Don Reisinger is Wrong About AT&T

Don Reisinger is busy crying about Apple signing another year of an exclusivity agreement with AT&T for the iPhone, and I think he’s wrong. Here’s the comment I left him:

Don,
Although Apple COULD build a CDMA iPhone, it doesn’t seem like there is actually a compelling reason too, as they could only sell it in the US. Would the costs of R&D to build a CDMA iPhone be justified to really only gain Verizon subscribers? Sprint’s a pretty dead end service from what I hear. And, factor in that Apple hasn’t even hit their 10 million mark with the current iPhone.

The big news the other day was that Apple sold something like 1.3 million 3G iPhones on launch. To contrast, Nokia sells a million a day. Not a single one is a CDMA phone. There’s no worldwide demand for CDMA phones. Last November Verizon said they would be moving to GSM for high speed. A CDMA iPhone would be a poor investment.

And T-Mobile? Really? I’m pretty sure they have no 3G coverage to speak of. Let’s face facts. Apple really did do the smart thing accepting AT&T’s subsidy, because Apple then gets the money they want, and the subsidy makes it cheap enough that people will buy the iPhone in larger volumes.

The iPhone on any carrier other than AT&T in the US is a pipe dream. Don’t hold your breath people.

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~ by jerquiaga on August 1, 2008.

One Response to “Don Reisinger is Wrong About AT&T”

  1. i agree that iPhone on any carrier other than AT&T in the US

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