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cell phone exclusivity


Azazello1313
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one little bit I found...

 

 

 

edit: another...

I don't think anyone is denying that Apple went with AT&T because that was the best deal they could get. I honestly can't see why they wouldn't do it that way. However, giving AT&T an exclusive deal was only the best deal they could get given the current rules. A better deal still would be being able to sell their phone to anyone they wanted to without having to require that person to use a particular carrier.

 

How could that not result in more sales? It's not like the iphone is the only PDA you can use on AT&T, so it's not like many are choosing the iphone because it's on the AT&T network.

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And it would be nice if Apple didn't have to choose a provider, but could work out a deal with all of them and let consumers choose which wireless carrier they wanted.

 

 

I don't think anyone is denying that Apple went with AT&T because that was the best deal they could get. I honestly can't see why they wouldn't do it that way. However, giving AT&T an exclusive deal was only the best deal they could get given the current rules. A better deal still would be being able to sell their phone to anyone they wanted to without having to require that person to use a particular carrier.

 

How could that not result in more sales? It's not like the iphone is the only PDA you can use on AT&T, so it's not like many are choosing the iphone because it's on the AT&T network.

 

 

But, the exclusivity deal may result in more dollars to Apple, via the piece of monthly cell fees, etc. that they demanded. They would not have received near as much, if any of those concessions, if they had not agreed to make the iPhone an exclusive offering. With the current deal, Apple controls the sales (only done in their stores), the activation of service (only done online via iTunes), the terms of where they can be sold, etc., and it gets a kickback from AT&T for every customer that activates an iPhone. From reading the various articles, it seems like Apple gets the direct profits from the sale of the phone, as it is sold through their stores only, gets a kickback on every iPhone that is activated, and apparently gets a piece of the monthly fees, in addition to maintaining control over the marketing, etc. of the iPhone.

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But, the exclusivity deal may result in more dollars to Apple, via the piece of monthly cell fees, etc. that they demanded. They would not have received near as much, if any of those concessions, if they had not agreed to make the iPhone an exclusive offering. With the current deal, Apple controls the sales (only done in their stores), the activation of service (only done online via iTunes), the terms of where they can be sold, etc., and it gets a kickback from AT&T for every customer that activates an iPhone. From reading the various articles, it seems like Apple gets the direct profits from the sale of the phone, as it is sold through their stores only, gets a kickback on every iPhone that is activated, and apparently gets a piece of the monthly fees, in addition to maintaining control over the marketing, etc. of the iPhone.

I guess I'm have a hard time believing that they couldn't have swung some deal as good or very nearly as good with any carrier who was prepared to support the iphone, had that been an option.

 

Now, maybe some would have initially declined thinking it was too much money or hassle, but, once they started selling like mad, I have to think other companies would be lining up, again, were that an option.

 

Again, I don't doubt for a second that apple is getting a very good deal from AT&T. After all, if it wasn't, they'd go exclusive with someone else.

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I guess I'm have a hard time believing that they couldn't have swung some deal as good or very nearly as good with any carrier who was prepared to support the iphone, had that been an option.

 

The earlier article indicates several of the other carriers were hesitant to accept all of Apple's conditions, so not to osure as to the accuracy of your statement.

 

Now, maybe some would have initially declined thinking it was too much money or hassle, but, once they started selling like mad, I have to think other companies would be lining up, again, were that an option.

 

They probably would have, however part of the negoatiation with Apple getting it's concessions obviously included the right to be the exclusive carrier. So, when the deal is up in 2010, I would assume that some of these other carriers will be jumping in trying to win the rights to the iPhone, or make similar concessions without the exclusivity portion of the contract. If enough carriers do that, I would think it stands to reason that Apple would not renew the deal with AT&T and would instead put the phone out to multiple carriers if they were making the concessions to Apple.

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The earlier article indicates several of the other carriers were hesitant to accept all of Apple's conditions, so not to osure as to the accuracy of your statement.

 

 

 

They probably would have, however part of the negoatiation with Apple getting it's concessions obviously included the right to be the exclusive carrier. So, when the deal is up in 2010, I would assume that some of these other carriers will be jumping in trying to win the rights to the iPhone, or make similar concessions without the exclusivity portion of the contract. If enough carriers do that, I would think it stands to reason that Apple would not renew the deal with AT&T and would instead put the phone out to multiple carriers if they were making the concessions to Apple.

I thought the entire premise of this thread was that was not an option. If that is, and has been an option that Apple just chose not to take advantage of, then I recant essentially everything I said.

 

Can Apple, if they chose to do so, go with more than one carrier?

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I thought the entire premise of this thread was that was not an option. If that is, and has been an option that Apple just chose not to take advantage of, then I recant essentially everything I said.

 

Can Apple, if they chose to do so, go with more than one carrier?

 

Are you serious? Dude we've been making that argument all thread. Apple's marketing/finance guys decided this deal was better thatn going another route. That's all you need to know. :wacko: It's not like Verizon controls the entire market.

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