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Seth Weintraub

Apple versus Google

All is not well in AT&T-Apple land

5 comments

TAGS:Apple, AT&T, ceo, iPhone
IT TOPICS:Macintosh & Apple, Mobile & Wireless, Personal Technology

Yesterday, the whole tech media was abuzz over AT&T's CEO, Randall Stephenson's comments about Apple releasing a 3G iPhone in '08. They missed the real story, though. Everyone in the world knows that Apple is releasing the 3G iPhone in '08. Steve Jobs has said this more than a few times. No story there.

The big news here, which Greg Keizer noted, is that AT&T's CEO just gave a smackdown to Apple's Christmas iPhone sales. While most people don't follow this stuff anywhere as close to as much as I do, a lot of people read this particular story. When you are shopping for an expensive device like the iPhone for Christmas (with an even more expensive TWO YEAR plan) you don't want to hear is "Next year there will be a better one". How many people will be put off by this? An informal survey of luddite friends puts it at 1/2 of the people who were ready to buy. And that's not just in the US. In Europe, where 3G is much more important and widespread, the iphone market will be hit even harder.

Why is AT&T pissed? Hacked iPhones is my guess. AT&T is keeping up their end of the bargain but from last quarters sales call we know that Apple is selling around 1/5th of its iPhones without a plan. While many of these iPhones are leaving AT&T's coverage, many more were potential AT&T converts.

Another reason might be the 700Mhz spectrum which Robert Cringely, who is also thinking Apple-AT&T fight, suggests.

Of course, there is also the possibility that the CEO of the biggest communications company in America goofed up really badly and cost his partner millions in sales. Um, yeah.

Update: Fake Steve chimes in on this.

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BoneHead

Submitted by Anonymous on February 14, 2008 - 8:17 A.M.

I work for this genius. Not directly by any means but I do ride in his mother ship. If you get the obscure ref. Anyway I have sat watching more than one of his conference "town hall" meetings. He will say one thing to one group in one part of the country then go to another area and give the same speech but with a few subtle twist. Which are just plain lies from what he told another group. Point being I am not surprised by this. Recently he was asked about the Tilt and did not even know what it was. His predecessor told a town hall that he was getting rid of the Cingular brand basically because he wanted to. Well we see how that turned out. Not tech savy men. Or hep to what pop culture is about. No King Steve that's for sure.

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Integrity

Submitted by Anonymous on December 26, 2007 - 8:00 P.M.

The article states that Apple sells 1/5 of its iPhones without a plan, yet anyone who owns one knows that every iPhone is sold without a plan and then activated at home, using iTunes. Apple sells the phone to anyone who needs one and has a credit card, because they put faith in people to be honest and use a little integrity. It isn't Apple's fault that people can't be decent and actually hold themselves to the end-user agreement.

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3G is not more widespread in

Submitted by Anonymous on December 22, 2007 - 10:25 P.M.

3G is not more widespread in Europe. In fact, Europe was rather late to the 3G bandwagon.

"...In Europe, where 3G is much more important and widespread, the iphone market will be hit even harder."

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when I buy my new macbook

Submitted by Anonymous on November 30, 2007 - 9:18 P.M.

when I buy my new macbook pro for $2499, I know there will be a new one that is faster, more hard drive, better graphic card the very next year or 6 months from now, that did not stop me from buying one.

When I bought my iPhone on June 29, I knew there would be one with 3G next year, that did not stop me.

When is the last time you buy something and say "oh I better wait" If you are like that, you end up with NOTHING!

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3G iPhone

Submitted by Shuja Shabandri on December 22, 2007 - 6:13 A.M.

I completely agree with the previous comment. Intel releases new processors every year and so does Nokia and other mobile phone companies. If 3G iPhone is coming in 2008, then there will be a better iPhone with lots of other awesome features in 2009, this just goes on and on. You can't stop buying for that reason. Its silly...

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