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Sat, Jul 04, 2009 - 11:26 PM EDT  —  AAPL: 140.02 (-2.81, -1.97%)  |  NASDAQ: 1796.52 (-49.20, -2.67%)

Apple punishing Canada’s Rogers over confiscatory iPhone rates?
Monday, July 07, 2008 - 10:00 AM EDT

Apple Online Store"After raising the ire of its customers with what are believed to be overly-expensive iPhone 3G plans, Canadian provider Rogers Wireless is allegedly being punished by Apple with fewer shipments," Aidan Malley reports for AppleInsider.

"Blogger Daniel Smith claims multiple sources, including a senior Rogers representative, claim that Apple has diverted a significant amount of its initial iPhone 3G Canadian deliveries to Europe in retribution for the carrier's steep rate plans, which at similar prices offer a third fewer minutes and limited data compared to AT&T," Malley reports.

"Stores may be getting just 10 to 20 iPhones each and are being told to "exercise caution" not to promise ample stock on launch day, according to the rumors," Malley reports.

More in the full article here.

In an editorial, The Vancouver Sun reports, "The pricing regime announced by Rogers last month reflects its monopoly position for a premium product. Potential purchasers are particularly upset by the pricing Rogers announced for data usage, which is a big factor for anyone wanting to take advantage of a device that is more computer than phone."

"While AT&T customers in the U.S. can get unlimited data with a plan starting at $70 a month, the most Rogers offers before extra costs start to mount is two gigabytes with a plan that starts at $115 a month. Potential users tech-savvy enough to know what two gigabytes represents know it won't be enough for serious websurfing. Irate consumers have used the Internet to launch a petition, attracting more than 30,000 virtual signatures at this writing, to protest Rogers' pricing for the iPhone, which will be available July 11," The Vancouver Sun reports.

The Vancouver Sun advises, "If you don't like the price of an iPhone, don't buy it... If Rogers finds it has priced itself out of the market, it won't take a petition to ring in lower prices."

Full article here.

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Jul 07, 08 - 10:08 am Comment from: Switcher

Apple should pull the iPhone from Rogers immediately. Apple customers are being treated unfairly and forced to pay obscene rates that have no justification, and do not fit with the the way the iPhone was meant to be used. Under Rogers' pricing regime, it is a crippled device.

I am one Canadian who won't buy this Apple product.

Jul 07, 08 - 10:10 am Comment from: izod

Yeaup... wanted one (desperately), but am holding off to see what happens.

Rogers = suck

Jul 07, 08 - 10:11 am Comment from: Buster

Like Microsoft, a monopoly can wreak havoc. Why do they piss off their customers? Because they can.....

Jul 07, 08 - 10:18 am Comment from: One guy from Finland

Spank them hard!

Same is happening here in Finland too...
Sonera includes only 100MB/31,69€, 250MB/51,49 or "large" 1000MB/89,99 per month.

Those include 100 minutes/100 SMS or 250/250 and 1000/1000 respectively. One minute costs 0,079€ and one extra MB is whopping 1,49€!

They really suck!

Jul 07, 08 - 10:20 am Comment from: One guy from Finland

Notice that the "large" is less than 2GB what the Rogers have!

Jul 07, 08 - 10:20 am Comment from: MrMcLargeHuge

I have to agree with the Vancouver Sun on this one.

Jul 07, 08 - 10:24 am Comment from: Snarling in BC

Rogers are like Canada - nice on the surface, corrupt and deceitful underneath.
Its the frickin British class-system shit that still exists here.

Here in BC, we would be better off forming a country with Washington, Oregon and California - we have nothing in common with those weird 1950's types back East.

In the UK, iPhones sell out - here in Canada, I havent even seen an advert for them.
Its like we are living in Zimbabwe or something.

Jul 07, 08 - 10:28 am Comment from: Ha, ha, ha

Apple is limiting shipments of iPhones to Canada not to punish Rogers, but because Apple realizes that Rogers' exorbitant pricing plans are killing demand. Apple couldn't care less what Canadian have to fork over to have the privilege of using the iPhone, Apple only cares about its public image. Apple simply doesn't want photos circling the globe showing iPhones collecting dust on shelves.

Jul 07, 08 - 10:29 am Comment from: Tommy Boy

How are Roger's plans different than AT&T;'s new higher plans?

Jul 07, 08 - 10:29 am Comment from: Ouate de Phoque

Want one too, but I'll be waiting for better rates!

Jul 07, 08 - 10:36 am Comment from: niclet

@Snarling in BC

Finally someone in BC understand us in Quebec wink

Jul 07, 08 - 10:40 am Comment from: Apple Fan

Shame on Apple for allowing this to happen with their product.

Jul 07, 08 - 10:41 am Comment from: Canuck1

I was going to buy one, saw the plans, and now will never buy one under those terms.

Jul 07, 08 - 10:43 am Comment from: shen

"Apple should pull the iPhone from Rogers immediately. "

pull out? no!!! leave em there and make em watch as 70 countries sell out and Rogers watches potential money walk away. they wanna screw customers? screw em back....

Jul 07, 08 - 10:45 am Comment from: izod

Here is a really good "open letter" to Rogers and Apple talking about data use on the iPhone 3G:

http://www.ehmac.ca/ipod-itunes-iphone-apple-tv/66402-letter-rogers-apple.html

Jul 07, 08 - 10:45 am Comment from: emanon

@ Snarling in BC

Sounds like you are one of those that voted for Preston Manning.

Jul 07, 08 - 10:45 am Comment from: shen

@tee hee hee or what ever you are calling yourself now.....

"Apple is limiting shipments of iPhones to Canada not to punish Rogers, but because Apple realizes that Rogers' exorbitant pricing plans are killing demand"

umm, comprehension is more than just a big word. try it sometime....

Jul 07, 08 - 10:49 am Comment from: Scarbro

It'd be nice if they could pull it completely but Rogers in the only one that can provide service for the iPhone... now if Apple decided to make a CDMA version for Canada... then you'd have some competition to force them to be fair with their price plans

Jul 07, 08 - 10:50 am Comment from: Ha, ha, ha

shen,

What don't you understand, cretin?

Jul 07, 08 - 11:00 am Comment from: Keith

But is that $115 in Canadian dollars?

Jul 07, 08 - 11:03 am Comment from: Chew

Hate "Robbers" I really wanted an iphone but I will not let those pricks rob me of my hard earned money anymore, canceled my hi-speed (for those Canadians interested in a better solution try teksavvy), canceling cable in a month and when this spectrum auction is done and competitive carriers are announced it`s bye-bye Robbers forever. Someday there`ll be a lecture in a business class recalling the Robbers iphone fiasco.

Jul 07, 08 - 11:03 am Comment from: toonie

OMG people. Apple charges through the nose for it's products and you all pony up and gladly pay. Why call the kettle black now. Apple gets to dodge this one and let Roger's take the flak. No doubt Apple makes a bunch on each phone too.

Anyhoo, if you don't like it, don't buy it. There's plenty of other phones that will work just fine though they won't give you the iCache of the iPhone.

People won't come up to you and say "you have an iPhone. Cooooo!"

Jul 07, 08 - 11:06 am Comment from: \ln

I agree with you shen.

ho ho ho is becoming a little tedious. if thats him in this thread...

regarding this thread.

it's likely Rogers have been a pain all the way through negotiations. apple limiting there supply probably was always on the cards.

sorry Canadian dudes. life sucks a little more than you deserve.

Jul 07, 08 - 11:07 am Comment from: Raymond in DC

Apple is all about the consumer experience. If that experience is being ripped off, that'll compromise the Apple brand. Apple's contract with Rogers probably precludes them from cutting Rogers off completely, but if the latter receives only, say, one iPhone per store, Rogers will get the message.

Jul 07, 08 - 11:13 am Comment from: Al

I will not buy one until Rogers gives reasonable, unlimited data plans.

I knew they would be greedy enough to pull something like this. The idiots think they won the negotiations with Apple.

A 55% return on a few hundred iPhones is not more than a 25% return on hundreds of thousands of iPhones you idiots!

Rogers blew the chance to get thousands of switchers from Bell and Telus because of pure greed.

Jul 07, 08 - 11:22 am Comment from: Ha, ha, ha

\ln,

apple limiting there supply probably was always on the cards.

Translation from cretinese to English, "It was Apple's plan from the beginning to limit iPhone sales so poor Rogers had to jack prices."

Jul 07, 08 - 11:22 am Comment from: Fastwalking

It’s just another cruel trick to convince Canadians that the units are in short supply so they will rush to the stores on Friday to get one “before they are gone”. Don’t fall for it!!! It was likely instigated by Rogers or Rogers/Apple combined.

Jul 07, 08 - 11:26 am Comment from: ron

Mr. Roger's neighborhood sucks. Or tries to suck $ out of Canucks.

Jul 07, 08 - 11:32 am Comment from: He, he, he

\ln,

apple limiting there supply probably was always on the cards.

Translation from cretinese to English, 'It was Apple's plan from the beginning to see headlines circling the globe "No one buys iPhones in Canada".'

Jul 07, 08 - 11:33 am Comment from: Ho, ho, ho.

\ln,

apple limiting there supply probably was always on the cards.

Translation from cretinese to English, 'It was Apple's plan from the beginning to see headlines circling the globe "Canadians reject Apple's iPhone".'

Jul 07, 08 - 11:36 am Comment from: Old Guy With A Beard

I have eight Macs at my business - both laptops and desktops. The oldest is the first "half moon" flat screen iMac. I love Macs and so do my employees.

Rogers can stick it. There is NO WAY I'm going pay that kind of money for service - iPhone or not.

Jul 07, 08 - 11:41 am Comment from: jtc

@Tommy Boy
They are very different $70 vs $115 unlimited data vs 2GB limit

Jul 07, 08 - 11:54 am Comment from: Ha, ha, ha

To all cretinous fanbois,

If Apple was managed by intelligent people Apple would have held a press conference denouncing Rogers price gouging, refusing to be complicit in overcharging, and delaying iPhone introduction to Canada until Rogers lowered its prices.

Instead, Apple, in profound arrogance and ignorance, anticipating Canadians would gladly overpay for iPhones, shakes hands with Rogers, smiles all around. Then disaster strikes as enraged Canadians refuse to be played and boycott Apple's iPhone.

Apple, now realizing its profound blunder of promising much and delivering little, pulls its dust gathering iPhones from Canadian shelves and recalls all shipments to Canada.

Steve Jobs last seen, tail between legs, heading south from Vancouver.

Jul 07, 08 - 11:56 am Comment from: wood

Was gonna get one until rates came out. Now I'll just wait a little longer for the new iPod Touch. I gave up on cell phones when I moved from the US to Canada anyway.

Jul 07, 08 - 11:58 am Comment from: Mike T.

My guess is that they want it priced out of the market so folks still buy RIM (Blackberry) products, seeing as RIM is a Canadian company and Apple is a US company.

And it wouldn't surprise me if Rogers has a financial stake in RIM.

Jul 07, 08 - 12:00 pm Comment from: Lord Byron

@Tommy Boy

$75 + $6.95 (Mandatory Service Access Fee) = $82

$82 = 300 min, 750mb data, 100 txt msg (no caller ID either unless you pay extra)

ATT = $70 = 450 min, UNLIMITED data, caller ID. NO txt msgs

The biggest difference is the DATA. unlimited vs 750mb is big, the iPhone is a internet phone. limiting it's data use is ridiculous.

Jul 07, 08 - 12:01 pm Comment from: zipper

@ha ha ha
Riddle me this.... what does the one time cost of the device have to do with a service provider`s greed? Come back when you get a whiff of a clue, back on the short bus `tard!

Jul 07, 08 - 12:12 pm Comment from: KenC

@haha, so you're the demand-supply market genius? Pray tell what job you currently hold?

Jul 07, 08 - 12:24 pm Comment from: Ha, ha, ha

KenC,

@haha, so you're the demand-supply market genius? Pray tell what job you currently hold?

President, Apple Marketing Division

zipper,

Riddle me this.... what does the one time cost of the device have to do with a service provider`s greed? Come back when you get a whiff of a clue, back on the short bus `tard!

Apple finally sees that its greed and arrogance do not translate to robust sales.

Apple cuts it losses and runs from Canada.

Apple suffers worldwide embarrassment.

Apple reluctantly admits most canucks smarter than Apple, Inc.

Apple forgets everything it ought to have learned from the Great Canadian Catastrophe.

Jul 07, 08 - 12:24 pm Comment from: pipo

You should say something about the Danish operator Telia, which will be charging $ u.s. 125 with a 300MB of monthly data, that's awful!!!

Jul 07, 08 - 12:33 pm Comment from: zipper

Yup, no clue at all

Jul 07, 08 - 12:52 pm Comment from: Ha, ha, ha

zipperhead,

Elementary, cretin, Rogers pricing plan has made the iPhone inaccessible to most Canadians, unless canucks want to purchase the world's most expensive paperweight. In other words, moron, Apple won't sell any iPhones if the total cost of ownership is prohibitive.

How Apple fails to understand basic economics is astounding. I can only imagine that Cupertino is awash with idiots and simpletons for allowing The Great Canadian Catastrophe to develop.

It's obvious that this simple reality escapes you. too.

Jul 07, 08 - 01:07 pm Comment from: DLMeyer

Am I mistaken or is Rogers NOT the ONLY '3G' game in Canada? Them, and their wholly-owned subsidiary, that is. If I'm right, then Apple has no real choice but to deal with them. Or bypass the entire nation. And how would Canadians feel about that? Worse, I expect. And They'd hate Apple instead of Rogers. If you were Apple, what would your choice be?
Ha ha ha, please do not refer to other posters as 'sub-human' or 'mentally deficient'. They can type, and spell, and use proper grammar ... which is more than many flamers are capable of.

Jul 07, 08 - 01:19 pm Comment from: Ha, ha, ha

DLMeyer,

I will take you seriously as a paragon of virtue and internet etiquette when you also take the time to lecture everyone who violates your tender sensitivities.

Besides, I just call 'em like I see 'em.

Jul 07, 08 - 01:35 pm Comment from: Brau

I'll be voting with my wallet, come July 11th, by *not* buying an iPhone (painful) and by canceling my existing Roger's cell account.

Apple is a least in part to blame for discontinuing sales without a contract and giving the iPhone to only one provider who can then act like mafia. I'm not exactly poor, but I have to wonder if I'll ever be able to afford to use one ....

Jul 07, 08 - 02:00 pm Comment from: Jeff

My guess is there will also be an abundance of the criminal element at the Rogers Stores (Besides Rogers themselves) as any one who can afford $150+ Per Month for a Personal Computing Device, will probably have a wallet full of cash, or at lease a shiny new iPhone ripe for the taking.

Anyway if this is true Good for Apple, the other 2 major carriers in Canada have in the last week proven that an unlimited plan can be offered for $30.00 + Voice pre month.

Jul 07, 08 - 02:04 pm Comment from: McIntosh

Apple can't force Rogers to charge reasonable rates--they just make the device. So if Apple expects to sell a lot more of these things in Europe than Canada, it probably makes sense to divert Rogers' stock for the UK, Germany, France, etc. where the demand will be stronger.

Here's what I expect will happen. Rogers sells out of its now-limited stock right away (there's plenty of people who can and will pay anything for this thing) and then it becomes like that LG prada phone--a designer device for the well-connected and/or for those who know how to get one as they dribble into the stores 10 at a time. Then the news reports will flood in from around the world about happy iPhone users improving their productivity, their social lives, and their efficiency by using iPhone 3G. Canadians will wistfully wish they could get one and complain to Rogers and Apple about supply. Apple will tell Rogers to get their shit together and charge something fair before Apple sends more shipments their way. Rogers caves and Canadians finally get their due (and with gratitude due to Apple).

Rogers needs the iPhone more than ever, what with Bell getting the Instinct. But Apple doesn't need Canada, a population the size of California, when it has the whole damn world to sell to. Rogers needs to smarten up or it'll really incur the populace's wrath when they really realize Apple's ready to leave them in the cold if need be (no pun intended).

Jul 07, 08 - 02:04 pm Comment from: Canada Mark

I WILL be buying one on July 11 because it allows me to actually punish Rogers where it hurts.

I plan to take my current phone/data (North America 400 min + 5MB of data (yes 5 MB for $40)) that costs me $160/month and going with the $75 plan that gives me 300 min + 750 MB of data + nationwide wifi hotspot access.

Yes it is a rip-off relative to the rest of the world, but in my unique case I get to remove $70/month from Mr. Rogers wallet.

Jul 07, 08 - 02:20 pm Comment from: Jeff

Why does everyone (to Rogers Glee) keep quoting this "nationwide wifi hotspot " crap, this is not like we have WiFi every where, these are in very limited supply, only 4 in the City I live in and they are all Bell, (Not sure if they are covered as Rogers states at Rogers and Fido Hot Spots). This is just a marketing ploy to fatten up the list of what you get.

Jul 07, 08 - 02:41 pm Comment from: MacDaddy

Silly Canadian totalitarians... and they were mocking other regimes around the world! hah!
This time it is their time to show who they really are and they did. They only hurt their own customers.
Retards...

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