backtop


Print 29 comment(s) - last by lightfoot.. on Jul 28 at 3:55 PM

AT&T CEO says end of partnership is inevitable

No one can deny the business sense that AT&T used when it locked up the iPhone from Apple as an exclusive back in 2007 when the phone first debuted. The iPhone has helped AT&T grow significantly since it debuted.

According to AT&T CEO Randall Stephenson, the partnership with Apple will inevitably end and ultimately the only differentiator between the wireless providers in America will be network quality. The exclusive agreement between Apple and AT&T is believed to end next year.

In Europe, O2 is facing the same problem as AT&T with its exclusive period ending. Apple is allowing O2 to keep the exclusive on the iPhone 3GS in the UK while opening the iPhone 3G up to other carriers. Reuters reports that AT&T added 1.4 million new subscribers in the second quarter and had more than 2.4 million iPhone activation during the quarter.

The prospect of losing the exclusive on the iPhone has to raise eyebrows at AT&T and with Wall Street. Research firm Pali Research issued a sell advisement on AT&T stock in June because it was believed to be losing its iPhone exclusive. At the same time, the research firm issued a buy order on Verizon, believed to be picking the iPhone up on its network.

Pali Research wrote in a report, "Our buy rating on Verizon is based on our view that its market share gains will lead to profit growth that tops other telecom companies and Wall Street consensus estimates. Our sell rating on AT&T is based primarily on our belief that its wireless business will enter a prolonged period of erosion after being propped up by the iPhone for the past two years."

AT&T has long been buoyed by the iPhone, but at the same time, many iPhone users are very critical of AT&T's 3G network. Stephenson admits that there are issues with AT&T's 3G network, but points out that most of the issues are centers on high call volumes and areas where the iPhone is most concentrated.

Apple continues to do fantastically well in the smartphone market with the iPhone and owns a full 91% of the over $1,000 PC market.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Numbers?
By Sazar on 7/27/2009 5:19:10 PM , Rating: 2
As long as he doesn't sap the sentry, s'all good :D

On topic, I am really hoping this comes to pass because competition == lower prices (hopefully) == better options for consumers. And I am sure other carriers will NOT charge $9.99 per month for navigation services.


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki