Is Apple upset with AT&T?

Discussion in 'Apple iPad News' started by JohnnyApple, Jun 17, 2010.

By JohnnyApple on Jun 17, 2010 at 12:10 AM
  1. JohnnyApple

    JohnnyApple
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    Apple has changed the face of the tech world many times over. Their history is rich and full of 'game changers' that broke the mold that came before them. From the Apple Computer to the iPod, the iPhone and the iPad. Apple really does 'think different' and it has made their brand one of the most recognizable and coveted in the world.

    When Apple was first creating the iPhone they knew it would be a game changer. They decided to go to many different carriers around the US and try to sign an exclusive deal. Most carriers passed (notably, Verizon) and Apple settled with AT&T. This certainly was not their first choice, AT&T after all was not the largest carrier. But the exclusive contract they signed with AT&T has given them a huge profit margin on the devices and it tied the carrier to them. Unfortunately it tied them to the carrier as well.

    We know that AT&T and Apple signed a 5 year exclusive. This fact in itself was only known recently due to court filings Apple made in a case in California - until that time however, it was just speculation as to the length of the contract.

    AT&T has generally taken the brunt of the complaints about the quality of service when using an iPhone. In reality, it's probably a combination of both the iPhone and inherent design flaws as well as AT&T's coverage and potential over-subscription of it's network. The ultimate question that both Apple and AT&T have to answer is: When will it end?

    That it will end is not in question... Apple has to be frustrated with AT&T's consistent failure to supply the network and their sales centers/systems with the capacity to handle the appetite that Apple customers have tried to exercise. The most recent failure of the iPhone 4 pre-sale is testament to that fact. Since Apple is tied to AT&T so closely it is not possible for Apple or Steve Jobs to publicly say anything too negative or harsh about AT&T. Which points to another reason that Steve Jobs must be just itching to get his beloved (and profit center) device on another network... or a few other networks.

    So we are back to "when".

    CNN has a great article up that talks about all of these facts and gets an opinion from some industry insiders and analysts and even suggestions that the Verizon iPhone will come eventually. As consumers, we can only hope that the day comes quickly as choice is always a good thing.

    Source: JohnnyApple @ iPhone 4 Forum
     

Comments

Discussion in 'Apple iPad News' started by JohnnyApple, Jun 17, 2010.

    1. gjperera
      gjperera
      I would be...but they deal with it because it is Apple's way of thanking Cingular (now AT&T) for the opportunity to have total control over the design of the iPhone after design by community with the ROKR failed. Thanks to Steve's total control over the iPhone's design it was successful and has shipped 50 million units...not bad. I guess they can deal with it a little longer.
    2. BassGear
      BassGear
      If or when apple allows Verizon to sell iPhones, it may be too late, there are a lot of new android phones hitting the market with blazing 1GHz plus processors, 8 megapixel cameras, HD video, with a quickly growing apps selection that will most likely curve the demand for the iPhone on Verizon as each day passes by.
    3. Seadog
      Seadog
      I think AT&T knows that it is in its best interest to allow at least one more carrier, and possible all carriers handle the iPhone. All the experts I have read, agree that the problems would have been as bad if the agreement was exclusive to Verizon. The problem locations would have shifted a little, but no one was ready for the iPhone. AT&T got taken over by Cingular, I was absorbed into Altel by federal order. Compared to the old AT&T, I got screwed and lost about 200 minutes, but Altel took care of me better than Cingular would have. Then Verizon swallowed Altel. Verizon is no better than Cingular/AT&T in what I have seen, but I have no problems with either. My AT&T 3G service on my iPad is doing really good, and my Verizon phone service is more than adequate. The big issue I see is with major metropolitan areas that seem to overwhelm any service.
    4. Hasty
      Hasty
      Agreed. None of the providers were prepared for the demand for data from the smartphone explosion. Jobs genuinely believes that AT&T are trying their best. See the video of his D8 session with Mossberg where he is questioned about AT&T's performance.
    5. NumbLock
      NumbLock
      They have to be upset. Totally dropping the ball on the iPhone 4 launch and the whole bait-and-switch on the unlimited data promise.
    6. microjais
    7. Roundplay
      Roundplay
      I had 3G iPad service inside some subway stations, but not all in NYC. Was it a fluke, or do some stations have underground relays?
    8. gjperera
      gjperera
      Numblock, don't you think Apple knew about the upcoming changes to the plans? Steve wowed the world with these amazing plans because they were truly amazing, especially the unlimited...and he didn't know that AT&T was going to change it....the plans were too good to be true from the outset...and you know how that saying goes...

      Your thoughts...
    9. gentlefury
      gentlefury
      Gonna have to strongly disagree here, I have a droid and it is crap...sorry...horribly unstable, it crashed yesterday placing a damn call. The market is just pathetic, apps pale in comparison and the game selection is just sad. Unless google REALLY ramps it up there is no way they can compete! The only thing keeping me on verizon is verizon....but they have the WORST handset choices bar none!! Get the iPhone already and I'll be first in line to buy one!!!

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