Steve Jobs considered breaking AT&T exclusivity "more than half a dozen times"
posted by Michael H. / Nov 18, 2013, 10:16 AM
Dogfight: How Apple and Google Went to War and Started a Revolution, which covers the early development of the iPhone and Android and the troubles between the two. Last time, we found out that Steve Jobs apparently called Android founder Andy Rubin a "big, arrogant f**k". Now, we're finding out that Jobs hated the AT&T exclusivity deal so much that he considered breaking the deal "more than half a dozen times".We've talked before about some of the more juicy items revealed in the new book
Unfortunately, because of that same exclusivity deal, Jobs had no real power to get the changes he wanted. According to Dogfight author Fred Vogelstein, Jobs had tried pressuring AT&T to move faster with its data network upgrades since the iPhone launched in 2007, but the exclusivity deal took away all of his leverage, and nothing was able to be done until the iPhone finally became available on Verizon in 2011. Of course, even if Jobs had been able to break the exclusivity agreement, there were also concerns as to if Verizon would have been any better, because at the time, it was believed that its CDMA network caused issues with battery life, was slower than AT&T's data network, and may not have been any better at handling large amounts of data.
Posts: 3165; Member since: Jun 19, 2010
"there were also concerns as to if Verizon would have been any better, because its CDMA network cause issues with battery life" a statement that is completely unfounded and has no basis in fact. CDMA does not have any significant detriment to battery life in comparison to GSM. This has been tested over and over. Anyone that concludes there is a significant difference is biased and lying. As far as not liking the exclusivity deal, Im sure it was more of a "Buyer's remorse" situation, they probably saw no issue with it initially, but AT&T probably did not comply with Apple's demands very well and the agreement was in their favor and they abuserd
posted on Nov 18, 2013, 10:23 AM 2
Posts: 2734; Member since: May 26, 2011
I've clarified the language on that part. Only meant to say that was the belief at the time, regardless of what turned out to be true.
posted on Nov 18, 2013, 10:30 AM 3
Posts: 706; Member since: May 30, 2013
Nokia stop the exclusive act with ATT please
posted on Nov 18, 2013, 10:25 AM 4
Posts: 3165; Member since: Jun 19, 2010
They dont have an exclusivity deal. Nokia has phones on Verizon and T-mobile as well. AT&T may have been more accommidating to them, or maybe Nokia has just been favoring AT&T since their network is more compatible with international networks than the other carriers. Nokia and Sprint does have some kind of beef though. I wish it could be worked out, because the Windows phones on Sprint just suck, HTC and Samsung don't really care about WP.
posted on Nov 18, 2013, 10:35 AM 1
Posts: 38; Member since: Oct 25, 2013
I knew it was a bad idea from Day 1 but to this day I do not understand why he did it. Why didn't he just put it on more than one carrier at the beginning?
posted on Nov 18, 2013, 12:24 PM 0
Posts: 431; Member since: Apr 15, 2010
It is well documented now that Verizon turned down Apple's offers. Love it or hate it, Apple is a very difficult company to do business with. They charge an arm and leg wholesale to carriers, and they get royalties for every device sold and in use...and people used to think BlackBerry/RIM was bad with its carrier fees for BIS, those didn't hold a candle next to the $15/$20 per month, per user Apple gets.
posted on Nov 18, 2013, 12:50 PM 1
Posts: 109; Member since: Mar 18, 2012
Marketing! It created a LOT of interest in a product that was not available to anyone but AT&T customers on susbsidy, here in the states. Look what it did for Apple. It did a lot of good for them but all-the-while you have Android climbing the ranks. Apple is slowing it's roll.
posted on Nov 18, 2013, 4:09 PM 0
Posts: 2000; Member since: Apr 16, 2011
The original deal was with Cingular. To get that deal, Apple threaten to become a MVNO, which is how Cingular caved in and gave Apple a sweetheart deal. At that time, the carriers had do much control over the handset such as how the menu was set up, the placement of the carrier logo, revenue sharing of music, games, etc. Because the iPhone was so successful in terms of ARPU, net subscriber adds, low churn, etc, it gave Apple the leverage to negotiate with the other carriers. Verizon kicked themselves for not doing a deal with Apple and instead tried to rely on Blackberry (anyone remember the BB Storm aka iPhone killer?). At the time no carrier (in the US) understood that the iPhone was a game changer. Cingular took a huge gamble with the iPhone and the rest is history.
posted on Nov 18, 2013, 4:34 PM 1
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