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Apple with "No Plans" to Change AT&T iPhone Exclusivity and Other Notes

Apple's Tim Cook and Peter Oppenheimer provided some insights behind Apple's iPhone strategy today during the Q2 financial results conference call.

When specifically asked about Apple's long term exclusivity with AT&T, Apple responded that they are very happy with AT&T and feel they have done a very good job promoting the iPhone. Despite some recent hope that Apple might expand the iPhone to other networks, Apple said that they have no plans to change the AT&T exclusivity at this time. Also mentioned was the fact that Verizon currently uses the CDMA network which is incompatible with the current iPhone. Apple stated they wanted the iPhone to be a global hardware device which requires the use of the GSM standard. This may confirm claims by Verizon's CEO that Apple may have never intended to launch a CDMA (Verizon) iPhone. This situation may change when Verizon upgrades their networks.

Another interesting statistic revealed was the total number of iPhones and iPod Touches has now reached 37 million units. Apple had sold 30 million as of December 2008.

Finally, Apple reiterated that they no plans to leave a "price umbrella" for competitors to sneak in. What this ultimately means remains unclear, though some had originally felt this could mean Apple will introduce lower priced models ("nano"). Apple also reiterated the importance of the App Store and their software-focused approach to the iPhone platform.

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37 months ago
Wow, back during the release of the iPod touch, i would have never thought it would become such a popular and successful product. It certainly has became one of the most popular devices out there...

So much for ever getting the iPhone on my Verizon contract...
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37 months ago
They need to start offering unlocked phones then.
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37 months ago
Not leaving a price umbrella sounds a lot different than "we're not working on a Netbook", but that could just be me.

I want my Touch tablet. I've been waiting for years. Literally. I'm excited for WWDC - ah, have they still got it. :)
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37 months ago
I think , for Apple at least, this is a GREAT strategy. Keep selling the big numbers exclusively on AT&T. Then what happens when LTE becomes the standard all around? BAM! A full release (along with a revised iphone) just opening the floodgates for a boom of which we haven't seen the likes of.

Its a good longer term strategy business wise, especially since AT&T is obviously having to do some serious "negotiating" (read: ass kissing) in order to remain exclusive just for another year.
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37 months ago
Of course they're not going to say that they're going to make the phone available on other networks (even if they are) b/c it would hurt sales now.
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37 months ago


[...] they no plans to leave a "price umbrella" for competitors to sneak in. [...]


The initial price is not an issue, the problem is AT&T's ridiculous fee structure.
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37 months ago
can someone help explain this price umbrella...? I feel extremely smart right now.. lol
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37 months ago

The initial price is not an issue, the problem is AT&T's ridiculous fee structure.


Can agree more.
My Verizon bill for 3 phones never broke $100.
My Att bill is sneaking up on $150 for less minutes.
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37 months ago

Can agree more.
My Verizon bill for 3 phones never broke $100.
My Att bill is sneaking up on $150 for less minutes.


Are any of those verizon phones smartphones with a data plan? (honest question).
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37 months ago
The conference calls are always very tight-lipped about the future. "No plans to partner with anyone besides AT&T right now" legally translates to, "it could happen next week, but we can't tell you that right this second."

AT&T will have to beef up profit-sharing to keep exclusivity, and Apple wants a larger share overall of the market, not just money.

Verizon's new carrier technology (+ Tmobile) by WWDC 2010!
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