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Apple to Become Wireless Provider?
nonsuchworks writes "Forbes reports on the possibility of Apple becoming a 'mobile virtual network operator,' or MVNO, in order to extend the iTunes and iPod brands into the cellular phone market. This would allow Apple to circumvent the cellular carriers who have so far balked at carrying the iTunes-enabled mobile phone." From the article: "It might sound far-fetched, but the pieces are in place for it to happen later this summer. Apple is already developing a hybrid iPod/cell phone with handset maker Motorola. And companies ranging from the Virgin Group to The Walt Disney Co. are proving that a new network model can allow all kinds of businesses to easily enter the mobile market."
"Apple is already developing a hybrid iPod/cell phone with handset maker Motorola." This is not going to be something that will catch on quickly, or even at all. How many people are going to rush out there to get one of these? Not many. Most people already have cell phones and will have to wait till their service contract is up to get a new phone, unless there is a promotion to get people to start using them. And how much is this going to cost? Right now iPods sell for $200+ and a new cell phone with the features that will allow you to support the software needed are $250 retail. So that makes $450 for something that I will probably use for only a year, or so that is usually the life of my cell phone. All in all, this will take a LONG time for Apple to see any profit from this venture.