Saturday, August 25, 2007

Apple and AT&T: Why?

So with the latest news that hackers have unlocked Apple's iPhone from only able to use AT&T raises a couple of questions for me. First, what is going to happen? Will Apple publish an update to stop this hack? (Basically, just forcing hackers to find another way, some of which are already out there in more complicated steps.) However, it is a second question I am most puzzled by. Why would Apple sign an exclusive deal with AT&T? What does Apple get out of it? I am sure there are some huge payments from AT&T, but was this the best strategy for Apple?

Here is what I am wondering. How many people want the iPhone, but hate AT&T or can't use its service? How many people would be willing to spend big bucks on the phone itself if they could use another carrier? See, when Apple was doing the math, they must have gotten some large dollar amount out of AT&T because I just don't see how restricting service would be that beneficial. Remember, this is Apple we are talking about. Their whole gimmick is that Apple works for the ordinary guy, the non-technical. Well, ordinary folks like having stuff that works without too many strings attached. I guess I just don't see this deal as really fitting into the Apple image. I mean, it would be different if Apple sold a phone that only worked on an Apple network (think the iPod/iTunes combo) in which case the network wouldn't be as expensive. That was the whole point of Apple's success with iTunes, providing a service for a lower price.

So, what will happen? Well, that depends on the contract between Apple and AT&T. If the contract doesn't specify that service updates to thwart hackers is required, Apple might just be better off ignoring the news. Let people buy a phone, download the hack, and use another network. (I would have added that this also would have invalidated warranties, but I don't believe iPhones even have warranties.)

Well, here is to hoping Apple decides next time to stick with its image of appealing to the average Joe and avoids adding unnecessary strings to customer purchases.

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