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Honestly I cannot imagine why Apple would want to become its own cellular network. There is no tangible benefit to their trying to compete against established service provides like Verizon or AT&T, especially in a system where they leased tower access from those same companies.

Leasing the towers wouldn't afford them any more granular control of the iPhone ecosystem than they have now. It would not provide greater call or cellular data stability (likely the opposite). There is just no net benefit... only costs associated with leasing towers, processing customer billing, transitioning customers off existing company accounts over to Apple.

For what? Creating an even further walled-garden for the iPhone? I don't see it happening any time soon.

Reason would be a business reason - you do this if you are testing the waters to becoming a network supplier. If you get a big enough uptake you then start to build your own network, and then you have complete autonomy of your own global network and the ability to kill off the competition. the synergy to provide cellular coverage across the world, means Apple could offer flat rate fees (elevated) for travellers to continue to use their network wherever they are in the world, not just on iPhone but across the FULL range of their product range. It's world domination... And the mere fact that Apple would be competing against has never stopped them before...
 
Since when does Apple respond to rumors?
What I think is interesting is they specifically came to deny this rumor, but didn't deny the BMW talks, the upcoming Apple TV leaks, or even the iMac 8K slipup.

Interesting...

Right - there's not some conspiracy theory to derive from this.

The appropriate conclusion is simple: One of the following two scenarios. Either:
* The rumors were hurting or risking business relationships - perhaps AT&T or Verizon felt threatened by it and reacted
or
* The rumors were causing investor reaction that could significantly affect the stock value next quarter
 
It's a serious rumor which, if it were true, would mean Apple plans to compete with Verizon, ATT, TMobile, all at once. No wonder the stock went down so much so fast! Not surprised Apple have denied this one. ^_^ Cheers!
 
Yes it does.

When someone says "bigger pro iPad!" and Apple says "we have no plans" and then they change their mind later, that's fine.

But if Apple says they're not entering an entirely new line of business and then they do, that would be securities fraud and someone would definitely be going to jail.

Pretty big difference between the two.

Read their quote again. It reads the exact same way all of their denials do. They have no plans and are not currently talking with anyone. That means nothing because they could start talking to ATT tomorrow and planning and they wouldn't be misrepresenting anything.

They rarely deny anything because they rarely comment on anything. That is because they are still working closely with carriers. Apple knows that once carriers stop subsidizing $700 iPhones, Apple's sales will drop like a stone. They cannot rock the boat, at least not until they figure out how to sustain the iPhone business model beyond subsidies and broaden their product line a little.
 
But if Apple says they're not entering an entirely new line of business and then they do, that would be securities fraud and someone would definitely be going to jail.

Apple, and specifically Steve Jobs, denied any plans to enter the mobile phone business before the iPhone came out.
 
Honestly I cannot imagine why Apple would want to become its own cellular network. There is no tangible benefit to their trying to compete against established service provides like Verizon or AT&T, especially in a system where they leased tower access from those same companies.

Leasing the towers wouldn't afford them any more granular control of the iPhone ecosystem than they have now. It would not provide greater call or cellular data stability (likely the opposite). There is just no net benefit... only costs associated with leasing towers, processing customer billing, transitioning customers off existing company accounts over to Apple.

For what? Creating an even further walled-garden for the iPhone? I don't see it happening any time soon.

The only thing I see that Apple or anyone else could do here is to create an MVNO that switches between carriers. All others are still on a single network today. If someone could switch between them as they find stronger towers, that would be awesome. First you get better service. Second you get better coverage. Third you get better battery life. Hopefully someone does this at some point -- I could see myself jumping onto a service like that.
 
Apple knows that once carriers stop subsidizing $700 iPhones, Apple's sales will drop like a stone.
Subsidize infers that the carriers absorb some of the cost of the product a bit like my employer subsdizes the cafeteria at our office. Cell phone carriers simply amortize the cost of the handset over the duration of your contract and historically made out when people didn't upgrade and were now paying $30/month more than they should be!
 
Read their quote again. It reads the exact same way all of their denials do. They have no plans and are not currently talking with anyone. That means nothing because they could start talking to ATT tomorrow and planning and they wouldn't be misrepresenting anything.


Apple, and specifically Steve Jobs, denied any plans to enter the mobile phone business before the iPhone came out.

Yes, but when did he say that?

Of course they can always change their mind in the future. The point is that this proves they aren't currently in the process of doing it right now.

I suspect that this Steve phone quote came before any discussions with Cingular had occurred.
 
Why would Apple deny this? Normally they stay silent on plans, even when people guess. If I say "Apple's going to launch an Android phone!" and it's posted on a ton of websites, will Apple comment "No, we're not"?

Or is this a "We'll never make a video iPod" / "We'll never make a tablet smaller than iPad" / "We'll never make a phone you can barley rap your hand around" / "We'll never let users stream music" type of denial?
 
ya, that's a stupid idea. Whoever got it in in their heads that Apple would become a MVNO .......:p
 
Apple Doesn't have plans-its the truth a miss leading truth. They will just have one of their shell companies do the negotiations. :). Plus one of these shell companies could posibly get a better deal
 
Interesting.

So as they haven't denied developing a car, we can presume that they are.

And as they haven't denied recent reports stating that Apple Watch sales are looking awful, we can assume that they are disastrous.
 
What I think is interesting is they specifically came to deny this rumor, but didn't deny the BMW talks, the upcoming Apple TV leaks, or even the iMac 8K slipup.

Interesting...

Because those other fake rumors don't damage their partnerships with the wireless carriers that sell the iPhone.
 
Why would Apple deny this? Normally they stay silent on plans, even when people guess. If I say "Apple's going to launch an Android phone!" and it's posted on a ton of websites, will Apple comment "No, we're not"?

Or is this a "We'll never make a video iPod" / "We'll never make a tablet smaller than iPad" / "We'll never make a phone you can barley rap your hand around" / "We'll never let users stream music" type of denial?

My guess is they don't want to fuel speculation b/c AAPL would tank. Wall Street doesn't care about two-bit rumors that have marginal effect on earnings. But an MVNO would be a huge hit to earnings and Apple's cash reserves.
 
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Read their quote again. It reads the exact same way all of their denials do. They have no plans and are not currently talking with anyone. That means nothing because they could start talking to ATT tomorrow and planning and they wouldn't be misrepresenting anything.

They rarely deny anything because they rarely comment on anything. That is because they are still working closely with carriers. Apple knows that once carriers stop subsidizing $700 iPhones, Apple's sales will drop like a stone. They cannot rock the boat, at least not until they figure out how to sustain the iPhone business model beyond subsidies and broaden their product line a little.
carriers have already replaced subsidizing with financing.
 
When the rumor could hurt their existing relationships with carriers. Nip this one in the bud early so they don't have to do damage control later.
I believe it maybe the carriers who need Apple and not the other way round as you may have suggested but better to quash rumours early ......
 
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