Apple Says, “Your Cash is No Good Here”

In an effort to cut down of reselling of the iPhone, Apple will not sell iPhones for cash anymore. You must pay by credit or debit card only. They’re also limiting the number of iPhones a person can buy to 2. All I can say to this is, "Thanks for reminding me once again why I don’t buy Apple products."

One thing that really annoys me in the techno-gadget industry is the tendency to create demand for a product by artificially limiting the supply. You can bet that Sony and others are watching this move and will find ways to limit purchases of their hot products as well. Ultimately, I think this will backfire, particularly when the real money to be made isn’t in selling the hardware itself but in selling software and services for the hardware.

My prediction is that because Apple is being unreasonable in limiting the iPhone market they will either have to eventually loosen the restrictions or declare the iPhone a flop. If Microsoft, Google or another big industry giant releases a competing product or teams up with a cellphone manufacturer to develop one the iPhone’s days will be numbered.

What are your thoughts on this? Leave a comment and let me know.


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2008-07-10 09:46:55

I think that time is proving you wrong on this one. Tomorrow Apple’s going to be launching the next version of the iPhone, and I suspect the lines will be even longer than they were last time, with an awful lot of people clutching a credit card in their hot sweaty hand.

Honestly, I have to say that the credit card thing doesn’t bother me when it comes to an iPhone — it does bother me that I have to sign up for two years of AT&T service, but given that I have to do that, I understand why do need a credit card.

Comment by jfc
2008-07-10 10:06:44

Hi Amish,

Apple has an advantage in the iPhone/iPod market much like Microsoft has enjoyed in the Operating System and Business Applications markets. That advantage is incompetent and/or greedy competitors. There’s no reason why products like the Samsung Instinct or HTC Diamond couldn’t challenge the iPhone. However, they’ve been very poorly marketed in comparison to the iPhone. And don’t get me started on Sprint!

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