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News
iPhone is AT&T’s "Neutron Bomb"
Tuesday, January 23rd, 2007 at 2:00 PM - by Jeff Gamet
RealMoney columnist and financial analyst Jim Cramer doesn't see a problem with the iPhone's US$500 price tag and six month wait. In fact, he thinks Apple's iPhone is AT&T's secret weapon in the cellular service war. "This company believes in world domination. And it intends to dominate using the iPhone," he said at TheStreet.com.
The primary goal for AT&T now that it has absorbed Cingular Wireless is gaining market share. To that end, AT&T may maintain the iPhone's current price point, but drastically reduce the service contract fees. The next step in ensuring the iPhone's success, as well as the success of the cell service it is tied to, is in AT&T's hands.
"AT&T exists to kill Verizon," he said. "This is actually a war. The iPhone is the neutron bomb."
And the man most likely to make this market share grab successful isn't Apple CEO Steve Jobs, it's AT&T CEO Stan Sigman. Mr. Sigman is in the unique position of having exclusive distribution rights to the iPhone. How he plays that advantage - and how he uses his neutron bomb - will have a major impact on his success as well as the success of the iPhone.
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