Is Apple upset with AT&T?

[JohnnyApple]

Apple has changed the face of the tech world many times over. Their history is rich and full of 'game changers' that broke the mold that came before them. From the Apple Computer to the iPod, the iPhone and the iPad. Apple really does 'think different' and it has made their brand one of the most recognizable and coveted in the world.

When Apple was first creating the iPhone they knew it would be a game changer. They decided to go to many different carriers around the US and try to sign an exclusive deal. Most carriers passed (notably, Verizon) and Apple settled with AT&T. This certainly was not their first choice, AT&T after all was not the largest carrier. But the exclusive contract they signed with AT&T has given them a huge profit margin on the devices and it tied the carrier to them. Unfortunately it tied them to the carrier as well.

We know that AT&T and Apple signed a 5 year exclusive. This fact in itself was only known recently due to court filings Apple made in a case in California - until that time however, it was just speculation as to the length of the contract.

AT&T has generally taken the brunt of the complaints about the quality of service when using an iPhone. In reality, it's probably a combination of both the iPhone and inherent design flaws as well as AT&T's coverage and potential over-subscription of it's network. The ultimate question that both Apple and AT&T have to answer is: When will it end?

That it will end is not in question... Apple has to be frustrated with AT&T's consistent failure to supply the network and their sales centers/systems with the capacity to handle the appetite that Apple customers have tried to exercise. The most recent failure of the iPhone 4 pre-sale is testament to that fact. Since Apple is tied to AT&T so closely it is not possible for Apple or Steve Jobs to publicly say anything too negative or harsh about AT&T. Which points to another reason that Steve Jobs must be just itching to get his beloved (and profit center) device on another network... or a few other networks.

So we are back to "when".

CNN has a great article up that talks about all of these facts and gets an opinion from some industry insiders and analysts and even suggestions that the Verizon iPhone will come eventually. As consumers, we can only hope that the day comes quickly as choice is always a good thing.

Source: JohnnyApple @ iPhone 4 Forum

 

[gjperera]

I would be...but they deal with it because it is Apple's way of thanking Cingular (now AT&T) for the opportunity to have total control over the design of the iPhone after design by community with the ROKR failed. Thanks to Steve's total control over the iPhone's design it was successful and has shipped 50 million units...not bad. I guess they can deal with it a little longer.

 

[BassGear]

If or when apple allows Verizon to sell iPhones, it may be too late, there are a lot of new android phones hitting the market with blazing 1GHz plus processors, 8 megapixel cameras, HD video, with a quickly growing apps selection that will most likely curve the demand for the iPhone on Verizon as each day passes by.

 

[Seadog]

I think AT&T knows that it is in its best interest to allow at least one more carrier, and possible all carriers handle the iPhone. All the experts I have read, agree that the problems would have been as bad if the agreement was exclusive to Verizon. The problem locations would have shifted a little, but no one was ready for the iPhone. AT&T got taken over by Cingular, I was absorbed into Altel by federal order. Compared to the old AT&T, I got screwed and lost about 200 minutes, but Altel took care of me better than Cingular would have. Then Verizon swallowed Altel. Verizon is no better than Cingular/AT&T in what I have seen, but I have no problems with either. My AT&T 3G service on my iPad is doing really good, and my Verizon phone service is more than adequate. The big issue I see is with major metropolitan areas that seem to overwhelm any service.

 

[Hasty]

Agreed. None of the providers were prepared for the demand for data from the smartphone explosion. Jobs genuinely believes that AT&T are trying their best. See the video of his D8 session with Mossberg where he is questioned about AT&T's performance.

 

[NumbLock]

They have to be upset. Totally dropping the ball on the iPhone 4 launch and the whole bait-and-switch on the unlimited data promise.

 

[microjais]

I agree

 

[Roundplay]

I had 3G iPad service inside some subway stations, but not all in NYC. Was it a fluke, or do some stations have underground relays?

 

[gjperera]

They have to be upset. Totally dropping the ball on the iPhone 4 launch and the whole bait-and-switch on the unlimited data promise.

Numblock, don't you think Apple knew about the upcoming changes to the plans? Steve wowed the world with these amazing plans because they were truly amazing, especially the unlimited...and he didn't know that AT&T was going to change it....the plans were too good to be true from the outset...and you know how that saying goes...

Your thoughts...

 

[gentlefury]

If or when apple allows Verizon to sell iPhones, it may be too late, there are a lot of new android phones hitting the market with blazing 1GHz plus processors, 8 megapixel cameras, HD video, with a quickly growing apps selection that will most likely curve the demand for the iPhone on Verizon as each day passes by.

Gonna have to strongly disagree here, I have a droid and it is crap...sorry...horribly unstable, it crashed yesterday placing a damn call. The market is just pathetic, apps pale in comparison and the game selection is just sad. Unless google REALLY ramps it up there is no way they can compete! The only thing keeping me on verizon is verizon....but they have the WORST handset choices bar none!! Get the iPhone already and I'll be first in line to buy one!!!

 

[gjperera]

If or when apple allows Verizon to sell iPhones, it may be too late, there are a lot of new android phones hitting the market with blazing 1GHz plus processors, 8 megapixel cameras, HD video, with a quickly growing apps selection that will most likely curve the demand for the iPhone on Verizon as each day passes by.

Gonna have to strongly disagree here, I have a droid and it is crap...sorry...horribly unstable, it crashed yesterday placing a damn call. The market is just pathetic, apps pale in comparison and the game selection is just sad. Unless google REALLY ramps it up there is no way they can compete! The only thing keeping me on verizon is verizon....but they have the WORST handset choices bar none!! Get the iPhone already and I'll be first in line to buy one!!!

gentlefury,

That's a very interesting point of view because all I hear are wonders about the android phone so it's nice to hear something other than praise. I had made a YouTube video where I picked apart small details about the Nexus One and got hammered for it, I was called a fanboy...which I truly am no, I use what works best and that I can rely on, but it almost seems, based on postings and opinion online that that droid phones are a lot better than the iPhones and that they are flawless and all that...so thanks for sharing your experience with the Droid with all of us. It is a refreshing point of view.

 

[gjperera]

If or when apple allows Verizon to sell iPhones, it may be too late, there are a lot of new android phones hitting the market with blazing 1GHz plus processors, 8 megapixel cameras, HD video, with a quickly growing apps selection that will most likely curve the demand for the iPhone on Verizon as each day passes by.

You know, it's funny you mention this. My wife and I were watching a Droid Does commercial from Verizon and it talked about the 8MP camera and the 1GHz SnapDragon processor and all this technical mumbo jumbo which to you and I makes sense, but for the average consumer they don't care...my wife looked at me and said, "snap what?" nobody cares (at least the mass market that will be buying the millions of phones a handset manufacturer is hoping to sell) what the speed is, all they care is that it works, it can run what I need it to run, it can take pictures, and oh, let's not forget - that it can make phone calls...this reminds me of when the emphasis on Intel/AMD CPU's was speed...nobody (those who are not technically inclined) care.

Does it work and will it get the job done...that's how they should sell it...oh and is it simple.

 

[gentlefury]

If or when apple allows Verizon to sell iPhones, it may be too late, there are a lot of new android phones hitting the market with blazing 1GHz plus processors, 8 megapixel cameras, HD video, with a quickly growing apps selection that will most likely curve the demand for the iPhone on Verizon as each day passes by.

Gonna have to strongly disagree here, I have a droid and it is crap...sorry...horribly unstable, it crashed yesterday placing a damn call. The market is just pathetic, apps pale in comparison and the game selection is just sad. Unless google REALLY ramps it up there is no way they can compete! The only thing keeping me on verizon is verizon....but they have the WORST handset choices bar none!! Get the iPhone already and I'll be first in line to buy one!!!

gentlefury,

That's a very interesting point of view because all I hear are wonders about the android phone so it's nice to hear something other than praise. I had made a YouTube video where I picked apart small details about the Nexus One and got hammered for it, I was called a fanboy...which I truly am no, I use what works best and that I can rely on, but it almost seems, based on postings and opinion online that that droid phones are a lot better than the iPhones and that they are flawless and all that...so thanks for sharing your experience with the Droid with all of us. It is a refreshing point of view.

Trust me when I first got it I thought it was great too...until I realized after a month of market use it ran out...nothing new ever (unless you count spam and phishing apps...all praise the open market...bleh), most apps I paid for are buggy or broken....the apps that do work are eventually broken with updates (I'm now scared to update anything) and since the 2.1 update it has become unbareably unstable but I had no choice....when 2.1 came out I would have a nag dialog every 5 mins saying I had an upgrade available and I couldn't silence it no matter what I did!

I love google and use all of there products but in all honesty if the iPhone doesn't come to vzw my next phone will be a dumb phone for really cheap and a mifi for my iPad!

 

[Bogy]

My daughter and her boy friend are in the process of moving back to the lower 48 after living in rural Alaska. In Alaska he had an unlocked iPhone, she had a dumb phone. He waited until the announcement of the iPhone 4 to see what it was being offered and then made his decision. They got 2 EVO's through Sprint. They have been traveling from rural Iowa where I live to St. Louis, their new home, and back, over the past few weeks. I have heard no complaints of dropped calls, unstable phones, crappy apps, or no service. And I have been asking because I am preparing to make a change myself. And if there were problems I am sure I would have heard about them. My daughter has never been reticent to complain when something doesn't work the way she thought it should, and he is in IT and expects things to work correctly, or know the reason why. Their (his) decision not to get the iPhone 4 was partly because of AT&T and partly because he was not as impressed with the iPhone 4 as he was with the EVO. For myself, I would consider the iPhone if one of two things happened. Apple let carrier provide it, as they do in most other countries, or if AT&T would sell me one. They won't, because they say they don't provide coverage in my area, even though for the first time ever my sister was able to use her AT&T phone at my house this past weekend.

 

[alanok]

I wish they would just go with t-mobile. t-mobile is faster than the supposed '4g' access that spring offers (here in dallas at least) and i'd love that on my ipad