Apple COO says it's not married to iPhone exclusivity, still on track to sell 10m this year
By Nilay Patel 
posted Feb 27th 2008 8:26PM
posted Feb 27th 2008 8:26PM
Although we'd been hearing that Apple had slowed down iPhone production, the company is still on track to hit its goal of selling 10m units this year, according to COO Tim Cook. Cook, speaking at a Goldman Sachs investor's conference in Vegas, also said that "Apple is not married to the single, exclusive-carrier model," and that Apple is open to new ways of selling the iPhone. That's an interesting change in tone from the usual "we need carrier relationships to make things like Visual Voicemail work" lines we've heard, but it's not necessarily out of the blue -- we're tempted to say Apple's relatively hands-off approach to unlockers and jailbreakers is actually a direct result of that attitude. Of course, that doesn't mean anything's going to change in the States soon, since AT&T has that five-year exclusive deal, but it could mean interesting things are in store elsewhere.
It'll be interesting to see if they start selling the iphone sim-free, what the price will be exactly.
isn't apple telling business strategy / secret means they are telling lies ?
Is the 5 year exclusivity deal on what exactly? The current iPhone? Anything called iPhone? How exclusive is this? Could they rename it or what?
I want one, but I'm not signing any contract with AT&T.
Very true, they could bring iPhone 3G out and rename it or whatever then they aren't bound by AT&Ts contract. What I meant though is, the whole point of the iPhone prices at the minute is because you have to get a certain contract and Apple get a percentage of profits etc. So will the charge more because it's sim free? An why would anyone buy a sim free iPhone when they can just get a locked 1 for cheaper and unlock it...
Last time I checked Tim Cook was Apple's COO and Peter Oppenheimer was Apple's CFO
Wait... LAST TIME you checked?
I didn't realize that people checked this information once, let alone more.
I was about to say the same thing. When I read the blurb, I thought to myself "when did Oppenheimer retire..."
Well some of us have stock in Apple and have gotten crazy rich over it.
Atleast if you bought when it was $51 and sold at $185 and bought again yestereday at $117 :)
Fatima--you're one smart chick. I have wished for a while now that I had extra money to invest. I would have made a bunch off Apple and (soon) Sony.
Oh well, glad someone is doing it :) Congrats
maybe it is that AT&T has a 5-year contract with iPhone but not iPhone 2.0?
If the the contract doesn't cover all apple phones then that would be one very silly contract.
If the contract doesn't have a buyout that Verizon et al can afford to collectively pay, if needed, then it's a bad contract. (For Apple)
verizon isnt getting the iphone...ever....get a real provider that doesnt use ancient technology....we might as well all use dixie cups and string instead of verizon
Last time I checked GSM was older than CDMA?
People here, obviously didn't know. Apple went to Verizon and Verizon turned Apple down.
Additionally, there's no reason why Apple can't have improved their visual voicemail setup to the point where it is now easily portable to other carriers.
> ...maybe it is that AT&T has a 5-year contract with iPhone...
I've never seen anything from either Apple nor AT&T that defines the length of the exclusivity.
except in the article
@ Bruce Wayne
Correction: Verizon laughed at Apple and then turned them down.
I would assume that ATT has an exclusivity deal for the iPhone family for 5 years... but if iPhone became 700mhz (i know why'd i bring it up we haven't had to deal with it for weeks now) wouldnt it have to be compatible with all other carriers that would provide services on that band?
Okay?
Perhaps this will spell good news for all us languishing here in Canada.
Finally Iphone in canada :D
I'll be interested when they started selling products that don't suck. I've had an iPhone and I don't see what the big deal is. There are so many other phones out there that does the same things better than the iPhone, like my current AT&T Tilt. I think its hilarious to see Apple coming out with so many different versions for the same thing. Sorry Apple but that's not going to pull your stock from the free-fall its been in for the last couple of weeks.
Apart from their computers are any Apple products not below par when compared with the competition? iPods are not as good as Creative or iRiver. iPhone doesn't even have the basic features most cheapo phones support such as MMS and taking video. I mean whats the big selling points for the iPhone? It's an iPod as well? Most modern phones have a dap built in. According to the O2 adverts here in the UK the iPhone offers the web as it is and not a watered down version. What so the iPhone browser supports Flash? Ajax? Shockwave? SVG? Java?
I'll stick with my LG Viewty.
Ok, you short it and I'll go long. We will see who has made money in 6/12/24 months.
Seriously, the company has a forward P/E of about 17...and 20 bucks a share in cash with a growth rate that is the envy of just about every tech company out there.
The stock is on sale dude. I bought at 120...looking forward to 20% per year easy for the next couple years.
I have an iPhone and simply love it. My last phone was a Razr and I was not happy with it. For me, the iPhone is perfect. Say what you want - but the iPhone has started to change the way phone companies (and manufacturers) think about phones. Apple also did this with the iPod. Apple didn't invent the mp3 player or phone, but by their design they changed the way most people think about these items.
I've always said Apple is rarely the innovator - but the one thing they can do is take and idea or product and fundamentally change the way we think about it.
As for the argument about so many other phones doing things better than the iPhone I clearly disagree. I can't think of another phone that plays music and videos (or even rents) them better than the iPhone. While the browser doesn't support flash - it is still far superior to anything around. There simply isn't a phone with a UI as advanced as the iPhone.
"I can't think of another phone that plays music and videos (or even rents) them better than the iPhone." - Try any of the latest Sony Ericssons or Nokias.
"While the browser doesn't support flash - it is still far superior to anything around." - Oh a lot would definatley disagree with you. Even Engadget, our Apple loving friends, think that the Symbian web browser is better.
"There simply isn't a phone with a UI as advanced as the iPhone." - Advanced? What's advanced about it's UI?
BTW when I said video I was on about taking them like most phones have been able to for the past few years.
Alot of Apple up-talkers can make it confusing for rational people. When they say Advanced, they really mean "pretty to the eye" because in the end, your pressing buttons, scrolling by flicking (about the only advanced thing about it), and selecting your task. Its a pretty way to navigate, but it sure as hell isnt advanced.
Same goes for Safari. It isnt a good browser, in that they forgot a whole bunch of features that are common to web pages, but what it is is easy to navigate around, albeit slow (personal experience). Its advanced, in that it looks pretty, but thats where the advancement ends.
When it comes to playing videos and music, i would have to agree with him. It is a great video and music player, albeit with sound quality that is like i took 240v live electrical line and wrapped it around my headphone cable (tested it with my Shure e2c's). The videos look decent at least, and navigating to your music is better than most phones.
Saying that the iPhone is terrible because it doesn't have features that even cheapo phones have is the same as saying a Corvette is a terrible car because even my 10 year old mini van seats more people...
Here come the car analogies. Gotta admit, its the first time the iPhone was compared to a domestic car. Very refreshing.
Is that one of those two-part posts? You know, the ones where the first part is useless and tries to be funny followed by the second part where the person finally makes a point and contributes something to the discussion.
My LG Viewty has a tabbed web browser that can offer a smaller view of the whole page for quick navigation. Also you can navigate by using flicks. As to the music and video I'd again have to go with my Viewty specially since it has DivX support.
And no it's nothing like saying a Corvette isn't as good as a mini van because it hasn't got as many seats. The only selling point they have for the iPhone is it's internet browsing but that's only better because you pretty much have to take out an unlimited data plan when you get an iPhone.
Just because you aren't married to your girlfriend doesn't mean you're planning to break up with her...
yeah, but it doesn't mean I won't cheat on her either....
I would like to think Apple is a very moral, err, man? and would never do such a thing...
I like my iphone, I'm using it on T-mobile and thanks to hackers most of its limitations have been overcome.
but its not a perfect phone, its a fun gadget but so is my blackberry pearl. every phone out there has weaknesses, i'm still looking for the perfect one.
Boynamedsue, I'm on T-Mobile using a Blackberry. I want an iPhone very badly. What are it's shortcomings compared to the Blackberry? Does the T-Mobile Blackberry data plan work when your SIM is in the iPhone? (Not BIS email, of course, but other applications.)
SDK will change people's view of the iphone. Imagine the possibility.
I'd love to see Apple try to opt out of this contract of theirs. Unless there are specific clauses in their contract with AT&T that let them terminate the agreement, I don't see this happening anytime soon, unfortunately.
AT&T would make Apple's legal ass grass. It would not be pretty (but I'd love to see it). Down with AT&T and their evil ways (says me, a long-time customer).
what about the price drop
I'd rather think that the exclusivity deal may be conditional on sales numbers - say, AT&T sells 1m/yr - with get out of bind for Apple otherwise. If that of similar condition seems to be sliding for the year, Apple would have a "get out of jail" opportunity. Pure speculation.
There is no way that they are on pace to sell 10m this year. I don't buy it for one second. That would mean that sales have rapidly increased since the holiday season - which never happens. Mix that in with the fact that the market is saturated with early adopters and is craving 3G (in Europe especially) and you have yourself a bold-faced lie coming from Apple's COO.
Its not like these guys don't lie ALL the time, but if you're gonna lie, at least make it somewhat believable.
Exactly what insider info do you have to make you say that? They never said "10 mil IN 2008", they said 10 mil by the END of 2008 (from launch in June 07). They have already sold over 4 million phones since June. The 3G version is a GIVEN for 2008 (many will upgrade, and Europeans who are holding out will jump on), and the phone still isn't in a huge number of markets. Several more will be added before the end of the year (more Europe, Asia, possibly Australia and probably Canada). They'll easily sell another 6 mil by the end of the year, and it wouldn't surprise me if they move 10.5 or even 11.
ahhh! why does everyone always bring this up to me? Steve Jobs said very clearly in his keynote, he wanted 1% of the global market share. There are a total of 1 billion phone sales in the world (according to his keynote) per year, which means that the target was and is and ALWAYS HAS BEEN 10m in 2008. They sold 2.3 million in the 4th quarter (holiday season) of '07, and at the rate that they have been selling (Jan and Feb 08), they will not make 10m in '08. I'm sure that the rate will increase later in the year with 3G and price cuts, so thats a separate story altogether.
So the facts: The target is 10m IN 2008. Going by the 4th quarter (holiday season), they are not on pace to hit this target.
http://www.flickr.com/photos/24219922@N06/2297730160/
Plus the global market keeps growing, so by end of 2008, the target will be even higher.
Hey Apple, as long as you're "open to new ways of selling the iPhone" how about letting your Authorized Campus Resellers having a crack at it? We'd really like to stock them along side the iPods and copies of Logic Pro Studio.
Apple and AT&T probably agreed to an "iPhone" contract. Apple could then come out with a smaller / different version with a different naming convention, and release it on a different carrier.
Did the Apple-AT&T contract apply for all future iphone models as well? I don't want to have to wait for iphone 3 or 4 just to use it on my carrier of choice. (Note to Apple, next iphone please add the ability to take videos, even my free phone can do that!)
OH YES! FINALLY there's a glimmer of hope that we may actually get to see the iPhone in the rest of Europe before we get to see Veronica Belmont in person! YAY!
Apple, 20 million phones is easy to sell, just stop the silly 'locking'... living in Belgium, Holland for example, if one buys a phone in Germany or France, only a few 100 miles away, one would pay continously roaming charges... the united EU doesn't exist for that matter. In China, India, people want the Iphone... if not available, people will look for alternatives. The best selling phone in China is Nokia... these are unlocked... what is it that you do not understand to get 5% on a conservative number of 2B people. Or, Cupertino, did you make anti-competition deals with other brands to leave them in peace?
Apple, 20 million phones is easy to sell, just stop the silly 'locking'... living in Belgium, Holland for example, if one buys a phone in Germany or France, only a few 100 miles away, one would pay continously roaming charges... the united EU doesn't exist for that matter. In China, India, people want the Iphone... if not available, people will look for alternatives. The best selling phone in China is Nokia... these are unlocked... what is it that you do not understand to get 5% on a conservative number of 2B people. Or, Cupertino, did you make anti-competition deals with other brands to leave them in peace?
In China, at least, they're everywhere. China Mobile doesn't want to do any profit sharing with Apple (they're actually reasonably priced compared to American carriers, heck, it's cheaper for me to roam in with my Chinese SIM than get a GoPhone SIM to use when I come to America) and I don't want to see that change. Of course they're saying this because they want an open door to the Chinese market.
Is this why the Sprint stores are closed?
The real question is if Apple has a deal with the crappy AT&T service for any phone or just the iPhone.
Like, can Apple come out with a somewhat similar version of the iPhone and call it the iTele or something which has no contract with AT&T free to make that exclusive elsewhere.
That would be awesome. Oh, and AT&T sucks, only reason I would never buy the iPhone. I hate AT&T!
Apple wedded to ATT for 5 years - Interesting that some of the sharpest people that APPLE ever had have now taken over at PALM (Yes I know, but "vision beats opinion and prejudice - esp here) well,
there could be cross fertilization in a "put together" relationship which transcends contracts. Watch out for PALM - you'll wonder if PALM is the Lazarus of the Electronic age, "patron of the lepers" and miracle of the Bible, according to John "remember the bible is only just another book" - PALM rising!
featuring Jonathan Rubenstien and Cameo appearances by Steven Jobs!