Is AT&T slowly dethroning the almighty iPhone?

June 23, 2009, 12:54pm PDT | Length: 00:01:43
ZDNet Senior Editor Sam Diaz shares his views on the release of Apple's new iPhone 3G S. Diaz says there is a dark shadow being cast over the new device because of its exclusive relationship with carrier AT&T, while users complain about two-year contracts and lack of support for MMS messaging.

Transcript

Is AT&T slowly dethroning the almighty iPhone?

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>> The new iPhone has finally arrived, yet there seemed to be less excitement around this release compared to previous ones. Maybe it's the economy. After all, times are tough and these devices aren't cheap. Or maybe it's the competition. Google after all has a phone now. Palms pretty, pretty much sold out on day 1 and the Blackberry lineup has been beefed up as well. But I'd say the Dark Shadow being cast over the iPhone is the relationship that it has with AT&T in the US. No, this isn't me pointing out how poor the AT&T service can be with an iPhone. That's been the case since the original device came out and yet people have looked past it just to have the technology in their hands. No, this is about other things like AT&T's lack of support for MMS messaging. Though they say that's coming later this summer, it's also about AT&T's lack of support for tethering the 3G internet connection from the iPhone to a computer, a feature that's being ruled out with other iPhone carriers around the world, but has no launch date yet in site under AT&T. And these is also about contracts and how the earliest of the early adapters found themselves locked into AT&T's 2 year commitment for the iPhone that they purchased last year. And ineligible for this kind of price in this time around. Sure, contracts has such been around for a long time. But this is the iPhone, the king of the smart phones. And for some reason, people expect the rules to be different. Maybe this is a sign that the almighty iPhone isn't as almighty as everyone thinks it is. Don't get me wrong. I'd love to have one, but not at the cost of having to deal with AT&T.

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Talkback Most Recent of 23 Talkback(s)

  • Dethroning? Always dethroned!
    From the beginning, Apple missed a substantial market
    on the iPhone by linking to AT&T. AT&T has had a
    long-time bad reputation as a provider, in terms of
    both coverage and customer service. Why Apple would
    have chosen AT&T remains a mystery.

    Many potential buyers would have been willing to pay
    the "premium" for better (albeit ridiculously more
    expensive) providers such as Verizon. Until Apple wises
    up and unshackles the iPhone device from ANY
    provider, the market will be as limited as the provider to
    whom the device is tied.
    ZDNet Gravatar
    fjpoblam
    24th Jun 2009
  • GSM!
    It's clear why Apple picked AT&T. AT&T uses GSM instead of CDMA and GSM is more widespread across the world. Apple didn't want to have to remake their hardware for the world market. Having just one phone to manufacture simplifies the manufacturing process as well as decreases product confusion. And the reason Apple picked AT&T over T-Mobile is clear. AT&T is a much larger company.

    It's likely that the iPhone will be available for both Verizon and AT&T once LTE (4G) rolls out. Then you can use the same physical device for both networks.
    ZDNet Gravatar
    paul07
    26th Jun 2009
  • GSM!
    You're probably right about Apple wanting a GSM provider, but T-Mobile is part of Deutsche Telekom, the largest cell provider in the EU, where they REALLY use their phones. Also, in my experience, T-Mobile has incomparably superior worldwide coverage, voicemail, tech support, etc. when traveling. It's pretty easy to imagine that there were discussions between Apple and prospective providers that go just slightly beyond what we on this string know and that their reasons are many and detailed. But a resounding "UGH" to AT&T.
    ZDNet Gravatar
    compudog
    29th Jun 2009
  • Yet they still sold like hot cakes!
    If there is less excitement about the new iPhone, then how come they sold the same or more as last year with fewer countries? It sounds to me like there is *more* excitement! There just isn't long lines because they've finally fixed that problem.
    ZDNet Gravatar
    paul07
    26th Jun 2009
  • Apple shot itself in the foot
    I have always thought Apple shot itself in the foot by limiting its carriers allowed to sell the iPhone. Even if it was Verizon instead of AT&T I still think it would be wrong. You should never limit yourself by creating such agreements that sniffle the amount of potentials buyers.
    ZDNet Gravatar
    jscott418
    29th Jun 2009
  • Lazy journalists record video instead of writing
    Just what I want to hear and watch, a lazy journalist with a speech impediment. Rotten public speaker reading from uninspired cue cards that tell a non-news story. Next time, please type and post the story. I can scan a few paragraphs of simple declarative sentences faster and with more enjoyment than I get from watching a video that has no production value and adds no informational value over lower-bandwidth text.
    ZDNet Gravatar
    dnheller
    29th Jun 2009
  • Lazy is right
    Couldn't agree more. More misuse of tech from the quarter most likely to mis-or overuse tech - the tech community.
    ZDNet Gravatar
    compudog
    29th Jun 2009
  • Don't Attack the Messenger
    That's unprofessional. The truth is the truth. If AT&T wants to compete they've got to do better.
    ZDNet Gravatar
    Anita Y. Mathis
    1st Jul 2009
  • Yes, attach the messenger...
    If it's the message that is the problem, then no, don't attack the messenger. BUT, in this case it is the messenger that is the problem, so an attack is due, and very professional.
    ZDNet Gravatar
    Narg
    13th Jul 2009
  • RE: Is AT&T slowly dethroning the almighty iPhone?
    AT&T is far behind the times, why does Apple insist on only allowing AT&T to sell their product? It is time to open up the monopoly they have and allow competition do its job.
    Apple - wake up - quickly!
    ZDNet Gravatar
    diardp@...
    30th Jun 2009
  • Lousy service and technicians
    I just wish AT&T would make a phone that doesn't cut out and allows me to hear somebody on the other end.

    If I want to talk to somebody and be able to hear them,it's Verizon.

    I have a company Blackberry on ATT&T and I have to use my Verizon phone if I want to hear somebody.

    Doesn't matter if I'm in Vegas or SFran.

    When my subscription is ,up,it's back to Verizon.
    ZDNet Gravatar
    pgm554
    1st Jul 2009
  • RE: Is AT&T slowly dethroning the almighty iPhone?
    Full disclosure I work for AT&T. Also full disclosure I do not currently own a cellphone because it is a luxury I can personally do without until the economy turns around. That being said I don't understand this continued criticism of the business relationship between Apple and AT&T. As I see it all of the carriers have exclusive deals with device manufacturers not available to AT&T, yet AT&T is attacked because of it's exclusive (and lucrative) relationship with Apple. The iPhone apparently is a superior product as the public is clamoring for it. I sense a lot of resentment towards businesses that seek to make a buck these days instead of giving everything away for free. There is lots of choice out there stop so complaining and choose the other service or device if they are so great or not (and stupid enough to give it away). When something is 'free' it has no value. Think about it. AT&T is not making money off the device but off the services. They are trying to guarantee an income stream for two years for their investment in this and other excellent products they offer. Makes perfect sense to me.
    ZDNet Gravatar
    eldawg
    3rd Jul 2009
  • RE: Is AT&T slowly dethroning the almighty iPhone?
    Full disclosure I work for AT&T. I am also a Services Technician. First of all AT&T repeatedly leads the nation's carriers in independent service quality surveys like J.D. Power and others in all areas including mobility services which gives lie to all these anecdotal 'evidences' that AT&T is a horrible company that abuses its customers.

    I personally take affront to the notion that AT&T technicians are what you say. Are there some few who are not very good on a particular day? I'm sure. However that is true of every business and individual including yourself. We give great service daily. As for your trouble with connectivity with your particular mobile device I will tell you like I tell everyone who bothers to ask: It is not the service but the device!

    All mobile devices are not created equal and just because it is expensive or made by a huge manufacturer doesn't mean it will operate (receive and transmit) in a given environment as well as a device obtained for free in a promotion. In most areas in the nation AT&T has the largest and densest mobile coverage despite Verizon's claims. However if you have a great phone (reception/transmission-wise) you'll think Metro is the best carrier. What makes a mobile device a great receiver? That is one of the mysteries of the universe.
    ZDNet Gravatar
    eldawg
    3rd Jul 2009
  • RE: Is AT&T slowly dethroning the almighty iPhone?
    Well, you know, it is GSM so if you do not like AT&T buy one in China unlocked and put in your own carriers card. Or you could just quit whining.
    ZDNet Gravatar
    mdsweet@...
    4th Jul 2009
  • RE: Is AT&T slowly dethroning the almighty iPhone?
    AT&T really gets the shaft in the press, but I have had their service for about 7 yrs and have always gad excellent reception, excellent customer service and more bars in more places! 3G consistently for 2 years on a Moto Q 9h and now with the Apple 3GS.

    I am happy with AT&T and sick of all the complaining.
    ZDNet Gravatar
    shanna364
    6th Jul 2009

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