Assorted Afflatuses

As more details begin to emerge about the impending 11 July release of the iPhone 3G, the sour taste in my mouth grows more acrid. According to a leaked internal AT&T memo, one of my favorite iPhone features — self-activation — is no longer an option. In fact, every iPhone 3G buyer must activate his phone in an AT&T or Apple retail location. I really see no good reason for AT&T to implement such a ridiculous policy.

My two visits to the AT&T store to activate other phones took what seemed like an eon. I had to wait as other consumer asked the salespersons simple questions about phones and rate plans, which the AT&T reps seemed unable to answer in a way that gave the consumers any real guidance. I had to cajole the salesperson into giving me the phone I wanted, rather than some lesser model that gave them a higher commission. I had stare blankly at an unattractive wall of replacement power adapters while the inept salesperson spent half an hour activating my phone.

Needless to say, it was not pleasant.

Buying my iPhone, on the other hand, was as close to cell phone buying bliss as is possible to be. I strolled into the Apple Store, asked for an iPhone, paid and left. At home, I connected the iPhone to my laptop, and, within about five minutes, I had everything up and running. Veni, vidi, vici. So simple.

If AT&T's marketing copy is to be believed, their new policy aims to make consumers' lives easier. Yes, of course! For I so enjoyed spending my Saturday afternoon cramped in an AT&T store waiting for a sales rep to activate my phone.

Of course, the AT&T people would argue that I, a sophisticated computer user and gadget addict, represent a tiny minority of iPhone buyers: the "average consumer" could not possibly navigate the iPhone activation process, with its Byzantine twists and mad Visigoths waiting to take the first-born children of all those who fail to check the correct box.

That, however, is as ludicrous as their unlocking policy (i.e., completely insane). Consider Apple has sold well over 100 million iPods. That represents over 100 million people who successfully plugged their iPods into their computers and downloaded music to their devices.

The first-generation iPhone, I will admit, was not quite as simple as to setup as the iPod. I had to enter some contact and billing information to pay for the AT&T service. But the process is as simple as they come. Anyone capable of navigating the financial transaction required to buy an iPod could handle the extra mental strain.

No, I suspect profits provide the true motivation for AT&T's tyrannical policy. Like the original iPhone, the net price of the new iPhone 3G probably sits around $400. This time around, however, AT&T subsidizes the cost of the phone, such that consumers need only pay $199 for the device. AT&T, then, recoups from the $200 loss through the tariffs consumers pay for their wireless service.

By allowing consumers to simply walk in and buy the device for the subsidized price of $199 without committing to a two-year contract and wireless plan, AT&T runs the risk that the consumer hacks the phone, exports it to an excited Chinese cell phone user and costs the company $200 in revenue. It is, then, understandable that AT&T would want to take steps to avoid this.

But that is not to say AT&T could not have accommodated those who wanted to activate their iPhones in their homes or offices. AT&T could have sold the phones for $399 in the store, but provided a $200 service credit to those people who took the phone home, activated it from the comfort of their Aeron chair and agreed to a two-year contract.

I still love my iPhone, my Mac and just about every other product I own that bears the Apple logo. (The $29 iPod photo connection gizmo was not worth the money.) I am, however, coming to realize how much I dislike AT&T.