AT&T Losing iPhone Exclusivity on Wednesday?

[Takeo]

The only reason all Canadian carriers have the iPhone now is because the CDMA ones deployed WCDMA towers, something Verizon won't do. It's a very different circumstance from what's going on in the US market.

I'm a Canadian. There is no CDMA iPhone in Canada and not all carriers have the iPhone in Canada. Three carriers have the 3G iPhone (Bell, Telus, Rogers)

 

[mccldwll]

Except that Apple contract was only for phones, not tablets. Apple has never been obligated to ATT exclusivity in regards to non-phones products. You can read my post above on why its not a good time to announce the end of ATT phone exclusivity.

Uh.............no. It's never been established that only covers iPhones. In fact, it likely would cover anything at all similar in function and technology, or anything the contracting parties agreed to. This is not Mickey Mouse stuff. But it's not a good idea to announce loss of exclusivity unless would be available on another carrier immediately.

 

[Sweetfeld28]

If this is the case and the iPhone goes to Verizon won't Apple have to introduce a new CDMA phone Wednesday also ?

No, Apple would just have to make a phone that has a combo CDMA/GSM chip in it. Verizon already uses phones like this, the BlackBerry World Phone is one of them. I don't exactly know what model of BlackBerry it is, but a coworker of mine has one.

 

[Lesser Evets]

... we're not sure how it would fit in with what is believed to be an event focused on the new Apple Tablet.

I'm not sure how that sentence fit into this rumor.

 

[GroundLoop]

RFOL, someone has been buying into too much marketing. The iPhone costs Apple around ~180 dollars to build, If even that. The 700 dollar price tag is pure markup.

The typical american balks at paying 700 dollars for a phone because he knows he is getting ripped off.

There is a lot more to the cost of an iPhone than just parts like:

-engineering (and support staff)
-fabrication subcontracts (and the contractor's profits)
-marketing (paying for elaborate keynote speeches, commercials, etc)
-training the sales staff
-training the technical support staff
-supporting free apps for the App Store (iPhone and iPod Touch do this)
-Apple profit

All of those costs are spread across the projected sales of the product. That is what determines the final wholesale price.

I am not saying that Apple adds a large margin (~45%), but it is not the 300-400% that you are describing.

Hickman

 

[Chupa Chupa]

Logically, the best time to announce it would be the earliest time before which Apple can actually release said phone. That way, all involved companies have the best opportunity to make the most money.

If CDMA is the only difference between the phones, I don't think Apple would view it as a hardware upgrade or "new release" and would quite possible release it "out of band".

It's not that slight of a difference. Apple can't just shove a CDMA chip in the iPhone and start selling. It has to go to the FCC for testing -- they do see it as a different model. That cost money, money not worth spending on a phone that will be superseded in a few months anyway. It's far more economical to drop a hybrid CDMA/GSM chip into whatever iPhone 2010 will be called. One phone for multiple carriers. That's more Apple's M.O.

Uh.............no. It's never been established that only covers iPhones. In fact, it likely would cover anything at all similar in function and technology, or anything the contracting parties agreed to. This is not Mickey Mouse stuff. But it's not a good idea to announce loss of exclusivity unless would be available on another carrier immediately.

As far as that goes it's never been concretely "established" that it covers more than phones since the terms have never been made public. However multiple people familiar with the industry norms have said in the past few years that its limited to phones. I do agree with you though that it "would cover...anything the contracting parties agreed to."🙄 Let me guess, you are either pre-law or a 1L.

 

[bobr1952]

I am very happy with AT&T--in fact I would not have bought my iPhone if it were not on AT&T since I don't want to change carriers. But I think it it good for everyone, consumers and Apple, to have the iPhone on more than one carrier in the US.

 

[CaryMacGuy]

There was a time when people chose their wireless carrier based on other factors other than the handset it carries exclusively. That was mostly because by today's standards, all the devices sucked. However, now when phone makers are making really good smartphone devices, they lock them on a particular carrier. I really hope that the iPhone (along with the other exclusive phones) get to all carriers. Let the factors that truly matter dictate what carrier to use.

 

[mrgreen4242]

As much as I really like my Pre, I would definitely consider an iPhone 3GS on Sprint. Regardless of what comes this week, it will certainly be interesting to see who had the right rumors and what stuff was completely missed by the rumor mill!

 

[Xenious]

Sigh...

I wish people here would get it. It is good when phones support the technology standards that the rest of the western world uses. We want things to be on AT&T and T-Mobile. We don't want things to be on Verizon and Sprint. We want Verizon and sprint to totally re-do their networks so finally the US can have one standard which is THE SAME as the UK, Europe and Australia. This is a reason (not the reason) why we're backwater. Change and unify the standards and things improve for the customer.

lol No I'm not pro AT&T and I'm just anti CDMA 🙂

 

[iMacoo7]

This is a quas-B.S. report. ATT may have lost its exclusivity but, if so, ATT has no idea when Apple will announce it. It won't be on Wed. Here is why:

Apple has said it's traditional iPhone launch period is June/July. We all know Apple is set in its ways on these kind of things. It makes no financial sense to make a Verizon 3GS CDMA phone or a T-Mobile 3GS compatible w/ their 3G data. And Apple is not going release a whole new iPhone which would either absorb the new tablet's excitement, or be overlooked because everyone is focusing on the tablet.

If Apple were to announce "coming to [insert carrier]" in June then that would delay sales of a lot of iPhones from people who would rather wait that contract w/ ATT. Apple's style is to hold announcement until the last minute to spare as much sale damage as possible.

So logically the time for Apple to make this announcement is at the next iPhone hardware event, say May or early June.

One point I have to disagree with you...
3GS came out before the *June/July* theory...

 

[rdowns]

I wish people here would get it. It is good when phones support the technology standards that the rest of the western world uses. We want things to be on AT&T and T-Mobile. We don't want things to be on Verizon and Sprint. We want Verizon and sprint to totally re-do their networks so finally the US can have one standard which is THE SAME as the UK, Europe and Australia. This is a reason (not the reason) why we're backwater. Change and unify the standards and things improve for the customer.

lol No I'm not pro AT&T and I'm just anti CDMA 🙂

Really? Maybe on a tech forum but 98% of all mobile phone users probably never leave the US with their phone. Most probably never leave their state. The vast majority of users couldn't care less about CDMA or GSM.

 

[SwiftLives]

I don't doubt for a minute that the tablet will have a data plan on both Verizon & AT&T's networks. Apple would gain very little with tablet exclusivity.

With the R&D involved (and no, it's not simply switching out a chip.), I'm not sure if it would be profitable for Apple to develop a specific phone with a different chip that uses dying technology in just one country.

Secondly, Apple's latest marketing push with the phone has clearly stated that you can use voice and data simultaneously - something which would not be available on Verizon's network. I somehow doubt that Apple would be unaware or ignorant of their own product roadmap.

Verizon (and other carriers) will get the phone in the US. I don't doubt that, either. I just don't see it happening before they upgrade their network away from CDMA.

 

[iMacoo7]

No, Apple would just have to make a phone that has a combo CDMA/GSM chip in it. Verizon already uses phones like this, the BlackBerry World Phone is one of them. I don't exactly know what model of BlackBerry it is, but a coworker of mine has one.

That would be the Blackberry bold...
To comment on the iPhone possibly moving to other carriers.
I joined the Cingular *crew* back in 2002 and kept the same cell provider (Meaning thru the changes as well to ATT) throughout the years and seeing the customer support go from A+++ star status to a very week and grim "I really do not want to deal with a person grumpier than I at the moment" Type of feeling when having to call them about a problem. I jumped ship after going to spend some time with family in a FULLY SATURATED ATT area. I was surfing on the iphone (And no there was not any roaming or anything else, clearly showed I was on ATT network) for roughly 2 hours a day the time I went to see my family.
Upon returning to my home and receiving the bill. I was triple charged and there were charges from my phone to other countries to say the least.
After calling and having them run tests, come to find out the charges were mistakenly put on my bill ( I have had this happen to me too many times over by them). I have had this happen to where I only paid what I know I owed and them suspending my services.....
I was totally fed up and am with TMOB. Allot friendlier.


We will see how the media event holds honor to either the people, myths or satisfaction of doing the right thing for the masses and giving choices amongst us....



Apple has nearly given us users everything we asked for when it came to the iPhone (Slowly but surely they have).
Apple even made snide remarks and comedian antics when discussing MMS on the iphone and the ATT network....
Again,
Only time will tell....

 

[crackbookpro]

I do think the iPhone is coming to Verizon in 2010 - Not now though...

The Verizon iPhone will most likely have the dual GSM/CDMA technology, but it won't happen now during the big release of the Tablet.

I still think the Apple 3G Tablet will be the first to have Verizon hardware, and their iPhone will be released in early summer.

Only assumptions...
Tablet - debuts early Spring (gets mentioned on Wednesday)
Verizon iPhone - debuts early Summer (gets mentioned in the Spring of 2010)

One thing I question is - the bargaining agreements with the Apple App Store vs Vcast. That will be an interesting war that may slow up the release of the Verizon iPhone.

 

[agkm800]

Not true.

Would you buy Verizon iPhone now with a 2-year contract? How would you feel when the 4G model comes out in 6 months?

If Apple is launching Verizon iPhone in June, they are not announcing it before June.

 

[Ted13]

I call BS. If you read the article it is full of the usual (and untrue as anyone who's used it on a decent European network knows) anti iPhone claptrap. Sounds like someone at AT&T (with no insider knowledge) getting ready for the inevitable.

 

[bergmef]

I don't doubt for a minute that the tablet will have a data plan on both Verizon & AT&T's networks. Apple would gain very little with tablet exclusivity.

With the R&D involved (and no, it's not simply switching out a chip.), I'm not sure if it would be profitable for Apple to develop a specific phone with a different chip that uses dying technology in just one country.

Secondly, Apple's latest marketing push with the phone has clearly stated that you can use voice and data simultaneously - something which would not be available on Verizon's network. I somehow doubt that Apple would be unaware or ignorant of their own product roadmap.

Verizon (and other carriers) will get the phone in the US. I don't doubt that, either. I just don't see it happening before they upgrade their network away from CDMA.

I think you will have a long wait. CDMA works too well to scrap. You'll see CDMA with data on LTE in the future but it won't go away (not any time soon). Too many advantages in phone service for that.

 

[pcguru83]

Wouldn't a CDMA iPhone have to get FCC approval? If so, then if there was a Verizon phone, we'd have heard of the FCC filings. Face it, Verizon isn't getting the iPhone anytime soon.

That's actually exactly why I think this rumor might have legs--FCC filings. What did Apple when the iPhone was first released? They announced in January with a shipping date in June. I could see that being the case once more--announce the CDMA iPhone in January, phone ships in June/July.

 

[carmenodie]

Yeah there is a rumor about me that says all the Victoria Secrete models will visit my bedroom tonight and won't leave until the break of dawn.
OK!

 

[kdarling]

It's not that slight of a difference. Apple can't just shove a CDMA chip in the iPhone and start selling. It has to go to the FCC for testing -- they do see it as a different model. That cost money, money not worth spending on a phone that will be superseded in a few months anyway.

The FCC itself doesn't do any testing. You pay a third party to do that, and then submit the tests when you know the device will pass. Sometimes the FCC will come back and ask for clarification. Not very expensive in the overall scheme of things, though.

It's far more economical to drop a hybrid CDMA/GSM chip into whatever iPhone 2010 will be called. One phone for multiple carriers. That's more Apple's M.O.

I think you're right that a dual mode would make sense if Apple decides to add CDMA. However, they might stop Verizon from doing what they do for all their other such phones: unlocking the GSM side upon request.

Would you buy Verizon iPhone now with a 2-year contract? How would you feel when the 4G model comes out in 6 months?

If Apple is launching Verizon iPhone in June, they are not announcing it before June.

Perhaps. Yet Apple preannounced the first iPhone by six months in order to let people have time to get out of their contracts. That no doubt stopped lots of other ATT smartphone sales during the waiting period.

 

[miles01110]

The FCC itself doesn't do any testing. You pay a third party to do that, and then submit the tests when you know the device will pass. Sometimes the FCC will come back and ask for clarification. Not very expensive in the overall scheme of things, though.

NIST does a lot of this.

 

[Slip Jigs]

I am very happy with AT&T--in fact I would not have bought my iPhone if it were not on AT&T since I don't want to change carriers. But I think it it good for everyone, consumers and Apple, to have the iPhone on more than one carrier in the US.

Absolutely. If and when this announcement is made, expect to see a lot of sweet deals from ATT to re-up people into another two year contract. It's possible that the 4G phone will be the one that is rolled out to Verizon, and many who got the 3GS on ATT won't normally be qualified for the upgrade yet. But ATT may just open that up to anyone and everyone who has an iPhone with them. It would retain a lot of people who can't switch to Verizon yet, but will give them a chance to get the new phone!

 

[agkm800]

Perhaps. Yet Apple preannounced the first iPhone by six months in order to let people have time to get out of their contracts. That no doubt stopped lots of other ATT smartphone sales during the waiting period.

That was when nobody knew how good or bad Apple's first phone would be. It is a totally different game now.

 

[ericinboston]

I would laugh so hard if the iPhone does go to Verizon, they have to use the EDGE network with it for a year like us on AT&T had to

So? The point is that Verizon has far far better coverage than ATT...at least on the entire East Coast of the USA. Not much point in getting anything labeled as a "phone" (cell phone, smart phone, iPhone) if I can't make phone calls. 🙂 Before my iPhone I was on Verizon for 5+ years...not a single dropped call...not 1. No exaggeration. Also, I always had enough signal to make or receive calls. Always. Again, no exaggeration. I've been on ATT since Sep '09 and I would say my dropped call percentage is 15-25% and my ability to make or receive calls is 75%. I travel daily within 30 miles of my home...so plenty of opportunity for my phone device to reach other towers.

I know a great deal of friends and relatives that are waiting to see the iPhone on Verizon...not because they can download 100MB/day while at the beach, but because it's a killer phone on a fantastic network that also provides a top-notch web surfing experience. Trust me...sales will be off the charts in the East Coast once Verizon gets the iPhone. Depending on my cancellation fee, Verizon sales promotions, and new iPhone model availability I may switch to Verizon before my ATT contract runs out.

-Eric