Apple’s AT&T Affection Baffles Analysts – Though it wouldn’t if they analyzed a little harder…

In: Cellphone|Communication|Editorial|Gadgets|Hardware|Internet|Internet Tablet|iPhone|Networks|Site Feeds|Wireless

28 Jan 2010

After a 2009 dominated by press reports of AT&T network issues, belated AT&T product launches (MMS), blocked applications on AT&T’s network and roundhouse kicks by fake CEOs, most analysts expected Apple to start distancing itself from the AT&T brand. Instead, most were surprised yesterday by Apple’s continued dedication to AT&T. Apple announced that AT&T would be the exclusive partner for the new iPad, and contrary to expectations – no Verizon (EVDO) compatible iPhone was announced.

According to analysts quoted in Business Week, they were shocked by the continued AT&T and Apple romance:

“AT&T is going to need to make some sort of statement or some sort of acknowledgment that they’re up to the test of supporting this,” said Weiner, who is based in Scottsdale, Arizona. He said he was “shocked” that Verizon wasn’t chosen as the network provider.

Analysts shouldn’t be too shocked however. Kevin Fitchard over at Connected Planet explains Apple’s reasoning:

Why not make 2 iPads, one for CDMA networks and one HSPA? Well, aside from the additional hassle of designing and sourcing two separate devices, you try explaining to your customers why one version of what appear to be two identical tablets is more expensive based merely on which 3G provider you chose. Or if Apple keeps the price of the two versions the same, try explaining to its shareholders why they re making less money on one version of those same devices.

By more expensive, he’s referring to the fact that EVDO guts would cost more to produce. Of course as both Verizon and AT&T migrate to LTE technology, this becomes less of an issue. Regardless of yesterday’s Verizon iTab snub, it remains likely that an end to AT&T’s exclusive iPhone contract is announced later this year.

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