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"Citigroup" + "analysts" = trouble.

Is just like

Moodys + rating securities = trouble.

is just like

UAW + automakers = trouble


Hey Citigroup, shut the fsck up, we, the taxpayers, own you.

My family is just going to dump our iphones that we have with AT&T;and switch to iphones with Verizon. The AT&T;network is awful and I think a lot of AT&T;customers will do the same. What incentive do iphone customers with AT&T;have to stay there once Verizon gets the same phone?

May 06, 09 - 05:27 pm Comment from: Predrag

This report is a result of a very typical and standard process when doing research for a salary.

Apple has everything to lose and nothing of significance to gain if they were to open up to others (Verizon or anyone else). The number of people who would get an iPhone on Verizon, and who wouldn't or couldn't get one on AT&T is negligible. AT&T's coverage in the US is more-or-less the same as Verizon's. In every major metropolitan market, there will be pockets where one is better than the other. Also, there are some rural areas where only one is available. All these put together don't account for more than 3% of the domestic addressable market. There are millions of Verizon users who can easily switch if properly motivated. In other words, there are plenty of customers for the taking without giving up extremely advantageous exclusive agreement with AT&T. Let us also not forget Verizon's reputation as by far the most controlling wireless carrier with most crippled handsets out there.

Someone please iCal me on this one, as I'm confident we won't see a Verizon iPhone anytime soon.

Am I on crack, or did Steve Jobs say that Apple had a 5 Year contract with ATT?????

May 06, 09 - 05:32 pm Comment from: Predrag

Scott:

What incentive does AT&T have to subsidise iPhone so heavily and to completely cede control to Apple? If you haven't noticed, iPhone is THE ONLY cellphone out there that has neither MediaNET, nor AT&T Mall (not to mention hideously designed icons on the main menu of every single phone, except the iPhone). Not one single special service that AT&T offers on all other phones (for a fee), such as ringtone purchase, game purchase (through AT&T), etc. exists on the iPhone.

So, if anyone can dump AT&T and get an iPhone with Verizon (or T-Mobile, or Spring, or Virgin Mobile...), what would motivate AT&T to bend over backwards as much as it has for Apple and ONLY Apple?

I'm happy because I don't have to pay, pay, pay, 'AT and T' every month.

I can't tell you enough about how much stress that has been lifted from my life when I called them and said "I want to cancel!"

Sure they charged me, I got the info and paid them right off and it still took a month for them to finally cut me off.

But now I live happy, I got a pay as I go phone which I charge up when I need it.

No more of those annoying orange colored bills in the mail.

What a relief. I feel so much better and I'm saving a LOT of Money.

I bought a dishwasher last month and this month I bought a new bar-be-que grill with the savings.

Mhhh.... yummy food.

First...I trust nothing Citi has to say; they are comprised of incompetent nincompoops that has cost us all billions.

Second...I personally believe Jobs will give AT&T;the opportunity to maintain their exclusivity. AT&T;bet on the iPhone when no one else did and bet big. Historically, Jobs has demonstrated sticking witch folks that stuck with him.

All bets are off, however, if AT&T;does something stupid, which I don't expect, or doesn't provide reasonable coverage and plans.

Net Net...AT&T;keeps it.

Aside from wanting to kick the CEO of Verizon in the goodies for failing to take the iPhone when it was offered to him first... (what the?!) I would get an iPhone in 2 seconds if it came to Verizon. I live in Spokane, the town with the ad agency that used to handle AT&T;wireless. Every single one of those guys told me, "If we didn't get AT&T;for free we would definitely get Verizon." The AT&T;network absolutely sucks here and it is precisely for that reason that I will not get an iPhone. The network is that bad here.

I have wanted an iPhone ever since they came out but I will not over pay for a crappy network. Like I said, if the iPhone comes to Verizon I will get one the first day. I totally disagree with Predrag, there are tons of people who have stayed away from the iPhone because, and only because of the network. If Verizon had taken it in the first place it would have exploded even more than it did on AT&T;. A better network means a better experience and that will translate into many more happy users who will tell their friends.

May 06, 09 - 06:26 pm Comment from: blah blah blah...

1. You're actually going to believe citi group? What connection do they have with apple? I am sure the guys read the USA Today paper too and thats where they got their info.

2. You're actually going to listen to cit group. what connection do they have with the Tech World anyway? Every investor is finally jumping on this Apple bandwagon, because they really are the only mainstream company that is producing results. So everyone and their mom and go ahead and make predictions on what they believe Apple is going to do.

3. News flash people, NOBODY hardly knows anything on what apple is going to release next. Most of it is common sense, let's see, are they going to release a new iPhone yes, are they going to update their Mac Line, yes, are they going to update the iPods, yes. Apple has never let the public set their expectation bar, they've always set it for themselves and allowed room for improvement.

4. The cell phone game is much much different than apple is used to. They have to rely on partnership, and frankly verizon really never played nice with Apple and hasn't said many nice things about Apple's golden child the iPhone. So take it with a grain of salt that verizon won't see the iPhone for a couple more years.

@Macintosh

I think you need to check what the date was that the "5 Year Contract" began.

May 06, 09 - 06:51 pm Comment from: lurker

Sprints market cap is only $15B. Steve could buy it outright and make it into a wireless company in Apples image. Just works, good value, not a rip off. Works for me.

Could it really have been while they were designing it in secret for 2.5 years? Or when they actually got to add subscribers?

I would imagine the date would be in June 2007. Makes sense to me.

@ Predrag

what would motivate AT&T;to bend over backwards as much as it has for Apple and ONLY Apple?

AT&T;needs Apple more than Apple needs AT&T;that's why, If AT&T;were to try and put that crap on the iPhone Apple would pull the iPhone away from AT&T;. Also across the US, Verizon does have better services than AT&T;.

May 06, 09 - 07:05 pm Comment from: MacSmiley

If I am not mistaken, if the beginning of AT&T;'s 5-year exclusive contract began in June of 2007, then the contract will not end until June 2012.

Before then? I'll believe it when I see iPhones in South Dakota.

I for one will be sticking to ATT even if Verizon gets the iPhone. My service here is excellent no matter where in town I am (well ok, except one blind spot behind the airport). Full 5 bars, never a dropped call. Ever. I had Verizon for a few months before moving here, and they sucked balls where I used to live. Here, they didn't have any service at all until a couple years ago.

Apple will expand to other providers eventually. The exclusive with AT&T;was done to get concessions from AT&T;for a product which was not finished and was not shown to AT&T;until very late in the game (after the contract had been executed).

Apple will have the iPhone on Verizon once Verizon switches from CDMA and the coverage is good enough that the need to drop down to CDMA occurs very rarely. Apple won't build a CDMA iPhone because the technology is already being phased out, and no one else in the world uses CDMA.

Listen to me carefully: those who say don't know and those who know don't say. Don't believe anything the analists try to "predict."

no CDMA iPhone.

not gonna happen.

period.

May 06, 09 - 07:44 pm Comment from: Wingsy

bizlaw's 2nd paragraph took the words right off my keyboard. Read it folks. That's why Apple isn't going with Verizon for quite some time. It was stated in the last quarterly report.

May 06, 09 - 08:08 pm Comment from: ericdano

Was this guy's "research" done on taxpayer monies?

If Citi had any sort of thread of integrity left maybe I'd believe this......

I would welcome iPhone + Verizon in Asheville. I have dead spots today with voice on AT&T;and there is no 3G in our area. The more competition the better.

These bozos forget that apple sells these phones AROUND THE WORLD! not just the US market. Which is why they were hand a bailout for their stupidity.

May 06, 09 - 10:17 pm Comment from: silverhawk

Were ATT and T-Mobile assigned their use of GSM and Verizon and Sprint assigned to CDMA? Who assigned them (government?) and do they have the option to switch?

May 06, 09 - 11:03 pm Comment from: Anonymous©

The 5-yr deal has NEVER been confirmed. I think the original rumor came from USA Today.

Guess who ran Citigroup into the ground?

Bill Clintons "economic advisor."

http://en.wikipedia.org/wiki/Citigroup

May 07, 09 - 10:33 am Comment from: Predrag

Citigroup report assumes some absurdly high level of loyalty among other carriers' customers. If iPhone continues the pace of innovation, it will also to continue to relentlessly poach customers from other carriers.

May 07, 09 - 11:23 am Comment from: iSteve

I switched from Sprint to AT&T;in January 2008 because of the iPhone. I pay the same amount I paid before and don't see any network differences. Before I needed a lot more minutes than I need know. I'd likely stick with AT&T;regardless of who else got the iPhone.

@Predrag,

I read your comments... are you completely clueless?

Verizon has the HIGHEST quality ratings & has had for YEARS in both the separate JD Powers as well as Consumer Reports surveys no network quality.. AT&T;is ranked either 2nd to last or DEAD LAST in just about all 6 regions of the country in the studies.... DUH #1

Verizon just reported an EVEN LOWER churn rate... By far the LOWEST in the industry.... meaning their subscribers ARE NOT going to AT&T;(b/c they know the AT&T;network sux!) Check out VZW's Q1 results... therefore the huge number of subscribers on the Verizon network CANNOT BE REACHED unless there is an iPhone on VZW.... DUH #2

You obviously missed your Marketing classes in terms of calculating the addressable market, as your math, considering the above 2 points, are about as realistic as Obama's budget projections.... LOL!

Next time you're about to post something, try a little research first!

I AM one of those peopel who switched from Verizon to AT&T;to get the original iPhone... Loved the phone, but the network was abysmal! And b/c GSM is a 20+ year old technology, I couldn't even keep the damn thing near my desk phone w/o causing buzzing on the line...

I SWITCHED BACK to VZW.... I MISS my iPhone, but I MISSED VZW's network EVEN MORE! (after all, a phone is for making phone calls, something that is many times impossible to do on the AT&T;network - and I am in the metro area outside NYC!)

Remember the Verizon saying; A phone is only as good as the network it's on™

@bizlaw

WRONG!!!!!

No one else in the world uses CDMA? Are you a moron?

Ever heard of KDDI in Japan? Second largest carrier.... DUH!

How about China Telecom? DUH!

How about South Korean carriers? DUH!

How about Bell Canada? DUH!

Are you a total moron? YES!