Sep 2 - Is AT&T losing its grip on the iPhone?

most viewed right now
 110
Video inside Migos run up on Joe Budden and Akademiks
22 comments
@hiphop
most viewed right now
 76
NBA LaMelo could be the youngest NBA player ever at 16?
39 comments
@sports
most viewed right now
 50
NBA Nas got the last laugh
84 comments
@sports
most viewed right now
 50
Article inside 10 Songs That Biggie Recorded But No One Has Found
45 comments
@hiphop

section   (0 bx goons and 1 bystanders) Share this on Twitter   Share this on Facebook
 

Props Slaps
 8 years ago '06        #1
5699 pageviews
81 comments


RAZAH CUTS 5835 heat pts5835
space
avatar space
space
$54,045 | Props total: 18807 18807
Sep 2 - Is AT&T losing its grip on the iPhone?
 

 
(CNET) -- Apple's exclusive deal with AT&T to offer the iPhone may end within the year, according to a prediction from financial analyst Gene Munster, a senior research analyst at Piper Jaffray.

If Munster is correct, opening up the iPhone to other carriers in the U.S. could be a boon for Apple, which would likely see iPhone sales go through the roof. On the flipside, if this prediction were to come true, it would likely mean very bad news for AT&T, which has relied heavily on the iPhone to boost its own wireless sales and revenue.

Munster noted recently in his published research that Apple has been moving away from exclusive deals in other countries, according to AppleInsider. Specifically, in France the company ended an exclusive deal with Orange and opened up the device to multiple carriers. Munster said the change pushed the iPhone's marketshare upward to about 40 percent in France. In the U.S., where the iPhone is exclusively offered through AT&T, the iPhone has a marketshare in the teens.

There are several other countries where Apple has a multi-carrier model. In fact, its most recent deal with China Unicom to bring the iPhone to China is also not exclusive. Apple declined to discuss which carriers it might be in talks with, but analyst firms such as Piper Jaffray expect Apple to sell more than 3 million iPhone units in China next year.

Details of Apple's relationship with AT&T have never been made public. But many people have speculated that the exclusivity contract with AT&T would last at most five years from when the first iPhone hit the market in 2007. This would mean that AT&T would have exclusive rights to the iPhone until around 2012.

There have been reports more recently that AT&T has continued its negotiations with Apple to keep the iPhone exclusive through at least 2011.

Still, rumors have circulated that Verizon Wireless is also talking to Apple about getting the iPhone on its network. Verizon executives have hinted that some kind of Apple device will likely operate on its new 4G wireless network, which is expected to launch commercially next year. But what's been less clear is whether or not a 3G iPhone will operate over Verizon's network.

Verizon Wireless is currently the largest wireless operator in the country. And it has consistently won accolades for solid performance on its network. But because its current 3G wireless network is based on CDMA technology rather than GSM, which is what AT&T and most other carriers around the world use, offering the device on Verizon's network would require an additional radio to be added to the device.

While this is not a trivial task for Apple, the opportunity to offer the iPhone to Verizon's millions of potential new subscribers would likely provide a big incentive to redesign the iPhone's radio technology.

As Apple's iPhones grow in popularity, there are strong indications that opening the device up to other carriers in the U.S., such as Verizon, would greatly boost iPhone sales and market share. The company's latest phone, the iPhone 3GS introduced in June, is likely the company's most popular device. Munster even noted in his report that the new iPhone "seems to have exceeded Apple's internal expectations."

The timing in the U.S. could also be right to end the exclusivity deal with AT&T as Congress, the Department of Justice, and regulators at the Federal Communications Commission look into the fairness of such exclusive deals. Opening the device up to other carriers could help score points with regulators and potentially end some of these investigations.

But ending its exclusive deal with Apple could spell big trouble for AT&T. For one, the iPhone has helped AT&T attract new customers. About 40 percent of AT&T's 10 million iPhone customers switched to AT&T from another carrier, the company has said.

But more importantly, the iPhone has helped AT&T keep existing customers. Since the third quarter of 2007, AT&T's churn rate, or the rate at which it loses customers, has fallen to 1.49 percent from 1.7 percent, according to a story in The Wall Street Journal. Meanwhile, Verizon Wireless' churn rate has risen during that time period to 1.37 percent from 1.27 percent.

The iPhone has also helped AT&T bring in more revenue. AT&T claims its iPhone customers spend more each month than its average post-paid wireless customers--about $100 a month. This has helped boost its overall revenue per user by about 4.7 percent to $60.21 per month since the third quarter of 2007.

But the cost to AT&T for these benefits has been high. Since last year, the company has been paying about $400 per iPhone to subsidize the cost of the device in exchange for requiring customers sign up for a two-year service contract. Even though AT&T is guaranteed at least $30 a month in data service fees, the company admits that the subsidy has hurt its short-term profit margins.

What's more, because iPhone users download two to four times as many games, video, and other Web data as other smartphone users, AT&T has had to upgrade its network to keep up with demand.

Even though AT&T has been upgrading its network, customers have complained often about its poor performance. And this has had a negative effect on the company's reputation. When subscribers experience problems with the iPhone, they often blame AT&T rather than Apple for the problem.

Because AT&T is the only carrier in the U.S. to offer the device, iPhone users regardless of whether they are satisfied with AT&T or not have been forced to stay on the network as long as they want to continue using their iPhone.

But if other carriers, such as Verizon, were to offer the iPhone, AT&T could see many of its existing iPhone customers leave. And it would likely cease to see any substantial uptick in new customers due to iPhone sales.

AT&T executives have said they realize that the iPhone exclusivity deal won't last forever. And they say they are prepared for that day. But the truth is the longer the company can keep the iPhone exclusive to its network, the better off it will be.

However, it looks like AT&T's chances of holding onto the iPhone in the U.S. for much longer are getting slimmer and slimmer. Even though Apple has said that it's happy in its relationship with AT&T, it only makes sense for the company to get out of its exclusive deal as soon as it can.


[pic - click to view]

 Is AT&T losing its grip on the iPhone? - CNN.com

81 comments for "Sep 2 - Is AT&T losing its grip on the iPhone?"

 8 years ago '05        #2
klew 227 heat pts227
space
avatar space
space
$9,280 | Props total: 782 782
If T Mobile gets the iPhone it's a wrap with their best prices of any carrier.
 8 years ago '04        #3
DJ Maximum|M 48 heat pts48
space
avatar space
space
$43,341 | Props total: 11545 11545
 klew said:
If T Mobile gets the iPhone it's a wrap with their best prices of any carrier.
yeah pretty much it is true i mean more money for apple if they extend it to everyone i just dont like itunes but the iphone is nice tho all the apps in stuff not bad
 8 years ago '05        #4
JayThunder 
space
avatar space
space
$1,984 | Props total: 80 80
verizon got so much money that knowing apple they play fair in the states so they would most likely keep it with verizon or tmoible .....most likely verizon (verizon got guap for days im serious these n*ggas had 4g 2yrs ago) plus at&t makes the iphone look bad ...slow internet service bad vocie quality ect ...........i got my money on verizon with this 2010 project
 8 years ago '06        #5
TreZ 3 heat pts
space
space
space
$9,208 | Props total: 2057 2057
If t mobile gets it's then AT&T is done f**k payin 92$ I hate it
 8 years ago '09        #6
Akilleez 
space
avatar space
space
$1,319 | Props total: 23 23
damn...t-mobile has the best prices, but the s**tiest phones, and service. verizon has the best phones and service, but the s**tiest prices. sprint is a distant memory, and the ONLY thing at&t has is the iphone, with a wack a** price to boot. ohh yeah, if at&t looses the iphone its R.I.P lmao
 8 years ago '06        #7
tdub-zr0 139 heat pts139
space
avatar space
space
$26,866 | Props total: 14719 14719
Iphone to Verizon Wireless? f**k yeah! That is a must cop for me. I wonder what the plans will be like though.
 8 years ago '05        #8
Sheeed 1 heat pts
space
space
space
$12,028 | Props total: 12 12
soo many of you are wrong about sooo many things in this thread....lmao @ verizon having 4g 2 years ago....u guys realize the plans are expensive because of the subsidized price...withut that you'd be paying atleast 400 and they'd prolly try some bulls**t like looking u into a contract for 3 years or some nonsense
 8 years ago '04        #9
l0udm0uf 1 heat pts
space
avatar space
space
$7,678 | Props total: 3 3
hope this means that att will adapt and stop being such b**ches./ if not im so far gone when my contracts done
 8 years ago '08        #10
Ron O'Neal 4 heat pts
space
avatar space
space
$2,314 | Props total: 1258 1258
correct me if im wrong but didnt apple go to verizon first before they went to ATT to shop the iphone and for some reason they couldnt work out a deal. im pretty sure i read that somewhere.
 09-02-2009, 06:44 AM         #11
tweedle- 
space
space
space
$n/a | Props total:  
What Ive never understood is how some American mobile phone providers are so wack. At&T dont have MMS and t-mobile dont even have 3g! I live in a 3rd world country and I have both of them. its a joke
 8 years ago '05        #12
Sheeed 1 heat pts
space
space
space
$12,028 | Props total: 12 12
 Ron O'Neal said:
correct me if im wrong but didnt apple go to verizon first before they went to ATT to shop the iphone and for some reason they couldnt work out a deal. im pretty sure i read that somewhere.
yeas they did...verizon preolly wanted that stupid vcast s**t on their iphone thats prolly why....

as for the mms thing...at&t is just being careful last thing they prolly want is mms to cripple their data network
 8 years ago '05        #13
klew 227 heat pts227
space
avatar space
space
$9,280 | Props total: 782 782
 tweedle- said:
What Ive never understood is how some American mobile phone providers are so wack. At&T dont have MMS and t-mobile dont even have 3g! I live in a 3rd world country and I have both of them. its a joke
T-mobile has 3g. Where I work I get a 15% discount on verizon monthly. It'll be tempting if they got the iPhone.
 8 years ago '07        #14
wtr1906 45 heat pts45
space
avatar space
space
$17,725 | Props total: 4479 4479
 Sheeed said:
soo many of you are wrong about sooo many things in this thread....lmao @ verizon having 4g 2 years ago....u guys realize the plans are expensive because of the subsidized price...withut that you'd be paying atleast 400 and they'd prolly try some bulls**t like looking u into a contract for 3 years or some nonsense
:applause:

I'm not being biased because I work for them but Sprint>>>>>>>>>>>>>>>

Our CEO has made drastic improvements to our Cust. Care and it is still a work in progress but when it comes to Monthly price plans, phones, coverage, and DATA speeds.... ain't nobody fuccin' with us PERIOD

I have to admit, the iphone is hot but on AT&T And I almost spit my OJ out to whomever said Verizon had 4g 2 yrs. ago. Please find me that proof
 8 years ago '04        #15
Scoop24 15 heat pts15
space
avatar space
space
$6,794 | Props total: 1368 1368
lmao i been using my Iphone on T- mobile.. hell T -mobile even have there own iphone tecnical support department
 8 years ago '07        #16
[MK] 
space
avatar space
space
$2,826 | Props total: 438 438
 klew said:
If T Mobile gets the iPhone it's a wrap with their best prices of any carrier.
T mobil sucks where I live every1 I know has version or sprint, put the iPhone on Sprint because the Palm Pre sucks imo, I own one and the apps suck, and the only games are demo's
 8 years ago '05        #17
NoRtH$iDe_FeeLO 
space
avatar space
space
$988 | Props total: 0 0
 tweedle- said:
What Ive never understood is how some American mobile phone providers are so wack. At&T dont have MMS and t-mobile dont even have 3g! I live in a 3rd world country and I have both of them. its a joke

umm im pretty sure at&t has mms...the iphone doesnt have that feature yet
 8 years ago '05        #18
klew 227 heat pts227
space
avatar space
space
$9,280 | Props total: 782 782
 [MK] said:
T mobil sucks where I live every1 I know has version or sprint, put the iPhone on Sprint because the Palm Pre sucks imo, I own one and the apps suck, and the only games are demo's
Coverage? I'll admit it's been a.ss where I live but since I got the mytouch it's been straight. Especially with the 3g. You should be golden if you live in a good coverage area. Plan prices and customer service who f**ks with T-Mobile though?
 8 years ago '07        #19
KeithHernandez 7 heat pts
space
avatar space
space
$4,160 | Props total: 118 118
 Firestarr said:
lmao i been using my Iphone on T- mobile.. hell T -mobile even have there own iphone technical support department
quoted for emphasis.
 8 years ago '07        #20
KeithHernandez 7 heat pts
space
avatar space
space
$4,160 | Props total: 118 118
 NoRtH$iDe_FeeLO said:
umm im pretty sure at&t has mms...the iphone doesnt have that feature yet
I send MMS messages no problem on my T-Mobile iPhone. The phone's software is updated to allow it... it's AT&T who's blocking it.
Home      
  
 

 






most viewed right now
 40
DMV Niggas Get In Here (DC/MD/VA)
62 comments
1 day ago
@wild'ish
most viewed right now
 40
Image(s) inside Stoner slut Nani -- would fu-k 4 weed
84 comments
1 day ago
@thotsdimesetc
most viewed right now
 32
Image(s) inside New IG PIcs of Cocain.Lorraine
155 comments
1 day ago
@thotsdimesetc
most viewed right now
 16
Dec 11 - The bubble is here: People taking out mortgages to cop bitcoins
228 comments
1 day ago
@news
most viewed right now
 14
male rape survivor talks about how he got raped twice
70 comments
1 day ago
@wild'ish
most viewed right now
 9
Video inside Response to Joyner Lucas 'I'm Not Racist'
249 comments
1 day ago
@hiphop
most viewed right now
 9
Video inside Dead by Daylight - Freddy Krueger Gameplay
13 comments
1 day ago
@games
most viewed right now
 7
Image(s) inside PUBG XBOX ONE Official Thread
118 comments
2 days ago
@games
back to top
register contact Follow BX @ Twitter Follow BX @ Facebook search BX privacy