Apple Wants To Revolutionize Phone Sales The Way Google Didn't A tall order in the AT&T/Verizon dominated U.S. market Wednesday Oct 27 2010 18:41 EDT According to GigaOM, Apple is working with SIM-card manufacturer Gemalto on a SIM card that would allow consumers to buy a phone online or at the Apple Store -- with all activation via Apple’s App Store -- bypassing carriers entirely. The catch? This is happening in Europe, where consumers already traditionally have chosen their phone first -- then chosen the network it runs on second. That's a little harder to pull off here in the States, where incumbent carriers are very good at turf protection, and there's a multitude of networks involved (GSM/HSDPA, CDMA/EVDO, WiMAX): quote: The model should work well in Europe, where the carriers tend to use the same networking technology and are far more competitive. It also means that customers can roam more easily with the iPhones, swapping out the carriers as needed. The iPhone has lost its exclusivity in much of Europe and other markets of the world, which makes this model a compelling one for consumers, but a nightmare for carriers.
You might recall that back in January, Google was going to revolutionize the way phones were sold by bypassing carriers and selling phones directly to the consumer. Just ten months later and the Google Nexus One is a flop (outside of its success in promoting Android in general), Google's phone store is closed, and Google and Verizon are now engaged in collective turf protection. What happened? Incumbent U.S. telcos and their fat wallets did. Google fell in love with Verizon cash earned by keeping things just as they are: subsidized phones luring you into long-term contracts and ever increasing early termination fees. AT&T, meanwhile, spends more on campaign contributions than any company in the States, and that kind of cash buys you a whole lot of protectionism from this kind of pesky, pro-consumer evolution. That means a mobile market the way AT&T wants it: without intervention from the FTC and FCC. That means exclusive handset deals that benefit nobody but AT&T, long-term contracts, high data, voice and SMS prices, and punitive early termination fees. It means forced over-priced tethering, crippled handsets, and the slowing in any technological evolution that could hurt AT&T voice minute and SMS revenues (like open smartphones, mobile VoIP) -- should we go on? So would Apple be able to bring this idea to the States and succeed where Google failed? That's a big, fat, probably not. We are ultimately moving to a future where GSM/LTE is the dominant player, but that's many years out and Apple's not planning to offer an LTE phone this year. MG Siegler at Techcrunch notes that were Apple to take this approach, they'd be helped by a massive entrenched retail presence. Still, that probably wouldn't be enough to beat AT&T and Verizon at what they're best at. No, that's not running a network or selling phones -- it's turf protection and using political leverage to crush competitive and disruptive threats. |
|
Wow...This isn't news - it's the reality of the way the carriers operate after eight years of Kevin Martin's FCC.
Hate to say it but so long as people elect politicians who put people in positions of power who lean towards what the corporations want - lots of YOUR money - then there is no chance of this ever changing.
75% of the phones sold in America are programmed and linked to the carriers. Changing carriers has been made as difficult as possible because that's how the carriers wanted it. Thanks to Kevin Martin for making sure that's the way it is. | |
| | tiger72SexaT duorP Premium Member join:2001-03-28 Saint Louis, MO 1 edit |
tiger72
Premium Member
2010-Oct-28 9:57 am
Re: Wow...said by megarock:This isn't news - it's the reality of the way the carriers operate after eight years of Kevin Martin's FCC. Hate to say it but so long as people elect politicians who put people in positions of power who lean towards what the corporations want - lots of YOUR money - then there is no chance of this ever changing. 75% of the phones sold in America are programmed and linked to the carriers. Changing carriers has been made as difficult as possible because that's how the carriers wanted it. Thanks to Kevin Martin for making sure that's the way it is. Bullshit. Unlocked GSM phones: » cell-phones.shop.ebay.co ··· 70.l1313Contract Free plans: » www.t-mobile.com/shop/pl ··· dividualPrepaid Plans: » www.wireless.att.com/cel ··· d=109107You have options. And it's not Kevin Martin's FCC fault that Verizon and Sprint use a competing system that isn't compatible with the global standard GSM. Edit - but with Apple's plan, you wouldn't actually be able to purchase an unlocked iPhone and simply insert your own sim card. They're being ANTI-competitive. | |
|
MaynardKrebsWe did it. We heaved Steve. Yipee. Premium Member join:2009-06-17 |
Apple's sitting on $50B cash..... ....and spinning close to $20B in profit annualized.
What could they use that size war chest for that would let them reap 25+% margins on? Perhaps their own national LTE network?
| |
| | aximr Premium Member join:2001-09-28 Wood Ridge, NJ |
aximr
Premium Member
2010-Oct-27 7:29 pm
Re: Apple's sitting on $50B cash.....Yikes, I think your spinning just a tad about Apples finances.
Although Apple's finance are impressive they are sitting on about 35 billion in actual cash and trailing 12 month profits were 14 billion, projected 12 month profits probably more in line with 15.5 to 16 billion. | |
| | | N3OGHYo Soy Col. "Bat" Guano Premium Member join:2003-11-11 Philly burbs |
N3OGH
Premium Member
2010-Oct-27 8:32 pm
Re: Apple's sitting on $50B cash.....I'll take either amount, thank you...;)
Small bills would be nice. I go lease a couple tractor trailers..... | |
|
| aztecnologyO Rly? Premium Member join:2003-02-12 Murrieta, CA |
to MaynardKrebs
said by MaynardKrebs:Perhaps their own national LTE network? I can't believe that thought even crossed your mind, how silly... | |
|
|
How is that revolutionizing?Unless they are getting partial control to activate esn or imei #s without the carrier's involvement... with ability to activate people on the plans they want as opposed to mandatory data plans and such.
None of the carriers will go for this... they make big profit off selling phones and forcing data plans on people who dont want them. | |
| | |
Re: How is that revolutionizing?I wish we could pick our phones. No one carrier has a phone I'd want. I've got an unlocked C6. CS | |
| | | r81984Fair and Balanced Premium Member join:2001-11-14 Katy, TX |
r81984
Premium Member
2010-Oct-27 9:40 pm
Re: How is that revolutionizing?This is not revolutionizing at all. It is some apple proganda crap where apple steals others ideas and calls them their own.
You can pick your phone right now if you have GSM. You can use phones from all over the world. | |
|
slckusr Premium Member join:2003-03-17 Greenville, SC 1 edit |
slckusr
Premium Member
2010-Oct-27 7:55 pm
Apple should buy sprint.Got all the money layin around. | |
| | fldiver Premium Member join:1999-12-27 Jacksonville, FL
1 recommendation |
fldiver
Premium Member
2010-Oct-27 8:37 pm
Re: Apple should buy sprint.If that were to happen, good bye Sprint; I don't have nor do I want Apple products, and that goes for any services Mr Jobs might try to sell me. I don't think Sprint needs Apple to buy them; they can lose money all on their own without any help | |
| | |
Ysean to slckusr
Anon
2010-Oct-28 1:42 pm
to slckusr
Sadly, it would probably be cheaper for apple to start from scratch! Or just buy Vodafone's interest in Verizon Wireless. That will make Vodafone happy, guarantee a verizon capable iphone QUICKLY and likely drastically speed up Verizon's LTE deployment. heh. | |
|
|
Get rid of the SIM cardProbably Apple is more than anything interested in getting rid of the SIM card slot. It occupies space on the phone and with the drive to make the iphone smaller it makes a lot of sense. They already went from SIM cards to microSIM.. why not getting rid of the physical SIM slot altogether? | |
| | ArrayListDevOps Premium Member join:2005-03-19 Mullica Hill, NJ |
Re: Get rid of the SIM cardsim card has its advantages. | |
| | | |
Re: Get rid of the SIM cardlike? | |
| | | | r81984Fair and Balanced Premium Member join:2001-11-14 Katy, TX 1 edit |
r81984
Premium Member
2010-Oct-27 9:35 pm
Re: Get rid of the SIM cardLike not needing to activate your phone. Without a sim the carrier must activate the phone and they can activately choose not too. I just bought a new GSM phone on sunday. All I had to do to use it was take my sim out of my old phone stick it in my new phone. If I bought the same phone through ATT they would force an expensive data plan on me, but with a sim card I can use any GSM phone. Also when you travel and you want to use a prepaid sim in another country you can use your same phone just by swapping the sim card. If your phone breaks and you need to make a quick call you can quickly stick your sim in a friends phone or even an older phone you have in your closet. | |
| | | | | |
Re: Get rid of the SIM cardApple is not talking about getting rid of the SIM card tech, they just want to get rid of the SIM card slot. The article quoted in this article talks about an 'integrated SIM card'. An integrated SIM probably can take a lot less space.
Then, while having a SIM card slot sure has its advantages for the user, for example what you mention swapping the SIM card on the phone, I doubt Apple cares too much for that use case. The vast majority of iPhones are sold through carriers and are locked in to the carrier without official possibility of unlocking. It would make sense for them to come out with a phone where the SIM card is not user swappable, at least not in the physical sense. What the article mentions is that it could be 'software swappable' through the iphone settings. | |
| | | | | |
1 recommendation |
Re: Get rid of the SIM cardthey can talk about getting rid of the SIM slot all they want but that won't float very much. SIM cards are NOT reusable by any carrier. you change carriers you change SIM cards that's the only point in them. you only are locked to the SIM and not the phone and the company.
Apple just needs to keep making computers and stop trying to change the way everything works else where. | |
| | | | | | | 1 edit |
Re: Get rid of the SIM cardsaid by hottboiinnc4:tSIM cards are NOT reusable by any carrier. you change carriers you change SIM cards that's the only point in them. you only are locked to the SIM and not the phone and the company. Apple just needs to keep making computers and stop trying to change the way everything works else where. Dude, did you read the article? That's exactly what the whole internet is talking about today with Apple and SIMs, that they will come out with a SIM that is 'flashable' or can be used in multiple carriers. The SIM is made by Gemalto ( www.gemalto.com ) and has some stuff in it that can be upgraded on the fly. Apple could download new carrier settings to make the SIM card work with any carrier. Apple of course still would have to convince the carriers to produce or give out the settings to Apple so such a SIM would work in their networks but that doesn't sound so unlikely to me. I totally agree with you that this is bad news for end users, but Apple will do whatever they please, they sure have the resources. | |
| | | | | | | | r81984Fair and Balanced Premium Member join:2001-11-14 Katy, TX |
r81984
Premium Member
2010-Oct-27 11:01 pm
Re: Get rid of the SIM cardsaid by bartolo5:Apple of course still would have to convince the carriers to produce or give out the settings to Apple so such a SIM would work in their networks but that doesn't sound so unlikely to me. I totally agree with you that this is bad news for end users, but Apple will do whatever they please, they sure have the resources. Not if they make their flashable sims use the same info as current sims then all carriers would have to do is enter in the numbers or tell which numbers to flash. Having open flashable sim chips will make it much easier to clone phones for the average user. | |
|
| | | | TransmasterDon't Blame Me I Voted For Bill and Opus join:2001-06-20 Cheyenne, WY 3 edits |
to r81984
said by r81984 I just bought a new GSM phone on Sunday. All I had to do to use it was take my sim out of my old phone stick it in my new phone. If I bought the same phone through ATT they would force an expensive data plan on me, but with a SIM card I can use any GSM phone. There you go this is the European model. If this became the rule in this country things would change real fast. Check this site out: » www.simcardglobal.com/I was checking out how the SIM cards from the above company works. What a great thing for an service man overseas. There is a rate calculator on the site, as well as a PDF showing wireless rates all over the world. I was checking out Afghanistan, to call to a wireless phone in Afghanistan using their SIM card it is $1.13 cents a minute, but for that service man to call home with that phone it is free. a call to Cuba is $5.12 a minute!!! I can't think of any worth paying that much to call in Cuber (as JFK pronounced it) | |
| | | | | M A R S Premium Member join:2001-06-15 Long Island |
to r81984
said by r81984:Like not needing to activate your phone. Without a sim the carrier must activate the phone and they can activately choose not too. I just bought a new GSM phone on sunday. All I had to do to use it was take my sim out of my old phone stick it in my new phone. If I bought the same phone through ATT they would force an expensive data plan on me, but with a sim card I can use any GSM phone. Also when you travel and you want to use a prepaid sim in another country you can use your same phone just by swapping the sim card. If your phone breaks and you need to make a quick call you can quickly stick your sim in a friends phone or even an older phone you have in your closet. Agree with all this. This is a shitty idea. SO the next time im over in Ireland what do i do then? I cant pop my O2 sim in so then i have to bring a second phone with me? Im not feeling this plan. | |
| | | | | |
to r81984
said by r81984:I just bought a new GSM phone on sunday. All I had to do to use it was take my sim out of my old phone stick it in my new phone. If I bought the same phone through ATT they would force an expensive data plan on me, but with a sim card I can use any GSM phone. With some phones like iPhone, AT&T will call you and tell you to get a data plan if they discover that you just put an AT&T SIM card from another phone in it. | |
|
r81984Fair and Balanced Premium Member join:2001-11-14 Katy, TX |
r81984
Premium Member
2010-Oct-27 9:29 pm
This is Already Being DoneRight now with any GSM provider like ATT, you do not have to activate the phone. You just need to put in the activated sim card. Currently the sim can be activated at the point of sale, over the internet, or even over the phone.
I just bought a new gsm phone on Sunday. I took the sim card out of my old phone and stuck it in the new one. No activation required. This was with ATT. | |
| Hooper Premium Member join:2001-10-22 Castle Rock, CO |
Hooper
Premium Member
2010-Oct-27 9:37 pm
GigaOm is Apple's ShillIf Apple really wanted to do this, they would make the SIM card easier to remove. Not only does it take a special tool, but it also utilizes a non standard SIM. They would also have to ship their phones unlocked.
Apple has revolutionized simplicity and paternalism. And I mean simplicity in the simple person type of way. God help those who don't see right through them. | |
| froad join:2002-12-29 Sharon, PA |
froad
Member
2010-Oct-27 10:06 pm
U.S. Industrial revolutionCotton,textiles,railroads,steel,autos,telcos. All bought the best legislation money could buy. The way of the world. | |
| Dominokat"Hi" Premium Member join:2002-08-06 Boothbay, ME |
YeahGood luck with that. Unless Apple has deeper pockets for lobbyists then AT&T, Verizon, etc...... this is dead on arrival as Googles plans where. | |
| |
1 recommendation |
dJON
Member
2010-Oct-28 7:45 am
Re: YeahWow. So to switch your SIM(virtual) you will have to make an appointment with Apple? Already have to make an appointment with them to change your iphone battery.
Dumb is chic! | |
|
tiger72SexaT duorP Premium Member join:2001-03-28 Saint Louis, MO |
tiger72
Premium Member
2010-Oct-28 9:52 am
How is this good for consumers?As it is right now, if I have an unlocked GSM phone I can grab any GSM card from any carrier in the world, and my phone will work using local rates. Under Apple's plan, if I travel I'll either have to go through them to change over to another "local" carrier, or i'll be blocked from doing this entirely and be FORCED to use my existing carrier's horrendous roaming rates.
Unless you're utterly oblivious to how GSM/UMTS networks operate, I can't fathom how anyone can see this as a positive thing.
Maybe i'm missing something here, but Apple's plan closes the system even more, are merely brings it under their control rather than the carriers'. And under either circumstance, the consumers lose. | |
|
| |
|
|