query for reporters All hail the new iPhone - Pittsburgh Tribune-Review

Begin forwarded message:

From: DV Henkel-Wallace <[email protected]>
Date: January 12, 2007 6:21:45 PM EST
To: "Brock N. Meeks" <[email protected]>
Cc: David Farber <[email protected]>
Subject: Re: [IP] query for reporters All hail the new iPhone -  
Pittsburgh Tribune-Review

I think the question is more simple.

If you decide you can't start an MVNO for whatever reason you need a  
carrier on your side (even if you do you won't have 100% freedom on  
what phone you develop).  You can't start out in opposition to  
carriers and still get one to sign up.  So you have to pick an  
exclusive provider to start.

If you're going to design a phone then you might as well pick GSM  
(UMTS is hard, but there you are) for the greatest potential  
worldwide market.  Changing wireless architecture isn't a drop-in  
process, at least today.  For GSM in the USA there isn't much choice.

So Apple gets some traction without being frozen out by the  
carriers.  Cingular gets the hope that people are driven to its  
network by the Apple name.  Very simple.

Even if there's an additional financial consideration it will appear  
in the SEC filings IFF it's material...which right now it would be  
unlikely to be.


Far more interesting is a long-term unknown:  Apple likes to  
differentiate its branding clearly.  Thus it's the iTunes store and  
not, say, a Virgin Online Megastore.  It will want to control its  
phone's behaviour to a far greater degree than does, say, Motorola.   
The carriers have been working to erode this manufacturer  
differentiation, and sadly (IMHO) have been succeeding.  But with  
Apple in the mix: who will win?

-d



with Ockham's razor


> From: "Brock N. Meeks" <[email protected]>
> Date: January 12, 2007 5:36:57 PM EST
>
> It is curious why Jobs would hang the initial success of the iPhone  
> on a
> single carrier.  [...]  It could
> very well be that Cingular has some kind of financial arrangement  
> with Apple
> [...]
> There's nothing illegal in this type of transaction and I suppose  
> if such a
> deal has actually been made it would show up, somewhere, in Cingular's
> quarterly earnings statements.



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