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July 8th, 2008The strange tale of the Rogers/Apple spat

Posted by Editor in iphone, Rogers

Apple insider [link: Spat with Rogers leaves Canadian Apple stores without iPhones] has lent some credence to the rumours zinging around the internet everywhere yesterday about Apple censuring Rogers over their iPhone plans. The whole thing sounds rather odd.

Did Apple not know about the Rogers contracts before they were announced? Was it actually news that Canada has the longest contracts and some of the highest mobile pricing in the developed world (developing world, other worlds, the mars rover probably has a better data and minutes plan than you do etc.)? With an exclusive on the phone and new competition on horizon, are we really surprised that Rogers is trying to milk the opportunity to the maximum.

There is a possibility that Apple was taken aback by the unexpectedly harsh publicity. From a lofty distance it is easy to underestimate the passionate pent up frustrations of long-beleaguered Canadian mobile consumers. It surprises us all the time.

Do you think the petition really worked? On the other hand, we feel like there is something else going on here. Apple has never really been known for championing “low pricing for the everyman”. Apple has always expected you to pay a premium to enjoy the privilege of using their goods.

The simpler explanation would be that production of the new device has yet to ramp up and that shortages may be expected globally while Apple’s contract manufacturers struggle to keep up with the initial flush of demand. Do you believe this is really a spat between Apple and Rogers? Let us know in the comments.

  • http://www.reinspire.net Jonathan E

    I don't believe there's any spat between Rogers and Apple. I highly doubt that Apple was at all surprised by the rate plans that Rogers came out with and don't think they're punishing Rogers in any way by limiting the amount of iPhones coming to Canada or by not selling the iPhone in their retail stores.

    First off, if you look closely, Apple is not selling the iPhone in any retail stores except those in the United States. Not in the UK, Australia, Japan or Italy where Apple also has a retail store presence.

    Secondly, it just doesn't seem worth the cost that Apple would incur to outfit the 6 (yep, only 6) Apple stores north of the 49th with the necessary software/hardware it would take to allow Apple store employees to activate these phones on Rogers or Fido. Also, in the States, not only are there far more retail stores, but they only have to deal with one carrier in AT&T. Yes, Rogers and Fido may be owned by the same parent company (RCI), but they're definitely running 2 separate systems.

    I would venture a guess that Apple's sales in Canada through their retail stores are a very low percentage of their total Canadian revenue, and it's just not worth it from a cost/benefit perspective. It's probably the other way around in the States, most of their offline sales are probably done through their retail outlets and not resellers like BestBuy or Circuit City (although I could be completely wrong on those statements).

    A few more items of note here and then I'll shut up:

    1. Apple never once mentioned that it would be selling the iPhone in their Canadian retail stores, so it's not like they are pulling anything out of their grand plan for Canada in protest or reneging on any previous announcements.

    2. Of all the other countries I've mentioned that have Apple stores, I haven't seen anyone making a big detail about the iPhone's omission from those stores. I think most of this speculation is due to the hatred that we Canadians inherently have for big red. Honestly, I think most of this is people looking for something to report on to heap more wood on the fire.

    3. A lot of countries have announced their iPhone rate plans since Rogers announced theirs on June 27th, and most of them are actually WORSE than what Rogers is offering. Now, if Apple is for some reason “mad” at Rogers for their plans and punishing them, why aren't they punishing the rest of the carriers in places like New Zealand, Australia, Belgium, Italy and even Hong Kong where the plans are just as disappointing, or even more so?

    Sorry for hi-jacking the post here, but I think most of this is just speculation and, as I mentioned before, just people finding a reason to heap more hatred on the pile, or sites like AppleInsider just regurgitating the same crap that everyone else is reporting on… which originally came from one blog post that was highly speculative.

  • http://www.wholemap.com/blog seemsArtless

    I've taken a look at a few of the Rogers press releases, and can't find any mention of whether or not the phones would ever be available at Apple stores in Canada. Instead, there are quotes like “Additional information on launch day activities will be coming soon.” I'm still not convinced that this was always as Rogers and Apple Canada planned things.

    Seems like it would be a real pain to get things set up in the 6 Apple stores to enable them to sign up new Rogers customers or change existing Rogers customers plans. I know they did this in the States, but there are only 6 stores in Canada anyway.

  • http://andrewcurrie.ca acurrie

    Come on WN, why you harshing on our buzz? We signed a petition, Apple listened, Rogers will suffer. Can't we at least PRETEND this is what happened?

  • AppleGazin

    I did confirm with Apple Canada that the iPhone will not be sold at the Apple Stores in Canada

    http://space.canoe.ca/gadgetguy/blog/view/237402

  • Robert

    I don't see why Apple would care. They didn't bother with Rogers for iphone 1.0, why would they care now?

    A big hidden bonus of the petition is public awareness and media attention. This has way more profound repercussions than Apple cutting shipment. The petition was a success even if Apple continues to deal with the devil.

  • http://hyfen.net Andrew Louis

    This is a huge non-story. The iPhones were never going to be sold in the Apple Store. Right from the beginning, Apple.ca said they would only be available at Rogers and Fido. This only makes sense given the more involved activation process.

    The great thing is that no matter how untrue this is, it's making Rogers look horrible.

  • AppleGazin

    Their saving grace today is that unlike Bell and Telus who'll be charging 0.15 for incoming text messages, Rogers says they won't. It has nothing to do with the iPhone – it's just a PR thing.

    As for the Apple /Rogers thing, my guess is that if they would have said anything it might have been – “more power to ya!”

  • AppleGazin

    Don't think there is a spat. For one thing, I was at the grand opening of the Apple Store in Edmonton. They way the store is arranged ( and designed) and fact that all the people are Apple trained, it doesn't seem that having a Rogers kiosk in-store would fit or even make any sense at all.

    I also agree with Jonathan that it would make sense to outfit only 6 stores.

    http://space.canoe.ca/gadgetguy
    http://technology.canoe.ca/Columnists/Gazin/

  • http://simontonekham.wordpress.com Simon

    Speaking of that, I heard that Rogers finally respond to the consumers' demand and decided to do a promotional offer for the iPhone – 6GB for $30 per month. More on that (along with the incoming text messaging fee news) can be found on my blog:

    http://simontonekham.wordpress.com/2008/07/09/p…

  • Christian

    I don't think this issue is about “low pricing for the everyman” being a trigger for Appple. If there is a spat (or even if there isn't), you have to think that Apple is probably displeased with any situation that casts its products or the ambassadors of those products in a poor light – whether or not they're doing anything about it is open to anyone's speculation.

    58,000+ people expressing their anger at a phone carrier for a product they want but (allegedly) won't buy (though sure, many will, especially the ones that feel like they've been thrown a bone with this new 6GB data plan) means that they're potentially not shifting units as fast as they'd like in Canada come July 11. Rumoured supply shortfall notwithstanding, one would think that it is in Apple's best interests to sell units quickly as they're moving from a service revenue deal to a pure margin on hardware deal, which means recurring/ongoing revenue from long term (read: loyal, paying) customers isn't the issue, shifting units is. If I were Apple, I'd send the units where I knew they'd sell well and quickly, and judging by O2's pre-order site meltdown the other day, it seems like that's more of a sure thing than a country where people are laying down the largest anti-carrier petition I've seen in recent memory.

    Anyhow, who cares if there's a spat (ok, sure it has a fun, tabloid feel to it, and we love to beat up on Rogers). I'm more interested to see who caves first, Rogers, with their lame incrementally (sort of) improving offers on plans, or consumers who pout, en mass, on a petition, but might end up lined up at a Rogers store near you come Friday. Either way, I don't think Canada is going to go quite like other countries – witness Japan, where people are already lined up in front of Softbank retail outlets (or at least the one that is opening early) for their new toy *two days* ahead of the launch. Methinks Uncle Ted will not have it quite that easy – and rightly so.

  • http://www.gadgetguy.ca AppleGazin

    Don't think there is a spat. For one thing, I was at the grand opening of the Apple Store in Edmonton. They way the store is arranged ( and designed) and fact that all the people are Apple trained, it doesn't seem that having a Rogers kiosk in-store would fit or even make any sense at all.

    I also agree with Jonathan that it would make sense to outfit only 6 stores.

    http://space.canoe.ca/gadgetguy
    http://technology.canoe.ca/Columnists/Gazin/

  • http://simontonekham.wordpress.com Simon

    Speaking of that, I heard that Rogers finally respond to the consumers' demand and decided to do a promotional offer for the iPhone – 6GB for $30 per month. More on that (along with the incoming text messaging fee news) can be found on my blog:

    http://simontonekham.wordpress.com/2008/07/09/p…

  • Christian

    I don't think this issue is about “low pricing for the everyman” being a trigger for Appple. If there is a spat (or even if there isn't), you have to think that Apple is probably displeased with any situation that casts its products or the ambassadors of those products in a poor light – whether or not they're doing anything about it is open to anyone's speculation.

    58,000+ people expressing their anger at a phone carrier for a product they want but (allegedly) won't buy (though sure, many will, especially the ones that feel like they've been thrown a bone with this new 6GB data plan) means that they're potentially not shifting units as fast as they'd like in Canada come July 11. Rumoured supply shortfall notwithstanding, one would think that it is in Apple's best interests to sell units quickly as they're moving from a service revenue deal to a pure margin on hardware deal, which means recurring/ongoing revenue from long term (read: loyal, paying) customers isn't the issue, shifting units is. If I were Apple, I'd send the units where I knew they'd sell well and quickly, and judging by O2's pre-order site meltdown the other day, it seems like that's more of a sure thing than a country where people are laying down the largest anti-carrier petition I've seen in recent memory.

    Anyhow, who cares if there's a spat (ok, sure it has a fun, tabloid feel to it, and we love to beat up on Rogers). I'm more interested to see who caves first, Rogers, with their lame incrementally (sort of) improving offers on plans, or consumers who pout, en mass, on a petition, but might end up lined up at a Rogers store near you come Friday. Either way, I don't think Canada is going to go quite like other countries – witness Japan, where people are already lined up in front of Softbank retail outlets (or at least the one that is opening early) for their new toy *two days* ahead of the launch. Methinks Uncle Ted will not have it quite that easy – and rightly so.

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