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Apple Can't Afford iPhone's Carrier Exclusivity
WirePosted writes with an ITWire article about the problems that Apple's AT&T exclusivity deal could pose in the coming years. Initially the company needed AT&T's commitment to the project, to ensure features like visual voicemail would work. With the iPhone a hit even at its current high price that no longer seems to be the case. Can Apple afford to stick to an exclusive carrier in the future? If for no other reason than consumer choice? "iPhones are being sold unlocked in the markets of Asia where you can't get them with a carrier plan, but they're also being bought and unlocked in the US and Europe. The message is that many and probably most iPhone buyers would like to be given a choice of carrier when they buy their iPhone. Some would be prepared to pay more as they do with other smartphones and buy their iPhone unattached to any subsidized carrier contract. The point is many consumers feel no loyalty to carriers and resent being forced to choose one."
My current carrier doesn't provide many services you can get in other areas, such as video transfer and texting outside the local area. I'm not talking about extra-cost, they simply don't offer it.
On top of all this, cell service is expensive. With these things in mind, I can't imagine how "loyalty" is supposed to even come into the equation. As far as I'm concerned, I'm just looking at which side of the ship to jump off of, knowing that the next ship over isn't likely to be any better anyway.
I've fallen off your lawn, and I can't get up.
Apple is trying to upset the traditional business model for handset makers in that they wish to get a cut of recurring subscriber revenues, not just a one-time equipment sale. Apple is able to get this revenue (which in the long term means more than the phone sale!) precisely because it has granted exclusivity to a single carrier. If AT&T was no longer guaranteed to capture the vast majority of iPhone subscribers, it would neither have (a) implemented the needed Voicemail and EGDE network upgrades and the billing system+iTunes interface, or (b) agreed to give a cut of subscriber MRC to Apple.
The simple calculus here is that carriers will do special things that Apple asks for (changing the way they bill and provision customers, plus handing over a cut of service revenue) in return for Apple doing something the carriers ask for (exclusivity). I don't think anyone would sensibly argue that carrier exclusivity is in the best interest of all customers, but that doesn't mean you're really tied to it. Those with the means and technical knowledge will continue to purchase and unlock phones to their hearts' content - that's the beauty of a GSM ecosystem (well at least for 2 of the 4 main US carriers). Apple and all the carriers internationally that it deals with - plus all the cellphone users who just want all of their cool Apple features to work with a minimum of hassle - will continue to pursue the exclusivity model for the foreseeable future.
"95% of all Slashdot
Try just about any country in the world except the US. The a lot of phones are sold that way (and those that aren't can be released from their network for a nominal fee). You can walk into a shop and buy a SIM on its own (often they're free these days - worth it to the companies to get you on board) and sign up for a plan with no minimum contract or just go pay-as-you-talk.
I still don't get why the iphone is considered so revolutionary, except it's the only one that's permanently locked to a single carrier and has a ludicrously long minimum contract.
I think it's why they're called cell phones. Cell as in "imprisoned".
What did Steve Jobs do you to you, run your dog down? Jesus. I have my iPhone box right here. Did you know that it says you need a PC with Windows or a Mac and you need to have iTunes installed to use the product? It's not like Apple is dropping their evil proprietary software onto your machine when you plug your phone in without any warning.
Being able to activate myself is convenient. I liked that. I was an existing AT&T customer who had never had any problems with them - I've had some horrible piece of shit phone with them for five years or so before I switched to the iPhone. I've still never had any problems with them. Hell, I haven't -talked- to someone from AT&T about my service, ever. They send me a bill and I pay it. No bullshit involved.
I don't quite know why you're frothing at the mouth. Yes, there's some lock-in. That's advertised straight-up. You need iTunes; you need an AT&T contract. Don't like it? Then vote with your wallet and buy something else.
The Yasashii Syndicate ||
I have to wonder about what you actually know about Apple.
I mean, are you aware of how they have been running their computer business? I'm sure that you will *say* you are very aware, and then you might begin to spew a little information that will quickly turn into a rant about how evil the company is... but just stop and think (or god forbid actually do some research) before you reply to me.
Did you know that Apple had their tentacles wrapped around every little detail involved with the manufacture and sale of their new computers for the majority of the time that Apple has been selling computers? Do you understand that this is why they are as stable, versatile, and easy to use as they are? Do you think it is just coincidence that the industry standard in professional publishing software began as "Apple Only" software? (Hint: Adobe...) Do you know that Apples were the first computers to enter into professional recording studios? Again, would you just blow this off to coincidence?
For more than a decade, while IBM users were still fooling around with DOS, MAC users were connecting to the budding internet with Prodigy or AOL or Compuserve. While PC users were trying to figure out how to get their sound cards to work, MAC users were writing music in notation on their screens and getting their "cute" little machines to play it back. And these are only some of the advances. Sure, Apple kept an iron grip on manufacturing. This was to ENSURE a quality product. And you know what? IT WORKED!
Now, personally, I've never owned an Apple. I have nothing against them, but I've never been able to afford one. I can appreciate the quality of a Ferrari without owning one of those either. Just because they are expensive, I'm not about to go on a spree hating the company.
What happens when you buy an Unlocked IPhone, and you pick your carrier, and you find that half of those nifty features that you bought the IPhone for, don't work. Whose fault is that. Is it Apples? Nope. You are the kind of person who will blame Apple, but that doesn't make it their fault. They made the phone, they worked it out with AT&T so that all the features of their phone work with AT&T as a carrier. From your argument, you don't want Apple to be dictating how EVERY other company out there that could provide phone service has to alter how their service works, just to make it compatible with the Iphone... or are you a blind hypocrite who just can't see that this is exactly what would HAVE to happen, if the IPhone was able to work with every carrier? Oh sure, Apple could lose and alter some of their features, and make their phone just like a motorola... but what would be the point?
Apple raised the bar. Plain and simple. If you don't like the IPhone AT&T marriage, DON'T BUY ONE! How simple is that? I'm not the only person to realize this. Why can't you?
"I love deadlines. I love the whooshing sound they make as they fly by." -D. Adams
Sure you have. Well, at least, the sales droid at the store you bought your cell phone at did, with you present. The iPhone activation is nothing more than associating your SIM with your phone number, signing up for service, and agreeing to a contract. The difference being that it takes about a fifth as long, and with nobody else needing to be present.
No comment.