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Rumor: AT&T iPhone Deal Extended to 2010

Rumor: AT&T iPhone Deal Extended to 2010

by , 8:10 AM EDT, August 4th, 2008

AT&T's deal to be Apple's exclusive iPhone partner in the United States may have been extended by a year to 2010. Apparently Apple agreed to the extension in exchange for subsidized iPhone price kick-backs, according to USATODAY.

News of the new deal deadline came from unnamed sources close to the deal, but Apple and AT&T have not confirmed the details.

The per-phone subsidy payment AT&T is paying Apple comes in at about US$300, according to analyst estimates. AT&T isn't saying exactly how much it is paying Apple, but CEO Randall Stephenson confirmed the subsidy will dilute company earnings through 2009.

Staying close to Apple and the iPhone will likely be a good move for AT&T, especially now that the combination iPod and smartphone is available for less that $200. "The iPhone has repositioned AT&T as the premier wireless brand in the world," Mr. Stephenson said.

"The $199 price point is where demand leaps," he added. "This is going to bring in a whole new demographic."

Apple set a goal to sell 10 million iPhones before the end of 2008, and it looks like the company is well on its way to hitting that number. Earlier this year, Apple revealed that it had sold over six million units since the first iPhone launch in July 2007, and the company sold over a million iPhone 3G handhelds during its July 11 launch this year.

AT&T's iPhone 3G sales were up, too. In the first 12 days the second generation iPhone was available, the company sold twice as many units compared to the original model.

So far, the company's exclusive deal with Apple seems to be paying off. "It's everything we hoped it would be," Mr. Stephenson said.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: Overprotective?

I understand Apple wanting to carefully control what folks say and do on behalf of the company, but they run the risk of publicity backlash for these kinds of actions. Lately, Apple's been getting beaten up a lot because of the issues with the iPhone and MobileMe launches. They would do well to come out from their ivory towers and talk to people in the real world.

Close Name:Guest
Subject: Its about trust Apple

This is why dispite having good products Apple will never dominate the computer industry. They don't trust anyone and as a result less people trust them.

Close Name:Guest
Subject:

/agree with guest. A move like this seems more like anti-marketing.

Close Name:Sir Harry Flashman Posts: 792 Joined: 08 Feb 2007
Subject: I disagree with those guests

Security systems and procedures are not something you should discuss with outside people

Close Name:Guest
Subject: Disagree w/Sir Harry Flashman

You're welcome to your opinion. However it's been proven time and time again that security through obscurity fails.

Additionally, in Apple's case, most areas where security is enforced is open source code. So not a big deal.

Close Name:Guest
Subject: Apple will need to open up

Apple will eventually have to come to terms with the fact that its vulnerabilities to hacking are very real and will become more obvious as market share grows and hackers take more interest in the platform. They're going to have to be more open and proactive with the tech community. Despite their image with their user base, Apple is in fact one of the most closed and proprietary computer technology companies in existence. Pulling their security team from Black Hat is a faux pas.

Close Name:Guest
Subject:

Quote
Guest wrote:
Apple will eventually have to come to terms with the fact that its vulnerabilities to hacking are very real and will become more obvious as market share grows and hackers take more interest in the platform.


Yeah, I mean even now the Windows vs. Mac score is 121,000 to...ZERO. Thems is "very real vulnerabilities," alright...

Quote
Apple is in fact one of the most closed and proprietary computer technology companies in existence.


I wasn't sure you were a troll until I read. There's no doubt now.

Close Name:ctopher Posts: 134 Joined: 25 Aug 2006
Subject: Guests Only

I think it's interesting that only "Guests" are saying that this is a bad PR move for Apple.

I think Apple is just doing what Apple always does. Run a tightly controlled ship.

And I think their target market doesn't care if Apple attends Black Hat or not. They just want the cool goods. While a family picking out a computer for their children might want to know about OS security, it's at such a high level that what they might learn about Apple is mostly in Apple's favor. It would take a lot of discussion to convince the average consumer that not attending a security conference is a reason to choose another brand.

Finally, I don't believe Apple wants to "dominate the computer industry." It's too big and too full of geeks who judge a company by which conferences they attend or don't attend. Instead, they'll be content as a high quality, successful, cash producing player in the computing world.

If you don't own an Apple product because you think it's too expensive or just a toy, then fine, there are many other choices.

If you're angry that they don't make a mid-range tower for which you believe there's a vast market, get into the business and sell one.

Or better yet, join Apple! Work you way up to a position of power and then look at all the marketing data. If it says there's a huge market for an expandable, mid range tower, then sell the heck out of it!

And if you think it's important the Apple speak at events like Black Hat, then gather your market research that says so and prep those people to portray Apple in the best light, cause it's your ass that's on the line now.

But if you're not willing to do that, just don't whine, no one likes a whiner.

Close Name:Intruder -   TMO Mac Specialist Posts: 3149 Joined: 07 Jul 2004
Subject:

OS X DOES have vulnerabilities. I don't think anybody doubts that (including Apple). That is why security updates come out. The question is how many are being actively exploited? People SAY that they are being exploited, but there is no PROOF that it is, in fact, happening. Folks (mostly anonymous guests) come here making statements like "There are lots of exploits out there being used. Trust me, I know...", but not a single one offers proof in the form of a link to a reported case of an OS X machine being exploited outside of a lab. The "PWN2OWN" contest is not a great example (and it took far more than the reported 2 minutes to craft that exploit. It was more on the order of 3 months), as again it was in a controlled environment and the method used has not been seen "in the wild".

I have no illusions as to the invulnerability of OS X. It was written by man. It has flaws. Do I feel safer with it than with Windows? Yes. Do I still have to be careful? Yes.

Now to go clean "Pro Antivirus 2009" off of a coworkers machine (with NAV corporate, fully updated, running). All because he read web mail.

Close Name:Guest
Subject: Another Guest Opinion

If you want to find all the holes in MacOS X Server just host a few controversial websites featuring gay bashing, pro-religion, or anti-spam and hackers will waste no time trying to bring down your server!

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