Apple Defends AT&T – Could This Mean AT&T Will Keep iPhone Exclusivity?
We have been hearing many rumors, claims, and speculation for quite a while now stating that Verizon and even other major US carriers could finally get the Apple iPhone this Summer due to the fact that AT&T’s iPhone exclusivity contract is to expire this year. It all makes sense if you put the pieces together: AT&T’s network is bad, customers are not satisfied with the coverage, and other carriers offering the iPhone could double/triple the number of units sold. The only problem is that Apple seems to like AT&T — a lot.
During Apple’s Q1 2010 Earnings Call on Monday, Apple COO Tim Cook defended AT&T when he was asked whether the carrier’s network and coverage issues could have a negative impact on the Apple brand. Cook stated the following:
“First of all, AT&T is a great partner. We’ve been working with them since well before we announced the first iPhone. And I think it is important to remember they had more mobile broadband usage than any other carrier in the world. And in the vast majority of locations we think that iPhone customers are having a great experience, from the research that we have done. As you know, AT&T has acknowledged that they are having some issues in a few cities and they have very detailed plans to address these. We have personally reviewed these plans, and we have very high confidence that they will make significant progress toward fixing them.”
This by no means is telling us that AT&T’s iPhone exclusivity won’t end, but the aggressive way in which Tim Cook on behalf of Apple defended the carrier could signify that Apple might be planning to renew the exclusivity contract with AT&T. This is certainly interesting, since it’s coming from Apple itself and not just some random source or analyst.
Of course, this could also be a strategy by Apple to quiet down rumors until the company makes the official announcement of the iPhone coming to Verizon and/or other carriers, which rumors say it could happen today at the Apple event. In my opinion, I highly doubt AT&T will lose iPhone exclusivity today, but I could be wrong. I guess we’ll find out in just a few hours.
In the meantime, tell us what you think. Will Apple renew the iPhone exclusivity contract with AT&T? Do you believe Apple will announce an iPhone for Verizon today?
January 27th, 2010 at 8:39 am
I believe, and hope that Apple will release the iphone to all suppiers. AT&T has been loyal, but limiting to such explosive technology. Personally, I want an iphone, but not enough to leave Verizon and it’s superior coverage. I came to Verizon from AT&T.
January 27th, 2010 at 9:25 am
I don’t know why the execs at Apple keep with one exclusive carrier. An iPhone purchase can lead to an iPod for family members, then a MacBook, then the new tablet thing. I guess they want to appear exclusive rather than increase their market share. Oh well, if I don’t hear any good news today, I’m planning to purchase a Droid or another Blackberry.
January 27th, 2010 at 10:16 am
I would wager that AT&T will retain their exclusive address as the home of the iPhone. As long as we’re speculating from the observations of annecdotal evidence, there’s plenty technical reviews that indicate the cellular components of the iPhone are less than optimal—namely how it drops calls when switching between 3G and Edge. Of course this has opened up criticism to AT&T’s network, however no other device is a routine calldropper on AT&T while bouncing between 3G and Edge. And AT&T has been a loyal soldier taking all the heat for the inadequacies springing from the voice part of the iPHone.
But if nothing else, I’m sure Apple would be interested in extending their punishment of Verizon for not bending on the iPhone in the first place. Recall they were whom Apple approached first. Verizon, though, is obsessed with crippling their handsets, and wouldn’t budge for the iPhone. That’s what prompted Jobs to remind the carriers they were but orifices. Now, clearly they’re more than that, but the crux of the matter was that VZ was arrogant and didn’t want to permit an exception to their meddling in devices for Apple and so AT&T saw what a blunder it was by their dreaded rival and pounced. My hunch is that Apple is the kind of company and Jobs the type of guy who would remember that for a bit longer than the first couple of years.
Full Disclosure: I’m presently on Verizon and formerly AT&T. I’ll likely return to AT&T this year, partly for the iPhone; 3GS is head and shoulders above the rest (maybe android phones will evolve to compete one day, but it’s not anytime soon, and Blackberry just feels like the 1990s). The other part is because Verizon is a little too pompous. Their customer service has been adequate from my experience, but no better or worse or more consistent than the instances I’ve dialed 611 from AT&T or T-Mobile. Their coverage is better when I’m in the mountains of North Carolina, but even then it’s not like I can carry on a conversation driving alongside a mountain. I still have to go outside my mountain house to get a steady signal to conduct any meaningful call. Data there is not 3G. In other words, it’s not heads and shoulders above AT&T for my purposes and in my areas (Florida, NC), but the iPhone trumps anything on Verizon. For the Verizon sychophants: I’ll still get a prepaid Verizon handset for when I travel. However: I do that now with AT&T as a Verizon user just because I like to have a spare phone on another network just in case.
January 27th, 2010 at 10:35 am
I, for one, am hoping that Apple brings the iphone to Verizon. I love the Verizon coverage and I have and ipod touch that I adore so I’ve been thinking about switching to AT&T for the iphone. I think it would be a great move for Apple because they would be expanding there users and Verizonk wouldn’t lose customers to AT&T. (Fingers crossed for good news today)
January 27th, 2010 at 3:47 pm
IPAD is a big risk for apple. ATT alone will not be sufficient revenue source as the market dries up with new Wireless Subscribers. Apples Investors would be most happy if they can have wider product exposer so long as Apple can maintain product control. Again this is a huge risk for apple as Tablet’s have never caught on main stream.
With the advent of the Google phone, while not perfect, is a valid future threat to Apple. Job’s Goal is to make the IPOD/IPAD image Hip/modern, and that image may not be conducive environment with Verizon. However, stock holders hold him dear. It’s truly up to verizon Corporate’s Bottom line philosophy if working with Apple is truly a venture worth pursuing.
To note, I am currently a verizon Customer. I switched several years ago from ATT, since I had terrible coverage and constant drop outs in the DC Metro Area. I would more then a heart beat purchase an Iphone if Verizon carried apple and replace my Moto Droid. But I will not switch my carrier. Summer seems promising.
January 27th, 2010 at 7:00 pm
Ha ha ha……..Verizon 3G sucks. I sold Verizon service and products for 2 years as an outside sales executive. Verizon’s 3G is only marginally faster than the Edge Network. ATT has a far faster 3G network.
The bottom line is that all carriers will go to 4G in 2011.
January 28th, 2010 at 4:37 am
Apple will not sell to all carriers, thats why its called exclusivity. You dont want everyone to have an iphone, it takes away the “nan nan a boo boo”. Just like my bro mentioned today that Ford makes more $ than Ferrari, well duh, but I Ferrari is not in it for the $, its a brand recognition status symbol. he thinks that everything has a price tag, but that would be Microsoft and Dell, they are in it for the numbers not the “value n exclusivity” of that ride or die market. I’m an Apple fan for life now, at 1st I just thought it was a pretty laptop, but no I adore the functionality of my Macbook Pro.
The iPad, if I’m not sold, it might not look so good.