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.