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Apple Will Buy AT&T as It's Next Strategic Move

S

SomeDudeAsking

macrumors 65816
Original poster
Nov 23, 2010
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It's just logical for Apple to buy up AT&T and become a wholly integrated cell phone carrier company that makes both the phones and operates the network. This provides the maximum control that Apple desires. It will then be able to lock out everyone on the whole consumer chain and Apple will control EVERYTHING. No longer will Apple have to put SIM chips in the phone, it will just do everything through iTunes. Android phones? No way in hell.

If Apple does it right and reduces the prices for monthly plans, then I'm all in support of it. If Apple simplifies the monthly plans so that they are truly unlimited without all the extra hidden fees for basic features like caller ID, then I'm all for it.
 
Hope you're joking........that makes no sense at all......
 
I don't know, apple doesn't seem to be a company that cut prices on services.
Then again, Why would apple want to enter into the dirty world of providing phone service, let alone cut prices and profit.
 
JCCL said:
Hope you're joking........that makes no sense at all......
Click to expand...

Why would it be a joke or "make no sense at all"? Steve Jobs has shown that he likes maximum control and taking the traditional cell phone carriers out of the equation is just the next logical step.


bruinsrme said:
I don't know, apple doesn't seem to be a company that cut prices on services.
Then again, Why would apple want to enter into the dirty world of providing phone service, let alone cut prices and profit.
Click to expand...

To improve customer service and to stifle the competition.
 
This would be like saying Apple should buy Disney because that way they could produce all the content they wanted, in the exact way they wanted, and then sell it on iTunes for a reduced price to make customers happy. It's just the next logical step in their quest to sell content...

Clearly, either move is unlikely to happen.
 
SomeDudeAsking said:
It's just logical for Apple to buy up AT&T and become a wholly integrated cell phone carrier company that makes both the phones and operates the network. This provides the maximum control that Apple desires. It will then be able to lock out everyone on the whole consumer chain and Apple will control EVERYTHING. No longer will Apple have to put SIM chips in the phone, it will just do everything through iTunes. Android phones? No way in hell.

If Apple does it right and reduces the prices for monthly plans, then I'm all in support of it. If Apple simplifies the monthly plans so that they are truly unlimited without all the extra hidden fees for basic features like caller ID, then I'm all for it.
Click to expand...

I think it makes sense for Apple to buy the whole world. I mean it make sense because this way SJ can control the whole world and get rid of all android phones. DUH
 
SteveAbootman said:
This would be like saying Apple should buy Disney because that way they could produce all the content they wanted, in the exact way they wanted, and then sell it on iTunes for a reduced price to make customers happy. It's just the next logical step in their quest to sell content...

Clearly, either move is unlikely to happen.
Click to expand...

Apple doesn't make any profit from the content sold on iTunes because iTunes is run as a break even operation. Besides, the content sold on iTunes are already under Apple's control whereas right now Apple is under the control of the cell phone carrier companies. All Apple's profits are from hardware and taking out the traditional cell phone carriers means that Apple can maximize hardware profits and provide the simplified end to end consumer experience that Steve Jobs and Apple desires.
 
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It makes no sense for Apple to move into the Telecom industry outside a manufacturer. They make far more money supplying hardware to numerous providers worldwide than they would being a single carrier.
 
I don't agree it's the 'next logical step'. I can't see Apple wanted to take over the headaches of running not only a cell phone company, but a cable/internet company as well.

If this were the case...why would they have released a Verizon phone? Keep everyone contained to the AT&T network and they buy it up.

The problem is people want a choice .... they managed to squeeze out millions more sales to Verizon customers, didn't they?

You would probably just want iPhones, but they would need to make additional, non-smart phones to attract other customers who don't want smart phones. (also Android and BlackBerry make up a HUGE amount of the profit of AT&T...anyone who would just toss those customers out the window would be a fool.

Now, all of a sudden, Apple would be responsible for upkeep and upgrading of a national cell network??

Sorry Steve, it really doesn't make sense to me.
 
SomeDudeAsking said:
Apple doesn't make any profit from the content sold on iTunes because iTunes is run as a break even operation. Besides, the content sold on iTunes are already under Apple's control whereas right now Apple is under the control of the cell phone carrier companies. All Apple's profits are from hardware and taking out the traditional cell phone carriers means that Apple can maximize hardware profits and provide the simplified end to end consumer experience that Steve Jobs and Apple desires.
Click to expand...

Apple does not control any of the content on the iTunes store. Content creators choose whether or not to make deals with Apple to allow their content to be sold on the store.

Further, purchasing a network infrastructure the size, scope and complexity is a huge cost risk and overhead to Apple. A while back Disney Mobile tried to do what you are describing - sell phones and operate a wireless network. It proved not to be a fruitful endeavor. If Apple is smart they stick to doing what they are good at; creating amazing products.
 
I want Apple to focus on making MBP, iPads, iPhones, etc. I don't want Apple to have to worry about the telecom business.
 
SomeDudeAsking said:
Apple doesn't make any profit from the content sold on iTunes because iTunes is run as a break even operation.
Click to expand...

Umm, are we not reading the same financials because it's generating a nice profit given the vertical it's supporting. Running "a little above break even" is carefully chosen wording and given the volume it's something we would consider a good profit.

As for AT&T, the regulation and focus it would bring on them may not be palatable and would not be in the share holders best interest.
 
You might not realize this, but AT&T is a gigantic monstrosity of a company. It's probably more likely that AT&T would buy Apple than the other way around. Just a quick glance and the Wikipedia pages of both shows that AT&T has more money than Apple and also has close to 250,000 more employees. I hate AT&T as much as anybody, but this just simply couldn't happen.
 
This seems like a bit of a stretch. Why would apple want to buy up the second largest network provider in America when they're clearly having their own supply chain issues. Until they can control their own supply chain and move products out on their planned schedules I doubt they'll want to take on any large endeavors like that. It's been more and more obvious the last couple years that apple is far from in control of their supply chain. We've seen nothing but delays on major and minor releases like phones, computers, and software.
 
mstrze said:
I don't agree it's the 'next logical step'. I can't see Apple wanted to take over the headaches of running not only a cell phone company, but a cable/internet company as well.

If this were the case...why would they have released a Verizon phone? Keep everyone contained to the AT&T network and they buy it up.

The problem is people want a choice .... they managed to squeeze out millions more sales to Verizon customers, didn't they?

You would probably just want iPhones, but they would need to make additional, non-smart phones to attract other customers who don't want smart phones. (also Android and BlackBerry make up a HUGE amount of the profit of AT&T...anyone who would just toss those customers out the window would be a fool.

Now, all of a sudden, Apple would be responsible for upkeep and upgrading of a national cell network??

Sorry Steve, it really doesn't make sense to me.
Click to expand...

As Apple has shown, it is not about make the most sales, it is about making the highest profit margins on hardware. Who cares about Android and BlackBerry phones? They are irrelevant in the Apple hardware profit world. By buying up AT&T, Apple would be able to force much of the competition out of business since Apple now controls the network. The cell phone carrier companies are already profitable in themselves. Apple would improve the service by cutting the monthly costs to the bare minimum and simplifying the experience, just like it does with content through iTunes. Apple would operate AT&T on a break even basis just like it does with the AppStore and everything else that isn't hardware.
 
predwas said:
You might not realize this, but AT&T is a gigantic monstrosity of a company. It's probably more likely that AT&T would buy Apple than the other way around. Just a quick glance and the Wikipedia pages of both shows that AT&T has more money than Apple and also has close to 250,000 more employees. I hate AT&T as much as anybody, but this just simply couldn't happen.
Click to expand...

I beg to differ with the AT&T hate there. As per company size, Apple is worth more than AT&T.
 
I really do not think Apple would even consider for a minute the thought of buying AT&T or any phone company. Why would they want to get a hold of such a jumbled mess as a phone company? The logistics of such a company are way outside of the purview of Apple who likes a minimalist approach to business.

Recent examples of minimalism:
  • Removing MobileMe boxes and soon more game titles and peripherals from their retail store shelves
  • Not allowing Verizon to put their logo and name all over the iPhone
  • Apple is known to keep staff levels at a relative minimum, shifting engineers and software developers from platform to platform when they want to focus on a certain area
  • Plus, look at their products, they are chiefly smooth, unobtrusive and sleek, aka minimalistic.
Buying AT&T, in my mind, just doesn't fit with how Apple does things.
 
SomeDudeAsking said:
As Apple has shown, it is not about make the most sales, it is about making the highest profit margins on hardware. Who cares about Android and BlackBerry phones? They are irrelevant in the Apple hardware profit world. By buying up AT&T, Apple would be able to force much of the competition out of business since Apple now controls the network. The cell phone carrier companies are already profitable in themselves. Apple would improve the service by cutting the monthly costs to the bare minimum and simplifying the experience, just like it does with content through iTunes. Apple would operate AT&T on a break even basis just like it does with the AppStore and everything else that isn't hardware.
Click to expand...

Look dude. A company that's worth $75 Billion doesn't "buy up" a company that is worth $268 Billion.
 
Based on that logic...


Apple should buy AT&T.

Google should buy Verizon because Android is still supported most in Verizon.
 
SandboxGeneral said:
I really do not think Apple would even consider for a minute the thought of buying AT&T or any phone company. Why would they want to get a hold of such a jumbled mess as a phone company? The logistics of such a company are way outside of the purview of Apple who likes a minimalist approach to business.

Recent examples of minimalism:
  • Removing MobileMe boxes and soon more game titles and peripherals from their retail store shelves
  • Not allowing Verizon to put their logo and name all over the iPhone
  • Apple is known to keep staff levels at a relative minimum, shifting engineers and software developers from platform to platform when they want to focus on a certain area
  • Plus, look at their products, they are chiefly smooth, unobtrusive and sleek, aka minimalistic.
Buying AT&T, in my mind, just doesn't fit with how Apple does things.
Click to expand...

You want sleek and unobtrusive? Then you should support Apple buying AT&T since Apple would make it so that you wouldn't even care about what network you are running on, just that you are using an iPhone. Apple already has all your contact and credit card info and the monthly charges would just show up on your iTunes account. When you buy an iPhone, there will be no hassle in deciding what network you can run on or even to consider. It simplifies the experience and focuses it on the iPhone.
 
Also, Speck Products should buy up Wal-mart so they can have complete control over how to sell their iPhone and iPod accessories.
 
predwas said:
Look dude. A company that's worth $75 Billion doesn't "buy up" a company that is worth $268 Billion.
Click to expand...

You have your thoughts backwards. Apple is worth $268 billion, AT&T is worth $75 billion. Not the other way around. Apple can afford AT&T.


predwas said:
Also, Speck Products should buy up Wal-mart so they can have complete control over how to sell their iPhone and iPod accessories.
Click to expand...

If they can afford it, then do it.
 
SomeDudeAsking said:
You want sleek and unobtrusive? Then you should support Apple buying AT&T since Apple would make it so that you wouldn't even care about what network you are running on, just that you are using an iPhone. Apple already has all your contact and credit card info and the monthly charges would just show up on your iTunes account. When you buy an iPhone, there will be no hassle in deciding what network you can run on or even to consider. It simplifies the experience and focuses it on the iPhone.
Click to expand...

Support it? It's a stupid idea. iPhones are sold all over the world, on hundreds of carriers, it would be completely stupid for them to put all their focus onto one carrier in the US, especially since they just launched the Verizon iPhone. " Apple already has all your contact and credit card info" - no they do not. You don't have to buy an iPhone from Apple, nor use your credit card with them for any purpose
 
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