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Steve, Please Buy Us A Carrier

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Re: Steve, Please Buy Us A Carrier

#2
Fails the three primary market advantages that Apple always goes for:

- Lots of opportunities to innovate (regulation and spectrum issues with the FCC, patents on the major wireless technologies involved, all the infrastructure equipment is produced/procured from 3rd parties)

- Large profit margin (carriers aren't generally 40-60% margin operations like the rest of Apple)

- Low ongoing overhead (lots of maintenance on a large, nationwide physical plant of towers)

Sounds to me like far more trouble than it's worth.

Re: Steve, Please Buy Us A Carrier

#3
Apple had every opportunity to sell the iPhone standalone, without any participation from the carriers. Given the iPhone's obvious lure, especially when first released, Apple might have succeeded in upsetting the long-lamented model where devices are locked to and subsidized by carriers. They could have easily directed customers to purchase the iPhone and direct customers to purchase service separately.

Why didn't they?

Re: Steve, Please Buy Us A Carrier

#4
post #3

Apple had every opportunity to sell the iPhone standalone, without any participation from the carriers. Given the iPhone's obvious lure, especially when first released, Apple might have succeeded in upsetting the long-lamented model where devices are locked to and subsidized by carriers. They could have easily directed customers to purchase the iPhone and direct customers to purchase service separately. Why didn't th…

Because they collaborated with then-Cingular to do Visual Voicemail. Also the thinking then was that they could earn a kickback from the carrier for exclusivity.

Re: Steve, Please Buy Us A Carrier

#5
post #3

Apple had every opportunity to sell the iPhone standalone, without any participation from the carriers. Given the iPhone's obvious lure, especially when first released, Apple might have succeeded in upsetting the long-lamented model where devices are locked to and subsidized by carriers. They could have easily directed customers to purchase the iPhone and direct customers to purchase service separately. Why didn't th…

The carriers probably have many ways of making phone manufacturers miserable if they choose to do so.

Re: Steve, Please Buy Us A Carrier

#6
post #3

Apple had every opportunity to sell the iPhone standalone, without any participation from the carriers. Given the iPhone's obvious lure, especially when first released, Apple might have succeeded in upsetting the long-lamented model where devices are locked to and subsidized by carriers. They could have easily directed customers to purchase the iPhone and direct customers to purchase service separately. Why didn't th…

The original iPhone wasn't carrier subsidized - you could walk into the store and buy one, without a contract. You'd set up the contract when you got home, through iTunes.

It was locked to Cingular/AT&T, but that was, as the other commenter said, more of a Visual VM thing than anything else.

I'm thinking this started because Apple wanted to change the way phones were sold, but changed because selling a $599 (or $399 after the price drop) phone wasn't tenable in the US market.

Re: Steve, Please Buy Us A Carrier

#7
Apple would be spending half its cash pile to acquire a domestic company.

Nearly two-thirds (62%) of the company's sales are international [1]; furthermore, I would guess that much of the company's growth is in international markets, especially in Asia.

Unless Apple is seeking to improve its operational expertise in running carriers in order to buy up carriers throughout the world, this acquisition would be a very curious one.

[1] http://www.apple.com/pr/library/2011/07/19Apple-Reports-Thir...

Re: Steve, Please Buy Us A Carrier

#9
post #6
post #3

Apple had every opportunity to sell the iPhone standalone, without any participation from the carriers. Given the iPhone's obvious lure, especially when first released, Apple might have succeeded in upsetting the long-lamented model where devices are locked to and subsidized by carriers. They could have easily directed customers to purchase the iPhone and direct customers to purchase service separately. Why didn't th…

The original iPhone wasn't carrier subsidized - you could walk into the store and buy one, without a contract. You'd set up the contract when you got home, through iTunes. It was locked to Cingular/AT&T, but that was, as the other commenter said, more of a Visual VM thing than anything else. I'm thinking this started because Apple wanted to change the way phones were sold, but changed because selling a $599 (or $399…

To an extent... I always thought Apple went with non-carrier subsidized pricing on the first iPhone because they wanted sales now. The price even dropped $200, IIRC, only two months after launch. This supports your last comment because they fueled sales. My experience is that people wait until their contract obligation is complete before shopping another handset.

Re: Steve, Please Buy Us A Carrier

#10
This brings up some good points, but the title and structure are a bit misleading. For that who haven't read this yet, the middle section raises the reasons for Apple to acquire a carrier (most of which I thought were poor reasons, which almost caused me to stop reading). The author concludes with a rather coherent detailing of why it would in fact be silly for Apple to acquire a carrier (especially only US).
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