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Apple, AT&T sued for iPhone price cut/rebate

updated 02:45 pm EDT, Fri September 28, 2007

Apple, AT&T sued

A new lawsuit filed by Dongmei Li of New York alleges that Apple and AT&T have engaged in price discrimination, underselling, discrimination in rebates, deceptive actions, and other wrongful actions as part of the massive (33 to 40 percent) iPhone price cut and the follow-up $100 Apple store credit, according to AppleInsider. The price discrimination claim stems from the fact that Li claims she cannot resell her iPhone for the same profit as customers who purchased the device after price drop. A periphery complaint is that users who bought their iPhones early were discriminated against because they only received a $100 credit, whereas those who purchased the device within a 14-day window of the price cut received a full $200 refund.

Li's attorney said, in the filing, "Market conditions did not require Apple to change its price. iPhone was selling very well because Apple's stocks were increasing since August 16, 2007 and rose as high as $144.16 on September 4, 2007, the day before Apple announced that it was cutting the price of iPhone."

Li seeks base damages of $1 million, as well as punitive damages, attorney's fees and more.

This is the latest in a long string of suits filed against Apple for iPhone-related matters. In late August, a class-action suit was filed against Apple, alleging that the company did not properly inform purchasers of iPhones that they would be tethered to AT&T's network for the duration of their contract, and separately complaining that using the device internationally can result in excessive data roaming charges. The 9-page suit claims that Apple misled iPhone buyers, not fully disclosing the locked-in nature of the device, and the fact that unlock codes would not be provided.

Two weeks earlier, a suit related to the built-in nature of iPhone batteries was filed. Sydney Leung accused both Apple and AT&T of fraud because the companies neglected to inform potential iPhone buyers of the costs related to maintaining a working battery for the device over the course of the iPhone's lifespan.

[Via AppleInsider]

by MacNN Staff





  1. chaaalie

    Joined: Dec 1969


    Me Next!

    I'm thinking of suing Apple because their use of the second-letter capitalization in their naming convention hurts my pinkies (shift key).

  1. exca1ibur

    Joined: Dec 1969


    Give me a break...

    So dropping the price of a product so it will sell more, gets you sued? So people prefer to overpay? People new to the technology need to look up the term 'Early Adopter' and deal with it, like we all have for the last 15 years. If you were bold enough to get your phone at $599 and not wait that was your choice at that point and time, they didn't make you buy at gun point.

  1. michaele

    Joined: Dec 1969


    Dong who?

    Did mommy drop you on your head when you were a baby? Get a life. You paid $200 more than you had to because you wanted to be cool. Now you are suing Apple? You're a joke, pathetic, a blight on society. I hope you are ashamed and humiliated because you should be. Take responsibility for your own actions. Jesus, really, really, really don't like people like you. Are you a lawyer?

  1. Flying Meat

    Joined: Dec 1969


    re: give me a break...

    " So people prefer to overpay?"

    Apparently they expect everyone after them to pay the same amount as they did, or more, or the product should just be removed from the market until thier purchase becomes obsolete/non-working.

    People buying an iPhone now are not paying a discounted price. They are paying the current price of the iPhone.

    Unless I'm misinterpreting "discount" as a temporary/conditional term.

  1. ptkdude

    Joined: Dec 1969



    I hate to tell this guy, but price discrimination is perfectly legal. In addition, he was not forced to buy an iPhone, regardless of at which price he bought it.

  1. MarkLT1

    Joined: Dec 1969


    She's Right...

    .. After all, Apple did drop the price for 1 reason, and 1 reason only- so that Dongmei Li couldn't sell her iPhone for as much as she could before.

    C'mon, get a grip people- Apple steamrolled this poor woman (and targeted her specifically), and they deserve to feel her wrath!

  1. evanlapointe

    Joined: Dec 1969


    other ideas for lawsuits?

    If you're an optometrist, sue them for making good displays!

    If you're a busy person, sue them for lost wages because people interrupt you in the street and ask you about your [insert Apple product here].

    I'll sue them because a guy in a black shirt and bluejeans didn't come with the phone. These guys were always in the pictures. Or at least send me the roaming human hand in the videos.

  1. Rance

    Joined: Dec 1969


    She has a point...

    And the judge should rule in her favor, demanding Apple pay damages in the amount of one hundred dollars.

    People these days, I swear. "Apple screwed me out of a hundred bucks, so I want a million!"

    Only in America.

  1. bobolicious

    Joined: Dec 1969


    The lawyer is the villain so many of the new breed of entrepreneurs victimizing corporations & not the other way around - at least in some countries other than the great US of A there are actually penalties for frivolous lawsuits...

    What kind of drain on GNP is this kind of no-loss activity...? Perhaps the USA should counter sue the legal profession for loss of productivity on a global scale? Tap a few lawyers' bankrolls into submission!

  1. Tanker10a

    Joined: Dec 1969



    Imagine what it's going to cost to handle the case. I am looking forward to hear a judge throwing this case out of court reading the first paragraph of this Brief. Do these people know how rich Apple, Inc is??????? Moreover, what kind of an idiot lawyer that would take an idiot case like this? What I have to say is: Apple just canoot get it right ;-()

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