Cancellation Fee for iPhoneby Mary Ann Romans | More from this Blogger 23 Jun 2007 07:15 AM If you are planning on purchasing an iPhone come friday, think twice or maybe three times to make sure that it is something you really want. That is because AT&T announced that it will charge a fee to any customer who purchases an iPhone, signs up for the two-year contract and breaks that contract. The early termination fee will cost customers $175, if they choose to end their mobile contract before its time. Critics of this latest practice say that it doesn't make sense because AT&T is not subsiding the cost of the phone and wouldn't be out any money for iPhone purchases. Usually, mobile phone companies, such as AT&T will offer any actual cell phones for free or much less than the actual manufacturing cost of the phone in an effort to get users to sign up. But in the case of the iPhone, that isn't what is happening. Apple and the users themselves are carrying the cost of the phone. AT&T, through its company spokesperson, Mark Siegel, says that despite not subsidizing the cost of the phone, it still has costs that it incurs when users sign up with their service. I wonder if AT&T is worried that all of the the surrounding the iPhone will lead to a flurry of impulse buying of the iPhone and then an unusually high amount of cancellations. Or perhaps AT&T is factoring in the additional employees, including sales and security staff, that it has taken on in anticipation of selling the iPhone and its mobile service. The iPhone can not be purchased without at least a two-year mobile phone service contract, so costumer are required to sign up at the time of purchase. So it is possible, that AT&T might be trying to prevent consumers from the practice of signing up for the service in order to purchase the phone, with the idea of canceling the service after purchase. What do you think about the $175 cancellation fee on the iPhone mobile service? Mary Ann Romans also writes for the Frugal Living Blog here at Families.com, where she shares money saving tips for today's families. Related Articles: iPhone Countdown: Confirmed Release Date Learn more about Mary Ann Romans  Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat. Relevantcomputers tags User Comments No comments on this article yet. Be the first to comment! Community Tags aT&T, apple, iphone Discuss this article
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