Report: Apple to Remain Exclusive to AT&T

[Michael Essany]

Image via CNET

eWeek is out this morning with a report indicating that Apple will likely continue their exclusive relationship with AT&T.

When AT&T’s contract expires in 2010, many have speculated that Verizon will raise its hand for a CDMA version of the device. A new report from iSuppli, however, suggests that Apple may actually renew its contract and remain exclusively with AT&T—though Apple may pursue other opportunities with Verizon.

Although this news isn't exactly what many iPhone fans want to hear, our attention was certainly roused by the prospect of Apple doing business with Verizon elsewhere. What does that mean, exactly? For now, the only feasible guess is that Apple would partner with Verizon on another device - presumably the mythical but supposedly in development Apple tablet.

“The main reason Apple is likely to stick with AT&T beyond 2010 is the relatively wide usage and growth expected for the HSPA air standard used by the carrier for 3G data.” iSuppli expects HSPA wireless services, which include high-speed downlink packet access, or HSDPA, and high-speed uplink packet access, HSUPA, to rise from 269.1 million in 2009 to 1.4 billion in 2012. The EVDO standard used by Verizon, by comparison, is expected to grow from 2009’s 145.2 million subscribers to 304.6 million in 2013.

Now, from Apple's perspective, the company may see little value in moving away from an exclusive agreement with AT&T, but it's quite possible that both Apple customers and AT&T see the situation somewhat differently.

The article in eWeek illustrated that a study last month by Strand Consult found that "carriers that offer the enormously popular iPhone not only have not increased their revenue, earnings or market share, but in some instances are worse off for offering it."

Some carriers have sent out profit warnings because of the iPhone,” reported Strand Consult.

Reports, rumors, and ruminations aside, I will believe Apple's exclusivity agreement with AT&T will linger when I hear the official announcement. Perhaps I'm a silent minority who holds this opinion, but I believe there to be far too many cracks in this one way street for both Apple and AT&T to remain happily married for much longer.

If anyone else agrees or disagrees, I would love to take up the conversation.

[StealthBravo]

This is awesome news!

[Blizz127]

Nooooo, well I enjoy AT&T but I would like to see it on another carrier..

[Napoleon_PhoneApart]

This is awesome news!

Your flogging will commence in fifteen minutes.

[StealthBravo]

Your flogging will commence in fifteen minutes.

I know.

[Cory Gillmore]

Muhahahaha! If you want an iPhone the you will suffer like the rest of us poor bastards! I'm actually pleased with AT&T. They recently added 3G coverage to my hometown here in Mississippi. I've always had it when at work in Memphis TN but have only ever had edge at home. Until about 2 months ago. I drive about 29 miles to work everyday and have 5 bars of 3G coverage the whole way.

Whoa... I just got a text message from an unknown number and area code telling me to send them a message back, they just want to make sure they can receive them. Maybe someone is trying to use that SMS exploit on me as i'm still on 3.0? I dunno but I'm not opening the message!

[Napoleon_PhoneApart]

I know.

I would have pronounced the death sentence upon you for such blatant heresy, but I need your proximity to the dev team for just a while longer...

[babyblue_pimp]

damnit, the iphone on verizons network would have been perfect...

[jordan04]

Apple should open the iPhone to other carriers just like in France, the iPhone is selling by the 3 big carriers (Orange,SFR and Bouygues Telecom). Since the market opening, the iPhone is almost out-of-stock everywhere

[iBwizzle]

I could careless... My 2yr contract is over and I have the original 2G data plan with an iPhone 3G.

[dmb41302]

I can confirm from a master dealer that Verizon is in fact getting the iPhone first quarter next year. Paperwork about this already exists....I've seen it.

[Jahooba]

Seeing how this is just a rumor, I'll sit patiently and see what happens. I'm sure a lot of money and contracts are being thrown around right now. It would behoove Apple to at least threaten to leave and negotiate with Verizon, for as long as possible. In the end, their contract with whomever they choose will probably be ridiculous.

[plcrules]

apple should stay with att for a lil while cuz att said they would boost there speed and if they dont apple should leave them

[alantoo]

I can confirm from a master dealer that Verizon is in fact getting the iPhone first quarter next year. Paperwork about this already exists....I've seen it.

I'm not a fan of Verizon so even if they were to pick up the iPhone I would probably stick with AT&T since I dislike them less. Anyway, it seems that Verizon will be getting it next year, my girlfriend works for Verizon and they've had meetings where the dealings between Apple and Verizon have been brought up and at least on Verizon's end they seem pretty confident that it will be in their device lineup.

[Napoleon_PhoneApart]

And just how long is a "little while?" You want Apple to commit to AT&T again before seeing how their network improvements pan out?

[A_DuB187]

I don't think Apple will go with Verizon until they switch to wireless technology that works around that world and not just the U.S. It doesn't really matter to me what happens but I've been with AT&T ever since their first cell phone and because of that I've got a badass plan so I'm not going anywhere. Pretty soon though there will be plenty of phones around on every carrier that rival the iPhone it's inevitable it's just a matter of time. I'll stick with iPhone though as long as it's with AT&T but if it leaves I'm out!

[Cowboy]

This is good news for me lol

[A_DuB187]

Oh and just because a little paper work is floating around doesn't mean it's a done deal. Don't be so ignorant.

[willryan42]

Doesn't it seem obvious for Apple to consider T-Mobile as a carrier? I mean, the fact that many T-Mobile users are currently using unlocked iPhones and they're working well seems like a good sign...

[reanimationxp]

Why does everyone simply assume they'll go with one or the other? The Razr and Blackberry, arguably the other 2 most popular phones in the world, are on BOTH carriers. All it takes is the replacement of a baseband chip.

I think once exclusivity ends, Apple won't be renewing it. I don't think they'll stray from ATT either, I think we'll soon see Verizon AND ATT versions of the phone.