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Today, Apple announced its next generation iPhone. The iPhone 3GS as it is called, sports a slew of new functions: better hardware, better battery life and overall better performance. Apple calls it the most powerful iPhone yet. A shoe in, a must have for iPhone lovers. Sounds like a win for Apple, and for the current ball and chain, AT&T. Everyone should be happy, right? Wrong.

AT&T has demonstrated today, loud and clear, that it aims to take advantage of the the ideal customer. What is an “ideal customer” for AT&T? How about this for starters. An ideal cellular customer would:

1. Be willing to leave any competing cellular company and come to AT&T.
2. Be willing to pay any amount AT&T wishes to charge for their services.
3. Be willing to sign contracts promising not to leave for years without having to pay a fine.
4. Be willing to be last in line for MMS (aka picture messages) a simple technology that AT&T offers some of its customers, however not its iPhone customers
5. Be willing to not have the right to use the internet connection from their iPhone for any other device, and not even have the option to pay more for the privilege
6. Be willing to accept the mediocre cellular service AT&T offers

Fortunately or unfortunately, AT&T has become a strong market force, stripping subscribers from competitors such as Verizon Wireless, Sprint and T-Mobile in such droves that on a termination survey Verizon Wireless actually asks if you left to get an iPhone. There is a daily flow of new clients moving to AT&T, even with the outrageous restriction and terms listed above.

Now AT&T has taken its pompous arrogance to a whole new level. All those “ideal customers” purchased an iPhone with AT&T service when it was released 2 years ago. In keeping with the terms above, they signed an agreement to stay for 2 years. Last year, when the 2nd generation iPhone came out, those ideal customers forked over yet more money to AT&T, and signed yet another 2 year indentured servant agreement and swore on their wallets to stay for another 2 years. Doing the math here? Two year into a four year agreement...still with AT&T.

Here we are on year two. Apple has come out with their 3rd generation iPhone, and our ideal client is ready again with their wallet. Sure, they are even willing to fork out some more cash to get the latest Apple goodness, but wait. This time, AT&T has decided to take advantage of its position of power. The ideal client currently has another full year left on its last contract with AT&T. So AT&T isn’t in jeopardy of loosing this client, so why give them anything now? Why reward them for their loyalty? Why allow them to just cough up a few hundred bucks, and sign yet another 2 year agreement when by now, it is clear they will stay and pay at any cost? Renew 2 years, add another two years, continue, years locked in, no matter how you crack it.

Now, AT&T is making those poor loyal customers pay full retail for the new iPhone. We’re talking $599 for the top of the line iPhone. Oh, and don’t think that is all. People coming over to AT&T for the first time are lured in with the bait of $299 for the same phone, but our loyal customer gets smacked hard with full retail on top of a new 2 year contract.

It is time that the loyal iPhone users out there finally put an end to this insanity. AT&T has crossed both the lines of decency and good business. They are clearly taking advantage of the clientele that have shown their willingness to follow a great product, namely the iPhone, even if it is tied to horrific service and strings such as AT&T brings to the table. Don’t bother calling or complaining to AT&T, that dye is cast and you will simply be told you have the option to leave. They realize you won’t because you are loyal to the Apple product. In AT&T’s infinite greed and misjudgment, they are mistaking the Apple loyalty for AT&T loyalty. Wake up and answer the cellphone, AT&T, you do not have a single iPhone customer out there that wouldn’t leave you faster than you can smack the END key if they could take their iPhone to another cellular provider, ones with much better coverage and service. iPhone users need to contact Apple and explain to them that they want their iPhones and they want them for a fair price and with the same excellent service the product deserves. They need to tell Apple they don’t like having their loyalty so plainly taken advantage of. Apple needs to force AT&T to do the right thing or do their own thing without Apple.

American Telegraph & Telephone doesn’t get it. At some point very soon, they will see that people can turn on them when it becomes clear as day that they don’t value “ideal customers” unless they can squeeze their wallets dry and take advantage of their loyalty.

Karl D. Susman

Comments to date: 15. Page 1 of 1. Average Rating: amy sommer   santa monica 11:01am on Sunday, June 21st, 2009  Thanks, they changed their policy; guess that they listen to customers after all! Willow   home 11:53am on Wednesday, June 17th, 2009  AT&T has changed the policy to give people the ability to get the better price! yea cell user   los angeles 1:09pm on Friday, June 12th, 2009  i agree that AT&T has THE worst service EVER. i don't know how anyone is with them! Can't make or receive phone call to save your life. If it was not for iPhone, would NEVER be with them by choice. Michael   Los Angeles 6:50pm on Tuesday, June 9th, 2009  these AT&T experiences make me realize why i still haven't left verizon :o) great article, great information! Jezebel   Virginia 9:07am on Tuesday, June 9th, 2009 All "loyal AT&T customers should decide on a time and beginning from that time start to overwhelm the AT&T call centers with complaint calls. What AT&T is doing is screwing loyal iPhone users who go out and tell their friends and family who a great ... read more » Giovana   Simi Valley 8:16am on Tuesday, June 9th, 2009  All I can say is as soon as Verizon comes out with this phone I'll be the first one in line. I've been with Verizon for over 5 years and they have been nothing but helpful with any problems I have had. In addition, their reception is great no matte... read more » Rachel   Simi Valley 8:12am on Tuesday, June 9th, 2009  Dear Jan, That is the dumbest comment ever. Scott G   Lake Forest, CA 8:00am on Tuesday, June 9th, 2009  Finally someone gets it! AT&T has an EXCLUSIVE on the iPhone. You would think they would be trying to endear themselves to loyal Apple customers. I left Verizon for AT&T for one reason - the iPhone. I had heard AT&T wasn't as good. But i wanted to s... read more » Stevie   Lake Forrest 6:40am on Tuesday, June 9th, 2009  It is a matter of choice. You make your choice and you stick with it. I do not like the choices AT&T offers. I would never leave Tmobile unless AT&T had prices that were better. iphone lvr   FU 6:33am on Tuesday, June 9th, 2009  SO TRUE MAN I READ THE SAME THING ALL OVER DA PLACE LIKE AT TUAW AND LIKE EVERYWHERE! DANG Tairy   Las Vegas 12:27am on Tuesday, June 9th, 2009 AT&T has demonstrated today, loud and clear, that it aims to take advantage of the ideal customer. What is an ideal customer' for AT&T? How about this for starters. An ideal cellular customer would: But at this point, ponder this while you read: ... read more » Jan   Location unknown 11:23pm on Monday, June 8th, 2009 This is the dumbest article ever. That termination survey is garbage --- the survey data never reconcile with actual carrier subscriber data in the carrier's SEC reports. AT&T (without Tracfone) has never beaten Verizon in net subscriber growth s... read more » Paul Barrie   Location unknown 10:46pm on Monday, June 8th, 2009  Oh Karl, Someone is just upset that they have to honor their contract... and, understandably REALLY wants the new REALLY AWESOME iphone 3GS. The 2 year before "subsidized upgrade" contract is NOTHING new (I have been upgrading on them for decad... read more » smarter person   us 10:22pm on Monday, June 8th, 2009  dude learn to type you might want to get you facts straight lmao Smart person   Us 10:15pm on Monday, June 8th, 2009  You might want to get you facts straight the two year contract renews for two years not added on to. Your Name: Your Location: Vote: Choose 1 - Dreadful 2 - Poor 3 - Fair 4 - Good 5 - Excellent Your Comment: Security check *