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Apple and AT&T are working together to try and extend the iPhone contract

AT&T CEO Randall Stephenson is currently negotiating with Apple to try and keep a longer hold on the popular iPhone until at least 2011, a Wall Street Journal article reports.

If an extension isn't agreed upon by both companies, then the current contract will expire in 2010.  The iPhone has sold more than 17 million units since launching in June 2007, and has been exclusively available with AT&T only.

The possible ramifications of a contract extension are unknown, though consumers unable -- or unwilling -- to switch to AT&T have long wanted a shot at the iPhone.  Furthermore, many people already unlock their iPhones, and Apple could open the doors to new iPhone owners if the company leaves behind AT&T.

It should be interesting to see what AT&T has to offer to Apple to try and keep it from switching to Verizon Wireless, T-Mobile, or another major U.S. phone service provider.  AT&T took the risk in 2007, but the iPhone has been extremely successful, so it possibly doesn't need AT&T any more.  One advantage AT&T has right now is that Apple wouldn't have to create a CDMA iPhone -- which is necessary for the Verizon 3G network -- or create an iPhone for T-Mobile's odd U.S. frequency.

AT&T hopes to transition more from the landline business unit to mobile phone services, as more people in the United States begin to drop home phone services in favor of mobile phones.  The company also is reportedly interested in creating new business ventures in India, as the country's number of mobile phone owners currently is exploding.  

Apple's iPhone is available in 80 different countries, and the Cupertino-based company is working with O2 in the U.K., Orange in France, T-Mobile in Germany and Softbank in Japan.  

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Too bad!
By crleap on 4/15/2009 1:13:15 PM , Rating: 3
The only thing wrong with my iphone is AT&T.

I don't live in a population center with 3g, but I do live in a city with population of 46k that is 30 miles from Indianapolis. You'd think there'd be good service there AT LEAST with 2G. But my apartment gets a signal of the tiny bar. Sometimes. Usually it's searching for a signal. Most annoying thing about AT&T, they assured me they had no-charge roaming, but the iphone doesn't let go of the current tower until the signal is GONE. Very annoying. It drops signal then connects to some tower with a full 5 bars. Why won't it switch sooner before the current signal goes to crap? Why why why?




RE: Too bad!
By Myrandex on 4/15/2009 2:23:27 PM , Rating: 1
Sounds like a problem with the crapple iPhone itself. Although I could see why AT&T would want this...even though you don't pay roaming fees while roaming on another network, AT&T pays for it.

I've seen other phones give you the option to see what networks there are and connect to the one that you choose.

The iPhone is all about not giving options other than that Jobs approves, and that's why I wouldn't take one for free, other than to unlock & sell and buy an HTC Touch Pro 2.

Jason


RE: Too bad!
By crleap on 4/29/2009 11:39:57 AM , Rating: 2
I have a Nokia from my last provider, if I put the SIM card into that, it has the same issues. It has to do with AT&T not releasing your phone from the tower till it actually fully loses contact.


let me get this straight?
By jrollins006 on 4/16/2009 8:49:53 AM , Rating: 2
So if they dont extend the contract, everyone with Iphones now wont be able to use them?

Personally i belive that is bull crap, i only got mine in February and in the next year they wont work?

I better get compensated, knowing AT&T though, doubt it.




RE: let me get this straight?
By cerx on 4/16/2009 12:21:52 PM , Rating: 2
quote:
So if they dont extend the contract, everyone with Iphones now wont be able to use them?

No, you'll still be able to use your phone. AT&T just wouldn't be able to sale the phone, at least not exclusively.


RE: let me get this straight?
By jrollins006 on 4/17/2009 10:59:12 AM , Rating: 2
Oh ok, GOOD, i was about to bust a cap up in AT&T.


Id hit it...twice!
By vapore0n on 4/15/2009 8:28:53 AM , Rating: 2
Id hold a tight grip on that cash cow myself too.

Only other company Apple is missing out is TMobile?

Dear Verizon. Try and keep up, its 2009.




RE: Id hit it...twice!
By Natfly on 4/15/2009 12:31:22 PM , Rating: 2
- T-Mobile (GSM, got the G1 to try to compete against the iPhone)
- Verizon (CDMA, blackberry storm + all the LG touch phones to compete)
- Sprint (CDMA, palm pre should launch in may)

Sprint isn't in a good condition right now, nor have they been for the past year or two. I hope the Palm Pre helps turn things around for them. If it turns out as good as expected I might switch from Verizon to them.


Only AT&T benefits
By djc208 on 4/15/2009 8:53:16 AM , Rating: 2
Other than having to make the phone work on other networks (changout of a chip or two), I can't see what the benefit for Apple would be here? Considering the popularity I'd imagine Apple could easily get other providers to spring for some of the development costs for transitioning the phone over to their networks.

AT&T basically must compensate Apple more than it could make by launching the iPhone on other networks. I can't imagine that to be a small sum considering there's no real competitor to the iPhone right now. Problem is the minute that changes Apple will have lost the leverage to get help expanding into those other providers.




RE: Only AT&T benefits
By metasin on 4/15/2009 11:51:30 AM , Rating: 2
If the contract gets extended I will certainly be more likely to switch form Verizon rather than wait. If I know the contract is ending in 2010 then I will likely wait for a Verizon version. I am sure there are others like me.

Could Verizon offer Apple some sort of guarantee on the number of phones it would sell? Seems like a no-brainer from Verizon's perspective.


iPhone
By ScarfaceFX on 4/15/2009 8:50:17 PM , Rating: 2
We have the Cell Phone & we have the iPhone. Its silly to compare the two. When you think about it, apple created a category all by itself. It really is a unique device.

Look at the competition. We have Sprint with their Instinct ,which became exactly what name of the phone is called. Verizon with quite a few phones actualy,which all try to compare themselves to the iphone, and T-Mobile with the G1, how many battery cells had to be garbaged before they got that phone to be half decent right ?

Its like the Toyota Camry commercial, just about all the companies want to compare their 4 door sedan to the Camry or Corrola, but isnt it just better to buy the Toyota ? The company thats top of the sales chart, even today ?

I'm not a fan boy of either of the companies, but I do have an iphone & a toyota. I just avoided being the person that has the phone and car thats (like) the competition. :)




RE: iPhone
By wempa on 4/16/2009 12:25:54 PM , Rating: 2
I'm not sure what your point is with this post. Sure, it's great to have the REAL iPhone as opposed to one of its knock offs. However, the issue here is the availability of the iPhone on certain carriers. If Apple doesn't extended their exclusivity contract with AT&T and offers the iPhone on Verizon, then I know of a lot more people who will make the jump. I personally wasn't pleased with AT&T as a cellular carrier. I also have most of my family and friends on Verizon.


Tiered Exclusivity?
By ltcommanderdata on 4/15/2009 11:58:39 AM , Rating: 2
Seeing that the latest rumours point to at least 2 different iPhone models coming, I think Apple will compromise. Apple will open up the basic iPhone to any carrier with a compatible network, but AT&T will continue to be the exclusive carrier for the high-end iPhone Pro. In exchange, AT&T could offer Apple deeply discounted data plans to complement a potential Apple Netbook/Tablet.

It's probably in Apple's best interest to try to maintain as much exclusivity and control as possible even if it limits the potential market somewhat in order to avoid the iPhone becoming a commodity phone. It certainly gives Apple more negotiating power to get carriers to adopt features that Apple wants.




Let more Retailers sell it!
By mmo70 on 4/15/2009 1:57:36 PM , Rating: 2
AT&T and Apple would see even more sold if they let more than the AT&T and Walmart sell the dam thing.
I sell AT&T and Sprint through the company I work for, but I can't sell the iPhone.
I had to go to an AT&T store to buy the iPhone.
I could sell 10 a week if my store were allowed to carry the iPhone.




This article is a complete hoot
By hiscross on 4/15/2009 7:02:22 PM , Rating: 2
Of course AT&T and Apple are discussion contract extensions. All solid partners in business do that. Just because a non-paying people whine that Apple used AT&T makes little to no sense to either company. Sales numbers and customer satisfaction matter the most. Sure, I'd like to use Verizon instead of AT&T only because my family uses phones that only work with Verizon. What we need is better coverage and that will take time, if we ever see it happen.




iPhone
By smackababy on 4/16/2009 8:35:35 AM , Rating: 2
As much of a distaste I have for Apple products in general, I would admit if the iPhone was on tMobile, I'd consider it. I won't pay $500+ for an unlocked phone that may get locked via an update by Apple. In fact, I won't buy a $500 phone to begin with. I don't see how this exclusive crap is helping Apple. I would reckon that their sales would at least double if they opened it to one other carrier if not all.




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