Last month I was mugged and had my iPhone 4 stolen. In some sense I was lucky it wasn't worse, I didn't get beat up, they didn't take my wallet; they just threw me to the ground and asked me to give up my phone. In fact; my image doesn't really illustrate what happened at all. I was walking home late at night; not wearing white headphones, and I wasn't held up at gunpoint. But that's not the point. I was robbed; and then subsequently robbed again; when I went to replace my phone.
I went to the Apple store, and went right back to by the same 32GB iPhone 4 I had. I didn't want a different phone; I wanted the same one I had. Part of it was because I really enjoy the phone, but also I didn't want to be reminded every time I used my phone that I had an iPhone 4; and lost it. I had filed a police report that night; and was recommended by the officer to go to AT&T with my police paperwork (a flimsy white ticket not much larger than a bus ticket) and they would exclude me from the added fees. I was prepared to pay the $299 to buy a new one; but heres where the surprise was.
It didn't cost the $299 I originally paid for it. It now cost $499. This was apparently 'good news' because it didn't cost me $699 instead. How lovely. AT&T's stance was that I was breaching my contract by being mugged, and now I had to sign a new contract; but was 'ineligible' for the 'new customer cost'. Apple people were sympathetic, but felt unable to change the price.
After talking to several people; Apple store managers, AT&T's store reps, AT&T customer services, AT&T Customer Services Managers; one thing is certain. It's the other guy's fault. Both AT&T and Apple made claims that the contract between them does not allow them to change this ruling; even though morally they conceited that they felt for me; and it was an 'unfortunate circumstance'. They felt powerless to make any concessions; and were playing by the rules.
What I don't get is this:
On the question of "who should pay for this?" the one logical answer to me is NOT the person who was mugged. I am the customer, and I am the victim; why am I being penalized? I have yet to get a satisfactory answer from anyone; and I welcome comments and suggestions.
The Apple Experience:
I love Apple products. My very first laptop that I purchased proved to me their consumer ethics, and had me coming back for more. In the fall of 2003, purchased a titanium Laptop; the last of its kind. There was speculation that a newer laptop would soon be arriving; but I could not be assured when. I called Apple, and bluntly asked the sales person if there was any word on when a new one would be coming; and their response was that they were not privy to this information.
I purchased a Titanium laptop that day; but I never got one.
Within 3 days of ordering my new computer, Apple announced a complete redesign of their laptops. The all new Aluminum G4, with 20 more gigabytes hard drive space. Two days later, I received an email from Apple, stating that my order was automatically upgraded to the new G4, at no extra cost.
This was Apple service at its finest. It may have cost them; but they were making an investment in their customer loyalty. Since then I have purchased a small arsenal of Apple gear:
4 iPods -
'02 touch wheel, '03 buttons on top, '03 iPod mini (for my sister), '06 iPod video
3 iPhones-
'07 original, '10 iPhone 4, and iPhone 4 again after being mugged3 laptops-
the first Al as mentioned, Macbook Pro '05, and Macbook Pro '07
1 Tower-
Mac Pro '09
1 iPad
Not to mention the software updates, accessories, etc. It's safe to say I'm a big fan, and a dedicated customer.
I hope that my loyalty is not seen in vain, and that same set of ethics that I first experienced will have Apple reconsider this situation. I'm open to discussion, and I hope that if they feel these actions were the right ones, that they are able to show me their perspective.
Here's an idea. don't give them business! DICKS!
ReplyDeleteSteve Jobs is famous for his availability on e-mail. I would try to get a response from him (or his assistant) on this matter. A four-sentences summary of what happened and a link to this post might do the trick.
ReplyDeletehttp://email.about.com/od/famousemailaddresses/f/What_is_Steve_Jobs_s_Email_Address.htm
The next step is to share your story with big american smart-phones/tech bloggers and/or ask the help of consumer's rights organizations.
good luck mate!
Udi
The iPhone's price is subsidized when you buy it with a contract, its value is $699 but you repay the difference through your monthly service charge.
ReplyDeleteAT&T further subsidizes the price for new customers because they expect to make their money back in the long run.
I'm definitely not apologizing for AT&T, Apple or the muggers, but I don't think you can expect Apple or AT&T to account for your mugging. It would have been *nice* if they had been sympathetic, but unfortunately big corporations don't play by those rules.
Your most poignant argument is certainly your loyalty to Apple. If you were buying these products from a neighborhood purveyor, then loyalty would have made a difference.
It's like expecting a baker's dozen from Whole Foods... You're ahead of your time, I think a few years from now big corporations will start valuing loyalty and playing by neighborhood rules.
Sorry to hear about the mugging, but Apple and AT&T didn't throw you to the ground that night, WHY is it their responsibility?
ReplyDeleteYou are the specific victim, but why displace that on to Apple or AT&T? I read through the contract once a long time ago, and not any of the recent updates (I've blindingly clicked 'agree'), and I don't recall them taking on stolen property as part of their end of the bargain. Sure, it could help them on their customer experience, but its not explicitly part of the contract you've made.
One of the points you've made is that you've paid $299 originally. It sounds like you've taken this as a right, rather than privilege. And it really is privilege. For those on the other side of the table (AT&T and Apple), this is how they recoup their costs, through full price or yearly contract. Each phone has a cost attached to it.
I am sympathetic to your situation. I was mugged in Portland at gunpoint, the guy took my phone and my cash, I actually talked him out of taking my credit cards, because it wouldn't be worth either of our time. I didn't purchase a phone for 2 months while people complained about being able to get in touch with me. When I did buy a phone, I got the first gen iPhone and signed a 2 year contract (I had that option, if I didn't, I probably wouldn't have purchased an iPhone because of the expense). I didn't ask for anything special from AT&T or Apple because my previous phone was stolen. If anything, that is would be a third parties responsibility (namely an insurance company) issue to deal with, if I was responsible enough to have purchased insurance them. Yes, it is actually the muggers fault, but barring getting in contact with him, I had to take responsibility.
Thanks for your in depth responses.
ReplyDeleteNathan, I'm sorry to hear you were mugged as well. You've brought up some interesting points, but I still feel that this is an ethical grey area that should be examined before we make peace with it. Consider this:
By having me re-sign a new contract, their stance is effectively that they have an insurance policy out on me. At the Apple store the next day, I had to make a decision; either break my service with them, and pay AT&T $100 for doing so, or sign a new one. If that's the contract that I blindly signed; fine.
Here's where I think it gets more complicated: They still stand to profit from this situation, and thats whats bothered me. My misfortune is their gain. I'm not asking for a freebie, I'm asking them to consider an exception given exceptional circumstances; or explain to me the circumstances that have lead to this decision.
I'm asking that they should be able to wager which is more valuable; their profit in hand, or their brand image based on this circumstance.
I also talked to my muggers (2 of them) and asked; "Why are you doing this to me?"
One of them responded "Because we need the money"
I'm questioning whether Apple or AT&T genuinely need to profit from this situation, and I'm looking to understand why if they do feel that way.
Again, I appreciate you taking the time to write this out, I think both of you bring up some good points. I'm not claiming to know what is the answers, but I am willing to suggest that there is an ethical quagmire worth discussing.
Arjun,
ReplyDeleteI read your full blog post. And I think Apple upgrading your laptop at no cost is a good example of exceptional customer service on their part. I am open to the argument that they did have some responsibility in this situation, as they knew they would be announcing an upgrade soon, and allowed you to order anyway. To remedy that, they upgraded you.
I do not see the moral grey area here. Or if anything, it is there, and both parties you are pleading with have made a decision within their power that you haven't accepted.
AT&T having you sign a contract is insurance for them to make a profit. If you don't sign a contract, they don't make any money because they are subsidizing the cost of the phone. Otherwise they loose. Alternatively, they could let you out of the contract for free. Again this is a possible loss to them, in that they are loosing in the subsidization of your original phone.
I haven't heard a good argument for transferring the responsibility to AT&T or Apple. Saying it would create a good customer experience isn't enough for me. It's vague, subjective, and open to interpretation.
As an example, what if instead you were pushed to the ground in a crowd, and your phone were broken? Should AT&T cover that as well? Or what if a really strong wind came, and blew the phone out of your hand. A mugger is a direct, malicious force rather than a random group or the wind. The blame in each case is against an external force that AT&T (and Apple) have no control over. So why do they have to take responsibility for this?
Another option, is to continue to be a loyal customer. To say, Apple, you make fantastic products. I value the work you have done, here is $499 for me to purchase a new phone. I want to show you how much I value it, by purchasing the same product again, at cost.
Is it even necessary to bring the mugging into it? Apple didn’t mug you. They did provide you with an exceptional experience. Why does it seem that the provider must always be exceptional to the consumer? Why aren’t there exceptional consumer experiences where someone says “I value what you’ve provided to me.”
In response; an example of what Apple has done before when someone was nearly mugged for their iPad:
ReplyDeletehttp://www.tipb.com/2010/06/14/wwdc-attendent-mugged-apple-ipad-steve-wishes-safe-travels-home/
Nathan-
ReplyDeleteI think what it comes to is a question of how you look at the relationship between the customer and the provider. I see it as we have a vested interest in the continuation of the service and use. I see it as we both lost something; and then they said
"hey by the way, you owe us for that"
Really? Do I?
Was it my intention to loose the phone?
Did I have any control over the outcome? (perhaps, but at the cost of my well being?)
So why is it my job to make sure that they get their profit?
The fact that I admire their work so much that I went right back to buy a new one should if anything say how much I value their service, and it would be nice for them to see that, and be able to understand that this was not in my control, and they should not have to gain from my loss.
What I am asking is that they consider whether their profit is really worth it.
Apple didn't loose anything. AT&T didn't loose something. You lost something. If you decided to discontinue service with them, then they loose a customer (of course, you'd have to pay some money for that). If decide to not by another Apple product because Apple didn't give you a discount, then that might be considered a loss to them.
ReplyDeleteWhy is it your job to make sure they get their profit? It isn't. Just don't buy their products then.
I could easily say, the fact that you admire their products enough to go back and ask for a discount on them, shows how much you don't respect them. They can gain from your loss, because it is not their loss, and you don't have a right to make it theirs, the same way the mugger didn't (and still doesn't) have a right to take your property.
There are a number of ways to change this scenario to bring perspective. What if instead of an Apple product, you purchased an apple from a street vendor. The apple was then stolen from you, by a stray dog. You return to purchase another apple, and asked to pay the same price as before, only, all the apples left are much larger and more costly. Why should the vendor have to take a loss on his apples?
Nathan-
ReplyDeleteyour persistence to conjure up new variations of this story in simplified terms does not accurately reflect what has happened. No, this is nothing like a dog stealing an apple from me. Using your example, I went back to the store, and asked for the exact same product (not a larger, more costly one), and they are asking for a higher price.
Again, I'm not asking for a discount.
I was prepared to purchase the phone at the cost that a new contract costs (After all, I did have to sign a new contract).
The cost they added was exclusively to cover the loss of the previous contract; so yes, they did loose something; and then they asked me to pay up for it. They have this in place for other situations requiring lost/ damaged phones. What I am questioning is if this policy fits for this situation.
According to Apple employees who have contacted me, this situation is an exception; and there is some movement at hand to hopefully change this situation.
I'll keep you posted on what happens next.