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MacBytes
Jun 19, 2009, 11:15 PM
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Category: Opinion/Interviews
Link: Apple Will Dump Exclusive Deal With AT&T (http://www.macbytes.com/link.php?sid=20090620001529)
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Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug

dukebound85
Jun 19, 2009, 11:18 PM
annnnnd its an editorial

hoping to hear an actual news story

winmacguy
Jun 20, 2009, 12:17 AM
annnnnd its an editorial

hoping to hear an actual news story

That would be why it has an "opinion" tag attached ;)

jav6454
Jun 20, 2009, 12:41 AM
I hope that editor sticks to his word. Also, this link should have a Opinion tag on to it. I really thought it was a news article instead of an editorial.

walnuts
Jun 20, 2009, 03:51 PM
I too was fooled into thinking that there was some news here. I disagree on the main point of the article. If the iPhone were available from Verizon, it would also likely be set up on a subsidy/contract deal (new every two?). The real problem here is the two year contract fiasco. If apple really wants everyone to buy a new phone every year, then they would have to sell the phone for (more or less) $100 more up front and have one year contracts to fulfill the subsidy.

I did read however, in another article, the very valid point that there are die hard Verizon customers that could be won over with an iphone on their network. Catering to more carriers offers a bigger customer base.

So, having a Verizon iphone could increase market share but wouldn't solve the two year contract issue. Either way, it makes sense for apple to wait until LTE is available for both companies, rather than make two different iphone modes.

JCastro
Jun 20, 2009, 05:34 PM
I too was hoping for a news article. I could really careless if it is sold on any other market. I have been with AT&T since way before the iPhone and will probably stay on it. It just works well for me.

I also don't see Apple making a CDMA iPhone. I would not if it were my company. The GSM market is so much bigger in the global marketplace.

mkrishnan
Jun 20, 2009, 05:45 PM
If apple really wants everyone to buy a new phone every year, then they would have to sell the phone for (more or less) $100 more up front and have one year contracts to fulfill the subsidy.

It's more than $100, though, isn't it? And less than a year (Well, closer than I thought, but it was 11 months and a week between the 3G and the 3G S). The prices as I understand them are ... $199 subsidized / $599 unsub and $299/699. So $400 is subsidized over two years. On your logic, if the phone had a one year-contract instead of a two year contract, even if net present value were taken into account, it would still be ... probably something like $470-500 for the low end iPhone at a level that preserves current margins for both the handset mfr (Apple) and the carrier.

That would be unacceptable -- making the reasonable assumption that AT&T didn't plan on trying and failing to swindle this money out of its customers and later backing down all along, if that $400 in subsidization was amortized (lazy math here, but close enough) over two years, then AT&T is losing something like up to $8.30/month for the phones that were allowed to upgrade early. That's around 10% of gross revenue -- a significant number.

So AT&T or no, the iPhone's price has to march way back down too, if it isn't going to be a continual game of angry customers making AT&T back down once a year on trying to recoup its subsidies. If they want people to upgrade every year, they either have to play this screw the dealer kind of game with their carriers, or else they have to sell phones that can be profitable at $200-300 and not $600 or more.

retroneo
Jun 20, 2009, 09:18 PM
I think it is a possibility that Apple will add UMTS 1700 to the 2010 iPhone and carry it on T-Mobile. Apple already has a relationship with T-Mobile as they are an official carrier in some European markets.

Offering the iPhone on multiple carriers has been so successful in Australia that Apple has now extended it to all carriers for the 3GS. Very cool.

So here we've got different networks with different price points (starting at US$15 a month) and network coverage characteristics. Choices of prepaid, month-to month, 12 or 24 month contracts. iPhones with no upfront cost, handset installments or outright purchase. Some carriers don't allow tethering, some allow it for a fee, and others let you use it with no extra charge. Data allowances, SMS and MMS are included in all the plans. And all the carriers offer official unlocking through iTunes, some for free and others for a fee.

It's awesome to have so much choice here.

tempusfugit
Jun 20, 2009, 10:06 PM
I agree. The marketplace of ideas will let the best providers prevail and this is all good news to the consumer, not to mention iphone software developers looking to make their apps available to an even larger market.

Schtumple
Jun 20, 2009, 10:09 PM
I think it is a possibility that Apple will add UMTS 1700 to the 2010 iPhone and carry it on T-Mobile. Apple already has a relationship with T-Mobile as they are an official carrier in some European markets.

Offering the iPhone on multiple carriers has been so successful in Australia that Apple has now extended it to all carriers for the 3GS. Very cool.

So here we've got different networks with different price points (starting at US$15 a month) and network coverage characteristics. Choices of prepaid, month-to month, 12 or 24 month contracts. iPhones with no upfront cost, handset installments or outright purchase. Some carriers don't allow tethering, some allow it for a fee, and others let you use it with no extra charge. Data allowances, SMS and MMS are included in all the plans. And all the carriers offer official unlocking through iTunes, some for free and others for a fee.

It's awesome to have so much choice here.

I was unaware that the iPhone was available on multiple providers in aus, is it literally every carrier now? That's pretty cool if it is, and a sure sign of things to come.