iPhone Returns and Cancellation Policies
Hey boys and girls, you might be used to trying out phones and getting 30 days to cancel and return the unit (that is, at least, depending on your state of residence). Our Chris tells me that in California, you even get back the activation fee. The iPhone return policy won't be nearly as friendly. Here's a rough-and-ready review of the iPhone policies you should expect.
iPhone return policy. You have 14 days (not 30) to return your iPhone. It must be returned to the original point of purchase. You can't buy at store #1 and return to store #2. If the iPhone isn't unopened and shrink wrapped, you'll be charged a 10% open box restocking fee. Returns must include the phone, all accessories, and all manuals that shipped with the product.
Canceling the agreement. If you cancel within 3 days of iPhone activation, You're entitled to a refund of the $36 activation fee. If you cancel within 30 days, you can terminate service without paying a penalty. After 30 days, you must pay an early termination fee of $175. After fulfilling your 2 year agreement, your service switches to a month-to-month automatic renewal.
Rough Costs
So here's a rough breakdown of how much you can expect to pay under various return scenarios. I'm using the $499 4GB iPhone in these calculation and the lowest ($60/month) plan. I assume about $10 in fees and taxes (including 911 Tax, Federal Telecom Relay Service Fee, Universal Service Fund, Cost Recovery Fees, etc.) and a 5% sales tax on the unit itself.
$50.00. Try it out, cancel service, return unit within 3 days.
$86.00. Try it out, cancel service, return unit within 14 days.
$561.00. Try it out, keep the phone, cancel service within 30 days. (I assume they don't charge you for that month. If they do, the cost is $631.00.)
$946.00 Use the iPhone for 3 months, pay $175 termination fee.
$1576.00. Use the iPhone for 12 months, pay $175 termination fee.
$2241.00. Use the iPhone for 24 months, no termination fee
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Hey boys and girls, you might be used to trying out phones and getting 30 days to cancel and return the unit (that is, at least, depending...
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FYI- I used the iPhone for 13 days and decided to return it because of bad reception with AT&T. When returning it back at the Apple store, I told them the reason was not with the iPhone but with AT&T. They didn't charge me the 10% restocking fee.
July 11 2007 at 8:03 PM Report abuse Permalink rate up rate down ReplyOkay, I really do not care for At&T, so I called up and asked if I wanted to sign up for service and cancel within 3 days. Will the Iphone remained unlocked and the rep said "YES". It will be a pain and hassle, but its worth it to use the Wifi and ipod.
July 01 2007 at 5:06 PM Report abuse Permalink rate up rate down Replysorry took forever for my comment to be posted, I see this concern was already addressed
June 28 2007 at 7:54 AM Report abuse Permalink rate up rate down ReplyMark, that's a good point. I'm sure they'd take it back (as you are 'unsatisfied') but probably charge you restocking fees.
Of course, the best way to get around this is to check the coverage out by finding a buddy who has AT&T/Cingular and giving your locales the once over. In my experience (living in Houston and Austin, TX) I've never once not had service with any of my AT&T/Cingular phones.
What happens if I get home or to the office and the coverage stinks. Will people still be charged a restocking fee if they "have" to return the phone since the coverage is not acceptable for everyday use?
June 27 2007 at 8:56 PM Report abuse Permalink rate up rate down ReplyWatching the activation video, it stuck me that during the iTunes activation wizard (after you plug in your phone to your PC), you are presented with the TOS from both AT&T and Apple. Are you forced to pay the fee if you decide that you do not agree with the Terms of Service? I ask since you are not shown the TOS until you plug in the device.
June 27 2007 at 8:54 PM Report abuse Permalink rate up rate down ReplyMy issue is completely different. when i moved into my new house last year I was forced to cancel Cingular and get Verizon because I could not get a signal here. All of my friends and family are on Verizon as well so I can't even try and borrow one of their phones to test with. I am encouraged by AT&T's coverage map which should in theory mean I will have a good signal BUT what happens when I get home and the Iphone has so signal at my house, should I be forced to pay the 10% restocking fee? I work from home so cell reception is critical.
June 27 2007 at 6:23 PM Report abuse Permalink rate up rate down ReplyActually, Erica, it's funny you should point that out (#18). Got a story for you, like to hear it, here it go:
My only concern about the credit check is because, when I was 18 (1994), I had an account with Cellular One (which ultimately became Cingular). I set up my cell phone to forward to my land line whenever I wasn't out-and-about, after checking with a CO customer service rep to ask if I'd be charged for that...to which, they answered me "no, you won't be charged for that."
Skip to the punchline, when my bill came at the end of the month, in the amount of $600+ whole american dollars. I called CellOne to put a voice to my "WTF," at which time they told me that I was billed for every single minute I was on my land line, since it supposedly DOES use a cell tower for the duration of the call if it was forwarded. I was aghast, I refused to pay it, screamed at many a service rep and their superiors, and eventually got nowhere. Being the stupid kid that I was, I did the rough equivalent of standing there with my arms folded, until my credit report had a nice big black mark on it. Stupid. Three years ago, I finally paid off the collection agency that bought the account from Cingular. But, several years before that, I went into a Cingular store to try and get a Moto V90 (when they were new and cool), and I was turned down at the credit check stage because I still had that black mark from my Cellular One past.
So anyway...real-world scenario to go with that clause. Fun. I'm hoping my new, cleaner credit report will be good enough for AT&T. I doubt it'll be a problem, but ehhh....
Actually, following-up to that boilerplate thing, check out what the agreement says about conference calling under "unlimited voice". It'll give you a few laughs.Here's the ref: http://www.tuaw.com/gallery/license-agreement-2-atandt/289092/
June 27 2007 at 5:45 PM Report abuse Permalink rate up rate down ReplyMark: It's unclear. A lot of the legal stuff is meaningless boilerplate. I think that refers to when the phone is included as a "freebie" or heavily discounted in the sale of the plan.
June 27 2007 at 5:44 PM Report abuse Permalink rate up rate down ReplyHot Apps on TUAW
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