AT&T May Soon End iPhone Exclusivity
8/11/2010 11:29:00 AM - 0 comments
AT&T may soon end its exclusive hold on several smartphones, particularly iPhones. The speculation came in light of its recent filing of its Financial Statements with the Securities and Exchange Commission (SEC).AT&T, in its filing, provided a consolidated statement of its income from its services like wireless, voice and data, among others. It noted that their promotion with a number of attractive handsets on an exclusive basis distinguishes them from competitors.
AT&T stated that the expiration of its exclusivity contracts with several smartphones would not affect its ability to reach its sales targets. It also said: “As these exclusivity arrangements end, we expect to continue to offer such handsets, and we believe our service plan offerings will help to retain our customers by providing incentives not to move to a new carrier."
Speculators believe that this is a significant indicator that “AT&T may soon break its exclusive grip on several hugely popular smartphones” although no specific smartphone was mentioned. AT&T has been the sole carrier of iPhones since its launch in 2007 and signed a deal with Apple for a 5-year exclusivity agreement.
AT&T, in its filing, also explained to its investors the possible impact of the expiration of its exclusivity deal. To date, AT&T remains the only US carrier fully compatible with current and past GSM/HSPA iPhones. It assured customers, particularly its new iPhone 4 customers who have recently signed up with a two-year contract, that everything should work well.
AT&T also seemed to be strategically preparing itself with its addition of other smartphones in its line up this year with Palm Pre Plus, Samsung Galaxy S or Captivate, and Black Berry Torch.
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