Over the past few weeks, rumors have swirled about the possibility of Apple's iPhone being available on more cell phone carriers' services. Of course, this has already been announced overseas in a number of countries, including Italy, Australia and India, but so far, there has been no indication that it'll happen in the US. But if you look at the writing on the wall, it becomes abundantly clear that it will.
Although I believe it will happen this year, there's no doubt that there are a number of hurdles in Apple's path if it truly wants to open the iPhone up to different carriers. First off, the company will lose its revenue sharing deal with AT&T and ostensibly back out of a five-year exclusivity agreement with the carrier. And while these two issues are important to consider, I have no reason to believe Apple can't come out on top by backing out of both agreements.
When the deal was signed with AT&T, one important element that's missing now was true back then -- Apple was an unproven entrant into the cell phone market and the company was trying to establish a foothold. Because of that, it entered into an exclusive agreement with AT&T and used that deal to build up considerable demand. But now, the iPhone is a known quantity and Apple carries all the leverage. Beyond that, it's being faced with a major contender in Google Android-based phones that will be available on almost every carrier, and thus, must act before it's too late.
Suffice it to say that Apple will back out of this deal and make the iPhone available on all carriers. Here's why:… Read more