AT&T iPhone Exclusivity Originally Scheduled Through 2012

[cvaldes]

If the iPhone doesn't leave ATT, I'm just gonna jailbreak and use my iPhone over 3G for EVERYTHING.

It is extremely unlikely that Apple would leave AT&T. More likely, they would simply add more carriers.

Let's face it: the fact that Verizon CEO Ivan Seidenberg practically begged for the iPhone a month or two ago indicates that they are not getting the iPhone in the near future. Apple's partners generally clam up real quick when there's a deal in the works.

Plus, there is no indication that Apple has been heavily hiring CDMA engineers. The tech media would have reported this if it started happening.

Verizon users aren't getting an iPhone this year.

 

[goobot]

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).

if Verizon had it it wouldnt even be good enough to be a coster.

 

[inkswamp]

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.

It would make a great deal of sense for Apple to get the iPhone on as many carriers as they can.

Most of the Android owners I know wanted iPhones but settled with Android as a second best scenario as they didn't want to switch carriers or had a (likely justified) resistance to AT&T. Many potential corporate customers are bound to a specific carrier, not all of them AT&T. And as for extra cost of production and the rest of the planet using GSM, we're not exactly talking about a tiny country with the U.S. are we? There are plenty of potential customers in the other U.S. carriers to make it worth the effort.

 

[Arms19]

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.

It would not make sense for the iPhone to go to Verizon. Most of the world uses GSM. Verizon would probably be one of few - if - Apple ended its exclusive contract with AT&T. I am guessing, that if the exclusive contract does end, Apple will just add carriers to the list, and not take away any. Going over to a non GSM (Verizon) would mean that Apple would need to manufacture new assembly lines, phones, and parts. It would cost a lot more for them to do this, then for them to put the iPhone on non GSM carriers (Verizon). For now anyway.

 

[inkswamp]

This statement would hold water if it wasn't CURRENT AT&T CUSTOMERS doing most of the complaining about the service. So how exactly does "iPhone envy" (whatever that means) play into this?

Verizon Customers Suffer from iPhone Jealousy, Says Survey

 

[crackbookpro]

Steve's iPhone runs on Verizon.

Funniest post I've seen on here in awhile... 😛

love it!

 

[ethana]

This site is called MacRUMORS <---

Why don't you all wait until June is over with before you go out and buy a Droid. If there is still no Verizon, then go for it. But you will seriously regret it if you sign a 2-year contract one month before the Verizon announcement.

 

[Arms19]

Lol. You never went to AT&T and therefore, we can assume you never had an iPhone either. So how did you conclude the HTC Incredible kicks the iPhones ass? Lol.

Probably because you can't get any other decent phone on Verizon. That's the reasoning more than likely.

Nice try though 😀

I am sure if you had an iPhone - you wouldn't be saying that. This is coming from a previous Apple/iPhone hater back when it first came out. Let me share a little secret - people don't rant and rave about the iPhone because it's crap. They rant and rave because it REALLY IS the BEST phone out there. Period. Trust me - it's not all "lies".

Lol. Go give it a try and you will see.

You my friend, have pretty much summed it up. I hated the iPhone when it first came out, simply because I couldn't get one. But when I switched over, I couldn't put it down. People who hate the iPhone, hate it, because they can't have it. I can't imagine me holding a phone that is not the iPhone.

 

[rwilliams]

Verizon Customers Suffer from iPhone Jealousy, Says Survey

But we're not discussing Verizon customers. We're talking about current AT&T customers complaining about the terrible coverage, which the other guy somehow attributed to "iPhone envy". What that genius failed to realize is that these people posting here about their hatred of AT&T are already using iPhones.

 

[goobot]

What ever happened to iPhone tethering?

AT&T will happily tether a Blackberry. Why not the iPhone?

it thinks its cause att wants to give users a small amount of free tethering but cant yet. also there are so many more iphones then bb and the iphone sucks more data then a bb using the same site.

 

[jhip20]

This statement would hold water if it wasn't CURRENT AT&T CUSTOMERS doing most of the complaining about the service. So how exactly does "iPhone envy" (whatever that means) play into this?

I am an AT&T customer... I have the iPhone... I have lived and traveled all over the US...

AT&T is getting more and more coverage every day. Personally, I have had very little issues with AT&T's network. Even in the most rural areas where there is no 3G, I have had service even where Verizon customers have not.

Every network has their issues and AT&T is no exception. Im just saying its not nearly as bad as people make it out to be. Check the iphone first. Replace the sim and exchange the iphone if need be, if you still have problems, then maybe AT&T isnt for you. That doesnt make Apple a bad company, it just means you have to use the alternative.

 

[jayducharme]

Damn dumb move Apple.

Remember that at the time the iPhone was developed, Apple was a persona non grata in the telecommunications industry. They had shopped the iPhone to Verizon, who turned it down. Apple wanted to upend the traditional (and lucrative) model for the mobile phone industry. AT&T was hungry and they agreed to Apple's terms. Considering what Apple was asking of them, I'm not surprised that they demanded and got a five year exclusivity agreement. It turned out to be a good move for AT&T.

I'd bet that Verizon will get the iPhone -- in 2012, when both AT&T and Verizon have implemented 4G and Apple needs to make just one phone for both companies.

 

[BigTRQ]

Why do folks think that Apple wouldn't build an iPhone for Verizon mostly due to cost? RIM makes Blackberrys for GSM and CDMA all day, every day. Not hurting them financially.

Jobs wants more market share, plain and simple. Ask him if he take more market share at the cost of making a CDMA phone, and I bet he'd say "yes." The $ talks, and Apple listens. Things just need to get to a point where Apple needs to branch out as opposed to wanting to branch out. I'm sure they're none too happy that the Android platform outsold the iPhone for this quarter.

 

[jhip20]

I'd bet that Verizon will get the iPhone -- in 2012, when both AT&T and Verizon have implemented 4G and Apple needs to make just one phone for both companies.

This is exactly my point. Once a new standard is rolled out, and its just a matter of time, Apple will switch to it. If AT&T doesn't switch as fast as Verizon, then Verizon will have the new iphones and AT&T wont.

 

[Arms19]

But we're not discussing Verizon customers. We're talking about current AT&T customers complaining about the terrible coverage, which the other guy somehow attributed to "iPhone envy". What that genius failed to realize is that these people posting here about their hatred of AT&T are already using iPhones.

What? Do you even have AT&T? And if you do, do you live in some no where town? Because I have been many places with my IPhone and I have had good coverage. This has been the classic iPhone smiting slogan for too long. AT&T has pretty good coverage. Please know what you are saying before you comment.

 

[kdarling]

BUT apple did have every intension of being exclusive in their design. What happened cant be changed but if it could, we would be seeing this exact same argument from the other side trying to get Apple to go GSM.

That's the common myth, but Apple didn't go to Verizon first or seem to want an exclusive. They went to Verizon while they were still talking to Cingular, meaning they most likely were willing to build both CDMA and GSM versions like every other phone maker does.

Cingular knew about Jobs' plan to make his own phone in 2005. However, no contract was signed between Cingular (later ATT) and Apple until summer 2006.

In the meantime, according to the Wall Street Journal's original iPhone history article:

While Mr. Jobs considered Cingular a logical choice as a partner to carry the device -- its GSM technology is the prevailing standard in much of the world -- Apple continued to shop its ideas to other carriers.

Mr. Jobs reached out to Verizon Wireless chief executive Denny Strigl in the middle of 2005 and proposed a partnership with the carrier...

It's too bad Apple didn't begin designing the phone in earnest until late 2005 / early 2006. Verizon might've been more interested if they'd actually ever seen a device.

 

[jhip20]

Why do folks think that Apple wouldn't build an iPhone for Verizon mostly due to cost? RIM makes Blackberrys for GSM and CDMA all day, every day. Not hurting them financially.

Jobs wants more market share, plain and simple. Ask him if he take more market share at the cost of making a CDMA phone, and I bet he'd say "yes." The $ talks, and Apple listens. Things just need to get to a point where Apple needs to branch out as opposed to wanting to branch out. I'm sure they're none too happy that the Android platform outsold the iPhone for this quarter.

But Apple is known for snubbing companies that dont support them. Take the flash vs. HTML5 controversy. Apple has repeatedly shown that they will indeed wait for a better technology that is being developed rather than bow to pressure just to make people happy. They are a company focused on the future - there is no denying this.

 

[jhip20]

Actually, If I recall correctly, back then, version was researching possibly switching their network to GSM. I may be off on this one but I had read that somewhere.

 

[goobot]

What? Do you even have AT&T? And if you do, do you live in some no where town? Because I have been many places with my IPhone and I have had good coverage. This has been the classic iPhone smiting slogan for too long. AT&T has pretty good coverage. Please know what you are saying before you comment.

i agree

 

[cmaier]

What? Do you even have AT&T? And if you do, do you live in some no where town? Because I have been many places with my IPhone and I have had good coverage. This has been the classic iPhone smiting slogan for too long. AT&T has pretty good coverage. Please know what you are saying before you comment.

In many locations in Silicon Valley (Page Mill Rd. in Palo Alto, large swaths of I280, various parts of Campbell and Los Gatos,) service is spotty, at best. In some places there is simply no service at all, and in many places, even when the phone shows multiple bars and 3G is indicated, no data gets through. (This frequently happens to me in Sunnyvale and Palo Alto). I've also had very bad service in midtown Manhattan (particularly midtown east of Lex.) and in Washington, D.C. I've not been anywhere where I've had service as reliable as my old Sprint Treo 650 was. (I'm an iPhone user, and have owned two or three of every model iPhone since launch).

I live in Silicon valley and in my house I typically have 1 bar and lots of dropped calls. Last night I installed a microcell, and I can finally use my phone after all these years. Sprint and Verizon show 5 bars here.

 

[rwilliams]

What? Do you even have AT&T? And if you do, do you live in some no where town? Because I have been many places with my IPhone and I have had good coverage. This has been the classic iPhone smiting slogan for too long. AT&T has pretty good coverage. Please know what you are saying before you comment.

And please don't jump into the middle of a conversation without knowing what the hell is actually being discussed. I never said I had AT&T. Go back, reread the entire conversation that I was in, and then come back with something useful. I'm not gonna hold your hand and make up for reading you should have done.

 

[BigTRQ]

But Apple is known for snubbing companies that dont support them. Take the flash vs. HTML5 controversy. Apple has repeatedly shown that they will indeed wait for a better technology that is being developed rather than bow to pressure just to make people happy. They are a company focused on the future - there is no denying this.

No doubt that Apple is quite good at holding grudges, or hold out for what they want. But don't you think if Android posts more quarterly "wins" over iPhone that Apple won't want to stop that trend? There's holding grudges, and then there's just plain idiocy.

 

[jrhone]

Let me ask this question.....When your Moto Razr dropped a call what did you do? Hit redial...When your Palm OS based smartphone dropped a call what did you do? Hit redial...when your iPhone drops a call what do you do? o to the Apple store and B*tch about it instead of hitting redial! I have had MANY blackberry phones on various networks and now my iPhone service in SoCal is JUST AS GOOD as any of the other ones. I was in an Apple Store and a family was buying an iPad...they said they wouldnt buy an iPhone because of ATT and they were Verizon customers...another customer said he was a sales Rep..had to use Verizon for work and had an iPhone personally...he said that HANDS DOWN he got better service THROUGHOUT THE COUNTRY on ATT. Verizon would be no better with the iPhone than ATT...period.

 

[jhip20]

No doubt that Apple is quite good at holding grudges, or hold out for what they want. But don't you think if Android posts more quarterly "wins" over iPhone that Apple won't want to stop that trend? There's holding grudges, and then there's just plain idiocy.

But this is what we will see for a while. Apple releases a device, android, over the next year, develops technology to try and surpass the current iphone. A year later, Android has a great phone but then Apple releases another new model that blows the current android away. Apple doesnt mind waiting. The wait for Apple will be over in a couple months when the new iphone model floods the market.

 

[btrav13]

If you think about it logically from a business perspective from Apple's side:

90 million VZN customers
45 million Sprint customers
33 million T-Mobile customers...

RIGHT AT THIS VERY MINUTE

So, you're Apple, and you're looking at 168 million customers who, as of yet, have NOT left their carrier for your product. It's been 3 years now, I think that most of the people who were leaving for the iPhone have. I saw an article TODAY on Engadget from a research firm showing that Android is now the 2nd most used mobile platform behind RIM, unseating the iPhone OS.

We can speak about the "technological difference between GSM and CDMA" all day...and it doesn't change the fact that CDMA handles data traffic MUCH better than GSM. It doesn't change the fact that many other wireless device makers make the same devices for every single carrier. Right now, if you're at any carrier other than ATT you can get Android...and multiple choices of it.

When the exclusivity ends is not the problem...it's what Apple is losing in market share in mobile in the mean time that does matter. ATT has gotten so bad with service that even the late night talk show hosts are slamming them. Perception DOES equal reality.

If the market leader in mobile OS makes devices for two wireless platforms, then Apple can do the same. But choosing to lock yourself up for extended periods of time with one carrier is foolish, and that's starting to show now. Unfortunately for Apple, it will probably still cost them market share even when they do open up to other carriers as folks will already have adapted to Android, which for all intents and purposes, honestly does work better. It seems like Apple is now playing catch-up to Google in the very area where Apple pulled off the reinvention of the product.

Don't get me wrong, I'm not an Apple basher (new MPB, iPad, iPod Touch are all right here on my desk), but from a business perspective IN THE LONG RUN, this exclusivity hurts rather than helps. Android will reach ever single wireless customer in the US, regardless of carrier (I'm speaking about the big 4, not rural carriers) while Apple will continue to only serve the 80 million on ATT right now. That's it. So plain and so simple that any argument that only using 1 wireless technology when two are available is foolish.

And by the way, CDMA is used in many other large countries besides the US. And further, all CDMA carriers have at least a couple of phones that run dual chipsets (CDMA+GSM) to serve their "travelling over seas customers". Apple could pull that off as well and continue to serve US customers travelling abroad.