third to say that Rogers' data rates have improved is a not demonstrable of the whole picture, a device with 16gb of storage in an age where internet traffic such as facebook is measured at 1-2 mb per page and iTunes purchases at 5mb per file, google maps at several megs per page is not adequately served by a mere 400mb of data per month.
by Rickardo July 8, 2008 2:16 PM PDT
I skipped the first gen iPhone cause of the slow speeds. Looks like I'm skipping the 2nd generation cause of my contract. I've been a subscriber to ATT/Cingular since the early 90s but they decided I needed to wait until November to be eligible for the $299 price (16gb).

Frankly, I hate the cell industry. They are such fools when it comes to customer satisfaction.

Anyway, last friday my Razr failed to start. So, I figured I'd just wait a week and get a new iPhone. Went to the store and they told me the tale, $499. Frackin FIVE HUNDRED BUCKS! That is one hell of a long way from hearing that you can get an iPhone for $200. Oh, I know it's a different model with a few extra gigs and all but really the whole escapade is extremely distasteful. I wish they'd just get banned from selling phones. It is a highly anti-competitive enviroment and a sort of mini monopoly allowing phone companies to bundle phones and contracts. It really makes you feel you HAVE to sign a contract otherwise you're a fool spending too much money. But ... if all cell phones were purchased away from carrier's benches, we'd all get used to the higher prices and cell carriers might have to offer better service to entice us to sign up with them or perhaps they'd offer a straight rebate to folks willing to sign onto onerous contracts. Regardless, we would not be in this ridiculous era of not being able to buy something we want because we are FORCED to take something we don't want (longer contract or other crappy deal from the cell guys).

That's it.

I went and bought a go phone and plugged in my SIM.
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by Verfel July 8, 2008 2:42 PM PDT
If you guys think you have problems, we here in NZ, can only get them thru' Vodafone. People are queung up already (night temps at the moment are 0 degrees Cel) to purchase these as NZ is the first country in the world to sell them. Pricing plan is thru' the roof.
T buy the device outright costs from $NZ979 for the 8, to $NZ1129 for the 16. It can then be fitted in with an existing account by adding a data plan. Buying an iPhone on a two year contract is possible on three different data plans.- the 250GB package costs $NZ80 a month with the two versions priced at $NZ549 and $NZ699 respectively. The most expensive monthly option comes with the lowest entry price--$NZ199 for the 8GB but $NZ250 a month with 1GB of data on a two year plan.

AND you have yet to make a call...........HELLO !!!!
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by cjp111 July 8, 2008 4:51 PM PDT
seems like a misleading headline.
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by inyyz July 8, 2008 7:13 PM PDT
Has anyone thought about this for a minute. iPhone wasn't released the first time round in Canada - because Linksys owned the rights to the name iPhone in Canada. We also know that Apple had to settle with Linksys to get the rights to the name "iPhone".. and it was a hefty price tag. Now we all know that Apple has some sort of profit sharing with it's carriers - Rogers included. Therefore the two companies are working together maybe to recover the costs to purchase the name. Notice neither Apple nor Rogers have made any official statements to the media. Apple never had plans to sell the phones in it's retail stores (besides there are so few in Canada), so the rumors are false. Apple is not mad at Rogers and Rogers won't lower the price. All this hype and talk of limiting the numbers will only drive sales higher. It's an amazing strategy that we know will make both Apple and Rogers a lot of money! Pity.
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by jymbobb July 8, 2008 8:46 PM PDT
Yeah, I really want the Iphone but i don't want to pay that really high rate that rogers offers. So i think i will wait and see what happens later on. It is not even sure yet that i phone is going to come to canada so im really mad. Also all the news a rumors will just cause people to pay more attention to the iphone and in the long run apple will make more sales.
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by johnsonmarris July 9, 2008 12:19 AM PDT
3G? Wow, la revolution! Check your garbage can and see if the phone you threw away three years ago is actually using 3G. Oh, come on..., please don't take 3G as some thing new or cool, that is even not funny. It is a shame to only put "3G" at the end of your name now.
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by drenk1976 July 9, 2008 2:10 AM PDT
Not the greatest researched article. The second most Apple retail stores after the US are to be found in the UK and they WILL be selling the iPhone 3G, although only as a new connection and not to existing O2 customers.
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