“Although it has sent millions of new customers AT&T’s way, this unique market advantage known as the iPhone will only last so long. With every passing month, rival device makers are introducing new handhelds that attempt to replicate the wide array of innovations—starting with sheer simplicity—that Apple used to rock the wireless world less than a year ago. None of these new phones has duplicated Apple’s formula for success yet, but it may be only a matter of time,” Arik Hesseldahl writes for BusinessWeek.
MacDailyNews Take: If by “duplicate Apple’s formula for success,” Hesseldahl means, “violate some or all of Apple’s 200+ iPhone-related patents which CEO Steve Jobs has vowed to vigorously defend,” then he’d be correct. Of course, then it’d “be only a matter of time” until Apple’s would-be iPhone fakers get to start dealing with lawyers, lawsuits, and courtrooms, rather than trying to peddle their iPhone knock-offs to the ignorant.
Hesseldahl continues, “Published reports that first appeared on the Web site of Fortune Magazine suggest that AT&T, which has an exclusive five-year deal to sell the iPhone in the U.S., is prepared to subsidize the device by as much as $200, slicing the purchase price as low as $199 for customers who sign a two-year service contract… Such a discount could cause a surge in demand. At last count, Apple had sold some 5.4 million units, the vast majority of them for AT&T’s network, even with price tags of $400 to $600—essentially unheard of in the U.S. cellular market. Impressively, AT&T says 40% of its iPhone users are new customers.”
“But a price cut might be about more than nabbing new customers. AT&T’s goal may also be to boost monthly revenues from existing subscribers who switch to the iPhone, as the big colorful screen and robust Web browser on the Apple device tends to make iPhone owners heavier users of AT&T’s wireless data services,” Hesseldahl reports.
“There’s also been speculation, considered unlikely, that AT&T might be floating the idea of an iPhone subsidy to reinforce its marriage with a partner as notoriously slippery and heavy-handed as Apple,” Hesseldahl reports. “Some have suggested, for example, that Apple might try to argue that the new iPhone isn’t covered by the exclusive rights given AT&T for the first edition, and thus walk away from AT&T.”
More in the full article here.
“got some press reports or something on all those infringements and whose claiming them? “
And I’m not saying people are trying to enforce claims against Apple, rather that Apple will have no luck if it tries to enforce claims against others. Hence why lots of phones that use one or more aspects of the interface or design used by the iPhone exist, but you haven’t seen a single patent infringement claim from Apple yet.
The 200 patents comment was classic Steve puffery. There’s nothing there in the UI that Apple will successfully protect.
“The 200 patents comment was classic Steve puffery. There’s nothing there in the UI that Apple will successfully protect.”
Can MDN save this for when the first court document is filed. I bet it will be in Marshall, Texas.
Apple promised me a free mac.com email address for life, via iTools. I love Apple, but as they’ve demonsrtated with Dot Mac, they’re not above backing down from a deal.
I’ve been a paying subscriber since my iTools account expired, but that doesn’t mean I’m not bitter about it.
It doesn’t matter if the deal on paper says 5 years with AT&T;. Apple can renegotiate a deal that AT&T;considers advantageous.
For example, AT&T;gets to exclusively sell a locked and subsidized iPhone for X number of years for $199 (or whatever price). Apple gets to sell an unlocked and CDMA version of iPhone for a higher price, which can be used on the other major carriers. This will drastically increase iPhone sales.
When the contract with AT&T;expires, Apple negotiates contracts with all major carriers for locked and subsidized iPhones, provided they make the necessary modifications to their network infrastructure for proper iPhone operation. Meanwhile, Apple continues to sell an unlocked iPhone for an unsubsidized higher price.
Eventually, iPhone will no longer need exclusive contracts in any of its markets to give Apple a strong position in negotiating contracts.
Needs voice activation. The law regarding using cell-phones in Cal. changes July 1st this year. Come on Apple, help us avoid fines.
Quote: “None of these new phones has duplicated Apple’s formula for success yet, but it may be only a matter of time,”
Well Arik, you may have to wait a bit.
Before thinking about the phone, any true competitor to iPhone has to develop a rival OS to OSX.
Windows CE or Mobile can’t. Symbian can’t. Linux can’t.
So, expect a long, long, long wait.