AT&T Piggybacks On The iPhone to Post Record Third Quarter Earnings But Hints Might Lose Exclusive i
AT&T Piggybacks On The iPhone to Post Record Third Quarter Earnings But Hints Might Lose Exclusive iPhone Deal
Earlier this week, Apple posted its most profitable quarter ever. While we knew this would greatly impact AT&T's earnings as well, we did not expect their revenues to be so heavily reliant on just the iPhone. In the three months ending September, 4.3 million new connections were activated by AT&T....
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Well the only problem with HSPA 7.2 is that it will, like 3G, only be available in certain areas. Unless they seriously amp up and create a data network that is not only fast and reliable but available in most of the country, then will they see customers roll in.
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What's a "Quater"?
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Thanks for highlighting the error, it has been corrected.
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ill be happy just to get 3g in my area, nevermind HSPA
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An exclusivity deal that should not have existed in the first place. These two entities cleaverly, probably even wisely, took advantage of a legal system whose weaknesses they know, use and exploit well. This whole deal is based on our justice system's intricacies and the ridiculous amount of time it takes to get one or more companies to cease and desist. Ask Microsoft.
Apple made an awesome, complete and very compelling product. It is leaps ahead of any "competing" product. That gives them time, lots of time, to make all kinds of money on it. The question then becomes how to make the most massive amounts of money i.e milk the cash cow to the hilt. A very sound, obvious, almost banal decision. That's what a company is built to do. Teams of the best lawyers on payroll. They can skate and outmaneuver any possible legal challenge at the outset.
From a consumer view point, the iPhone should be sold as many pda's where sold before it: an option to get it through a cell service provider, and an option to purchase the thing outright. Yes pay 3-4 times the price of the subsidized version. But it'd be FACTORY UNLOCKED, and unjailed.
Why stop there? Since our product is so compelling, we must take advantage of the Status Quo, and take all potential earnings. Add to that the rumor that it's "illegal" to "temper" with an object you purchased. I buy a car and I can't decide to fit it with a better set of tires? No you can only buy GM made tires! And GM doesn't allow tire changes! You can only drive the car on interstate 95 or else! Our system allows for this, so they do it. By the time some action results in a judge "forcing" Apple and At&t to abide by the various "laws" they're smartly shoving to the side. Apple, not At&t, will be ready to go the route of unlock and unjail anyway. And they will have earned the massive amounts of money they set out to earn. The'll just alter the money making model a tad.
At this stage, Apple made the point that the iPhone is a major industry in and of itself. It can raise any cell provider's bottom line significantly. So how should Apple proceed? Not only should they not renew the At&t exclusivity contract. They should set up partnering contracts with any provider who's ready to fork over a significant portion of the revenues. Most probably, they'll have cell providers set up iPhone centric special accounts even for those who buy the iPhone unlocked and unjailed, "because of the extra load the iPhone puts on the network", so they can still share in the cell provider's bounty and keep a firm grip on it's cash cow. From a corporate angle that is the logical next move.
My $0.02 worth.
Sorry for the long comment, I hope it's apropos enough.
Ryan
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Because of this report, yes, Apple will absolutely gain more bargaining power over AT&T. Hopefully that has some effect, because AT&T's 3G service is obviously inferior to Verizon's. Hopefully, Apple communicates to AT&T to use some of their record-breaking quarterly profits to improve 3G coverage, or they can kiss the iPhone exclusivity contract buh-bye! If Verizon starts selling the iPhone, I will switch carriers.
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Yup, count me in on the carrier switch train! I'm fed up with the limitations of AT&T.
