New Apple iPhone Could Hurt AT&T’s Growth
on March 30th, 2010 Apple Inc. plans to bring out a new iPhone this year that can be sold by U.S. mobile carriers other than AT&T. Currently, AT&T is the leading mobile phone carrier in the U.S. It’s success in the American market has been largely due to the huge sales of the iPhone. In that sense, both Apple and iPhone have been a crucial factor for AT&T.
AT&T has over 43% of all U.S. smart-phone customers, compared with 23% for Verizon, it’s rival and the second most popular mobile carrier in the U.S. Smart-phone customers pay more for their data plans, and are hence more attractive. In the fourth quarter of 2009, AT&T has activated around 3.1 million new iPhones. AT&T uses the GSM technology for iPhone.
It has now being reported that Apple is working on a new iPhone that can work in a new wireless networking technology called CDMA. When this new phone gets released, carriers like Verizon, Sprint and other mobile operators in countries including South Korea and Japan can work with Apple to sell it. AT&T’s exclusive deal with Apple might come to an end.
The partnership with Verizon may help Apple double its sales figures, says an expert. The iPhone sales rose by a massive 83 percent in 2009 to 25.1 million. At this point of time, Apple might want to further diversify its products for distribution to new carriers. “There has been lots of incorrect speculation on CDMA iPhones for a long time. We haven’t seen one yet and only Apple knows when that might occur,” said an AT&T spokesman. Apple declined to comment.
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