In words likely to strike fear into the hearts of any iPhone user – AT&T’s CEO promised [threatened] that the iPhone would be part of the AT&T product portfolio for ‘quite some time’. The comments were made yesterday at a Morgan Stanley financial meeting.
That coupled with Apple COO Tim Cook’s gushy comments during the lastest financial call that AT&T was a ‘great partner’, and that Apple was ‘pleased’ with their performance has got to trigger visceral dread in iPhone users.
With the iPad launch nearing, and Apple giddily gloating over the ‘amazing pricing plans’ that AT&T will offer, one has to truly wonder ‘what’s up with that?’. The answer is complex, and unsettling.
Hints have been everywhere – yet none of the trade press and blogs have been willing to report the obvious – for now, the iPhone is fully captive to AT&T until someone else [anyone else] can belly up to the bars and put in place a network to support the technology, the traffic, and the backshop access Apple requires to activate phones and deliver unique content.
Sure, Apple has courted, and been courted by other carriers – notably T-Mobile and Verizon – but no deals have solidified. Why? Because as strange as it sounds – AT&T is doing an ‘okay’ job. Despite blogs, anti-AT&T websites, customer outrage, and press scrutiny and blather – AT&T fumbles along as the only game in town, why else would we [and Apple] tolerate:
- Routinely dropped calls, poor voice quality, and sluggish data rates
- Belated adoption of 4G LTE technology – ‘we’re in no hurry’ as Stephenson said
- Perpetually promised – and delayed – tethering
- Subtle hints that tiered data plans are in our future
- Shoddy and unresponsive customer service
AT&T sucks. Apple knows it – and AT&T certainly knows it. So why the mutual love-fest? Necessity.
Apple needs AT&T as a supple, compliant partner – at least for now. And, AT&T needs iPhone customers and revenue. Even with the iPhone cash-cow, ATT stock is hurting badly. Without the needed infusion of customers [with two-year contracts], and added income [iPhone customers produce the fattest bills] – AT&T’s stock would be so unattractive that no one would want it.
Stephenson’s comments yesterday were only to reassure investors that AT&T is ‘on it’ and still not only in the game – but for now – the only game. Anything else is wishful thinking.
What will it take to change the game? Greater iPhone customer outrage at AT&T and Apple.
I’m not going to suffer AT&T in silence – and now, with Tim Cook defending the indefensible – Apple is in my cross-hairs too. Thoughts?