The head of AT&T (NYSE: T) is saying that Apple (NASDAQ: AAPL) will launch a 3G iPhone next year and the big phone company is anxious to start selling it. Barron's quotes AT&T's CEO as saying, "The 3G iPhone, when? You will have it next year."
Although the iPhone has sold extraordinarily well in the U.S., one of its only drawbacks is that it runs on AT&T's 2.5G network. The phone does not have the capacity to run on the company's faster 3G network, but the handset is obviously being adapted.
An iPhone on a faster network is likely to encourage people to use the phone more for web surfing and data downloads. AT&T makes money off of usage fees, so this should increase its revenue from iPhone customers. It is widely assumed that Apple gets a piece of these usage fees, so its income-per-phone could go up as well.
Customers waiting for a 3G version of the phone will probably flood AT&T stores when the new version hits the market. It could look like the original launch all over again.
Douglas A. McIntyre is a partner at 247wallst.com.
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Reader Comments (Page 1 of 1)
11-29-2007 @ 9:49AM
Linda said...
Apple’s iPhone is too secluded from the mainstream media world. The Gphone makes all media more ubiquitous, and how that ubiquity will impact company profits. That can benefit both consumers and investors. The NewsVisual article on Google’s Open Handset Alliance http://www.newsvisual.com/newsvisual/2007/11/google-and-moto.html implies that it’s really personal connections among business leaders that determine future success in the competitive marketplace. But consumers can also benefit from the new products those alliances spawn.
11-29-2007 @ 12:47PM
Jeff said...
AT&T does not make money off of usage fees, they only offer unlimited use plans for the iPhone.