AT&T sends $1 billion msg to Apple - Cringley
updated 11:40 am EST, Mon December 3, 2007
AT&T warning Apple?
The official revelation of a 3G iPhone may have been a deliberate and expensive message to Apple, says tech columnist Robert Cringely. By letting the public know a 3G iPhone was coming in 2008, says Cringely, AT&T CEO Randall Stephenson has deprived both Apple and AT&T of important revenue, since media-savvy shoppers may delay their spending not only on the iPhone itself, but also on the requisite two-year AT&T contract. This could be equivalent to a loss of one million customers for AT&T, a market cap of approximately $1 billion.
Cringely suggests that AT&T is upset with Apple, which is rumored to be joining Google in bidding for the 700MHz wireless spectrum. A network based on the spectrum could be used to create a pure data service meant for computers, but it is argued that it would also be logical for Apple to encourage VoIP, which could even be installed on the iPhone. This would undercut the need for AT&T, with which Apple has a five-year exclusivity deal. The carrier has been resistant to VoIP on its own networks, since unlimited data plans could effectively allow unlimited calling.
AT&T has announced no plans to enter the 700MHz auction, Cringely notes, and if it did it could have to pay $10 billion or more to compete against a juggernaut comprised of Apple, Google and even third or fourth partners.












Or Not
12/03, 12:01pm reply
Or maybe he just didn't realize the impact of his statement on sales, or how much Steve Jobs hates it when someone steals his thunder by announcing an Apple product ahead of him.
njfuzzy
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Pure fantasy
12/03, 12:09pm reply
Cringely is a wannabe hi-tech paparazzi who doesn't own a camera or a motorcycle so the only way he can sensationalize is to just dream stuff up.
Steve Jobs said there would be a 3G iPhone when he spoke at the London Apple retail store opening a couple months back.
No one who follows Apple would be expecting them not to intro a 3G iphone in 2008. It's not a message from AT&T. It's not news. It's just Cringely stirring the pot.
davesmall
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Cringely...
12/03, 12:11pm reply
"...says tech columnist Robert Cringely..." -- usually, you can safely stop reading right around that part, as anything coming from Cringely is pure pie in the sky.
Oh, right Stephenson would *deliberate* cause his own business to lose a billion dollars in revenue, just to send a message to Apple? Right!
I have a pretty simple saying in situations like these "Never assume malice (or planning, or a conspiracy) when incompetence is a much better explanation".
Stephenson's, simply, a moron. There, sorted.
ZinkDifferent
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If only it were true...
12/03, 12:13pm reply
Apple and Google together is a dream we could all hope for, but it is unlikely. Jobs has never been able to work with anyone, at least not for long. Is it likely that AT&T would sacrifice a billion just to spite Jobs? What a ridiculous idea. Of course not. At the worst, it was a goof; more likely no one has figured out what is going on. It well could be that iPhone sales aren't being sacrificed because they aren't nearly what were expected. AT&T may instead be drumming up future demand by deterring people from moving to the Touch or other less authoritarian (and faster) alternatives.
TheSnarkmeister
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I agree with
12/03, 12:21pm reply
davesmall. This wasn't even remotely surprising. I would actually have been surprised shitless if Apple/AT&T DIDN'T release a 3G iPhone in 2008.
And if you're the type that will refrain from buying an iPhone for up to a full year (till the end of calendar 2008) to get 3G, then you're probably the type that won't buy an iPhone anyway.
tomodachi
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Contract void
12/03, 12:23pm reply
Watch Apple break the AT&T contract because of a "premature announcement" clause in the contract.
Jobs gets pissed when anyone steals his thunder.
Although everyone KNOWS a 3G iPhone is coming, no one really knows WHEN. Apple will likely deny the AT&T announcement or do nothing.
Eriamjh
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Joined: Oct 2001
stupid is as...
12/03, 12:32pm reply
It would be a supreme act of stupidity for a CEO in today's legal climate for business to use his pulpet for a purpose as Cringely sugests. They would be committing a breach of their fiduciary duty to intentionally hurt their own company to hurt another. Although, when one looks at past decisions from ATT management one would have to wonder.
mlstrom
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i'm not so sure...
12/03, 12:35pm reply
Depending upon the offers that have been made to AT&T by other current (and future) mobile phone vendors, and whatever exit clauses may be in the Apple+AT&T agreement, there exists the possiblity that this was done to poison the pot. You're not losing a billion if you've got something else waiting in the wings to replace the iPhone... and someone paying dearly to get it there and offering you a much better profit margin.
And whether or not Apple plans for a 3G phone in 2008 is irrelevant in terms of the "value" of Stephenson's statements... you'd never tell people that the next big thing is coming soon when you still have the current version sitting on your shelves - particularly at this time of year - unless you were up to something, or completely mad.
That being said, it seems far more likely that zinkdifferent is correct in stating that we should never overlook the likelihood of temporary incompetence/insanity :)
lockhartt
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patience...
12/03, 12:42pm reply
And with all of the other doubts stated.. let me add one more. Patience.
Did all of those people stand in line cause they had to have a cell phone the day the iPhone went on sale? h*** no. They wanted to be the first. So if those people weren't even willing to wait a day for the iPhone, why would most people wait for Sometime/2008?
They wont. If they want a iPhone, they will buy one. If it's on the Xmas list, they will get one. The majority of people will not postpone a purchase on a rumor. Unless there is strong evidence to the rumor. ie: not some statement by a company who doesn't even make the iPhone.
eldarkus
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Oh yeah???
12/03, 12:54pm reply
What moron (besides Cringely himself) hasn't known from the beginning that the iPhone would certainly be replaced with a "new, improved" iPhone next year? Is it even conceivable that this wouldn't happen? What an idiot!
alansky
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