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AT&T CEO says App Store is bad for consumers

AT&T CEO Randall Stephenson must be eating some sour grapes since his company lost its exclusive hold on the US iPhone market. During a keynote speech at Mobile World Congress in Barcelona, Stephenson said that platform-specific app stores like the ones run by Apple and Google are "bad for consumers," as they require a customer to purchase an app multiple times if they want to run it on different platforms.

In the words of Stephenson, "That's not how our customers expect to experience this environment." Oh really, Randall? I'd say that the more than 10 billion apps downloaded on the iOS platform alone would say that your customers are more than happy with the current app purchasing model.

What Stephenson would rather see are HTML5 and Web apps that are not platform-specific. Developers, in Stephenson's perfect world, would write these apps instead of using native code for a single platform and then sell the apps through the newly-announced Wholesale Applications Community -- which just happens to be an app store that will be run by carriers. AT&T, T-Mobile, Verizon and Sprint are all partners in the WAC, and the CEOs of these companies are most likely losing sleep over the fact that they're not getting a cut of the billions to be had in the app sales arena.

Non-native apps won't be able to take advantage of device-specific hardware features, and most certainly will not be optimized for a platform. Instead, they'll most likely be cookie-cutter apps that are targeted to the lowest common denominator in terms of hardware.

[via The Mac Observer]



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iPhone App Store

AT&T CEO Randall Stephenson must be eating some sour grapes since his company lost its exclusive hold on the US iPhone market. During...
 

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Denise

Randall is unhappy about having to pay for an app twice in order to run it on different platforms. I am more unhappy since AT&T requires me to pay for my data download connection TWICE in order to connect from my two DIFFERENT devices, my iphone and my ipad.

February 20 2011 at 9:30 AM Report abuse rate up rate down Reply
chromey

Coming from another phone company that loves to gouge it's customers and pre-iPhone had nothing in the way of functionality or added value, this really means a lot to me.

February 17 2011 at 7:41 PM Report abuse rate up rate down Reply
Paul

"are 'bad for consumers,' as they require a customer to purchase an app multiple times if they want to run it on different platforms."

...what's this guy smoking? How is this any different to the way consumers have thought about buying software for their Mac/Windows/Unix/Linux/ad nauseam since the dawn of e-time?

I'd put it to him that this is EXACTLY how his customers expect to experience their platforms.

February 17 2011 at 2:48 AM Report abuse rate up rate down Reply
lens

Wow! What a load of AT&T crap. In the old days, when I'd bought some stupid game for my dumbphone, lost my phone, and bought a new different model, would AT&T credit my game for the new phone? In short, NO. They were perfectly able to to that since I had to buy the exact same game from them again, but of course they did not. So now all of a sudden, AT&T is concerned about the portability of my apps. Hah!

February 17 2011 at 1:52 AM Report abuse rate up rate down Reply
Christopher Hollomon

Wow what an idiot, they all had 'stores' before apple came around and they sucked, people had started buying rimgtones, but the telcoms have the same problem they've always had. They can't see the forest for the trees. They never innovate just to be better for the consumer, they always look at innovation in the what's in it for me? That's where google, facebook, and apple etc... Really excel at breaking the status quo, it comes straight from a geek morality, that is ingrained in the companies culture, In doubt AT&T or verizon has ever encouraged it's employees to make the product better on the spare time or company time in order to improve the customer expirence , with any forseeable profit gains. Fools... A day late and a dollar short

February 16 2011 at 11:21 PM Report abuse rate up rate down Reply
alansky

Randall Stephenson is either a two-faced lying son-of-a-b***ch or a complete idiot. Which is it, do you think?

February 16 2011 at 9:21 PM Report abuse rate up rate down Reply
mgabrys

Translation : Stop using what you enjoy - your experience needs to suck more - like us, from us. We said stop doing that! Please? Won't you suck with us?

February 16 2011 at 7:23 PM Report abuse rate up rate down Reply
oldfrog

The App store saved me from $90 worth of billing at&t added to my bill. They tried to add items like daily horoscope notifications for $9.99 a month. It took 45 minutes to explain to the a&t representative that iPhone content bills through iTunes and not at&t, and the content they were billing me for was simply impossible.

February 16 2011 at 6:53 PM Report abuse rate up rate down Reply
Murphy Mac

He's got nerve.

I don't recall carriers having any compelling apps before the App Store came along.

AT&T can look in the mirror if they want to talk about abusing consumers. Funny that as soon as VZW got the iPhone AT&T was able to free up another 2 gig for people who wanted to tether. And Microcells could suddenly be free. And calls to ALL mobile phones could suddenly be free.

AT&T and VZW are making huge profits from smartphones. They cry poor but look at how much more they can provide for consumers - but only when a little competition shows up.

February 16 2011 at 6:51 PM Report abuse rate up rate down Reply
Dan Woods

Adobe and Opera are Associates.

Adobe are probably going to insist that Flash Apps are now Web Apps.
Opera are probably sore that WebKit came from nowhere and made them irrelevant.

Most of the other players are Carriers. Many are Android device Manufacturers. Apple aren't involved in this, nor are Google, Nokia and Microsoft.

February 16 2011 at 6:25 PM Report abuse rate up rate down Reply
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