Best Buy to Sell Sprint iPhone? Goodbye AT&T!

So this is just a rumor, but it's one I really believe. An anonymous Best Buy employee says that Sprint will be offering an iPhone for it's service this June:

Best Buy to Sell Sprint iPhone?

This is just weeks away! Now, why do I believe this, since there isn't really any proof? Well, first off, Apple absolutely needs to open the iPhone up to other carriers, and soon. The Android is finally getting some traction, and the hatred of AT&T by iPhone users has gotten to a point where Apple is starting to look bad by sticking with them.

Also, Sprint has been running ads already touting how iPhone users (and iPad users) can use their wireless hotspot to connect to the internet faster than AT&T's 3g network.

Finally, Sprint has the only up and running 4g network (AT&T decided to wait on upgrading, the better to line the pockets of it's executives in short term bonuses). Sprint actually makes a better choice for Apple than Verizon. Verizon, because it's the biggest carrier, has been more demanding of terms for any deal with Apple. And Apple is a company that doesn't like to get pushed around.

Finally, Sprint really needs the iPhone. The company bet the farm on 4g, and it had to be working hard behind the scenes to get the iPhone. It didn't run those iPhone ads without checking in with Steve, I'm sure.

So how long will it take Uncle Bell to dump AT&T once Sprint offers up a 4g iPhone?

Faster than you can said: buh-bye!

AT&T's Doesn't Get it: Part 2,871

AT&T's shortsightedness and greed reached a new height… scratch that…

AT&T's shortsightedness and greed unpredictably… scratch that…

As usual, AT&T's shortsightedness and greed are evidence in it's latest attempt to piss of it's most important customers to make a quick buck:

In Advance of New iPhone, AT&T Raises Rates to Buy One

So you're a loyal AT&T iPhone customer. Want to buy the new one? Pay extra. Want to buy a crappy non-smart phone no one wants, play a little less.

Unbelievable. No… scratch that.

Typical.

AT&T Finally Learns to Stop Hating and Love the iPad. Or Does It?

AT&T executives are finally backpedaling (a little) from damning the iPad with faint praise. Today, at the JPMorgan tech conference, Ralph de la Vega, CEO of AT&T Wireless, gushed about the iPad. He said that it had "changed the way he worked."

So is AT&T finally on the iPad bandwagon? Do they realize they have a once in a lifetime opportunity to be a leader in providing service to a ground breaking cloud computer? Well, no. Ralph went on to say that he personally uses his iPad on wi-fi but that "if customers want 3g, we'll give them 3g." He told a story about using the wi-fi on his flight to empty out his e-mail box with the iPad. Nothing, zilch, about him using his own AT&T wireless service, even in an emergency. (Did he buy the iPad without 3g?) Let's repeat, the guy in charge of AT&T wireless talks about how he doesn't use his own service on the most important new wireless enabled product of the year and probably decade. One that AT&T is the EXCLUSIVE service provider for. (But he is a great advertisement for wi-fi services on airplanes, which, to my knowledge, AT&T doesn't provide.)

Ah, yes, the idiocy at AT&T never ends.

I'll admit his comment is an improvement over his boss AT&T CEO Randall Stephenson's incredibly moronic prediction that the iPad was a "wi-fi" device. At least Mr. de la Vega acknowledges that "some" people might want 3g, which AT&T sells.

But it's kind of like the head of Exxon talking about how much he loves his new BMW. He prefers to sit in it in the driveway, but if "customers want to drive one around, I guess we can sell them gas." Yep, nice that car thing uses gas and it just so happens Exxon sells gas, but it sure looks good parked the driveway. Or perhaps the president of the peanut butter division of a food company saying, "I like my bread plain. But if people want to put peanut butter between two slices, well that's okay too."

The crazy thing is, that in the past AT&T execs have talked about how they want sell people data per bit (with tiered pricing) like "water." Well, the iPad needs data like a fish needs water. So why aren't AT&T execs more excited about offering service for it? Oh, right, it's one price for all the data you want. And what about those evil "data hogs" that we're ruining AT&T's iPhone service for everyone? No iPad "data hogs" on the map yet?

I've mentioned before the reasons why AT&T hates the iPad and Mr. Stephenson would have been perfectly happy if it had turned out to be a failure. But the game is up. The iPad is a massive success, and, yes, the 3g version is selling out like crazy. Time for AT&T to wake up and embrace it.

Now, I suppose when your boss says something incredibly stupid, you can't just turn around a couple months later and completely contradict him. So maybe this was just Mr. de la Vega gently back pedaling for the entire company. "Did we say no one will use 3g? What we meant was, it's okay if people want to." But would it really be so difficult to say something like: "I used mine at the airport on the 3g AT&T service, then seamlessly switched to wi-fi on the plane." Even if it isn't true, can't you be a little better of a salesman? Can't you at least throw a bone to Apple fans who can't stand that your company has exclusive rights to our technologies connections and yet acts clueless or worse? Even if your 3g service sucks, can't you say something like, "in a pinch, 3g is better than no connection."

More importantly, doesn't anyone at AT&T get what an important new tool this is? Is AT&T the ONLY company in the world that isn't working on exciting products for it? Isn't it time for AT&T to have something more to offer for it's iPad customers than 3g (if for some crazy reason they want it). Like apps, additional services, checking iPhone messages, VoIP? Or at least an announcement of them "coming soon"?

Why don't you think about that, Ralph, next time you find your e-mail box empty?

Where is AT&T's iPad Strategy? Maybe It's Time to Come Up With One

So it's no surprise to Uncle Bell that the iPad is a huge success, and even less of a surprise that the 3G version is also a best seller. This despite AT&T CEO Randall Stephenson's prediction that the iPad was a "wi-fi" device. Nope. The 3G version is selling great:

3G iPad's Sell Out Fast

What's particularly interesting in the above article is that it references a survey saying that customers are particularly interested in the lowest priced 3G version, the 16g. What this says is that it's more important to customers to have connectivity than storage. So yep, the whole cloud computing thing is happening fast, and people get that the iPad is a cloud computer (unlike the iPod). It also says that the people who are standing in line and getting on waiting lists for the 3g version aren't just a bunch of rich Apple fans who are buying the most tricked out version they can. These people don't want to throw their money away, they just understand that a 3g iPad is more useful than a wi-fi version. So budget minded people are not only willing to pay $130 extra to be connected, they are willing to pay that for the chance to spend an extra $29.95 a month in service.

It's still a little early to fully eviscerate Mr. Stephenson for his incredibly moronic iPad prediction… well, no. I guess now it is time.

The announcement that the 3G version is selling out should be great news for AT&T, but it isn't, and not just because it makes Mr. Stephenson look like a boob for saying stupid things. The iPad is very bad news for AT&T as I pointed out in an earlier post, Five Reasons AT&T Fears and Hates the iPad. It could be the beginning of the end for AT&T's hold on Apple iPhone customers. As I also predicted, many people are considering the iPad to be an iPhone alternative, mostly due to their hatred of AT&T service pricing and contracts.

Of course, it doesn't have to be that way. The iPad could be a huge opportunity for AT&T to expand it's customer base and influence. The problem is it would require a major change in AT&T strategy to take advantage of what should be a competitive lead. First, AT&T would have to FIX IT'S SERVICE. Something it doesn't seem to be willing or able to do. So instead of giving AT&T a change to bring in a new range of customers, the iPad is likely to introduce a growing number of people to the cult of hating AT&T service and desperately lobbying Apple for an alternative. It would also require AT&T to give up dreams of tiered pricing, addiction to abusive long term service contracts and locked down devices. It would also require AT&T to invest in innovative services for the iPad, to lure customers to spend more than $29.95 a month. None of which AT&T's clueless leadership seems to be willing to do. After all, they think it's a "wi-fi device."

So this is what I'm predicting, AT&T will continue to have no iPad strategy, will continue to downplay it's importance because it can't understand what to do about it, and will force Apple to unlock the iPhone and give competitors a shot at the iPad. Short term, AT&T profits will be great, boosted by the success of the iPad, but the company will be suffer enormously once it has real competition for Apple customers. AT&T might not even survive once the iPhone is unlocked, since it's so dependent on iPhone profits. At minimum, what should be a huge opportunity to be a leader in servicing cloud computers will be thrown away.

So, Mr. Stephenson, time to admit you were wrong. The iPad is a mobile cloud computer that needs good 3G service. If your company doesn't provide it, another will. And meanwhile, thousands of companies are rushing to create great products to take advantage of the iPad, while you company is silent about the issue. Maybe it's time to Rethink Possible.

iPad Sucks on AT&T Service (No Surprise)

Well, the 3G iPad just started shipping and, predictably, we already have our first AT&T service sucks blog story:

AT&T Blocks Video on iPad

Too early for Uncle Bell to tell if this really is an AT&T problem or a glitch or possibly Apple being overly cautious, but AT&T should have prepared for what is going to be a coming storm of criticism of it's iPad service. The comments section on the post features a lively discussion about who is to blame. Recommended reading, but I couldn't come to a firm conclusion.

I do have to reprint this one comment on the post by Jfrank:

"i worked for AT&T, all entities, as a consultant for years. They still have a utility mentality, and their decision makers are too old and too anti-deluvian to make smart consumer decisions.

As one poster said here, at least Rogers opens their pipes. Hell, in Japan, you can get 200 MBPS over your phone for $29/mo. The USA is soooooo behind-the-eight-ball when it comes to networks that it’s laughable."

Yep, couldn't have said it better myself.

iPhone 4.0 - Still Stuck with AT&T?

Gizmodo's capture of a iPhone 4.0 prototype offers a lot of hints about where Apple is going with the new iPhone. Here's a quick piece from Business Week about what some of the possible new features might mean for AT&T customers:

iPhone 4.0 Features Pose Questions

The biggest news would seem to be that the new iPhone's micro-sim slot will lock Americans into AT&T for another iPhone cycle. (Since AT&T is the only carrier offering micro-SIMs at this time.) But Uncle Bell's guess is Apple has some tricks up their sleeve and the new iPhone will be offered unlocked. And there will be support from other carriers for the micro-SIM, both on the new iPhone and the iPad.

AT&T's Depends on iPhone for It's Profits and Share Price

Seeking Alpha reports that 25% of AT&T's mobile revenue and 43% of it's stock value comes from it's exclusive deal on the iPhone:

It's All About the iPhone

So why does AT&T still treat iPhone customers like an abusive boyfriend? Lying to them (about tethering) stealing their money (double charging for texting) and ditching them whenever they can (spotty service)?

Meanwhile, if you live in New York City, are a cable customer, and thinking about getting an iPhone but don't want to pay AT&T a fortune for lousy service, you just got a new option:

Free Wi-Fi for New York

Get yourself and iPod Touch or iPad and some VoIP software and you're in business.