“Apple Computer Chief Executive Steve Jobs has a reputation for thinking different. But now he might be planning a move for Apple that will leave even his biggest fans surprised–becoming a phone company,” David M. Ewalt writes for Forbes. “It might sound far-fetched, but the pieces are in place for it to happen later this summer. Apple is already developing a hybrid iPod/cell phone with handset maker Motorola. And companies ranging from the Virgin Group to The Walt Disney Co. are proving that a new network model can allow all kinds of businesses to easily enter the mobile market.”
Ewalt explains that Apple wouldn’t be building new cell towers; Disney uses Sprint’s already-existing national cellular network. The concept is called “mobile virtual network operator,” or MVNO.
Ewalt writes, “The leap to wireless could be even easier for Apple, since it already specializes in making cool, user-friendly handheld gadgets, and has sold over 15 million iPod music players to date. With each new generation of the devices, Apple has added features like more memory and color screens. It makes sense that the company would want to merge two devices already in consumers’ pockets, combining a cell phone and a music player… But Apple might have a problem getting the devices into consumers’ hands. Carriers will probably be loath to sell and support it, since they want to sell their own music downloads–not have customers upload tunes from home… The solution could be for Apple to launch its own cellular network, doing an end run around carriers and providing the company with revenue from both selling phone handsets and from the resale of cellular service.’
Full article here.
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sweet – not the fact that Apple may leave it’s area of expertise to make pancakes – but because I was really first…
Something tells me I’ll be working on the second generation of the Power Tower Pro within 5 years as Apple, deluded by recent successes decides kitchen appliances is the next direction to go in.
Can anybody say iColander?
Maybe that’s what the rumored deal was with Cingular – to piggyback off of Cingular’s network (the largest in the US) and become an MVNO.
As far as leaving their area of expertise….they did that with the iPod, didn’t they? And we all know how that turned out.
MW: true
BS! — must we follow every possible lead Apple might take? — OMG!
The advantage apple would have over other networks is that users would be willing to buy their handsets, especially if they doubled as an ipod type device. Other networks have to heavily subsidise their phones and I know very few people who’ve ever actually paid for one outright. Apple could reverse the model and use phone calls in much the same way they use itms – to sell hardware.
Dumbest idea EVER!
Isn’t this just a regurgitation of Robert Cringely?
I guess it takes all “types”.
‘…Apple is already developing a hybrid iPod/cell phone with handset maker Motorola…’
NO THEY’RE NOT!!!!
MOTO ARE MAKING A PHONE AND APPLE ARE MAKING A VERSION OF ITUNES TO WORK ON IT!
HOW THE F*CK IS THAT A HYBRID?!?!?!
THESE JOURNOS NEED A BLOODY GOOD BEATING!
Maybe on the congular/t-mobile network?
Matt said it all.
Move along… nothing to see here.
The Dude abides.
oh! i get it! if you offer a couple of extra software features to a phone built by another company and naturally you are planning to get into the telecommunications business!
A,P & P, L E?
MW: “under”
as in “Dumbest assumption ‘under’ the sun.”
I actually love this idea. Creative on the analyst’s part. SJ loves to have control over the holistic user experience, and thus, the entire vertical, in business terms. This fits into his philosophy where Apple provides services that integrate tightly with Apple hardware.
Personally? I would love to see a GSM standard Apple phone, so I can drop in my SIM card from any provider. I prefer the flexibility and voice quality of GSM. However, GSM is losing the 3G race to CDMA.
So if Apple was to launch a service, CDMA technology would be preferable to them because of EVDO data speeds – the 3G technology that would enable a fast enough iTMS Mobile experience.
Verizon’s version of EVDO runs at 500 kbps down / 100kbps. That’s as fast as my mediocre DSL, so we are talking about true mobile broadband. It just so happens that Sprint is rolling out EVDO to major markets *as we speak* to be completed by Q3.
Imagine the potential – How about Airport Extreme2 technology running on Sprint’s Apple-branded EVDO network. Sounds like a great feature to build in standard to the next-generation Powerbook!
Tie it into isync, ichat, .mac, etc and it would rock muchly. Sadly tis likely to be wishful thinking. I can dream though
I use Virgin Mobile and I love it. I could easily see Apple using a pay as you go model like Virgin and integrating it closely in to the computer biz. How likely ? I would have to say it has a solid 13% chance of happening, but that doesn’t mean its a bad idea. It would give Apple another revenue stream and would further tie customers lifestyles to Apple thus making a switch more difficult.
Shrewd biz move get’em and hold’em tight.
What a bunch of unimaginative dolts you all are. Look what Apple is doing to the music industry (a slow moving, protectionist industry), they’ll do the same for the telecommunications industry (also a slow moving, protectionist industry).
Apple has all the technology they need to take the whole industry in a new direction and to a new level.
It would be cool if Apple would to purchase the dieing T-mobile
I’d much rather see Apple develop a VOIP version of iChat. Can you imagine how cool it would be to have an H.264 powered way of making traditional calls over a P2P based (as opposed to AOL server based) system?
I don’t think it makes sense to incur the infrastructure costs of making a cellular network, if you’re simply trying to sell some iTunes capable cell phones. VOIP is infrastructue free.
And who knows? Maybe a Bluetooth compatible cell phone could be patched in to it.
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Well it make work if they hope onto someone elses network.
But cell phones are very different from mp3 players – a lot more competition.
Question is can Apple make money out of the business?
T-mobile might be up for sale come this December. They already have a solid GSM network here in the US.
Who knows… Perhaps Apple can either buy them or merge.
i will buy it the second it’s out
Perhaps Apple’s new phone with Motorola will link with your home computer via BT and allow you to use VOIP to call someone else on thier home phone. Something similar to Skype.
RE: MDN Take: You can’t sign up yet, it is just speculation at this point. I am sure Apple will have news on there website when and if the service becomes available.
okay, so they get ONE RUMOR right…
and then they think that every crazy rumor will be believed.
http://www.iphone.org/
This address HAS to mean SOMETHING!!!!!
Interesting how there seems to have been delay after delay in introducing the new iTunes phone from Motorola… Verry interesting indeed!
Why do anal-ysts waste our time with their baseless imaginings?