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Would the iPhone rule the world if Apple broke AT&T exclusivity?

By | May 25, 2010, 12:19pm PDT

Summary: The Apple iPhone took the smartphone world by storm 3 years ago, but seems to have hit a stagnant point as the device is only available on a single US wireless carrier. This exclusivity is seen in only one out of the six major smartphone platforms. Is it time for Apple to add more carriers?

Jason Hiner wrote up a good article discussing the current state of smartphone platforms and wondering if Android was going to turn into the Windows of the smartphone world. As Jason pointed out Nokia and RIM still rule the world in market share, but not in mind share as Google Android and Apple iPhone powered devices seem to grab all the recent headlines and generate the most excitement. I agree with him that we will continue to see most, if not all, of the current smartphone operating systems (Symbian, iPhone, Windows Phone, Android, BlackBerry, webOS) survive in varying levels, but the article did make me think of one key factor in this list that may be holding back one mobile operating system from jumping to the top of the heap and taking the world by storm. Out of these existing six major smartphone operating systems, it is ONLY Apple that has their devices out on a SINGLE US wireless carrier. For the rest you can find devices running their operating systems on at least two and up to four of the major US wireless carriers.

I tried in the past to switch my family to AT&T, but the daily dropped calls were unacceptable. Coworkers with iPhones say that they rarely make phone calls and send text and email instead because calls drop all the time. Apple has helped AT&T bring in and keep customers who are not even happy with their service, but find the device and operating so compelling that they are willing to put up with substandard service. There are rumors that Verizon may eventually get the iPhone and hopes that Sprint and T-Mobile may even see some iPhone love, but I have a tough time believing we will see an iPhone outside of AT&T until at least 2011. I hope that I am wrong, but we will have to wait until 7 June to find out anything more about that.

I do have an iPhone 3GS at the moment, but I unlocked it to use it on T-Mobile and have not had a dropped call with it yet. This is the same device that was dropping calls on AT&T all the time so it is not a hardware issue. I know I personally would jump all over an iPhone on T-Mobile and may even pick one up on Verizon or Sprint if the pricing plans were right. I highly suspect I am not alone here and know the iPhone would sell like hotcakes on other carriers too. Here are some questions I have about this whole Apple and AT&T exclusivity:

  1. Is Apple really satisfied with AT&T as their only partner?
  2. Can’t Apple see that they would probably jump to 50%+ of the US market share if they rolled out across all four major carriers?
  3. Will we ever see the iPhone on another carrier?

Google Android news dominates the headlines today and IMHO the hardware from HTC and software from Google have now bested the iPhone in the smartphone game. Granted, Apple may reveal something amazing in a couple of weeks in an attempt to reclaim the top, but I don’t think what we saw with the iPhone 4 update is enough to do it alone. The Google Android 2.2 update brings several improvements to that platform and Google and manufacturers are not sitting on the sidelines waiting to see what Apple may do. If the new iPhone does have video conferencing capability and Apple sticks with just AT&T I have major concerns that the network will be dragged down even further into the abyss.

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Matthew Miller started using a Pilot 1000 in 1997 and has been writing news, reviews, and opinion pieces ever since.

Disclosure

Matthew Miller

Matthew is a professional naval architect by day and a mobile gadget freak at all other times. He purchases his own devices and then sells them on eBay or Craigslist to buy more. Many other devices are sent for review on a 30-day loaner basis and then returned to the carrier or manufacturer. If any are provided as “long term loaner units” this will be clearly disclosed in his reviews.

Biography

Matthew Miller

Matthew Miller started using a mobile devices in 1997 and has been writing news, reviews, and opinion pieces ever since. He is a co-host with GigaOM's Kevin Tofel on the MobileTechRoundup podcast and an author of three Wiley Companion series books. Matthew started using mobile devices with a US Robotics Pilot 1000 and has owned over 125 different devices running Palm, Linux, Symbian, Newton, BlackBerry, iOS, Android, webOS, Windows Mobile, and Windows Phone operating systems. His current collection includes an HTC Radar 4G, Dell Venue Pro, Apple iPad 2, HTC Flyer, Samsung Galaxy Nexus, Nokia N9, Apple iPhone 4S, MacBook Pro, and many more, along with tons of accessories and classic devices like the Apple Newton MessagePad 2100 and Sony CLIE UX50. Matthew can be found on various discussion forums under the user name of "palmsolo".

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Clearly you have not been in an AT&T store
John J. Jordan 1st Jun 2010
@saint168
AT&T sells many competing phones to the iPhone. This is a one way exclusive agreement, ATT sells many different smart phones from blackberry to LG and many more. The iPhone happens to be the most prominent phone that they sell.
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Maybe, but that's not gonna happen, either.
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Not interested in iPhone
roteague 25th May 2010
Doesn't matter to me, I wouldn't have an iPhone, regardless of the carrier.
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iPhone hardware IS the problem
NonZealot 25th May 2010
I do have an iPhone 3GS at the moment, but I unlocked it to use it on T-Mobile and have not had a dropped call with it yet. This is the same device that was dropping calls on AT&T all the time so it is not a hardware issue.

As has been proven time and time again, the iPhone design is fatally flawed. With a strong signal, an iPhone will work okay (as you experienced on T-Mobile) but as soon as your signal strength starts weakening, an iPhone will lose its connection far sooner than any other phone. So yes, it IS a hardware issue. Cell phones shouldn't drop calls when the signal strength dips slightly. iPhone does.
@NonZealot

That's funny as I've had many hour long iPhone calls while driving. On AT&T even. Even across state lines just this past weekend. And anyone who has had a cell call on the highway knows signal varies a lot and quickly. Blows that "theory" right out the window, huh?
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@itguy08
After analyzing iPhone call logs, even Apple admits that there is a huge problem with the iPhone. Take it up with Apple if you have a problem with this "theory".

However, I'll admit that the iPhone hardware is perfect based on your anecdotal evidence if you will admit that Windows security is perfect based on my anecdotal evidence that I've been using Windows for 15 years and have never been hit with any malware. If you won't admit that, I see no reason why I should believe your "story".
@NonZealot

Please provide documention disucssing this iPhone issue.

Look forward to the read.

Your hero,
@itguy08

Never said the hardware is perfect. Just that it's not a widespread problem. If it were, it would be all over the news and it's not.
A lot of people dont realize this but if they disable 3G on their iPhone the voice connection would be much more stable. That is the same as putting a T-Mobile SIM in the iPhone because the Iphone is not compatible with T-Mobile's 3G band it will connect to a 2G tower which all the carriers have plenty of.

@NonZealot
Did you even bother to look at the *VERY* small areas that AT&T covers with 3G?

It is *IMPOSSIBLE* to get AT&T 3G in countless locations... with any phone.

http://vzwmap.verizonwireless.com/dotcom/coveragelocator/images/maps/3Gcomparison.pdf
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@CathyCC Why not post a link to the AT&T site rather than a VZW site? But wait, that would be biased and we ALL know that VZW would not post a map that was not factual about their competitor, right?
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surfing the web and let me know how it goes.
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@NonZealot Really? Proven time and time again? Seriously? Then it should be NO trouble for you to provide proof then. Otherwise I'll just file this under typical NZ FUD, lies, and anti apple rhetoric
I don't agree that Apple will do that much better selling iPhone at other carriers. Currently, if you walk into AT&T planning to buy a smartphone, you really has only one logical choice of handset. However, if you walk into a Verizon store that also sell iPhone, you have many other good phone choices. I understand there will be iPhone lovers who would buy an iPhone in whatever carrier they walk into but those are still the minority. Once Apple started selling iPhone at other carrier, AT&T will be free to bring in nice Android devices which equal to less people buying iPhone.
you can also buy on AT&T. Only nobody does. Hmmm. Interesting.
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Clearly you have not been in an AT&T store
John J. Jordan 1st Jun 2010
@saint168
AT&T sells many competing phones to the iPhone. This is a one way exclusive agreement, ATT sells many different smart phones from blackberry to LG and many more. The iPhone happens to be the most prominent phone that they sell.
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I think it is a strategic error not to have the iPhone, on most/all of the US carriers

iPhone customers buy apps, consume music/videos, read ebooks, etc., and are likely to stay with an iPhone to protect their investment in apps & media (i.e. they have the potential to become long term customers).

I'm an Android fan, but fierce competition between iPhone, Android, Blackberry, etc. is likely to result in better smartphones, prices & services for everyone.
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Proprietary Content Channel
educationtalk 25th May 2010
Have to still lock myself into a proprietary channel if the iPhone goes to another carrier. Let me think.......nope. It is my music, my book, my video. I should be able to take to with me to any other platform if I choose to.
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same bs all over again
banned from zdnet 1st Jun 2010
@educationtalk
you can take your music bought on itunes to any other device that happens to understand the modern aac format (any smartphone, most current pmp). ebooks and videos however are protected by drm (thanks to the copyright owners) which means you can't move any content from one platform to another. not your kindle books and not your amazon videos and none of your other content that maybe some day will be available on the android market. wallet garden? all of them.

by the way you can't play your ps3 games on an xbox or wii either.
I'd agree with saint168. For the past 2 years you could walk into an AT&T store and the only real good smartphone was the iPhone. You didn't really have a good selection of multi-touch screen smartphones at the time. Today, competition is heating up as the Palm Pre Plus is now available through AT&T. Also, the Android HTC Incredible has far better hardware features than the iPhone. Android marketing is strong and sales will or has already surpassed iPhones. Most consumers will flock to the device that has the most hype - and Android smartphones have certainly stepped up this season.
@zdnetviewer

"Android marketing is strong and sales will or has already surpassed iPhones."

hyuk... Hyuk. You mean android giveaways have been strong. You do know that whatever growth android has seen is mainly due to the BOGO deal out on verizon. It's easy to increase market share when u give stuff away for free. HA HA.
@James.faction

no. Apple never gave away iPhones for free. U need to Get your facts straight or stop lying.
This is how the google fanbois twist reality to suit them. Hyuk hyuk.
@rhegde75 Ummm... Those are still sales... The idea that because they discount the phones, they are no longer worth anything is flawed. I could get a stupid samsung crap phone for free and without having to pay a data plan. Will I? No. I want an Android phone. The fact is, the BOGO deals are enticing, but in no way are the only deciding factor. They also aren't technically free, since the carrier still gets the money back and if nothing else its like half off on two. You are an Apple fanboy, so quit calling everyone Google fanboys. Get YOUR facts straight.
@superlinkx
If the phone was being "discounted" .. yeah you could still call it a sale. But if a phone is being given away for free ... call it what it is... a BOGOdroid.
The carrier does get its money back ... but they are leaving a good amount of profits on the table.
You will never see an iphone go for a BOGO deal. And once the iphone is on verizon, Android phones will get such a beating... BOGO notwithstanding.
Face it... the only reason Android phones are doing so well in the US is coz of carrier limited iphone sales.
You are a Droidtard... I don't expect you to understand all of this.
Nope, most people don't want the iphone. Some people thought it was cool a few years ago but nowadays your hard pressed to find someone willingly seeking one.
@Loverock Davidson

Like you mentioned in this article they want an Android:
http://www.zdnet.com/blog/btl/is-android-destined-to-be-the-windows-of-smartphones/34974?tag=content;search-results-river

You've become quite the Android advocate.
@Loverock Davidson

Yet, it is the android phones that are being given away for free. Now if android phones are the current cool phones why wud verzon have to give them away for free.
Ha ha
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they can afford to give them away
james.faction 25th May 2010
...because Android is free and open source, unlike Apple's proprietary software.

I for one am shocked and surprised by Loverock's support of Android.
@James.faction
u r deluded if u think open sourced sofware makes it affordable. The production costs for the iPhone and droid is the same but the droids are given away. They are obviously taking a hit coz the only way people will take home a droid is if it is free.
Are you people drunk? Verizon's BOGO offer is for the Droid and another model. The Incredible (which is beating all the other ones in sales) is NOT included.

Explain that one away.

Steve Jobs' Reality Distortion Field is strong with these morons.
@droid101
u r such a droidtard.
The so called "market share gain" by android has been attributeed to the BOGO deals. The moto droid is supposedly the phone that got them these gains. The "incredible" just started selling recently and may be the "hot android phone" today (only to be replaced by the EVO tommorrow)....
It is just the flavor of the day. The BOGo deals are what is keeping the droids around. Even that will get such a beating when the iPhone comes to verizon.

All the droid manufacturers are anyways in a race to the bottom of the barrel. They won't survive with this trend of being the droid flavor of the day. That is just not sustainable.
They all finally end up as BOGOdroids.
@rhegde75

I don't see any different between getting 2 Droid (previous hot Android phone) for $199 and getting iPhone 3Gs 16G (soon to be previous hot Apple phone) for $97 (Walmart price).
Not a chance. I don't have iTunes on any computer I own. I have never had iTunes on any computer I own.

Why in the hell would I need iTunes in order to own a phone? It's the single stupidest thing I've ever heard.

Guess what I don't ever need to do with my Android phone? Plug into any PC. Ever.
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twisted logic
banned from zdnet 1st Jun 2010
@Droid101
so you don't like itunes because you never used it?
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Apple has AT&T by the short hairs. Apple loves to be in control. Therefor, no other carriers.
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AT&T... lowest rating ever
CathyCC 25th May 2010
Hmmmm... let me think about this one, carefully.

1 of the hottest selling phones of all time: iPhone

1 of the *LOWEST* rated carriers of all time: AT&T

1 of the *HIGHEST* rated carriers of all time: Verizon
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It doesn't matter now.
storm14k 25th May 2010
If they'd done this early on it would probably be tough for anyone besides maybe BlackBerry to do anything against them. However their AT&T deal created the perfect atmosphere for Android to flourish. You had every other major carrier and all the handset makers locked out and looking for a way to compete. Google gave them the tools to do it and they ran with it. HTC is making a name for themselves (instead of being behind the WinMo phones) and Motorola saved themselves.

Now if the iPhone leaves AT&T they'll pick up some Apple lovers but they won't get the vast majority of people just looking for a smartphone experience as they once would have. They will not have to compete for those people and they'll never again pull ahead in any significant way. Thats great for the consumer.

In a nutshell....no....the Great Red Hope of Apple fanboys that the iPhone will come to Verizon and crush Android just won't happen. Hardly anybody is settling for Android because they can't get an iPhone now. They are buying Android because they want that experience over iPhone.
@storm14k
Ummm.. NO. The only people buying Android phones are those who can't get an iphone on their carriers.
Its pretty much a given that Android phones are the poor man's iphone.

Blackberries have their niche among business users. Iphone has its niche among consumers. Android has its niche among consumers who either can't get an iphone on their carrier OR who can't afford an iphone and hence settles for a FREE android phone.
@rhegde75 You do realize that Android devices ARENT Free and the only way to get one on BOGO is to have a second ACTIVE line of service. Since I only have one line I paid $199 for my Moto Droid at launch (Nov 6, 2009). A few weeks later when they offered it BOGO, the store called me and offered me the opportunity to come in and get my "free" droid BUT I had to get another line of service - Um no thanks, no need. So as you see you can try and "spin" the "free" droid however you like but there is no free droid period. You are just an iTard spouting off about things he (or she) knows nothing about. Do us all a favor and STFU. Thanks happy
@JT82
Just because you are lonely loser droidtard without any friends or family doesn't mean every body is like you. Most people have family and friends who do require a second activated line.
There is a free droid and the whole world knows about it.
So since you have nothing but your own sad story, you should probably STFU and stop cheerleading for droid.
@rhegde75

My wife use an iPhone and she love it. I use an iPod Touch and I love it. However, I want an Android phone that I can decide what software I want to install on it. I'm "sort of" OK with Apple controlling what I can run on my MP3 player but definitely not my phone. I've been a customer of AT&T for 10 years and I have very few problem with their service in the area I live. However, I'm considering leaving AT&T just because they refuse to carry a decent Android phone. Am I the only one who think this way? I don't think so.
@rhegde75

Ummmm..NO. I switched carriers and had a choice between several, including ATT and Verizon. I paid the same, perhaps a bit more, to get Verizon/Droid as I'd have paid to get ATT/iPhone. I have nothing against Apple, have never owned anything made by them and am curious. I chose Droid over iPhone because I think it's a better phone.

Also, your previous condescending and ad hominem remarks make you appear to be a troll, although you obviously do have intelligent things to say. It's a shame you choose to use this forum for emotional gratification rather than intelligent discourse. Hopefully, you'll decide to change that behavior and make some real contributions.
@storm14k

Exactly my point!
in big volumes.

So the question in the title of the article was already answered some times ago.
@denisrs

I wonder how many iPhone users at AT&T are moving to Android if the Incredible is available at AT&T........
I am not saying iPhone is junk or anything, I'm just trying to make a point about the "iPhone rule the world" statement. Geeks like us who read reviews of phones online and keep track of all the new phone models are a small minority. Most people just walk into the store and talk to the salesperson. When iPhone is available at Verizon, do you think the salesperson is going to push the iPhone like the AT&T guys are doing now? No. Once iPhone is available at the other 3 mobile stores in the same mall, do you think the AT&T salesperson is going to push the iPhone as hard? Definitely no. In fact, the moment Apple decide to leave, AT&T is going to bring in the top of the line Android phones. So bringing iPhone to Verizon or other carrier is not going to make "iPhone rule the world".
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I disagree
dave95. Updated - 31st May 2010
@saint168

There's lots of these same non geek people that may be stuck on a competing carrier, or maybe they just don't want to go through the trouble of moving to AT&T. They would love to have an iPhone, but cant at the moment because of its ties to AT&T. A recent study shows 17 percent of Verizon customers want an iPhone. If they cant get an iPhone, many will just get the next best clone (Android).
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2. USA IS NOT THE WORLD !!!!!!

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