Apple and Rogers falling out?
Fortune's Apple 2.0 blog has a juicy story that even they admit sounds too good to be true: Apple and Rogers could be on the outs over the negative publicity surrounding Rogers' voice and data plans for the iPhone 3G.
Philip Elmer-DeWitt writes about Daniel Smith, a Canadian sales and marketing consultant, who posted a rumor from an anonymous "inside source" claiming Apple is punishing Rogers by diverting large numbers of iPhone 3G handsets to Europe. Smith later backed away from the claim, noting that the diversion could be related to a shipping problem or production delay.
Also, some Rogers retail stores have dismissed "thousands" of "a few hundred" additional staff hired for the launch of the new handset. (See below for an update.) The decision to let staff go was apparently made at the store level, and not a directive from Rogers' corporate offices.
Rogers plans have been widely panned, with some users creating petitions and websites voicing their displeasure. Rogers' plans require a three-year contract, have no unlimited data option, and offer two-thirds the calling time and half the text messages as AT&T's plans.
The bottom line? "Something is definitely up, whether it is indeed an Apple power play is up for debate," Smith writes.
Thanks, Jason!
Update: Of course, everyone's in "mountain out of a molehill" mode on this one. Daniel Smith wrote us to explain that the "thousands" number was taken by Apple 2.0 from a forum entry where he misspoke, and admitted as much. He says the number is closer to "a few hundred" which is still significant, true, but not quite so dire.
Additionally, BetaNews contacted a Rogers spokesperson, Elizabeth Hamilton, who denied the reports, saying she "can confirm that Canada's inventory of iPhone 3G has remained the same throughout our announcements."
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Reader Comments (Page 1 of 2)
Ben Ward said 2:23PM on 7-07-2008
"Thousands of extra handsets being sent to Europe instead"...
Can I have one please?
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Petros Kolyvas said 2:25PM on 7-07-2008
Sounds like a lot of nonsense to me. Too good to be true comes to mind.
I may be wrong, but aren't handsets, when sold in some countries, especially Canada and US, generally labelled for use by their local governing authorities... ie. FCC for US, CRTC for Canada etc. "Approved for us..." "This device complies with ...." etc. etc.
It would seem silly that Apple would, this close to launch, re-label devices out of spite.
Though if they are, good on them! Rogers has made a mockery of the new "more affordable" iPhone 3G.
I only hope those that absolutely have to have one will wait a few days to really upset the launch here in Canada.
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stooke said 2:26PM on 7-07-2008
Folks this is one blogger with a fairly unsubstantiated rumour, who has since clarified his original post.
I wouldn't hold your breath... but it _is_ amusing.
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jeff said 2:31PM on 7-07-2008
How could Rogers text plans have half the text messages as ATT when ATT's plan comes with none?
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Shunnabunich said 4:49PM on 7-07-2008
Yup. That's how much they suck.
Andre said 2:36PM on 7-07-2008
Apple can't stop the initial shipments - Rogers probably already has them anyway. They can change their plans for the subsequent shipments though, and that may be what is referred to.
I believe there is something to this story, though it might have been exaggerated a bit.
I think we will see Rogers backtrack a bit. Actually it has already started. If you look at their latest iPhone price plans, they've added a bonus of 3 months of unlimited local calling on each of the 4 plans. They also now talk about other options. Plus, Bell is now announcing their Samsung Instinct, with a $10/month unlimited data plan.
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RobertaZimmerman said 3:27PM on 7-07-2008
Rogers' customer dealings have always been pathetic. I dumped their cable TV service years ago after one of their reps told me that I needed to pay $100 for a signal amplifier, despite the fact that the their signal was underpowered! Check out some of the Canadian cable blogs to see how this company is really capable of screwing their customers!
Roberta
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EMoShunz said 3:56PM on 7-07-2008
i too have had nothing but issues with their customer service. unfortunately, they are the only guys that offer gsm up here. once bell does...if ever...there will be a mass exodus. everyone i know with rogers loves the quality of cell service, but trembles in fear if ever they have to call customer service.
EC said 3:29PM on 7-07-2008
While I wish this was all true, I don't think it all is. The plans are ridiculous, I think we can all agree, and I'm sure Apple isn't too happy with them either.
Will that large petition and the public outcry do anything?
I unfortunately doubt it.
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Brandon said 3:38PM on 7-07-2008
@Petros Kolyvas
That's generally correct but in Canada, anything that is passed by the FCC in the States is automatically approved for use here in Canada.
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Jamie said 3:42PM on 7-07-2008
I live in Canada and have been drooling for an iPhone since the day it was announced. I bought an iPod touch to replace my old ipod and find it to be brilliant for browsing the web on.
BUT, I will not be getting an iPhone until unlimited data is offered. Its frankly embarrassing that our cell industry is so backwards. I mean they cant even have unlimited data as an add-on? Gimme a break Rogers! Also, having call display as an extra feature is really starting to bug me. 10 years ago it made sense to charge for it but to charge for it forever is ludicrous.
In a word, rogers plan pricing is embarrassing.
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EMoShunz said 3:50PM on 7-07-2008
i say again here...
screw rogers, go south, but an at&t one and roam up here.
from at&t:
Anytime Minutes 1350
Night & Weekend minutes Unlimited
Mobile to Mobile minutes Unlimited
AT&T Unity Minutes Unlimited
Long Distance $0.00
Roaming Charges $0.00
Additional minutes $.35 per minute
One-time activation fee $36.00
Contract length 2 years
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Diddle said 2:01AM on 7-15-2008
...and then force all your friends to call long-distance? No thanks. Stupid solution.
Either way, Rogers still sucks.
undaunted said 4:59PM on 7-07-2008
EMoShunz: seems like a good idea but where did you see $0 dollars for roaming in Canada on AT&T? I checked the site and it looks like $.59 per minute in Canada.
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EMoShunz said 8:01AM on 7-08-2008
crap, you're right, that was US roaming only :(
still... there's got to be a way around that.
reallycrazyguy said 5:27PM on 7-07-2008
Yeah, Rogers is totally gouging still. Hell, they are almost doubling the cost of text-messaging to the US from 0.15 to 0.25. Hell, they can't even get their web site to accept bill payments (it says the payment went through, but it doesn't). I'm sure Apple isn't making Rogers send iPhones back, but from the amount of complaints, Apple probably isn't going to ship as many iPhones to Canada in the future as they had planned on.
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rago said 5:42PM on 7-07-2008
That's incorrect. Text messages are 15c each when sent from Canada to Canada or the US. Ive also never personally had an issue with their online payment system.
But the data plans are ridiculous, considering that the only phones that can get "unlimited" data are ones that are limited to a fairly basic mobile browser.
reallycrazyguy said 6:11PM on 7-07-2008
rago: check Rogers web site. I found the 'notice' for this rate increase on my monthly bill. The increase is effective July 15. And it says that text messages send from Canada to the US are no longer covered by Text Message or Value plans, so you always have to pay the full shot, even if you have a plan that includes text messages.
msc1974 said 8:54PM on 7-07-2008
New Zealand is worst:
http://www.ipetitions.com/petition/iphone_rip_off_New_Zealand/index.html
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Sly said 12:10AM on 7-08-2008
I had been a Telus Mobility customer for over 10 years, and last year made the MISTAKE #1 of going over to Rogers... just so I can use my cell in my many world travels. (GSM works pretty much everywhere I go except while in Japan).
I got a flimsy Samsung slide-out phone free (couldn't care less), and signed up for 3 years. MISTAKE #2 which the screen went haywire within 6 months. Since last year, I have been buying (off eBay and TigerDirect) a good collection of brand new, unlocked GSM phones such as the Blackberry T7200 and 8200 series as well as Motorolas. All work great, but always had a "little something" that I was missing....
Until earlier this year, I gave in and bough a brand new, unlocked iPhone on eBay. WOW is all I can say. I've never owned or used an Apple product until this one. They are easy to use and especially intuitive to learn.
Now, I'm NOT about to make MISTAKE # 3 and buy the new 3G from Rogers, and get locked down further into another 3 years with them. Instead, in my travels to the U.S.A., Europe, Latin America and Asia... I will try to find the best deal for the new iPhone, have it unlocked (which should come pretty soon after launch), and put my Rogers SIM card in it.
I will keep using my corporate employee special plan for voice, NO DATA, but instead rely on Wi-Fi (and Boingo in lots of public places)... and I'll be happy.
I WILL NOT buy from Rogers ever again. And I assure you that if / when a new GSM carrier enters Canada, EVEN if the prices are identical to Rogers, I will SWITCH away, forever, from Rogers. "Point Final".
C'mon T-Mobile, Orange, AT&T, Vodafone et al ... come to Canada, and you will discover a hidden gold mine of thousands, if not hundreds of thousands of customer JUST waiting for a new GSM carrier to dethrone Rogers (FIDO does not count, as Rogers bought them out, as they were the ONLY other competitor on GSM standard in Canada).
A Gold Mine, more like a Gold RUSH awaits... to drop Rogers faster than you can say... BYE BYE!
Sly...
silently waiting for new GSM carriers to enter Canada
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