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U.S. Cellular Turned Down iPhone over 'Unacceptable' Terms from Apple
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Also makes no sense for Apple to add another antenna for the limited number of carriers (and available customers) using the 1700mhz UMTS Band IV frequencies that T-Mobile chose to base their 3G network on.
Apple would probably like to have more carriers sign up in the US, but considering they did very well with a single carrier and now they have four carriers (three of the major ones + C-Spire) that they are likely in no rush to get all the second-tier carriers on board.
Though I think that iPhone in the pre-paid market makes sense in the longer term strategy which may mean getting more of the budget carriers to sign up in the near future.
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If Apple does not do something about this soon they may never break that 60% of the industry profits barrier.
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Though I think that iPhone in the pre-paid market makes sense in the longer term strategy which may mean getting more of the budget carriers to sign up in the near future.
<sarcasm>
If Apple does not do something about this soon they may never break that 60% of the industry profits barrier.
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That's now.
Everybody knows that.
Ah, by the way, here's a thread about the iPhone losing market share (September 2011): https://forums.macrumors.com/threads/1225932/
What will be in five or ten years? Just repeating one successful formula won't do it. While I like the iPhone, its buyers are mostly regular consumers who will buy Apple today, and might just as well buy a Samsung tomorrow. Things can change quickly in the finicky consumer market.
Sprint has the money to subsidize them to a certain price, and US Cellular does not because everything they do is budget. As for your "betting the farm" argument, are you referring to the same rampant rumors about Sprint agreeing to buy a certain # units to lock up "exclusive" rights to the iPhone 5s that were supposedly coming out last month? That turned out to be a load of horse manure.
The terms for adding the iPhone are steep for a carrier. I read somewhere that Apple demands $10 a month from the carrier, hence why iPhone plans are ridiculously expensive for the consumer.
Adding, most US Cellular customers aren't on a contract anymore since they got rid of them last fall. I am a current customer but I am looking at dropping them to go to somebody else. Back when smartphones weren't popular they were really good but today I want the latest and greatest phone as in the iPhone. Its their loss for sure.
Not for nothing, but I'd rather have a 6 inch pile of solid gold bricks than a 3-foot high stack of pennies.
They may have started out that way with the first iPhone but I doubt they get any share of the monthly revenue from the carriers. Just the huge cost of the device that is subsidized to us for signing contracts.
I think that's a lie. From everything I've ever heard, carriers subsidize a certain about per unit, and then that's that. Apple doesn't get a cut of the monthly service provided by the carriers. I don't think anyone does.
US Cellular just doesn't want to upfront $600 per device to Apple. I don't know how their rate plans compare to the other carriers, but I guess they must not be high enough to pass the difference on to consumers. However, they are more than OK to lock someone into a contract with a "free" doorstop of a phone that probably only cost them $50 from LG or Samsung or whoever.
That's a very relevant point. The high[er] price of Apple devices is generally offset by a guaranteed return via a [1-2 year] contract, or the penalty of a ETF. With neither, and a possible a minimum purchase commitment of devices that don't appear as aligned with USC's target consumer, that's probably not a great deal for them.
Think all you want - but you shouldn't use the word "lie" - it's not accurate and it's a bit antagonistic. The information might not be accurate or up to date - but to imply that someone referencing something they read is a lie seems rather harsh.
Being the 6th biggest cell carrier in the USA is like saying you're the 6th biggest automaker in the USA. Uh... Who?
People here put up with AT&T and Verizon's junk service mainly because US Cellular (which has superior service here) only has a couple really crappy Android phones (and I'm not just making a joke about how Android phones suck in general, these are the worst Android phones you can find). They really don't seem to be embracing smart phones at all (maybe their network can't handle it, dunno).
So they didn't want it. Big deal. They appear to be a budget outlet and probably couldn't afford it. I'm sure their CEO knows what's best for their company.
I don't see why some folks are acting like Apple is in the wrong here either though. They may be asking a very high price for their phone, but obviously the big boys think it's absolutely worth it since they bend over backwards to please Apple--and in return, they get the two (and in the case of AT&T, three) best-selling phones in the United States.
If they don't like the terms, all they'd have to do is tell Apple to go kick rocks. But they'd lose out on profits, so they play along.
Sure, Apple gets more control than other phone makers, but that's because they can. Do you honestly think that if HTC or Samsung were in Apple's position to ask for more from the carriers, they'd turn down the opportunity? Of course not. They're businesses too.
I don't see why some folks are acting like Apple is in the wrong here either though. They may be asking a very high price for their phone, but obviously the big boys think it's absolutely worth it since they bend over backwards to please Apple--and in return, they get the two (and in the case of AT&T, three) best-selling phones in the United States.
If they don't like the terms, all they'd have to do is tell Apple to go kick rocks. But they'd lose out on profits, so they play along.
Sure, Apple gets more control than other phone makers, but that's because they can. Do you honestly think that if HTC or Samsung were in Apple's position to ask for more from the carriers, they'd turn down the opportunity? Of course not. They're businesses too.
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I think that was the original 3 year iPhone / iPhone 3G agreement with AT&T, but I think this part was negotiated for the 4th year and beyond. I don't think any of the carriers do that anymore. Hence the unlocked version as well.
However, I read that Apple takes almost all, if not all, the money from the actual phone itself. Most manufacturers discount their phone MSRP prices for carriers, but not Apple, they want their $650 and they don't care who pays it
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I second that, it is not a lie (and it's rude to say that). Indeed Yes, I am pretty sure Apple had a cut of the ORIGINAL iPhone monthly data agreement with AT&T. It was even called the Iphone data plan and was $10 more than any other plans...
I am no longer an AT&T customer, but I give them FULL credit for taking a chance on a still-unknown, potentially EPIC flop phone back in 2007 called the iPhone.
Wait a minute...are those pennies 100% copper pennies from long ago, or the nickle-zinc with a copper electroplate? I wouldn't mind a 3 foot high stack of pure copper pennies.
Anyhow, back on topic. Sure the iPhone is great, but not everybody wants one. Heck, *I* don't want one, surely not for the outrageous price ($2500+ factoring in the 2 year contract). It makes no economical sense for me to get one. Same way with US Cellular. The iPhone might cause them to LOSE money. They might not sell enough to cover coinage Apple demands to play in their sandbox.
He said in his area, USC is superior and V and AT&T aren't nearly as good, but offer more phones options including the iPhone - i.e., people are choosing the worst of the the services in his area for better phone selection.
There's a few regional type providers that in their smaller areas, offer better service/plans vs. the national carriers, and if you don't travel, and their services give you what you need, they can be excellent.
You really have no idea how bad cellular networks are in Wisconsin, do you? We got steaming pile of junk to junk level of service here.