Jim Cramer: AT&T to promote Apple iPhone with 18 months of free service

Jim Cramer said on TheStreet.com TV’s Wall St. Confidential video Wednesday that AT&T is one of the most interesting stories coming out of the tech period. In its call, the company made it very clear that it’s going to use Apple’s iPhone to get customers from Verizon Wireless by giving away its service for a year and a half to those customers who buy the phone.

Full article here.

MacRumors reports that in a recetn blog posting, Cramer stated, “Now, AT&T’s all about market share, and if you read between the lines, I think you see a strategy coming where the device’s $500 price point is preserved but the service contract is greatly reduced. I think that AT&T — and not Apple — is the key to this next leg, and CEO Stan Sigman can make it happen.”

Full article here.
If true, Apple’s and AT&T’s competitors are in for indescribable pain. grin

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    And to those who said that it was a mistake for Apple to announce the iPhone 6 months early. I think the real reason is to stop millions of customers from signing new contracts. I know it stopped me.

  2. Stan Sigman may not be a great presenter — MWSF 2007 — but he seems to be a brilliant strategist. He gets it. The iPhone will be a powerful customer magnet and AT&T will wield this weapon to maximum effectiveness.

    I have to laugh at the idiotic comments made by Bill Gates about Apple not working well with partners. I guess Gates is so wedded to the MS/partner-X win/lose scenario that the Apple/AT&T win/win scenario looks wrong.

  3. I’m waiting for the Zune Phone (zPhone) that ought to come out in July. Microsoft gets it, and it just works. Partner, they know how to partner-up with mega compaines to “get er done.” They aren’t #1 for just any reason.

  4. If true, this is a brilliant way to steal customers from the competition. 18 months is a smart move too, since 18 plus 6 (months wait for iPhone) equals 2 years, which is the typical contract term. They can even make the offer “for a limited time only,” to attract a tidal wave to new customers during the first six months. If this is just a rumor, I hope AT&T is considering it now, for real.

  5. ATT could provide free basic cell service and still make a ton of money charging just for data transfers. This could be huge for everyone concerned. The devil is in the details, and as I’ve said before, it’s ATT’s service terms that are going make or break the success of the iPhone’s adoption.

  6. Spark has it right. If I were making this call at ATT, I’d offer free voice and paid data. In fact, ATT wouldn’t even have to go as far as 18 free months–first year free and second year paid and you’d still have a tidal wave of switchers.
    P.S. As you can probably tell, I’m a business guy, as well as a consumer.
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  7. If true, people WITH current contracts would be lured away from competitors! Most charge a $300 or so penalty for early termination right? So, 18 months of free service at, say, $50 per = $900. So, $300 + $500 for the phone = $800. You’d still walk away with a Franklin in your pocket AND have one of the best gadgets around!! SIGN ME UP!!

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