This is one thing that I really don't care about. My iPhone has worked well wherever I have been. People like to talk and usually exaggerate about how quickly they would change. My thinking might be different if I lived in NYC or SanFran, but I don't, so it really hasn't affected me.
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AT&T iPhone Exclusivity Originally Scheduled Through 2012
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Vote with your feet
When my contract is up, then I'll be moving to a basic phone (not on ATT) and getting the iPad with the savings.
Apple is only going to get the message that nobody likes ATTs service when people stop buying their phone. Jobs isn't listening to anyone about ATTs ****** service. Its a shame when you produce a world class device and then hobble it to a 2nd rate carrier.
When my contract is up, then I'll be moving to a basic phone (not on ATT) and getting the iPad with the savings.
Apple is only going to get the message that nobody likes ATTs service when people stop buying their phone. Jobs isn't listening to anyone about ATTs ****** service. Its a shame when you produce a world class device and then hobble it to a 2nd rate carrier.
Who is this nobody that you speak of? There are all kinds of people who are happy with AT&T, I am one of them. Please do not speak for me.
The OS and hardware were not demoed in this case. Cingular/ATT has said many times that they signed a contract, sight unseen. As the NY Times quoted Cingular executives:
According to a combination of articles and interviews, we know the timeline:
- Proposed to Cingular in early 2005.
- Proposed to Verizon in mid 2005.
- First mockups using iPods fall 2005.
- Engineering design began late 2005.
- OSX port began January 2006.
- Exclusive signed with Cingular mid 2006.
- iPhone first shown to Cingular CEO December 2006.
- iPhone debut January 2007
So at most Apple could've shown an iPod with some early dummy phone menus back in 2005. To Verizon, this must've surely seemed like a repeat of the ill-fated ROKR.
My point, which you are obviously missing as well, is that the smartphone market is big, and growing bigger by the day. Look at how many smartphones were available 5 years ago...then 3 years ago...now today??
If your argument is "keep it exclusive to ATT because there exists ONLY a market of 26,880,000 (YOUR number of 16% multiplied by the other 3 carriers' customer base) customers who would buy a smart phone, then I hope you are not in a position of making large decisions at your current place of employment.
I don't think anyone saw the smartphone market being what it is now in mid-2010 way back in early 2007...so suffice it to say that the above customer base is probably going to only get bigger next year, and the year after. And also considering that between the time the first iPhone launched and today, there has been a massive amount of market parity...iPhone is not the only "awesome" touchscreen only smartphone on the market.
If the exclusivity had ended last years versus still going on right now, Android would NOT have passed iPhone OS to become the 2nd most used smartphone platform in the US. Period.
You're obviously right but....
Isn't Job's and Co. used to being "mimicked" yet? Did no one think "If we make the most innovative phone ever, no one will try to do something similar". If so, then that was a big mistake...probably just as big as a 5-year exclusive agreement.
And not to move off-topic too badly, but a 4g-enable HTC EVO this summer, in a 4g market (there are lots of them), on Sprint, pulling down video at 3-6mps is going to absolutely ROCK. Now why wouldn't Apple want to be running on a network like THAT, versus what they're running on now?!?!
Oh yea, and that EVO will have what else, Android.
There will not be a Verizon phone until they upgrade (LTE) their network to be able to utilize the full features of the iPhone. Voice and data simultaneously! The reason Verizon's network stands out is that it is "old" technology thats been built out. Works great, but unfortunately it is dated! Don't forget that
AT&T switched over to GSM, so their network is not as well developed, but it is capable of more services than Verizon's CDMA. Those services can be utilized by the iPhone.
AT&T switched over to GSM, so their network is not as well developed, but it is capable of more services than Verizon's CDMA. Those services can be utilized by the iPhone.
fine with me! Been with ATT for over 12 years, way before the cingular days and have never had any issues!
Where did I make any of the arguments you attribute to me? All I did was point out the flaw in your logic. You asserted that every Verizon, tmobile and sprint customer could buy an iPhone. I pointed out that at best 20% of them are in the market for smart phones.
Of course, your logic remains faulty. They wouldn't be able to sell 27million as you assert. Most likely they would maintain something close to their overall marketshare, so 27 million x 15%. Call it 4.5 million sales.
Didn't they sell something like 8 million iPhones worldwide last quarter?
If you are going to rely on numbers to prove your point, you can't complain when someone points out the flaws in your math. Despite your accusations, I made no comment as to whether the market is big enough to be worth it to apple. All i did was prove it isn't as big as you claim.
Of course, your logic remains faulty. They wouldn't be able to sell 27million as you assert. Most likely they would maintain something close to their overall marketshare, so 27 million x 15%. Call it 4.5 million sales.
Didn't they sell something like 8 million iPhones worldwide last quarter?
If you are going to rely on numbers to prove your point, you can't complain when someone points out the flaws in your math. Despite your accusations, I made no comment as to whether the market is big enough to be worth it to apple. All i did was prove it isn't as big as you claim.
ATT Shame..
ATT isn't a company anyone should be giving money too.
See for yourself..http://www.youtube.com/watch?v=iMFmKg0k8cY
ATT isn't a company anyone should be giving money too.
See for yourself..http://www.youtube.com/watch?v=iMFmKg0k8cY
One potentially good reason for Apple to offer a Verizon phone in addition to an AT&T phone relates to platform lockin.
Once you start purchasing apps (whether for the iPhone or the Android) you are much less likely to switch to another platform since all of your purchased apps would then be worthless.
The longer that the iPhone is exclusive to AT&T, the more people on other networks will be buying into the Android platform. Those customers will be less likely to switch to an iPhone in the future. These aren't just lost sales in the immediate future, they may be lost sales in the longterm.
Obviously I can't project the size of this lost revenue, but it is easy to imagine it being larger than the added costs associated with producing a CDMA iPhone.
Once you start purchasing apps (whether for the iPhone or the Android) you are much less likely to switch to another platform since all of your purchased apps would then be worthless.
The longer that the iPhone is exclusive to AT&T, the more people on other networks will be buying into the Android platform. Those customers will be less likely to switch to an iPhone in the future. These aren't just lost sales in the immediate future, they may be lost sales in the longterm.
Obviously I can't project the size of this lost revenue, but it is easy to imagine it being larger than the added costs associated with producing a CDMA iPhone.
I too have heard the Dec 2010 speculation. Why that date and based on what source, I don't know.
If true it would mean one of two things:
June-July's phone will have the necessary hardware but not firmware. People will be tipped off at that time that it's a matter of time that Apple will be opening up the phone of additional carriers with a firmware update, but when will still be a mystery.
Or June-July's phone will not have the necessary hardware, and Apple will do an off cycle hardware refresh in December when the new carriers will be available.
Better illustrated here
Sorry, this better illustrates AT&Ts commitment to progress !
http://www.youtube.com/watch?v=8R7MNnoYktMhttp://www.youtube.com/watch?v=8R7MNnoYktM
JP.
Sorry, this better illustrates AT&Ts commitment to progress !
http://www.youtube.com/watch?v=8R7MNnoYktMhttp://www.youtube.com/watch?v=8R7MNnoYktM
JP.
I thought that Gizmodo couldn't see inside the metal cans covering most of the chips.
Or did they manage to see the radio chip markings? If so, link please, someone? Thanks!
Heh, let's split the difference and go with 11 million/year (per a BroadPoint analyst) on Verizon, with 19% of Verizon customers "very likely" to buy an iPhone and 34% "somewhat likely," per this ChangeWave survey:
http://www.computerworld.com/s/article/9176349/Verizon_customers_lust_for_iPhone_says_survey
The sales potential for a Verizon iPhone is huge. It would be a real shame for Apple to continue to ignore that market, especially with Android coming on strong.
Is this news?
This was known 3 years ago when iPhone first came out. Everyone knew it was a 5 year deal, not sure why people surprised now.
This was known 3 years ago when iPhone first came out. Everyone knew it was a 5 year deal, not sure why people surprised now.
Great point! And Cmaier....I'm NOT saying that every customer of the other 3 would buy an iPhone...I'm not even saying that every smartphone customer would buy one.
Let's look at it this way: Apple didn't make a smartphone thinking "how FEW of these can we sell" which sounds like the argument you're making: how FEW people on other carriers would buy it, so why bother moving the exclusivity.
The argument I'm making is: what is the possibility? There DOES exist a market of 168 million cell phone users at other carriers. There DOES exist a market of 27 million smartphone users (using your numbers). There WOULD be smartphone users, on other carriers, who WOULD buy the iPhone if it was available on their carrier. There are dumbphone customers who WOULD try an iPhone if it were on their carrier.
Plus, take it one step further. How many people on the other big 3 currently DO NOT have an iTunes account? A MobileME account? So the potential is NOT just the iPhone (once again, start thinking like Apple and quit thinking in whatever other way it is that you're thinking if you're against ending this exclusivity). How many of these people will start putting more and more money in Apple's pockets in ways other than just the iPhone hardware?
I know a lot of people here don't like the idea of "just anyone" owning a Mac, but how many people at ATT got their first Apple product because of their cellphone provider? How many of these people experience Apple by means of the iPhone and then think maybe they'd like an iPod Touch? An iPad? Maybe venture up to the high end and try out the basic Macbook now because of it?
I guess my overall point is: the upside potential for corporate earnings and new customers is greater when you service the entire market, not just a sliver of it. And in such a competitive market (Android) there are other providers who are not playing around and who intend to take some serious market share away from Apple and RIM. And if you were most recently unseated from your #2 position in this market, then maybe now is not the best time to continue to lock yourself into a single corner that you cannot get out of and allow another competitor to eat into your space everywhere else. While Apple continues to serve 85 million customers, Android can reach 250 million customers in the convenience of their "home carrier". Apple cannot do this. It has become a negative, not a positive, for Apple as a provider of mobile phone software platforms.
Yep.
Verizon folks can wait and hope, or switch and enjoy (as there are plenty of folks out there with good experience with AT&T). Their choice.
You are 100% correct. I have abandoned my iPhone and paid the early termination fee because I couldn't deal with AT&T's horrible service.