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Apple, regarding AT&T exclusivity—just say no

Written by: Dennis Sellers

Article Overview: As reported yesterday, AT&T CEO Randall Stephenson is allegedly involved in discussions with Apple to extend the carrier’s exclusive iPhone contract into 2011. I hope that doesn’t happen.

Apple, regarding AT&T exclusivity—just say no

As reported yesterday, AT&T CEO Randall Stephenson is allegedly involved in discussions with Apple to extend the carrier’s exclusive iPhone contract into 2011. I hope that doesn’t happen.

I’d love to see iPhones work with Verizon and Sprint’s CDMA-based services, though part of this is selfish—I’m a Verizon user since it offers better wireless service than AT&T in my neck of the woods. Still, choice is good, whether that choice is AT&T, Verizon, Sprint or T-Mobile.

I can understand why AT&T wants to re-up the deal. Though it beefed up its 3G network mainly to support the iPhone, it and Apple sold 4.3 iPhones in the second half of 2008. And when the iPhone OS 3.0 debuts, doubtless along with new iPhone models, I suspect sales will skyrocket again.

That’s good for Apple. However, my favorite tech company could sell more iPhones if Verizon, Sprint and T-Mobile were also carriers. More distributors would also help the iPhone achieve world domination. Well, okay, if not that, ever higher penetration of the smartphone market.

Admittedly, there are technical problems. If the iPhone is to access T-Mobile’s 3G network, Apple would have to create a new version of the device with 1700MHz AWS support. Ditto for CDMA-based services.

But the risk is worth it. As Barron’s notes: “The exclusivity had its benefits, it had many switching to ATT to use the iPhone at a time when there was absolutely no competition in the Smart phone business. The story is completely different now, the competition is out in full force and the exclusivity will only hurt Apple.”

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Article Tags: 3g network, apple, barron, ceo, ditto, exclusivity, full force, iphone, iphones, models, neck of the woods, penetration, phone business, randall stephenson, second half, smart phone, sprint, t mobile, verizon, world domination



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Re: Apple sold 10 million iphones in 2008 - I love reading the story Apple and Steve Job. 10 millions iphones within a year, this is amazing. I am interested in owning Apple shares
Re: What If Steve Jobs Hadn't Returned To Apple In 1997? - Thanks for sharing with us Yinko. Steve Jobs is definitely a visionary. Not only his products are innovative in a technological sense, but he's managed to turn a tech-company's products into a lifestyle.... a lifestyle!! [quote:zfqoq43n]Fast Forward to today. Apple has the sexiest products in the business: iMacs, Macbooks, iPhones, iPods and more.[/quote:zfqoq43n] I think not only tech would be different (music players and phones), but ways we can think of marketing and branding. What Steve Jobs did was of course no easy task for the smaller businesses, but he did start somewhere. What I did not know was that Apple is worth about as much as Google. How do you think Apple accomplish what they did? In terms of strategy wise? If you could advice Steve on one thing, what would it be?
Re: where to get a free/inexpensive picture for logo? - I also use istockphoto for web designs etc. However to claim it as a logo for your compay requires exclusivity. You may want to advertise on Craigslist or Backpage.com for a student to design a logo for you that you can copyright or trademark down the line. Otherwise 99designs.com is good too.
Re: Off to New York / Philly - Thanks guys - just landed in New Jersey and are going to the Big Apple tomorrow morning. First stop: a tour of Yankee Stadium!
predeteremined corporate lifetime - I have launched a venture that is developing technology that's time has come and even with protection (patents, copyright, exclusivity) will undoubtedly be a target of bigger players with deeper pockets. As suc, I have designed the business plan to have a termination. That is to say, the intent is to develop, test, market and sell the entire ball of wax to the highest bidder at a predetermined point, thus effectively planning for it's own demise. Is this a practice that is recognized or does anyone have experience with such a company? Seer


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