AT&T to Android — It’s Not You, It’s Me
Some relationships just aren’t meant to be. Take AT&T and Android, for example. Since the Apple iPhone is a cash cow for the carrier, I’m thinking that there isn’t much chance for AT&T customers to experience Google Android devices in the near future. Scott Moritz at The Street sheds a little light on my thought, reporting that, “AT&T canceled plans to carry Google Android-powered phones later this year.” This news hits just as Motorola enters the Android market at our upcoming Mobilize 09 conference, where they’ll announce at least one device running Google’s operating system.
The AT&T and Apple relationship roots run very deep now — the two have dated on an exclusive basis since the initial iPhone announcement in January of 2007. If they keep this relationship up until 2014, some states would consider them in a common-law marriage! As long as AT&T carries Apple phones exclusively, I’m not sure they’ll offer an Android handset.
I actually wonder if Cupertino has enough influence to prevent that from happening, to be honest. Obviously, I don’t know. But if the mobile space becomes a two-horse race as some are thinking it will, I can’t see why Apple would let AT&T have an affair with Google. It would be good for AT&T — and its customers — to offer a choice of solid smartphone platforms. Apple might lose some of its favored status, though, and I’m not sure it would be too happy in that situation. If AT&T does offer a modern, new Android handset in the next year or two, I expect some heavy-duty relationship counseling sessions between the carrier and Apple.
With the current situation in the U.S., Google actually looks like the winner in all of this. The company already has two Android handsets available to T-Mobile customers. There are rumors that an upcoming Motorola Android handset is coming to Verizon Wireless in late October. And although Sprint is currently focused on the Palm Pre, that exclusive deal runs out around the end of the year. Dan Hesse of Sprint has alluded to waiting for Android to mature — which it has, thanks to the Cupcake update and more apps — so I’m expecting Android for Sprint customers, too. In the end, Google is well-positioned with the AT&T and Apple fling — it can play the field and gain more customers overall with a wider net. Thoughts?
Apple “talks” to Verizon to apply some pressure to ATT. I am sure ATT does some of the same posturing with other phone mfg’ers. Whether Apple applies pressure or not regarding Android, ATT does not want to rock the boat and thus makes such a decision on a flimsy excuse (Moto’s screens are not up to snuff for ATT customers). But really they do not want to make the cash cow mad. Can’t really blame them!
The Hero is coming to Sprint.
I hear “Apple won’t let AT&T…” a lot across ye’ old interweb. In my opinion the longer Apple (a) dominates AT&T’s handset decisions and (b) allows Palm and Android based devices to become entrenched at other operators the more Apple is going to NEED AT&T. Sooner or later AT&T is going to figure this out.
Apple may very well be putting pressure on AT&T right now to stay away from any Android devices if they want to keep the exclusivity they have enjoyed. AT&T’s iPhone exclusivity is definitely helping Android get market share via the other three (which is good for everyone). It would have been a horrible thing if the iPhone had been available to all carriers from day one and nobody took Android seriously.
This sort of arrangement bothers me more than the exclusivity contracts. Its fundamentally stifles innovation. How is technology supposed to develop when carriers nix phones they don’t like? Yes, Android can go to Verizon or Sprint, but they will no doubt set their own restrictions resulting in phones with only so much functionality as they will allow. That is the state of mobile phones these days with only 4 major carriers in the US. The only player to change their ways has been Apple, which has does amazing things but is only one company. And the Googlevoice issue shows the limitations of relying on one source to innovate. More than any other issue, I would like the FTC to limit carriers’ say on phones.
I think the dark horse in this is actually Nokia’s Maemo.
It’s open, widely understood in the tech community, and has finally become practical (speedy.)
Early devices (N770) didn’t really have the horsepower and didn’t have GSM. With the upcoming N900 these problems have been addressed (even though the excellent 800×480 touch screen has been hatcheted.)
P
I don’t understand… Wouldn’t both Apple and AT&T gain MORE by playing the field? Apple would definitely sell many more iPhones if they were offered on other networks. AT&T would have more customers if it offered more smartphone choices. Am I not making objective sense? Or have Apple and AT&T been in an exclusive relationship for so long that they have lost objectivity just like couples in a relationship do?
Android has been out over a year and has been a flop. For obvious reasons. There is no reason to think it do any better and to say it looks like a winner of anything right now is idiotic. But I have come to expect idiotic statements from this site so I’m not surprised.
@Terry
What are these “obvious” reasons? I suppose they’re not so obvious to me. I really like the openness of the Android platform and functionality that the iphone lacks, such as being able to run multiple applications at once, are real selling points for me. I’m a software engineer, so my perspective will not be shared by the majority of people, so I’m curious to here what these “obvious” reasons are.
Agreed. While it’s pretty clear that the Android phones haven’t sold as well as the iPhone so far, there are several reasons for it (among them that they are only available for the weakest US carrier’s network on these shores). I have all three major platforms (and by that I mean iPhone, Android “G2″ ION, and Palm Pre) and they all have pros and cons. Today Apple is leading the market. But just look back two years… Windows Mobile was fairly dominant. And before that? PalmOS and the Treo line. Things can rapidly change. (and yes, I haven’t even mentioned the Blackberry yet… never really used one since the original ‘pager’ days, though that’s obviously not what the platform looks like today).
As for Apple putting pressure on AT&T… does anyone else see parallels to Microsoft and its “agreements” with various PC manufacturers that ultimately got the company in hot water? I am writing this on my MBP, which I love, but I am feeling less and less love for Apple (the company) and its business practices.
s/here/hear
I also agree.
Some GREAT Android smartphones seem poised to hit the market, in the coming weeks. The delay is understandable, since the vendors need to:
1. get familiar with a new OS.
2. develop their own user experience, for the OS:
e.g.
– HTC: Sense UI
– Motorola: Blur UI
– Sony Ericsson: Rachael UI
– Samsung: TouchWiz UI?
3. optimize the OS for the smartphone hardware.
Good thing this post is full of facts and not just conjecture.
A phone delay/cancellation does not indicate a carrier’s plans and strategy for an entire platform.
Android is alive and well.
Apple is not the enemy. AT&T is not the enemy. There is no enemy except the ideas you make up in your minds.
Stay tuned.
This is really depressing. Despite me being with AT&T, I, for one, welcome our new Android overlords.
I like AT&T a lot. But OH how the tables have turned in the last year: it used to be that NOONE had any phones worth mentioning and AT&T had them all.
Now it looks like the Jesusphone has a stranglehold on innovation at AT&T. Read my lips AT&T: I don’t WANT an iPhone, I want an ANDROID phone. CHOICE, you dig?
As happy as I am and have been for many years at AT&T, if they don’t start offering non-fascist phones, I may just have to jump ship to the free thinking competition….
UPDATE:
http://news.cnet.com/8301-30684_3-10369994-265.html