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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
Mon Aug 04, 2008 6:18 pm Subject: I disagree with those guests
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.
Tue Aug 05, 2008 9:54 am 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.
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