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AT&T iPhone Exclusivity Originally Scheduled Through 2012

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Engadget digs up some 2008 court documents that confirm that Apple and AT&T's original exclusivity agreement did, in fact, extend into 2012. From a court order (PDF):
The Agreement, which lasts until 2012, provides that iPhone purchasers who want voice and data services must sign a two-year service contract with ATTM. (Complaint P30.) Although the Agreement itself is not public, some of its provisions have been revealed in the press.
The 5 year timeframe was originally revealed by USA Today back in 2007. A 5 year contract would have maintained AT&T iPhone exclusivity into 2012.

However, at this point, it's not entirely clear if the original contract still stands. The Wall Street Journal reported in 2009 that AT&T's iPhone exclusivity is due to expire this year (2010). Apple and AT&T may have undergone contract revisions and negotiations since that time. Most industry experts seem to believe that AT&T exclusivity comes to an end this year with several whispers that Apple will bring the iPhone to Verizon's network in 2010.

Article Link: AT&T iPhone Exclusivity Originally Scheduled Through 2012
 

darwen

macrumors 6502a
Apr 12, 2005
668
12
California, US
This rumor is so tired.

It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

Apple is with AT&T because they want to be. If they wanted to be on another carrier (ANY other carrier), they would be.

edit: I'm getting some hate so I'd like to explain. The cost is not minimal. Factories must be retooled when a product changes from version to version. A CDMA iPhone may cost just as much to manufacture on a unit by unit basis, however Apple is not making just one unit. If they make a CDMA version they must setup an additional factory to assemble it. If factory A outputs even the smallest margin more than factory B, it costs more to make phones in factory B. We are not talking about a small margin though, we are talking about carriers across the world vs an individual carrier.
 
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gwangung

macrumors 65816
Apr 9, 2003
1,106
19
This rumor is so tired.

It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

With current networks---not as much as the forthcoming ones.

With forthcoming networks---well, now, that's interesting. And it depends on how well you crunch the numbers...
 
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icyfire

macrumors 6502
Jan 6, 2010
285
4
Damn dumb move Apple. If this agreement is still standing, they have effectively shut themselves off from half of the market for 2 years longer than necessary. Good initially when there was no competition but bad now with the plethora of Android phones coming out.
 
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bobsentell

macrumors 6502a
Nov 14, 2008
836
0
Alabama
This rumor is so tired.

It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

Apple is with AT&T because they want to be. If they wanted to be on another carrier (ANY other carrier), they would be.

I agree. As long as V uses a different radio standard than the rest of the world, iPhone will NEVER come. As for possible changes to the contract, most changes result in extensions. Apple is not going to punish AT&T because of network issues in three cities. The fact AT&T has eclusivity on the iPad should be a clue. (I know it is "technically" unlocked, but they are using a sim standard that is currently exclusive to AT&T.)
 
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HiRez

macrumors 603
Jan 6, 2004
5,946
1,926
Western US
Why would AT&T renegotiate to end exclusivity earlier? Isn't the whole point of the contract to make sure Apple doesn't jump ship on them?

Having said that, I sure hope the contract is shorter because everyone and their grandmother now knows AT&T sucks and is ruining a great product (or products, if you include the iPad).
 
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cmaier

macrumors Core
Jul 25, 2007
19,713
20,635
California
The 5 year date, coupled with the small benefit-to-cost of supporting CDMA before Verizon switches to LTE, has been repeated over and over, but people instead just insist on clinging to every goofy analyst guess.

My installation last night of an AT&T microcell is looking better and better :)
 
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apple101

macrumors regular
Jan 15, 2008
126
0
New Jersey
It better come to a new network, I'm on Verizon and been waiting since October since a phone update. I will be disappointed if it's not coming to Verizon. I'm not buying Android!
 
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newdeal

macrumors 68020
Oct 21, 2009
2,388
1,506
...

Apple could still sell a million iphones on verison so its definately worth it for them to do and I am sure there isnt much work to doing it because if there was there would be NO phones on verison
 
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HiRez

macrumors 603
Jan 6, 2004
5,946
1,926
Western US
It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

30 million current Verizon subscribers and many more who would upgrade earlier in order to jump off AT&T, plus many more who would probably sign up from Sprint and T-Mobile but have been put off by all the horror stories. Yes, AT&T really is that bad. So bad that many, many people who otherwise LOVE the iPhone are either abandoning it, or are strongly considering it just because of the carrier. Tens of millions of potential additional devices is pretty good incentive to make a special CDMA model, even if it is just one carrier (although I think Sprint also uses it, don't they?).
 
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ThunderSkunk

macrumors 68040
Dec 31, 2007
3,016
2,602
Milwaukee Area
Hey, I no longer care.

I'll pay the unsubsidized price for the iphone, and use it as a more portable/capable ipad.

Skype rules. $30 a year for a #, and $3 a month for unlimited crystal clear service.

Screw you, AT&T!
 
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rayray5884

macrumors newbie
May 10, 2010
8
0
It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

The incentive is to stop those on Verizon (an other non ATT networks) from getting comfortable with Android and to a much lesser extent, Palm. The radio technology used by V or ATT is not new and untested and they wouldn't be reinventing the wheel, just swapping out a chip. Even if there is a premium to add a different chip, you'd be gaining customers that would be more likely to stay loyal to the brand, instead of trying out the competitors product because it's the best choice on that network. The longer the iPhone isn't on any other network, the more time customers have to cozy up to Android phones on other networks. They need to get on other networks as soon as possible.

All that said, the rumor is pretty tired. We won't know what the plan is until someone officially tells us, or a Verizon tester get's drunk in a bar and "accidentally drops it"!
 
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cmaier

macrumors Core
Jul 25, 2007
19,713
20,635
California
Apple could still sell a million iphones on verison so its definately worth it for them to do and I am sure there isnt much work to doing it because if there was there would be NO phones on verison

Your logic is faulty. The fact that there are phones on verizon doesn't mean there isn't a lot of work involved in creating and supporting such phones.
 
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JakeTheMac

macrumors regular
Jan 19, 2010
100
0
More proof of no new verizon iphone for a while if ever. Apple is happy with AT&T. If they weren't they would not have made the iPad AT&T sim card. There agreement is only for the iPhone. They probably signed one for the iPad too.

No VERIZON iPhone for a while if ever!!!

Another reason why, type verizon on your Mac. Apple doesn't like the word verizon.
 
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JakeTheMac

macrumors regular
Jan 19, 2010
100
0
30 million current Verizon subscribers and many more who would upgrade earlier in order to jump off AT&T, plus many more who would probably sign up from Sprint and T-Mobile but have been put off by all the horror stories. Yes, AT&T really is that bad. So bad that many, many people who otherwise LOVE the iPhone are either abandoning it, or are strongly considering it just because of the carrier. Tens of millions of potential additional devices is pretty good incentive to make a special CDMA model, even if it is just one carrier (although I think Sprint also uses it, don't they?).

Any sources or is this just a rant?
 
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JAT

macrumors 603
Dec 31, 2001
6,473
124
Mpls, MN
I agree. As long as V uses a different radio standard than the rest of the world, iPhone will NEVER come. As for possible changes to the contract, most changes result in extensions. Apple is not going to punish AT&T because of network issues in three cities. The fact AT&T has eclusivity on the iPad should be a clue. (I know it is "technically" unlocked, but they are using a sim standard that is currently exclusive to AT&T.)

Exclusive standard? Oxymoron much? It's just a smaller piece of plastic, the actual electronics are exactly the same. Plus, Apple said it is not locked to one provider. (you know, as opposed to a newspaper or MacRumors) That isn't "technically", that is "actually".

And you guys are wrong about the Verizon technology. It is probably already done (4 years ago), Apple tests many things. It's not like they have to design a radio chip from scratch, there are already ICs that would work. They would just need to communicate with it with their Phone app and OS, so a bit of extra programming. Again, probably already mostly ready to go if they chose to or were allowed to by contracts and Verizon's idiocy.

Not that it matters to me, I want these devices on TMobile.
 
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mj1108

macrumors 6502a
Apr 7, 2007
615
376
California
This rumor is so tired.

It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

The incentive? Marketshare. They'll sell without a doubt. It's stupid to think that this is a bad idea in any way.

Apple is with AT&T because they want to be. If they wanted to be on another carrier (ANY other carrier), they would be.

Apple is with AT&T because AT&T throws money at Apple while screaming "PLEASE DON'T LEAVE US".
 
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cleric

macrumors 6502a
Jun 7, 2008
533
0
Who the hell wants a CDMA iPhone anyways, all my calls can go to voicemail while im streaming a podcast sweet!
 
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Ubuntu

macrumors 68000
Jul 3, 2005
1,885
213
UK/US
Hey, I no longer care.

I'll pay the unsubsidized price for the iphone, and use it as a more portable/capable ipad.

Skype rules. $30 a year for a #, and $3 a month for unlimited crystal clear service.

Screw you, AT&T!

Just out of curiosity are you allowed to use Skype on the cellular network in America? In the UK we can only use it on wifi, just wondered if that was global.

ubuntu
 
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RonHC

macrumors 6502a
Apr 27, 2010
996
6
If it ends on June 2012, then that could mean [if it were to happen on 2012] Verizon would only have about 6 months before the end of the word

AT&T is smart
 
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