MobileIN.com Perspective
iPhone Troubles – Time for AT&T to add another vendor to its list
By PJ Louis



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Let’s get something straight.  Apple(NMS:AAPL) is new to the cell phone business.  Up until a couple of years ago they knew nothing about the cell phone.  I think critics and analysts need to cut this company some slack.

I have been critical of the iPhone in the past but that was over legitimate issues regarding the lack of 3G connectivity and the negative impact on AT&T.  However, I think the media might be going a bit overboard on the negative news about the iPhone’s performance.  Not all handsets perform well.  Years ago, it was not uncommon to have cell phone handset vendors experience operational troubles.  Today these vendors have rigorous testing processes so troubles are few in number.

Apple is new to the business.  What did investors expect?

The reality is that the news is not new.  Most of the telecom professionals I know have been expounding these issues since Day One.  Now the press has grabbed hold of this bad news and is pounding AT&T into the ground with the news.

No one should be surprised by any of this negative news.  Apple is not a cellular technology vendor.  The company has literally no experience in the space.  To date the company has focused on the media capabilities of the handset.  It is little wonder that basic connectivity issues have been overlooked.  The real issue is the impact on AT&T.

AT&T needs to add an additional handset vendor to its list.  AT&T is not responsible for the iPhone’s troubles.  When a carrier buys handsets it is up to the vendor to guarantee its performance.  What I am hoping is that Apple is eating the cost of any handsets being returned to AT&T.  AT&T is already suffering from perceived poor service.  AT&T needs to mitigate its risk by passing the cost of the non-performing handsets onto Apple.

Before complaints increase in number and perceptions of AT&T’s service gets worse, AT&T needs to take drastic action now.  The company owes nothing to Apple; at least I hope the management team did not lock itself into an agreement it cannot pull itself out of.  Hopefully, AT&T took steps to protect its investors by putting in equipment performance metrics into its agreement with Apple.

  

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