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Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

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Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#21
post #11

Like many others have pointed out, Apple is obsessed with avoiding antitrust scrutiny. A fun (edit: incorrect) example: they are fine owning the device you use to connect to their own streaming service to watch their own produced TV shows, but appear to strictly avoid showing their products in those shows. EDIT: I stand corrected! Multiple "Apple Original Series" contain Apple products, such as in Ted Lasso and (I th…

The characters in Ted Lasso almost exclusively have iPhones and Macs

Yeah… there are also a number of Apple products in For All Mankind

Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#22
This would be like cutting off their nose to spite their face.

Apple profits from phone sales. The more distribution channels, the more phones they can sell, and more organizations spending the money to advertise iPhones.

If Apple bought a cell carrier, they would be in direct competition with the other carriers. Worst-case, they would likely get dropped from the other's lineups. The less worse case, they wouldn't get advertising/promotion from their competition.

Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#23

They’re investing heavily in satellite communications. https://www.mobileworldlive.com/apple/globalstar-apple-super...

Weirdly enough though. It's super expensive, only a real option for emergencies and not a mass market. Either they expect low orbit sat to be the next thing or it's a pure diversity topic because yeah what else should they do

Isn't low orbit sat what Starlink is?

Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#25
post #24

Why hasn’t Apple entered the medical devices business (glucose monitors etc)? Isn’t that a lot easier than spending hundreds of billions into buying a carrier?

Apple is adding features that compete with medical devices, but my guess is that they haven't developed any devices that require FDA approval because the approval process would eat up too much mental bandwidth among their executives. Apple seems to have a healthy instinct for conserving executive bandwidth.

Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#26
post #20
post #11

Like many others have pointed out, Apple is obsessed with avoiding antitrust scrutiny. A fun (edit: incorrect) example: they are fine owning the device you use to connect to their own streaming service to watch their own produced TV shows, but appear to strictly avoid showing their products in those shows. EDIT: I stand corrected! Multiple "Apple Original Series" contain Apple products, such as in Ted Lasso and (I th…

> but appear to strictly avoid showing their products in those shows. Apple has 'villains can't use iPhones' rule. Directors are not allowed to use Apple product placement for villains. Apple pushes their products in Apple TV+ and pays for product placements, or provides their products for free for other productions as as long as you follow the rules.

That is not true, just from first principles. You think anyone would watch Apple TV+ shows if there were no suspense or mystery because all the good guys use Apple stuff and all the bad guys use non Apple stuff?

Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#27

Wireless carriers are a low-margin, increasingly commoditized business. Apple is only interested in expanding into high-margin businesses like services (iCloud, Apple Music, Apple TV, etc.) where they can offer unique value (e.g. privacy) compared to their competitors. Apple keeps so much cash on hand because they have more money than worthwhile ways to invest it.

> Wireless carriers are a low-margin

AT&T's gross margin is 50-60% (for reference, Apple is usually 40-50%).

Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#29
post #3

Earlier quoted context omitted.

What if Apple just operated a MVNO like Google Fi does?

MVNOs are like second or third-tier citizens on mobile carriers, why would Apple hand a lever like that to, say, AT&T?

Apple could definitely strongarm the carrier to make them highest priority.

Re: Ask HN: Why hasn't Apple bought a cell carrier like AT&T or Verizon?

#30
post #20

Earlier quoted context omitted.

> but appear to strictly avoid showing their products in those shows. Apple has 'villains can't use iPhones' rule. Directors are not allowed to use Apple product placement for villains. Apple pushes their products in Apple TV+ and pays for product placements, or provides their products for free for other productions as as long as you follow the rules.

That is not true, just from first principles. You think anyone would watch Apple TV+ shows if there were no suspense or mystery because all the good guys use Apple stuff and all the bad guys use non Apple stuff?

It is true.

You can't use first principles to make argument about easily verifiable facts. There are movies that use loopholes and gray areas, of course. https://www.theguardian.com/technology/2020/feb/26/apple-doe...

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