“A report this morning claimed that AT&T employees were being instructed to push Windows Phone and Android smartphones over iPhones to customers,” Alex Heath reports for Cult of Mac.
“Several readers have since shared their experiences of AT&T reps pushing Android phones over the iPhone, with one even noting that a buddy who works at AT&T gets more commission on Android smartphone sales,” Heath reports.
Heath reports, “According to a new testimony, it appears that Verizon may be also instructing/incentivising its reps to push other smartphones over Apple’s iPhone.”
Read more in the full article here.
MacDailyNews Note: CNN.com reported Verizon was doing this back in May.
[Thanks to MacDailyNews Readers “Dan K.” and “Arline M.” for the heads up.]
Related articles:
AT&T orders retail staff to sell anything but the iPhone, sources say – August 1, 2012
Hard sell: Verizon Wireless clerks pushing Android phones over iPhone – May 5, 2012
AT&T commits to Google Android phones and tablets – February 7, 2011
It only makes sense from a business point of view for two reasons:
1: these companies make more money selling other handsets. Apple is greedy with their price (and they should be because it’s the best)
2: the 3G networks are getting bogged down (at least in the Boston area) so they are pushing 4G phones (at Verizon anyway).
I disagree with lying but the sales people get spiffs and bigger commissions selling other products. If you want honesty maybe a place like best buy where the employees don’t get commissions. Even there they have geeks that will tell you lies…. It’s not a perfect world!!
Greed is good. Look at the Apple share Px and $ in the bank. i suspect S sales people not pushing Droids since S made a major volume commitment. When S gets 4G LTE, a lot of business will move their way or to the Virgin Mobile sub. Also, see movement to T-Mobile.. Believe they will get the iP 5 through and agreement with parent in Germany
I’ve had friends tell me this exact story of both AT&T and Verizon. It makes sense; Google gives them Android, it’s a free OS and thus they make more money. That, and from what I understand, the sales associates make a bigger commission on Android handsets and all the extras they sell you.
Just the other week my wife and I were in an Apple store talking to a Genuis, because she spider-webbed her screen, and he checked our upgrade date, found it it’s this Nov. and he said just to come into the Apple store and you can do all that stuff there and avoid the Verizon store altogether. That’s our plan. Last time I upgraded, I called Verizon’s corporate sales line and upgraded direct, bypassed the store and it was so easy.
I don’t know who made these strategic decisions at AT&T (and Verizon), but whoever it is, they are myopic.
It is true that Android recovers money faster, due to the substantially higher subsidy on the iPhone. However…
Customer churn is probably the biggest problem carriers have. Acquiring a new customer is a great thing; holding onto him is infinitely greater. When such customer buys an Android phone, it is more than likely that he’ll buy another phone as soon as that subsidy expires. This doesn’t work well for two reasons; number one, he may easily go to another carrier; number two, the sweetest money comes from contract customers whose contract has expired, but are still on the same phone (the subsidy portion is essentially free money for the carrier).
When a customer buys an iPhone, the carrier will initially take longer time to recover that upfront subsidy. However, that iPhone customer will remain fiercely loyal to the iPhone. Many hold on to their 3Gs and 3GSs, even though they could have upgraded them long ago. Meanwhile AT&T continues to get full monthly subscription (portion of which is to recover the subsidy, which has been recovered long ago).
Selling Androids is a very short-sighted strategy. People who buy iPhones stay on longer, don’t jump carriers and often let their contract expire long before they upgrade their phone (because they are SATISFIED with the device, unlike Android sufferers).
So typical- soon as Steve is in the ground, the carriers start up again with their BS…