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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."

16 of 286 comments (clear)

  1. Yeah right by Anonymous Coward · · Score: 5, Funny

    This is about as likely as Apple switching to Intel x86 chips... oh.. wait.

    1. Re:Yeah right by The+Lynxpro · · Score: 4, Insightful

      "This is about as likely as Apple switching to Intel x86 chips... oh.. wait."

      Or marketing a flash-based iPod.

      Now if they'd only finally bring out a two button + scroll wheel mouse standard for their Macs!* :)

      *Before I get flamed, let me explain my statement. It is my belief that if Apple finally brought out a two button + scroll wheel mouse, coupled with the always reliable style of Apple, Apple would pick up a lot of sales to the PC market and steal away marketshare from both Logitech and Microsoft, not to mention halt the trend of Mac users buying two button mice from the two previously mentioned companies. My argument has nothing to do with the fact that Mac OS and OS X are designed with the simplicity of a single mouse button in mind. I'm not mocking that; I'm only stating for the record that the vast majority of computer users prefer two button mice and Apple would be wise to begrudgingly accept this and market another sure-fire profitable item for all of us. Especially since Apple seems to understand Bluetooth the best out of all the manufacturers I've mentioned in my rant.

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    2. Re:Yeah right by Rude+Turnip · · Score: 5, Insightful

      "I'm only stating for the record that the vast majority of computer users prefer two button mice..."

      I think a more accurate statement is that they are *used to* two button mice. I use a PC at work (say 8 hours/day) and a Mac at home (say 1 hour a day) on a daily basis. The difference in interfaces between Windows and OS X is such that I simply never miss having a second mouse button in OS X. I'm not saying that one is better than another (security issues aside), it's just that they are different.

  2. hybrid iPod/cell phone by illtron · · Score: 5, Informative

    The "hybrid iPod/cell phone" this guy is talking about is just a phone with a "iTunes" on it. I put that in quotes because it's obviously not iTunes. It's a tiny program, probably Java, that plays Apple's AAC files from the iTunes Music Store and looks sort of like the iPod color interface, if the pictures floating around the web are to be believed.

    "hybrid iPod/cell phone" Ha!

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    1. Re:hybrid iPod/cell phone by Iriel · · Score: 5, Informative

      then again, how often does a product sketch turn out like the finished piece? I'm not saying that everything will be rainbows and lollipops on the road to a cellular iTunes service, but that picture could have been made to impress clients and partners at a presentation while the gritty work is still being done 'back at the lab'. A java based iTunes emulator is still possible due to the cross platform capability, but don't sell the idea short just because of a promotional pdf.

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    2. Re:hybrid iPod/cell phone by illtron · · Score: 5, Interesting

      Well I think the iTunes phone is a pretty sure bet. Between these shots of the phone: http://www.engadget.com/entry/1234000887049175/

      And the fact that support for them is already in iTunes (yeah, I know it says iPod phone, but that's not the same as a "hybrid iPod/cell phone"):
      http://appleinsider.com/image.php?i=itunesiphonepr efs&id=1158

      There's no doubt that it's coming. But it won't be a hybrid iPod/cell phone.

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  3. It's about time. by Iriel · · Score: 4, Interesting

    I always thought that Apple should have made some sort of uber-wi(fi|max) iPod so that iPodders could stream the internet radio stations on an iPod like they could on iTunes. And besides, if it all works out as predicted, this could help crush Bill Gates' dream of destroying iTunes and the iPod and their dominance over the digital music market. It sounds like fun :)

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  4. Cellphone iTunes? by __aahsof7392 · · Score: 5, Insightful

    Who actually listens to music on their cellphone anyway? When's the last time a company built a cellphone just for the purpose of making and receiving calls?

    1. Re:Cellphone iTunes? by hardaker · · Score: 4, Insightful
      Who actually listens to music on their cellphone anyway?
      • Actually, I do. But my phone does it and I have ear pieces... I find it better when flying and other places to do that rather than drain my laptop batteries.

      When's the last time a company built a cellphone just for the purpose of making and receiving calls?

      • Admittedly this is a mixed blessing. The one thing you don't want your phone to do is break when you're trying to use it as a phone. But modern phones definitely have that problem, and both my last two phones have either crashed or locked when trying to use it as a phone. That's definitely bad. But yet because I need the other functionality (calendars, lists, etc) because I refuse to carry around multiple gadgets I keep buying a multi-phone even though I know it's going to be less of a phone. Interestingly enough a good friend of mine complains constantly about just wanting a phone that works as a phone. All the time. What did he buy for his last phone? That's right... A treo.

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  5. An interestesting pulled from the ass idea by Dark+Paladin · · Score: 5, Interesting

    OK, so this is one of those "well, I just pulled this idea out of my ass so I could write my column thought".

    But if nothing else, it's a very interesting one. Several commentators, including Bill Gates, have stated that they believe that the cell phone will overtake the iPod. You're more likely to carry around a cell, it has an established system of purchasing music (among other things), and so on.

    Granted, I still take that with a heavy grain of salt, considering that my own PDA/phone (Treo 650) tends to go about a full day on the charge, and that's from a heavy user who uses it for email, AIM, speech, ebook reading, notes, calendar, and so on. I have to make sure I plug it in before I go to bed. My iPod lasts a bit longer (though if I used it as much as the Treo, it would probably die as quickly, if not faster). The iPod is just a better interface for music, and crappy for all else.

    So the concept that Apple could go after the wireless market isn't so far fetched. Would anyone have thought of them a major player in the music industry? They have a brand name that's good (if not growing), and it would be a good way to suppliment the PC business. And it would remove some problems. Right now, according to the rumors, most wireless carriers don't want to carry the iTunes Mobile Phone because it would cut into their business.

    So, fine: Apple makes their own service and gives the finger to the phone companies. How many iPod users (and Mac heads) would switch?

    For it to work, they would need:

    Capital - check, they still have a few billion left in the bank.
    Manufacturing - check, not a major problem
    Engineers - check, though they'd probably need to hire some
    Wireless access points - Hm.... That may be a reach, but as the article points out (yes, I did RTFA) if Disney can do it, so can Apple. Whether that means they go out and buy someone, or just buy up/rent the wireless access points, they certainly have the means and the business acumen. Jobs has demonstrated the ability to negotiate in the past, if done right (say like the current Sprint model I'm using, where $40 gives 500 minutes, and an extra $15 gets me unlimited Internet access), they could make it work. Make the phones a combo phone/802.11 device for Skype/Gizmo like communications, and those Airports become all the more useful to their business model. Or start installing WiMax stations around the country for the same effect.

    So, points to the author for coming up with a possibly viable idea. Will Apple do it? Probably not now - they have enough risk on their hands with the shift to the Intel processors and dealing with a potential loss of sales over the next 18-24 months. But if the wireless companies continue to play hardball with Jobs's (note to the picky: his name is Steve Jobs, the plural then becomes Jobs's, thank you) music domination plans, he might just do an end around.

    We'll see. Most of this I'm pulling out of my ass, so of course I could be wrong.

  6. First to predict... by Ingolfke · · Score: 5, Funny

    that a half-baked story predicting that Google will enter the wireless provider market in order to support the foray into their online music business. GMusic store will allow you search 7 billion recordings using lyrics, instruments used, and sound patterns.

    Also, in 3 to 6 months Microsoft will apologize to their employees, customers, and vendors for falling so far behind as an MVNP and music distributor. But Balmer will commit to catching Apple, Google, and AllOfMp3.com within the next 3 to 4 quarters. It's Microsoft's top priority next to releasing Longhorn, WinFS, security, DRM, the next version of SQL Server, Exchange 2007, .NET, .ORG, ethic, combinatorial global business synergies and leverage points and Windows on the Power PC.

    Lastly, Apple frustrated with the iPOD to car stereo interfaces and refusal by many automobile manufacture to integrate the iPOD directly into their automobiles will purchase an Korean automobile company and begin manufacturing iCars. These cars will include new design innovations including ergonomic steering wheels and see through dash panels. Initially the automobiles will run on Honda gasoline engines, but Jobs will announce in the first 4 years of production that the iCar (and soon to be released iSUV) will switch to Toyota engines that can run on electricity, gasoline, jet-fuel, whiskey, and the sweat of some breeds of Tibetan mountain goats.

    Step aside Dvorak I have spoken.

  7. How about... by alvinrod · · Score: 4, Interesting
    They create a mobile iTunes software that can work with the phones for just about any manufacturer and try to get some contracts with Verizon, Cellular One, and the other big companies.

    Starting their own company gives them more control, but they also have all these other big companies that are going to try to run them out of business. However, if Apple sticks to its $.99 per song and allows people to use a full song for a ringtone rather than selling crappy midi files for $2.50 that play 10 bars of some obscure part of the song, they might put a dent in the other company.

    I understand that Apple is trying to expand and stay one step ahead of the competition (especially with Microsoft wanting to get in on the market), but it seems like Apple is starting to wander out of its realm a little bit, which makes me think of another company that tries to do everything and usually ends up with a subpar product that is beaten by a company that focuses on that area.

    Then again, if the other big phone companies aren't willing to play ball (which they probably aren't. Would you want to stop charging ridiculous amounts for a ringtone?) what choice does Apple have other than this one?

    Hopefully they'll make a product that's fair to the consumer. Basically, I'd want good coverage, the ability to upload songs I've already purchased, and the same $.99 to purchase a song on my phone. Capacity for 100+ songs would be nice as well. Price doesn't matter since you can give it away for a lot less than it costs when you make someone sign a service plan for a few years.

    If it met those conditions, I might consider getting one.

  8. Re:FINALLY! by Ingolfke · · Score: 4, Funny

    I've always wanted the cell-phone/iPod/PDA/scooter/mobile sink/microwave oven/television myself.

    Let's quit paying lip service to convergance and really get there folks!

  9. Monotone by Doc+Ruby · · Score: 5, Insightful

    These business gyrations are all based on the monopoly model. Mobile telcos have monopolies on access to their customers: witness their blocking the iPodPhone because they demand a "royalty" for every download, even when their network isn't in the loop (synced to a computer which downloaded over the wired Internet). Record labels are in the critical path, because their cartel insists on collecting a toll on music transactions, even when they're out of the loop (fair use of copyright in listening to your own home music collection across the mobile Internet). Even Apple is consistent with this model: they're in the lead with negotiations with those other "legs" of the path from the musician to your ears, while they run their little empire as the sole supplier of their OS and HW, while enforcing "look and feel" to the narrowest spec in the industry.

    We are teetering on the watershed, between mobile multimedia network terminals ("phones") which do whatever we want, constrained only by our imagination and sustainable monetization, and a vertical stack of monopolies controlling the pipeline to your senses. It looks like the odds, the big money, all favor the monopoly. Which sounds terrible.

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  10. Re:T-Mobile, next acquisition? by The+Lynxpro · · Score: 4, Interesting

    "Being that Deutsche Telekom has been rumoured to be shopping around T-Mobile, this could be the property Apple should be looking in."

    There's yet another reason for Apple to be looking at T-Mobile USA, even if it is only for a 50% acquisition/partnership. The reason being the T-Mobile "Hot Spot" network. And who is the big corporation with thousands of locations partnered up with T-Mobile on this and proudly displaying their logo on their doors? Yep, you guess it, Starbucks.

    Bet you thought I was going to say "Frank Stallone" in some weird homage to Norm Macdonald, weren't ya?

    The other reason to do so is to have gorgeous Catherine Zeta Jones as a spokeswoman for Apple. Yep, that's something to bite into... :)

    --
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  11. Re:Mouse by jbolden · · Score: 4, Informative

    Their logic on the matter is this.

    Beginning computer users (beginners includes those who never become competent regardless of number of real life years they have used the system) have a great deal of difficulty with applications that utilize multiple mouse buttons. Because the apple ships with a single mouse button any program which expects to have beginning users cannot make use of multiple mouse buttons. The result is a less steep learning curve when people switch to Apple. On the other hand the other half of the user base is perfectly willing to install a multi-button external mouse and use context menus and or use keyboard + mouse combinations.

    The result is that the system is essentially the same for advanced users however the ease of use is much higher for beginners.