It`s the elephant in the room that no one`s talking about. Will AT&Tbe the exclusive network for Apple`s iPhone after next year?
The question is relevant to consumers considering an iPhone purchasebecause, to get one, you have to sign a two year AT&T contract. But asit now stands, AT&T exclusive rights to the iPhone is reportedly setto expire in 2010.
Apple isn`t saying much on the matter, telling the Wall Street Journalthis week that "we have a great relationship with AT&T." The questionconsumers want to know, though, is will they have a great relationshipafter next year?
The Journal article raised the issue as it profiled RandallStephenson, the 48-year old CEO of AT&T. Stephenson took the company`sreins right after it locked up the iPhone contract and has ridden on itssuccess.
At about the same time the company changed its name from Cingular toAT&T, and the iPhone has helped the company reposition its brand. It`salso been pretty good for sales. AT&T says it added 4.3 million newcustomers in the second half of last year and about 40 percent of themwere iPhone users.
Technology Web sites were buzzing over the Journal article this week,with AppleInsider noting that Apple might have some technology-relatedreasons to stick with AT&T. Adapting the iPhone to work on othernetworks, it says, would require several modifications to the iPhone.
For all the millions of consumers who love their iPhones, there are afew who regret being seduced by the sexy, but notoriously delicatedevice. David, a self-described 60-year old who was happily using apre-paid GoPhone recently bought an iPhone, a decision he nowdescribes as a mistake.
"The phone lasted about two months," he told ConsumerAffairs.com. "Iplugged it in to charge before going to bed and the next morning itwould not turn on. I went back to the AT&T store and they examinedthe phone and said it was defective, I was told to take it to theApple Store down the street where they would exchange it for me."
It turns out it wasn`t that easy. David said he was told at the AppleStore that there was water damage and that he was responsible. He saidhis options were to buy a new phone at full price, $400, or buy anordinary phone.
"I am still stuck with the two year contract and wound up with another$90.00 flip phone, little different than my original GoPhone," hesaid.
