Apple ‘iPhone’ could disrupt mobile service distribution channel

“New hardware isn’t the only way Apple can shake things up in the mobile industry. The company has the ability to disrupt the entire distribution channel, which is currently controlled by cellular service providers,” Daniel Eran writes for RoughlyDrafted.

“The control maintained by service providers has slowed the advance of hardware features and the emergence of new competition for service,” Eran writes.

“Apple’s position as a hardware maker with retail stores and software expertise allows it opportunities unrivaled by other phone makers like Motorola, software middleware providers such as Microsoft, and services providers that simply resell subsidized phones in an effort to sell minutes,” Eran writes. “In 2007, Apple has the capacity to flip the entire mobile world on its head, with the same quiet speed it has used to reinvent itself as a specialized Intel PC maker. It will be fun to watch.”

Eran explains how, once again, Apple could be poised to disrupt the status quo in his full article here.


  1. Carefully Speaking, I will go you one further: Daniel Eran is not a source at all, he is an opinion writer. He is simply providing speculation and saying what he hopes Apple will do. Don’t look at his articles as analysis, look at them as wishful thinking… thay are entertaining none the less, and he does bring up points worth poondering.

    In this case, he is right that the cell phone industry needs to be remade from the ground up. He is right that Apple is in a position to try and accomplish this monster task. The real questions are: Will they try? If they do try, will they succeed?

  2. Carefully Speaking —

    Eran’s words ring true to me.

    His analysis about the service providers and their role to stymie innovation was spot on. After reading the entire article I can’t imagine what the hell you’re talking about.

    What the hell is a “bald assertion”? Or “raw speculation”? Is that raw as opposed to “cooked” speculation? Are these journalistic memes? Please explain in the hopes it might shed some light on what it is you’re trying to say.

    I think I speak for most bloggers in the Ether when I say I resent your “bald assertion” that bloggers do not use facts or analysis. To a point, pretty much everything Eran said was historically accurate when he framed the past and present situation related to service providers, hardware manufacturers, and the likes of Microsoft and Apple.

    As far as his “raw speculation” goes, is there any other kind? GFB! We’re all entitled to speculate and quite frankly I’d rather read Eran than you. We all take with a grain of salt what we read here in the blogoshere including your pile of Zune.

  3. G4Dualie: “Eran’s words ring true to me”.

    If you find Eran’s postings to be persuasive or compelling, then I have no argument with you.

    I would only note that Eran tends to attract an audience that is likely to agree with him. This is helped by Eran himself, since he often responds to criticism by attacking or banning people who disagree with him.

    mrboma: “Daniel Eran is not a source at all, he is an opinion writer.”

    Agreed. Eran is a opinionated blogger in general, and an Apple partisan in particular. He clearly does not meet the standards of a journalist or analyst or neutral observer.

    (As an aside, I note that banned Daniel Eran from posting his articles there. I have no opinion about this, since I am not a member of and am unfamiliar with and its standards.)

    Bottom line:
    As with any source, but particularly with biased and partisan bloggers like Eran, anything he writes (in my view) should not be accepted as valid until and unless it is independently verified.

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