Telstra exec tells Apple to ‘stick to its knitting’ as iPhone looms

“Greg Winn is considered Telstra’s second-in-charge and oversees most of the carrier’s big product decisions,” Sam Holmes reports for AAP. “He believes the iPhone may meet some significant operational challenges when it comes to actually making its market debut.”

“The iPhone is expected to hit US shelves in the middle of this year while an Australian release has been scheduled for some time next year. ‘There’s an old saying — stick to your knitting — and Apple is not a mobile phone manufacturer, that’s not their knitting,’ Winn told AAP. ‘You can pretty much be assured that Nokia, Motorola, Samsung, Sony Ericsson and ZTE and others will be coming out with devices that have similar functionality,'” Holmes reports.

Holmes reports, “In addition to mobile calling, music portability and e-mail capability, the iPhone boasts a vastly enhanced design that significantly challenges most mobiles’ current approaches to user interface. The phone’s touchscreen is also considered a significant drawcard but Winn doesn’t believe the device is truly revolutionary. ‘I think people overreacted to it — there was not a lot of tremendously new stuff if you think about it,’ he said.”

“Winn said from a marketing perspective, Apple had committed a number of oversights, including the iPhone name, which provoked a corporate slanging match with enterprise systems group Cisco, which had previously registered ‘iPhone’ as one of its own trademarks,” Holmes reports.

Holmes reports, “Apple’s exclusive carrier arrangement with US mobile carrier Cingular was also puzzling. ‘They did an exclusive with Cingular and they talked about a global rollout — well, Cingular is not a global company,’ he said. The non-replaceable battery may also be a sticking point with consumers, as it has been with the iPod.”

Full article here.
Apple is a mobile phone manufacturer; a revolutionary mobile phone manufacturer, to be precise. The others will not be “coming out with devices that have similar functionality,” since Apple has over 200 patents granted and pending on iPhone and intends to strongly protect them, according to CEO Steve Jobs.

The “iPhone” name dispute with Cisco is a non-story and meaningless. Anyone who brings it up is either looking to bolster their list of iPhone FUD or is an ignoramus.

Apple’s exclusive carrier arrangement with Cingular is for the US-only, hence the use of a US carrier. Steve Jobs said clearly that iPhone will go 3G in the future which means many carrier possibilities for Apple around the world. Non-US carriers need not fit current iPhone specs.

The battery design is not a sticking point and we can give you about 21 million reasons from last quarter alone, if need be.

And, finally, Steve Jobs has obviously already told Telstra to go pound sand and that’s exactly why you see this sniveling, whiny little baby’s comments in print today. There are now two very different kinds of mobile carriers: Apple iPhone haves and have-nots. The former group is planning where to store their new profits while the latter group is stuck trying to spread FUD in public (with laughable results, as you can see above) while pulling out their hair in private.

Winn, you lose.

Related articles:
Digit takes a closer look at Apple’s iPhone – February 14, 2007
Microsoft caught off-guard, beaten badly by Apple’s iPhone innovations – February 13, 2007
Palm CEO: ‘We don’t want to follow design fads’; Nokia CEO challenges Apple over iPhone – February 13, 2007
RIM co-CEO doesn’t see threat from Apple’s iPhone – February 12, 2007
Apple’s soon-to-be iPhone rivals sound just like iPod rivals circa 2001 – February 01, 2007
O2, Vodafone, Orange, T-Mobile battle for exclusive rights to Apple iPhone in UK – January 26, 2007
Rogers to offer Apple iPhone exclusively in Canada – January 25, 2007
FUD Alert: Apple iPhone ‘isn’t very practical’ and a ‘security risk’ for business – January 24, 2007
Research in Motion downgraded due to Apple iPhone competition – January 23, 2007
Microsoft CEO Ballmer laughs at Apple iPhone – January 17, 2007
RealMoney: Apple just blew up the whole damn mobile-phone supply chain with its new iPhone – January 11, 2007
The massive FUD campaign against Apple’s iPhone ramps up – January 10, 2007
eWeek: Apple iPhone fallout: ‘They must be crying in Nokia-ville and other telephony towns today’ – January 10, 2007
Jefferies downgrades Motorola on fears of market share loss to Apple iPhone – January 10, 2007
The massive FUD campaign against Apple’s iPhone ramps up – January 10, 2007
Time: ‘iPhone could crush cell phone market pitilessly beneath the weight of its own superiority’ – January 09, 2007
Analyst: Apple iPhone should be given its own category – ‘brilliantphone’ – January 09, 2007
Apple debuts iPhone: touchscreen mobile phone + widescreen iPod + Internet communicator – January 09, 2007

64 Comments

  1. I so want VODAFONE AU to ge the exclusive for iPhone! I have never changed phone carrier ever since my first mobile, Voda AU is doing such a great job with its very competitive call rates. I would hate if it was Telstra or Optus to have the exclusive on the iPhone!

  2. ‘I think people overreacted to it — there was not a lot of tremendously new stuff if you think about it,’ he said.”

    Couldn’t the same have been said about the original iPod (well except that there wasn’t such a big reaction)?

    The phone market will be tougher. OTOH Apple is not the beleagured barely breaking-even nice computer maker that release iPod.

    AHEM I MEAN the iPhone will be a billion dollar disaster. Everybody SELL THEIR STOCK NOW. Puh-lease. Can we get that stock price down? I hate paying retail.

  3. iBest – I agree!

    I got my first mobile phone account with Vodafone AU (private account – rather than one paid for by work).

    I also have NEVER changed my mobile provider, and have had the same personal mobile number for close to 10 years.

    I looked again about 9 months ago, and yet again Vodafone was way ahead than Telstra, and still ahead of Optus with call rates and pricing ($79 Super Cap is amazing!)

    My only concern is that the iPhone price would suggest that it doesn’t sit well with the geneally younger subscriber base that Vodafone has. Telstra = old people and corporates too ignorant to know there is someting better and willing to pay for crap (eg Windows users). Optus is a kind of “family” positioning, a bit “hippyish” in their marketing (all the animas and stuff). Vodafone is pitched at those that are younger, individuals, “trendy” etc.

    I reckon a 3G Vodafone/iPhone combo would rock, and I would be able to maintain my loyalty bonuses and discounts from my prefered network provider.

    I also think the brand identities of Apple and Vodafone are better suited, and that Vodafone would be the network most willing to do things like work on visual voicemail etc.

    In fact I reckon that is why Telstra is already out of the game for the iPhone, they would NEVER be forward thinking enough to offer something like visual voicemail, hell they still had ADSL 1.5 Mb/s broadband as their top speed until recently (only just launched ADSL2+, three years after some competitors, and after they forced these competitors to build their own DSLAM network, even though Telstra had the advantage of a TAXPAYER funded copper backbone – pricks!

    Lets hope Apple are smart enough to go with Vodafone, Vodafone works with Apple on Visual Voicemail and other features, the first iPhone in Austraila is 3G (screw Telstra EDGE), and as aresult Apple sell loads of iPhones and Greg Winn can explain to Telstra shareholders why Vodafone is gaining share from them!

    4 cents and counting,

    Luke

  4. @R2 “There are already a few devices at 3GSM that use Multi-touch.”

    How about something that is actually shipping, or maybe even powered up during the demo?

    I know the iPhone isn’t due for a few months, but you are the one used the term “already”.

  5. I have been with telstra for my mobile service for 20 years. They have offered better international connection than all the other networks and since my job is dependent on that I have had no reason to change. HOWEVER, if they do not get the deal to sell iPhones I will be 1st in line to switch over. (as I would be 1st in line to get a phone if telstra does get the deal). I want a phone that is functional. In the past I have always looked at the phone as a tool to access the phone network. iPhone flips this on its head. I will look at the network as granting access to the phone and all it’s functionality. If I could buy an unlocked iPhone at $1000 I would fly to the country to get it.

    I dont care if telstra gets the deal, and I also feel that Mr. Winns comments suggest that they are falling behind the competition. Just bring on the phone so I can get something that is a pleasure to use for my work. ( Have Razar now, and I spent $1000 to get that when it came out because I thought it offered better functionality i.e. it was thin.)

  6. Re Longtimetelstra,

    I travel overseas regularly as part of my role in the pharmaceutical industry.

    I have NEVER had an issue with coverage with my personal vodafone account, and my current employer ALSO uses Vodafone as their service provider and their Blackberry services. This is the Australian division of one of the WORLDS largest pharmaceutical companies, and hence one of the largest companies in the world, and again they have no issue with staff travelling the world access both voice and data services, even roaming in the USA.

    In fact the ONLY issue I have with Vodafone is that they do not have as complete coverage in Australia as Telstra, yet this has only been an issue for me in very REMOTE areas (like population = hicksville). It doesn’t REALLY bother me, as even in these areas, as per the service agreements in place, I can always get an emergency call if really needed using the Telstra network. Again Telstra used tax payer dollars to build that network and are now profiting without outlaying investment.

    This is why Telstra HAVE to fall off the pace. The profits they were generating when first privatised were based on an artificially low cost base (as most of their big infrastructure was paid for by the tax payer prior to them being privatised).

    Optus and Vodafone had to build their networks, and so their profitability has been a true reflection of the costs involved.

    Prolem Telsra has is that all those investors are expecting at a minimum the same if not more profits year on year, and Telstra can’t maintain that now that they have to pay from their own revenues for network upgrades and rollouts.

    The only other way to maintain profit margins is not invest, and as has been seen in the slow rollout of ADSL2+ Broadband, and the fact that Telstra are only JUST rollingout their 3G network!!! And this from Australia’s PREMIER telecommunications provider!

    Thank god for all the other players (broadband and mobile services) that have DRAGGED Telstra kicking and screaming into the 21st century 7 odd years after it started!

    The only way is DOWN for Telstra and it couldn’t happen to a more deserving bunch of monopolists, well except maybe Microsoft.

    One more thing…

    This twit Winn mentions that Apple announced a global roll-out (which they didn’t) with Cingular, and then has a jab about Cingular not being US only!

    Well Mr Winn – where in the world except for Australia is Telstra??? Mr Winn, your glass house is in danger of stone damage!

    Which of course brings us back to Vodafone, from their website from Vodafone UK (head office):

    “On 1 January 1985 we made the UK’s first mobile call. It marked the launch of the mobile industry and transformed global communications. Today Vodafone is the world’s leading international mobile telecommunications group with equity interests in 27 countries across 5 continents, 186.8 million proportionate customers and 33 partner networks (as at June 2006).”

    Countries with Vodafone entities include:

    UK, Germany, Italy, Spain, Ireland, Netherlands, Portugal, USA (Joint Venture with Verizon), Australia, Greece and New Zealand etc

    Partner networks are in the following countries:

    Singapore, Hong Kong, Brazil, Sweden, Malaysia etc

    I am really hoping that someone at Vodafone UK is negotiating a sweet deal with Apple for an iPhone exclusive for the rest of the world.

    As longtimetelstra noted, 20 years with them and he’ll JUMP if the iPhone is on another network. He wont be the only one.

    Listen up Vodafone, here is a MASSIVE chance for you to gain market share, and also increase the number of NON Pre-paid customers you have.

    My 2 cents,

    Luke

  7. I think people are misunderstanding something. It’s not as much what it does, but how it does it that matters. All phones do pretty much the same thing, but ease of use and the coolness facter is what sets one apart from the other. I 6 months compare the iPhone with the Razor.

  8. “The non-replaceable battery may also be a sticking point with consumers, as it has been with the iPod.”

    Yeah right! I just bought another one the other day for my wife. A real sticking point.

  9. That was the whole point. Apple is an inovator and that’s why I love Apple. The underdog that’s not scared to have a go. It’s not about taking over the phone market it’s about opening other companies eyes to the possibilities. Of course every other phone company will copy just as others have copied the ipod. And you have to admit as popular as the ipod is there are other players that serve other peoples needs better. Choice is good.

Reader Feedback (You DO NOT need to log in to comment. If not logged in, just provide any name you choose and an email address after typing your comment below)

This site uses Akismet to reduce spam. Learn how your comment data is processed.