Comments on: Bad Business Decision For Apple? http://thinktankinvesting.com/bad-business-decision-for-apple Investment News and Resources Wed, 14 Sep 2011 18:09:31 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: admin http://thinktankinvesting.com/bad-business-decision-for-apple/comment-page-1#comment-72 admin Thu, 18 Sep 2008 16:13:06 +0000 http://thinktankinvesting.com/?p=171#comment-72 thanks Hank! I had no idea about the technical network aspects of Apple's decision to partner with AT & T. Pretty cool insight. You are just a bank of knowledge Hank. I knew that Verizon turned Apple down but now I have a better understanding of the reason behind it. Keep posting comments Hank. They are very much appreciated! Tbird thanks Hank! I had no idea about the technical network aspects of Apple’s decision to partner with AT & T. Pretty cool insight. You are just a bank of knowledge Hank.
I knew that Verizon turned Apple down but now I have a better understanding of the reason behind it.
Keep posting comments Hank. They are very much appreciated!
Tbird

]]> By: Hank Rearden http://thinktankinvesting.com/bad-business-decision-for-apple/comment-page-1#comment-71 Hank Rearden Thu, 18 Sep 2008 05:53:27 +0000 http://thinktankinvesting.com/?p=171#comment-71 Their decision had far more to do with technological limitations than folks acknowledge. There are two core cellular technologies in the world, CDMA and GSM. All service providers can be split into these two camps (for now). AT&T, TMobile, AllTel and several others (<a href="http://www.gsmworld.com/roaming/gsminfo/cou_us.shtml" rel="nofollow">Found Here</a>) operate on GSM. While it is far less secure than CDMA, it is less expensive and more versatile. Verizon, Sprint, Nextel, and others operate on CDMA. Each network would require different hardware in the actual handset used therefore Aple would have easily doubled it's R&D cost and would have to had developed two different models for use on each respective network. Another point to consider is that Apple is veraciously defensive of it's brand and experience. By partnering with AT&T alone they have far more control and influence over the user experience. If you could buy an iphone from Cletus's phone shop (Otherwise known as Tmobile) or other tier 2 providers, the customer experience would be far less desirable than what Apple is able to provide by partnering exclusively with AT&T. Apple originally offered the iPhone partnership to Verizon, but Verizon turned it down due to music licensing and subscription disagreements. Verizon already had it's own music service that would have been completely obliterated by an iphone with iTunes. Additionally, Apple gets @ 10% of all airtime charges that AT&T collects from iPhone customers nd Verizon would not agre to those terms either. Toodles... Their decision had far more to do with technological limitations than folks acknowledge. There are two core cellular technologies in the world, CDMA and GSM. All service providers can be split into these two camps (for now). AT&T, TMobile, AllTel and several others (Found Here) operate on GSM. While it is far less secure than CDMA, it is less expensive and more versatile. Verizon, Sprint, Nextel, and others operate on CDMA. Each network would require different hardware in the actual handset used therefore Aple would have easily doubled it’s R&D cost and would have to had developed two different models for use on each respective network.

Another point to consider is that Apple is veraciously defensive of it’s brand and experience. By partnering with AT&T alone they have far more control and influence over the user experience. If you could buy an iphone from Cletus’s phone shop (Otherwise known as Tmobile) or other tier 2 providers, the customer experience would be far less desirable than what Apple is able to provide by partnering exclusively with AT&T.

Apple originally offered the iPhone partnership to Verizon, but Verizon turned it down due to music licensing and subscription disagreements. Verizon already had it’s own music service that would have been completely obliterated by an iphone with iTunes. Additionally, Apple gets @ 10% of all airtime charges that AT&T collects from iPhone customers nd Verizon would not agre to those terms either.

Toodles…

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