Thursday, July 23, 2009

AT&T: iPhone Exclusivity Won’t Last

AT&T: iPhone Exclusivity Won’t Last: "
AT&T LogoThe consensus is growing: iPhone users don’t like AT&T (actually, “don’t like” might not be strong enough). From angry Twititions over 3GS prices to possible Justice Department investigations, sentiment is just not with AT&T. Yet, they still remain the only U.S. carrier with the iPhone, and are hoping to renew their contract with Apple, which ends next year.

That’s what makes AT&T CEO Randall Stephenson’s admission at the Fortune Brainstorm: Tech Conference so stark. According to CNET, he stated that, “There will be a day when you are not exclusive with the iPhone.” While it’s true that nothing lasts forever, it’s not a positive message coming from AT&T’s perspective (though it is one for iPhone owners).



AT&T’s CEO acknowledged not only that it wouldn’t have the iPhone forever, but that the Apple relationship is one of its most important strategic partnerships. That’s probably an understatement, considering that 2/3 of the AT&T’s newest subscribers signed up for an iPhone last quarter.

Still, we think that a different quote from the AT&T CEO was just as enlightening. From the Brainstorm Tech blog:

iPhone Image


When asked if he was completely satisfied with AT&T’s relationship with Apple, Stephenson said, “I don’t think I could get my wife to say that about me so I don’t think I could say that about a business partner.”

Here’s what we think: if AT&T ever hopes to keep its partnership with Apple, it needs to satisfy its relationship with customers first. The customers are the ones placing pressure on Apple to break the exclusivity. Fix the network and give consumers what they want, and the calls for AT&T’s head will die down.

Tags: apple, att, iphone

No comments:

Post a Comment