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AT&T iPhone Exclusivity Originally Scheduled Through 2012

Monday May 10, 2010 4:10 pm PDT by Arnold Kim

Engadget digs up some 2008 court documents that confirm that Apple and AT&T's original exclusivity agreement did, in fact, extend into 2012. From a court order (PDF):

The Agreement, which lasts until 2012, provides that iPhone purchasers who want voice and data services must sign a two-year service contract with ATTM. (Complaint P30.) Although the Agreement itself is not public, some of its provisions have been revealed in the press.

The 5 year timeframe was originally revealed by USA Today back in 2007. A 5 year contract would have maintained AT&T iPhone exclusivity into 2012.

However, at this point, it's not entirely clear if the original contract still stands. The Wall Street Journal reported in 2009 that AT&T's iPhone exclusivity is due to expire this year (2010). Apple and AT&T may have undergone contract revisions and negotiations since that time. Most industry experts seem to believe that AT&T exclusivity comes to an end this year with several whispers that Apple will bring the iPhone to Verizon's network in 2010.
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darwen
23 months ago
This rumor is so tired.

It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

Apple is with AT&T because they want to be. If they wanted to be on another carrier (ANY other carrier), they would be.

edit: I'm getting some hate so I'd like to explain. The cost is not minimal. Factories must be retooled when a product changes from version to version. A CDMA iPhone may cost just as much to manufacture on a unit by unit basis, however Apple is not making just one unit. If they make a CDMA version they must setup an additional factory to assemble it. If factory A outputs even the smallest margin more than factory B, it costs more to make phones in factory B. We are not talking about a small margin though, we are talking about carriers across the world vs an individual carrier.
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ouimetnick
23 months ago
I hear there will be a Verizon iPhone this summer. :rolleyes::D

When will it come to verizon?

Not for a LONG time people. So please stop asking.
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gwangung
23 months ago

This rumor is so tired.

It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?


With current networks---not as much as the forthcoming ones.

With forthcoming networks---well, now, that's interesting. And it depends on how well you crunch the numbers...
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macfan881
23 months ago
I still say we see Verizon iPhone this year.
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icyfire
23 months ago
Damn dumb move Apple. If this agreement is still standing, they have effectively shut themselves off from half of the market for 2 years longer than necessary. Good initially when there was no competition but bad now with the plethora of Android phones coming out.
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bobsentell
23 months ago

This rumor is so tired.

It does not make sense to manufacture a verizon iPhone. The rest of the world uses GSM. It would need to be a custom design for one carrier. The unit would come at a production premium cost that Apple would not be able to pass off to the consumer. They would make less profit on the verizon model simply to make it available for that one carrier. What is the incentive?

Apple is with AT&T because they want to be. If they wanted to be on another carrier (ANY other carrier), they would be.


I agree. As long as V uses a different radio standard than the rest of the world, iPhone will NEVER come. As for possible changes to the contract, most changes result in extensions. Apple is not going to punish AT&T because of network issues in three cities. The fact AT&T has eclusivity on the iPad should be a clue. (I know it is "technically" unlocked, but they are using a sim standard that is currently exclusive to AT&T.)
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odyssey924
23 months ago
Thank goodness. Maybe this story will go away now.
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HiRez
23 months ago
Why would AT&T renegotiate to end exclusivity earlier? Isn't the whole point of the contract to make sure Apple doesn't jump ship on them?

Having said that, I sure hope the contract is shorter because everyone and their grandmother now knows AT&T sucks and is ruining a great product (or products, if you include the iPad).
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cmaier
23 months ago
The 5 year date, coupled with the small benefit-to-cost of supporting CDMA before Verizon switches to LTE, has been repeated over and over, but people instead just insist on clinging to every goofy analyst guess.

My installation last night of an AT&T microcell is looking better and better :)
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samab
23 months ago
It has been well known that the original 2007 article was subsequently contradicted the year after --- by the same author.

http://www.businessinsider.com/2008/8/at-t-s-u-s-iphone-exclusive-extended-to-2010-or-shortened-from-2012-aapl-t-
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