News

iPhone is AT&T's "Neutron Bomb"

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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gslusher said:

member since 13 Nov 2002 with 2063 posts, unranked, send him a message or view his profile

Quote:
Apple's a real battleground. When you have a $500 price point and a potential "vaporware" system that's pushed out six months, why bother to own the stock? What's the data point that will get the bulls to romp and the bears to hibernate?

Besides needing to review sixth-grade grammar*, Cramer seems to forget that Apple makes much more than the phone.

*Why do journalists insist on starting sentences with "And," when it indicates sloppy writing, at best, terrible ignorance, at worst?

Edited to clean up the quoted material.

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A guest said: (hide)

Big Deal!

Great phone on a known crap network.

I'll wait until they get a real carrier.

Too bad that Cingular gained enough dopes (new customers) to quadrupled their profit margin. That'll give them a big head, higher prices, and the network will never get the attention that it needs.

I know of no one that has Cingular that likes the service.

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Tiger said:

member since 17 Jun 2003 with 969 posts, unranked, send him a message or view his profile

He's right about world domination though. Apple's deal with Cingular put them into the largest US network for cellular devices there is. And the price point is a HUGE deal to the other cell makers who have been WalMarted into dumping their phones for cheap and thus their bottom lines have suffered. All praise the overlord who can bring back high margins to a bottom of the barrel cell phone market.

I love the people who predict that the iPhone is Vaporware. They obviously don't know much about Apple. Nor have they paid attention to their track record for the past six years. It's called success. Cold hard cash. In the bank. $10 Billion of it. They may have spent less than 2% of that on the iPhone R&D. Pre-sales figures are supposedly astronomical. And tieing in with Cingular, now AT&T, has given them access to the nation's largest cellular subscription service. Hmm. Not so dumb afterall. Quality of the cell service aside (which I'm pretty sure they're all equally bad considering the overwhelming need for towers nationwide), it was still the best move they could make.

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LaurieF said:

member since 15 Jun 2001 with 3517 posts, TMO Forum Mod, send him a message or view his profile

I want an iPhone. I want it now. But I can't, and that's probably fine. Sigh.

It is reported to be becoming available in New Zealand sometime in 2008. By that time, the next revision will probably be available too. And it will be with my provider, Vodafone. Also I'll be planning to update my phone then, and my iPod as well.

The other main network provider, Telecom NZ, uses CDMA, so it won't get a look-in.

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A guest said: (hide)

Tiger wrote:
And tieing in with Cingular, now AT&T, has given them access to the nation's largest cellular subscription service. Hmm. Not so dumb afterall. Quality of the cell service aside (which I'm pretty sure they're all equally bad considering the overwhelming need for towers nationwide), it was still the best move they could make.

It's not THAT brilliant a move. For starters:

1) AT&T/Cingular is BARELY larger than Verizon in the US. And...

2) Despite your feeling that all wireless carriers are equally crap, not everyone feels that way, and that could hurt Apple if the iPhone doesn't get good reception... folks may blame the phone, and not AT&T/Cing's often subpar network.

In fact, despite AT&T/Cing's ads, in JD Powers' and Consumer Reports' survey after survey (after survey), Cingular consistently finishes anywhere from back of mid-pack to dead last. Their customer service is also poorly rated.

I think Apple jumped into an exclusive relationship with a subpar carrier simply because said carrier was willing to bend over backwards to work with Apple. Given the overall quality of their network and CS, you can see why ATT/Cing was so eager... they needed Apple more than Apple needed them.

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A guest said: (hide)

You guts talk as if you can't envision a power play going on here. With lil' ol' Apple in the middle of it, Apple stands to reap quite a windfall-- just by doing what they do best, making great kit. For many people the name AT&T hold a lot of weight. Cingular was something made up ina boardroom. AT&T will leverage its name successfully to drum up business, I guarantee it. And if they're smart, snagging the iPhone part of differentiating themselves from their competitors. Read: cool phones a la the East and the best of the West. Interesting times ahead.

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geoduck said:

member since 30 Dec 2003 with 1793 posts, unranked, send him a message or view his profile

gslusher wrote:
*Why do journalists insist on starting sentences with "And," when it indicates sloppy writing, at best, terrible ignorance, at worst?

I know. I hate that. "You should never use And or But to start a sentence". That was drilled into me in the third grade.

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A guest said: (hide)

geoduck wrote:
gslusher wrote:
*Why do journalists insist on starting sentences with "And," when it indicates sloppy writing, at best, terrible ignorance, at worst?

I know. I hate that. "You should never use And or But to start a sentence". That was drilled into me in the third grade.

There is nothing inherently incorrect with begining a sentence with "and" or "but". The traditional rule was meant to discourage incomplete sentences, and not meant as a blanket prohibition. Usage of conjunctions to begin sentences have been seen for centuries, and have been used by such ignorant writers as Shakespeare and Dickens.

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A guest said: (hide)

Cingular deserves the reputation they have — I've often referred to them as "Stinkular" — but they're getting better. Their coverage has certainly improved here on Planet Georgia, and I can't complain about the customer service when my new phone died — they immediately replaced it and credited me for a ringtone I'd downloaded (as a free promotion no less).

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A guest said: (hide)

It's perfectly fine to start a sentence with "And." In fact, it shows more writing skill that simply following a third grade rule. Or maybe you haven't advanced beyond that level in your writing and thinking skills? Or maybe you think you can't start a sentence with "Or" either? Welcome to high school!

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Edison Carter said:

member since 10 Aug 2006 with 228 posts, unranked, send him a message or view his profile

In regards to Cingular not being that big of a network, they are big in urban areas where most cell calls are placed. That could change now the Baby Bells have morphed into Ma Bell, again, they will be looking for more pieces of the pie and move their cell service into rural areas as well as upgrading the system.

I have my DSL and land line service with AT&T and they are installing fiber optic all around town to sell cable TV. It won't be long before they will be offering a nice bundle for land line, cell phone, CATV and either DSL or fiber optic internet connection. I would love to have an Apple iPhone. In about a year I may let my Sprint cell contract run out and then switch to AT&T.

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gslusher said:

member since 13 Nov 2002 with 2063 posts, unranked, send him a message or view his profile

Edison Carter wrote:
In regards to Cingular not being that big of a network, they are big in urban areas where most cell calls are placed. That could change now the Baby Bells have morphed into Ma Bell, again, they will be looking for more pieces of the pie and move their cell service into rural areas as well as upgrading the system.

An article in the Burlington (Vermont) Free Press that someone linked to had this:

"That means the iPhone will be unavailable in, among other locations, all or large portions of Alaska, Colorado, the Dakotas, Idaho, Iowa, Kansas, Maine, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Mexico, upstate New York, Oregon, Utah and Wyoming."

First, he conflated "all" and "large portions." There's a big difference. Some states (Vermont is one, I think) have no Cingular coverage. I'm not familiar with the reasons--it may have to do with state/local restrictions on towers, for example.

More important, though, like a lot of people I know in the East, he may not be familiar with the geography and population distribution in these states. Wyoming, for example, has fewer people than Vermont but more than 10 times the area. The state, as a whole, has about 5 people per square mile. If one takes out the "large" cities of Cheyenne, Casper, and Laramie, the result is about 3.6 people/sq mi.

I live in Oregon. Our population distribution is odd: about 75% of the population of 3.6 million is concentrated in the Willamette Valley (Eugene north to Portland) and the Rogue Valley (Medford) in southern Oregon. We have three counties with less than 1 person/sq mile. The 13 most sparsely-populated counties have 53% of the area of the state, but only 5.4% of the population.

There are good practical reasons for the population distribution, including high mountain ranges (e.g, the Cascades, which have a greater elevation difference from nearby cities than the Rockies--Portland's airport is at 50 ft, while Mt Hood, 55 miles away, is 11,000+ ft); large arid deserts east of the Cascades; steep, rugged, almost impenetrable forested mountains in the southwest; etc.

If one looks at the map of Cingular's coverage, it pretty much follows the population. I also got a map for Verizon, which is highly-rated for its coverage. If one excludes the "partner" coverage for Cingular and the "extended" coverage for Verizon, which are really with a different carrier, it is possible that Verizon actually covers LESS of the area of Oregon than does Cingular.

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A guest said: (hide)

Guest wrote:
You guts talk...

My gut only talks when I'm hungy.

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gslusher said:

member since 13 Nov 2002 with 2063 posts, unranked, send him a message or view his profile

Anonymous wrote:
Guest wrote:
You guts talk...

My gut only talks when I'm hungy.

Hungy? I seem to recall some adage about people who live in glass houses and a parable about taking the beam out of one's own eye.

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geoduck said:

member since 30 Dec 2003 with 1793 posts, unranked, send him a message or view his profile

Guest wrote:
It's perfectly fine to start a sentence with "And." In fact, it shows more writing skill that simply following a third grade rule. Or maybe you haven't advanced beyond that level in your writing and thinking skills? Or maybe you think you can't start a sentence with "Or" either? Welcome to high school!

There is a significant difference between writing vernacular, especially dialogues and more formal writing such as that used in reports and journalistic articles. Spoken English is by its nature more fluid and flexible than formal written English. If the journalist had been quoting someone who started his sentance with And, or But, or, yes even Or, I would not have objected. The sentence in question "And the man most likely to make this market share grab..." was not a quote and started a paragraph. As such it was quite poor form to begin with 'And the man most'. By starting with 'The man most...' the sentence would have been tighter and flowed better.

[/OT]

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KitsuneStudios said:

member since 25 Oct 2001 with 2477 posts, unranked, send him a message or view his profile

It's the universal rule of pedantry: Any attempt to correct someone else's spelling or grammar will include a spelling or grammatical error.

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Edison Carter said:

member since 10 Aug 2006 with 228 posts, unranked, send him a message or view his profile

geoduck wrote:
Guest wrote:
It's perfectly fine to start a sentence with "And." In fact, it shows more writing skill that simply following a third grade rule. Or maybe you haven't advanced beyond that level in your writing and thinking skills? Or maybe you think you can't start a sentence with "Or" either? Welcome to high school!

There is a significant difference between writing vernacular, especially dialogues and more formal writing such as that used in reports and journalistic articles. Spoken English is by its nature more fluid and flexible than formal written English. If the journalist had been quoting someone who started his sentance with And, or But, or, yes even Or, I would not have objected. The sentence in question "And the man most likely to make this market share grab..." was not a quote and started a paragraph. As such it was quite poor form to begin with 'And the man most'. By starting with 'The man most...' the sentence would have been tighter and flowed better.

[/OT]

Oh man are you [sic]

As to cell phone coverage I was saying that while Cingular is currently not that big of a network, it could expand now that they are part of AT&T. I read about a plan to put cell phone equipment in hot air balloons and let them drift over Montana and/or The Dakotas. After it had passed over the state the balloon would descend and the equipment would be recovered.

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A guest said: (hide)

gslusher wrote:
If one looks at the map of Cingular's coverage, it pretty much follows the population. I also got a map for Verizon, which is highly-rated for its coverage. If one excludes the partner coverage for Cingular and the extended coverage for Verizon, which are really with a different carrier, it is possible that Verizon actually covers LESS of the area of Oregon than does Cingular.

Which matters not a bit. No one really cares if its the carriers' own network or a network that the carrier has an agreement with; all they care about is whether they can make a dang call or not, right?

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A guest said: (hide)

Btw, Cingular is Swahili for 'bad reception'.

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