iPhone, iPhone, iPhone. Apple Inc.’s new device is dominating chatter in the wireless world, selling out in most stores and AT&T Mobility employees couldn’t be more pleased. But some third-party retailers who work with AT&T Mobility and sell their products and services, both exclusive and non-exclusive, are angry to have been left out of the iPhone loop, again.
One third-party retailer representative, who chose to stay anonymous due to fear of termination, is frustrated that his company did not receive the iPhone last year or this year and said he is losing business because of it.
“It’s amazing how many customers we get per day and we have to send them away,” he said.
Sometimes it is hard to distinguish between an indirect AT&T store and a company-owned store so customers have no way of knowing if that location will have the iPhone or not. And this representative said the iPhone is the only device customers are looking for; they don’t want to buy any other handset. He also said that customers don’t just come into these stores looking for the iPhone; they also came in during the midst of all the iPhone issues.
“Even of the first day when they had activation problems, customers came in yelling and screaming that AT&T and Apple screwed up and the phone doesn’t work,” he said. “We’ve been told we can’t even help customers with an iPhone. “
He also believes putting the iPhones in indirect stores would have sped the process along on launch day.
“You wouldn’t have all these lines if everyone was selling them and not as many headaches,” he said.
Because AT&T has never given third-party retailers an explanation why they don’t have access to the iPhone, they suspect it is because AT&T wants to control the pricing. Indirects can offer additional savings and rebates on the devices in their stores. But, the representative said his company had agreed to sign a contract stating it wouldn’t lower the price, but AT&T wasn’t up for it.
“The relationship is really tarnished,” he said. “They expect us to do X amount of numbers, but we can’t meet anything.”
Another third-party retailer said AT&T tells its retailers they’re part of the AT&T family, but then leaves them out of the biggest launch in the carrier’s history.
Not everyone upset
Other indirect sellers said they are not bothered by the lack of iPhones in their stores. Spring is an authorized and exclusive AT&T retailer. Peter Woodman, a spokesman for Spring, said not getting Apple’s 3G iPhone hasn’t hurt Spring’s business.
“A lot of people come in and ask for it; some leave then and some listen to other options,” Woodman said. “Even though we don’t have it, it’s driving a lot of traffic into our stores.”
Woodman went on to push that even if Spring had been offered the iPhone, it would be too expensive for its customers. “We wouldn’t want to push a $200 price anyways,” Woodman said. “Customers have to pay a lot of money for those iPhones and [an additional] $30 a month is expensive. When we show customers, they’re not willing to pay that much.”
In terms of losing customers, Woodman said they probably are losing a few, but he’s not seeing a lot of impact from regular customers, just in potential new customers. He said he is not worried.
“We’re able to give customers a better experience with other phones,” Woodman said.
Another outlet left in the dark includes big-box retailer Best Buy. However, a spokesperson from the Minnesota-based chain said it hasn’t been an issue because the store received the Samsung Instinct, Sprint Nextel Corp.’s iPhone competitor. He said that device has been doing quite well and they’re selling quite a few.
“You can’t deny the popularity of the iPhone,” he said. “It’s certainly something we’re examining.”
AT&T and Apple stores are still the only places to buy an iPhone and the future remains unclear. When asked about third-party retailers not receiving the iPhone, AT&T had no comment.
