If AT&T loses iPhone exclusivity, Apple will gain
Is AT&T holding back the iPhone's sales potential? That's the conclusion of analysts at Piper Jaffray. In a report issued today, the firm says Apple is likely to go with multiple carriers, as the company is already doing in other world markets like France and the U.K.To make the point, the report cites iPhone sales in France, where Apple's share of the smartphone market zoomed to 40% from 15% since Orange lost the exclusive there.
What does that mean for AT&T? If Apple finds additional partners, AT&T could lose a hefty chunk of customers who haven't been too thrilled with the way the communications giant has performed with the iPhone. There is still no tethering, MMS took a long time to roll out, and there is a continuing complaint of dropped calls from every corner of the country.
One wonders what is going on inside Verizon. The best-regarded US cell carrier for coverage & network quality is the subject of many rumors about the iPhone being offered, and others rumors of the mythical Apple tablet coming to Verizon. It's all especially interesting as Verizon has been bashing the iPhone in a series of TV ads hyping the upcoming Droid from Motorola and Google. Doesn't seem like Verizon is warming up the relationship.
It will be an interesting next few months as competition increases; partners may or may nor change, and Apple will be looking to increase market share for one of the hottest phones on the market.
[via Business Week]
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Is AT&T holding back the iPhone's sales potential? That's the conclusion of analysts at Piper Jaffray. In a report issued today, the...
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The Apple store is confused. On Sunday, the rep told me that I could purchase a "gift" model for 499 (iphone 3G) if I was unwilling to sign a contract. Today another rep refused to sell me the phone saying that he can't sell it unless I am an AT&T customer .. is Apple bonkers, why won't they sell to customer who is willing to buy?
love apple products, hate the service
It makes short-term sense to run the campaign, but long-term it may not do any good. They trumped up the Storm, and that was a debacle (even though, i know, there are many folks who love the Storm).
The fact is, they may be able to offer good phones, but none of them are the iPhone - the only major flaw of which is the carrier. AT&T exclusivity won't last for much longer, and when it opens up they're going to need leverage to get new subscribers.
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If AT&T coverage (or T-Mobile) was any better in my area I would have switched to the iPhone - with AT&T - long ago. They've been great up until the last year when they've started sending me many txts a day telling me I have to pay, pay, pay to keep my account active - though I have a prepay plan and always keep it going. The Verizon rep told me there was nothing I could do about the texts except have them locked off my account... which sucks because while I don't text that much I do want the option since it's available on my account.
Apple needed AT&T to get established at launch. Now the one-carrier-per-country approach is no longer needed, and is going away. In Canada there is already the Bell Canada launch (In Canada Rogers is like ATT, Bell is like Verison).
Personally, I would like to see some other models of iPhones. The Candybar all-screen form factor does not fit all.
I am lucky. I have great service (contrary to others opinions of) from T-Mobile and their rates are competitive. I have a beautiful unlocked, jailbroken 3gs that makes great calls (doesn't drop them) and has excellent battery life. It tethers, it multi-tasks apps (Backgrounder) and sends and receives MMS just fine. The only slight bummer is I'm running on EDGE speeds but that is a fine sacrifice to make when considering the alternative.
October 20 2009 at 3:08 AM Report abuse Permalink rate up rate down ReplyAT&T just announced completion of a network upgrade here. Funny, before they started, I got 5 bars from my house and my office. Now I get zero. I drove through 1 dead zone on my way into work, now there are at least three. This is progress? I get fewer bars in fewer places and am less and less patient with AT&T.
October 19 2009 at 10:01 PM Report abuse Permalink rate up rate down ReplyUpdate your towers?
October 20 2009 at 2:35 AM Report abuse Permalink rate up rate down ReplyEveryone that says they want an iPhone on Verizons network, yet goes and whines and complains about how expensive it is on AT&T is nuts. An unlimited data plan through Verizon is $45. That's 50% more than AT&T. So you guys can go on and dream about the iPhone on Verizon's network. But
I've lived with Verizon for the last 6 years and I can tell you it's not all its cracked up to be. Although most of my problems I chalk up to crappy phones, the fact is that in my general living area I get great service, decent 3g coverage, exceptional edge coverage and my calling quality has dramatically improved since I switched to the iPhone on AT&T. I personally hope AT&T gets to keep iPhone exclusivity so they have more incentive to upgrade their network, which they have been doing. Although it's slow, They just opened up two huge 3g networks here in Michigan, in smaller rural areas, Mount Pleasant and the Tri-City area.
I mean slow implementation... the networks are not slow ;)
October 19 2009 at 9:44 PM Report abuse Permalink rate up rate down ReplyWhy listen to analysts, what track record do they have that would suggest they have info which is not available to the general public, especially as it relates to Apple.
Am amazed at the folks who keep waiting for iphone on Verizon, as if their wanting will make it happen, as if Apple and ATT together have no business reasons to continue their exclusive relationship even though it has not been perfect.
Apple will drive a hard bargain before agreeing to extend iphone exclusivity with ATT.
ShaneD made good points, the tech plays to Apples desires.
Once Apple has iphones in Peoples Republic of China, all the Verizon decisions are moot. US market will be test market, all your bases are belong to us.
i can wait until everyone leaves att, then all these haters wont be clogging the system.. people have to realize no matter what phone provider had exclusive rights to the iPhone would have the same issue att does, its too many people on 1 network......
October 19 2009 at 6:58 PM Report abuse Permalink rate up rate down ReplyWait a second, i'm a little confused as to why T-mobile isn't a potential canidate for another carrier? seeing as they already carry it in europe, and that t-mobile probably would be willing to have another smart phone on their agenda, it just makes sense to me. when my phone was unlocked it worked fine over edge, and i understand there is a frequency problem with 3g, but surely they can do a work around for that, by either changing the iphone hardware, or t-mobile could set something up.
October 19 2009 at 6:44 PM Report abuse Permalink rate up rate down ReplyThe biggest problem is not really Apple being evil and locking us into one network, it's the fact that the USA is so goddamned convoluted when it comes to moving your phone from one network to another. Forget GSM vs CDMA, even when networks share a standard, they don't share bands. It's extremely frustrating... and how you lot put up with it is beyond me.
If I could port my iPhone 3G over to T-Mobile, 3G intact, I would have done so long ago. My wife and I switched to get the phone but the service is nothing but shocking for us... and we live in a major metropolitan area.
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