Apple May Be Carrier for IPod Phone

Discussion in 'Apple, Inc and Tech Industry' started by goodwill, Dec 13, 2006.

  1. goodwill macrumors regular

    Joined:
    Jan 8, 2004
    Location:
    London
    #1
    Move over Verizon, Step aside Cingular - Ebay prepare yourself for onslaught of T-Mobile Sidekicks to be resold.

    http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=AAPL:US&sid=aXuRCIZ67EZs


    Apple Computer Inc. may serve as its own wireless carrier if it delivers an iPod-based cell phone next year and rely on the company's network of retail stores to sell service contracts for the device, UBS AG said.

    To operate as a mobile virtual network operator, or MVNO, Apple may partner with Cingular Wireless LLC to provide wireless service for a so-called iPhone, Benjamin Reitzes, a UBS analyst in New York, said today in a note.

    Analysts have anticipated Chief Executive Officer Steve Jobs will parlay the success of the iPod into new devices, including a combination music player and cell phone that works with its iTunes music software and online store. Apple has sold more 67.6 million iPods since 2001, and Jobs may be able to convince current iPod users to buy the iPhone, Reitzes said.

    ``Apple is embarking on another chapter in multiplying its revenue streams as it sells more accessories and cellular services,'' said Reitzes, the second-ranked computer analyst by Institutional Investor magazine. ``While there are number of challenges with an MVNO, Apple may be the best positioned of any player yet to make it work given its distribution, brand, installed base of iPods and software and iTunes integration.''

    Reitzes rates the shares ``buy'' and doesn't own any.

    Apple may announce the iPhone in March or April, relying on its network of 174 retail stores to promote the device, he said. The iPhone may include 4 gigabytes to 8 gigabytes of flash memory and a digital camera, Reitzes said, citing unnamed sources. If the Cupertino, California-based company sells 5 million phones in 2007 for an average selling price of $300, that would add $1.5 billion to Apple's sales, he said.
     
  2. aricher macrumors 68020

    aricher

    Joined:
    Feb 20, 2004
    Location:
    Chi-il
    #2
    It wouldn't surprise me - total closed-loop control, Apple style. Does anyone remember a thread from a year or so ago when Apple bought a massive MCI data station? I seem to remember that MCI built this station to handle land and wireless lines and data delivery. Everyone was conjecturing at the time that Apple would use this facility to host it's movie download business. I'm starting to think that Apple's going to take a DIY path on this iPhone thing.
     
  3. tobefirst macrumors 68040

    tobefirst

    Joined:
    Jan 24, 2005
    Location:
    St. Louis, MO
    #3
    I wonder about the closed loop idea though. I know that, for myself, my contract isn't up until September or October. I'd have to wait until then to get on, whereas, if they released a phone in January that could work with Cingular, I'd buy it straight away. Furthermore, based on what I've seen (and I could be wrong), it appears that MVNOs' plans are generally more expensive than getting a plan straight from the carrier.

    And if I had to wait until then, and if the cost of the plan was higher, I don't know that I'd go with Apple. There could be an SE phone out by then that I'd go with. (I love SE phones.)
     
  4. aricher macrumors 68020

    aricher

    Joined:
    Feb 20, 2004
    Location:
    Chi-il
    #4
    I'm not a fan of the closed-loop idea myself but the idea does have Steve Jobs all over it. Maybe Apple-only to start - test the waters iPod-style and then open it up to other carriers like they did with iPod/iTunes for Windows.
     
  5. tech4all macrumors 68040

    tech4all

    Joined:
    Jun 13, 2004
    Location:
    NorCal
    #5
    Yes, here's the thread.
     
  6. clevin macrumors G3

    clevin

    Joined:
    Aug 6, 2006
    #6
    i highly doubt apple cellphone service will succeed, lol,
     

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