“It’s rare that Apple denies a rumor, regardless of where it was published. But when stories were posted that the company was going to become a cell phone provider, specifically an MVNO, which stands for mobile virtual network operator, something had to giv,” Gene Steinberg writes for The Tech Night Owl.
“Such a rumor is dangerous, since Apple has carefully crafted distribution deals with hundreds of wireless carriers around the world,” Steinberg writes. “If Apple were to start its own service, even though it would be buying capacity from existing carriers, that would still put the company in competition with partners with which it has no such deals.”
“Now the original rumor about Apple becoming a wireless carrier appeared in Business Insider, which has a poor track record accurately covering the company,” Steinberg writes. “But that didn’t stop the story from spreading far and wide. At least Apple realized the rumor was important enough, with the added consequences to Apple’s existing partnerships, to nip it in the bud.”
Read more in the full article here.
MacDailyNews Take: Consider the source.
SEE ALSO:
Why it doesn’t make sense for Apple to offer their own cellular service right now – August 4, 2015
Apple: No, we’re not planning to become a MVNO – August 4, 2015
Apple MVNO coming soon? – August 3, 2015
MVNO: Should Apple become its own cellular carrier? – May 7, 2015
Expert: Apple plans to crush carriers and offer direct mobile service – May 1, 2012
The crazy master plan that could complete Apple’s mobile domination – November 29, 2011
Does Apple want to be its own carrier? MVNO patent application extended – June 2, 2011
Apple granted ‘Dynamic Carrier Selection’ patent where carriers bid to provide service to iPhones – February 9, 2011
Apple to soon become MVNO? – December 05, 2008
Apple’s unprecedented, almost unbelievable iPhone business model: hassle-free MVNO – October 01, 2007
UBS analyst: Apple may launch MVNO, serve as own carrier for ‘iPhone’ – December 13, 2006
Cingular music deal suggests possible Apple MVNO for ‘iPhone’ – November 01, 2006
Many expect Apple to launch its own cellular service (MVNO) before year’s end – April 22, 2006
Apple to become mobile virtual network operator (MVNO)? – April 19, 2006
Analysts tackle Apple’s ‘Mobile Me’ patent, iPhone rumors, MVNO possibilities – January 19, 2006
Apple may eventually introduce its own ‘iPhone’ cell phone-iPod combo and create Apple MVNO – September 12, 2005
This and the “Apple 4K TV”
MDN has sponsored and promoted rumors, too.
Irrelevant. MDN is a news aggregator, not a news source.
Spreading lies makes the spreader complicit in the lie.
Sorry, you are wrong. MDM re-publishes their FUD and usually editorially presents a reasoned counter argument with evidence.
Evidence? That’s the funniest joke I’ve read all year. You relaize that the “M” in MDN is for “mono-think”
Only in your delusional mind, Fred. You are the one with an agenda.
Oh look, Fred made a negative comment. What a surprise.
Fred the dumbass troll writes more garbage.
More ad hominem blather from the little mind of silverhawk.
And he’s a phony.
This rumor made no business sense. Why would Apple give up thousands of points of sale by becoming a carrier?😖
It wouldn’t. Rumours like this are irresponsible swill.
For any entrepreneurs out there,
absurdapplerumors.com is available. 🙂
Consider the source indeed. Business Insider employs the infamous Harry Blodgett, the “analyst” that never saw a dot.com startup he didn’t like, and was banned from WS (by the SEC) for life because of his bought and paid for recommendations.
He now makes his “recommendations/prognostications” outside of the SEC’s purview, to the same trusting, unsuspecting readers.
henry, i think. no sense defaming a dead man.
Apple’s share price is far too easy to manipulate through rumors. That has to be some sort of weakness the company needs to correct. I understand that it’s an opportunity to buy on weakness, but those opportunities shouldn’t be so easily manufactured especially if they’re not true. If it were such a good thing, then why isn’t it happening to companies like Google or Amazon. They seem to go up and stay up. Over the last 5 years, Amazon has beaten the crap out of Apple in share gains and Google is only trailing by a bit. Yet Apple’s profitability has been far higher than both companies and both of those companies have far higher P/Es than Apple’s. Apple shareholders appear as though they’re being stiffed in subtle ways. It’s just an observation, nothing more. I just find it strange.
Nothing Apple can do about it. It’s how they’re perceived by investors; a company that almost went bankrupt 20 years ago. Neither Google or Amazon have any real threats (or competition) to their core business – they both have a near monopoly in their respective markets, so it is assumed they aren’t going anywhere anytime soon. Apple on the other hand only maintains a very small share of the market their main revenue is generated from and as such it’s difficult for most to imagine any kind of long term stability. Hence, they are always doomed for failure unless they can continue grow above ANY and ALL expectations, regardless how nonsensical those expectations may be.
Amazon is a retailer which means they have A LOT of competition. What is going to happen when investors finally say enough is enough and demand that they at least meet the profit percentages of competitors like Walmart? I’m already starting to hear rumblings about Amazon’s prices and they barely made a profit last quarter.
Google’s advertising revenue in search has a greater risk of deteriorating than in the past. What is going to happen when ad blocking, app content search and enhanced Apple placed results (located at the top of Safari) are implemented in Apple’s new operating system? Is Google going to try to makeup the revenue shortfall by selling more YouTube ads? If yes, then there has to be a saturation point were viewers begin to leave.
Apple’s hardware business, except for iPads, is still growing. The current market research suggests this will continue through at least next year, and with smartphones, at least another five years.
Some naysayers have suggested Apple could be disrupted by some unforeseen invention. I’m a tech researcher and have not seen any hints that would suggest there is a viable alternative to the smartphone in the near term. Some say VR or AR devices will win the day, but from what I have seen these devices are still early days. People are not going to put on large headgear to answer text messages. These types of devices might gain traction some day when the form factor shrinks and when the gadget can read and interpret brain signals. Can you imagine people sitting in a coffee shop, wearing AR glasses and talking out loud in order to compose a document? Sure, these recently showcased devices will be great for gaming, but many other tasks will struggle to gain traction.
Apple is not a perfect company. They need to improve the quality of their software and release new and interesting products. I can see how some are not enthused about Apple releasing a watch, but go and watch the iPod release videos. The first iteration was bulky, and, if I remember correctly, pundits were angry that Apple released a music device.
Currently, the Apple Watch makes life easier for a lot of people, and, in the final analysis, that is what it is all about – it’s about improving the customer’s life. In the future, the device will have a profound impact by actually saving lives. Maybe one day it will save the life of your father, wife or child. How much is that worth to you?
We live in marvelous times. Technology has brought us together as a people and provided more outlets for expression and fun than every before. Apple will continue to be at the forefront of this movement for many, many years to come.
You’re dead on… But as I stated, “It’s how they’re perceived by investors… regardless how nonsensical those expectations may be.”
I’m not surprised this rumor spread. Some people seriously believe there is this panacea out there that will bring them cheap mobile phone plans. They think Apple becomes an MVNO and boom they get reliable service and unlimited data for super cheap. Because Verizon and AT&T would give the thumbs up to that, and Sprit and T-Mobile have the best coverage in the country. Haha!
It is both amazing and amusing to witness all the blind denial of all the reasons the once great company is in crisis mode on Wall Street. All the reasons have a common denominator – his name is Tim Cook. With his enormous personal wealth and no need to worry about anything at all connected with the decline in the quality and operations of Apple soft and hardware, he can pursue his social agenda and cruise in neutral – which, of course, means a general decline in AAPL and Apple Inc.
Blame it all on everything except the true cause. Therefore, what you see is what you get.
Disappointing The Street with fractional misses on earnings or projections is NOT the problem. The problem is the market has no faith in the company’s CEO or the future of the company he manages.
And, for good reason.
“Blind denial”
That’s funny coming from someone with a blind hatred towards Tim Cook.
It’s funny how you fail to mention Apple has posted record earnings quarter after quarter. Not to mention the largest single quarterly profit in history by any publicly traded company.
I hate to tell you this… but AAPL has always been misunderstood by institutional investors. Even before Tim Cook, the stock went up and down and up and down and, etc…
Dumbass troll return. Did you just get out of the insane asylum?
Ah, Jay Morrison, Fred’s Fud Bud.
You PROMISED you were going to stop your droning dreck, Jay.