Sunday, October 24, 2010

AT&T iPhone exclusivity

AT&T's contract with Apple for exclusive rights to iPhone sales in the US is set to expire shortly. Analysts are concerned about how this will effect the company's profitability. AT&T, however, remains confident that they will continue to grow. They are claiming to have a new upgrade that will increase their competitive advantage coming soon.  Personally, I think AT&T is right to stay confident. They have already secured a huge number of iPhone users, and I do not think many of them will be switching providers when the contract terminates.  I do not yet have an iPhone, but I would not be surprised if I purchased one when my next phone upgrade comes around.  However, I would not switch from AT&T when I get it.  AT&T has several customers who are not just there for the iPhone, so I do not feel that this will be detrimental to their profits. Here i an article that explains further :http://www.nytimes.com/2010/10/22/technology/22phone.html?_r=1&ref=technology.

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