Rather a bold claim, but Aidan Malley makes some good points:
Analyst Craig Moffett of Bernstein Research likens the relationship between Apple and AT&T as that between the former and music labels dating as far back as 2001, when Apple first had to ingratiate itself with labels as it incorporated music CD ripping into iTunes. Apple at first won important concessions and praise from its partners, only for them to regret it later as the iPod maker’s popularity left these companies at the supposedly smaller company’s mercy.
[. . .]
The attack is such that Apple has all but taken control of the partnership, according to the analyst. Now, the Cupertino company has “radically tilted” the normal balance of power against AT&T and cellular networks as a whole. If Apple preferred another carrier, many iPhone owners would switch to preserve the experience they already have; an incentive that forces carriers to keep the handset maker happy. At times, though, it also has the caustic effect of suggesting an conspiracy at the carrier to limit useful services, such as voice over IP calls, when cost or technical reasons are the real motivators.
And while the US government may be close to investigating exclusivity deals as possibly anti-competitive, Moffett argues that Apple’s presence in the marketplace has actually helped competition by forcing companies to keep reasonable service rates and let apps dictate business rather than network services. Government intervention could paradoxically hurt the industry by telling providers how much they could discount a phone and hardware developers which networks they would have to support.
I’d have to say he’s absolutely correct with the point on user loyalty . . . if Rogers stopped supporting the iPhone, I’d be moving my business to whoever took it over from Rogers. I’m certain that this is true of the vast majority of iPhone users. I was Bell customer for a long time, but the iPhone was enough inducement for me to switch cell phone companies.
That’s a pretty big club for Apple to use to get its own way in any negotiations with cell phone companies.
(Cross-posted to the old blog, http://bolditalic.com/quotulatiousness_archive/005580.html.)
