Tomahawk, WI 08/14/2014 (Basicsmedia) – AT&T Inc. (NYSE:T) is in high speeds as it tries to clear out its inventory levels for iPhone 5S and iPhone 5C as the smartphones are set to become less novel with the release of iPhone 6. AT&T has opted to clear out its last years inventories by attaching a heavily discounted iPad Mini as part of a deal when acquiring iPhones according to, Trish Regan, at Bloomberg.
The promotion will be applicable to customers buying iPhone 5S and iPhone 5C. Users who opt to pay full price on the iPhone through an installment planwill be eligible for a $200 discount on an iPad with a two-year service contract.
“AT&T Inc. (NYSE:T) is offering $200 discount on iPad’s as part of the iPhone sales promotion. The company wants to clear inventory ahead of its next iPhone. It’s also in an attempt to boost the number of data service subscribers,” said Regan.
Bloomberg’s Eric Chemi thinks the latest stunt by AT&T Inc. (NYSE:T) is another form of trickery when buying a phone on contract service taking into consideration the huge amount of fees that one has to incur while on service contract. Discounts on late Apple devices are common especially on weeks nearing the debut of a new device.
“This is exactly what I think; this is another you know scam […] this is another, hey if you want to buy an iPhone at full price, and you want to buy a two-year contract at full price and you want to buy an iPad at full price then after those thousands of dollars you are committing to us, we will give you $200 off. I mean this is ridiculous for old rubbish products,” said Mr. Chemi.
The promotion tactic by AT&T according to the ‘The Roundup’ crew on Bloomberg does not in any way help improve Apple Inc. (NASDAQ:AAPL)’s IPad sales that were 9% down last year, but essentially help reduce AT&T Inc. (NYSE:T) inventory levels.