Apple ready to become a network?

[MatthewsNC]

A report says Apple is looking at cutting out the middleman and starting their own network. Apple is said to be considering becoming a service provider that would rank against the largest in the industry. If this is true it would be huge. However, nothing is said in the article about HOW this would happen. Even with all their money Apple would still have to be able to obtain huge amounts of infrastructure and network spectrum. My personal take is that IF Apple is crazy enough to do this (and they are, look at the crazy-great products they make) they would almost have to buy T-Mobile and/or Sprint to make it happen at least at the start.

Interesting times in the wireless industry! :cool:

http://www.bgr.com/2012/05/01/apple-mobile-carrier/

[davefred99]

It would certainly make logical sense that Apple would do this. I am not sure how it would all play out but I think Sprint & or Tmobile would be the logical targets. I also would bet that Apple would stop all phone subsidies and just sell the phones at retail prices. I personally think it would be a better world if people could just buy a phone for its true value and then activate it on whatever provider gives them the best service for there money. Knowing Apple I doubt they would be inclined to sell there services at a discount so all the Prepaid MNVO's would be left out.

[BGilomen]

Apple would certainly lose a lot of money going forward from folks who were its partners but who would then become its competitive adversaries: AT&T and Verizon. I wonder if there is something in the terms of the agreements between Apple and ATT/VZW that would let them wiggle out of their current contracts if Apple became a provider instead of a mere equipment vendor

[carpediemnow]

I think Apple would be dumb to make such a move as it would go against their whole model of profit making vs marketshare. Apple may have only had a single digit share of the pc market for years but it never lost money after Jobs came back and rebuilt it, something none of the other software and hardware makers can say. Now they dominate the smartphone business in terms of profit if not marketshare. They have a good business model. Why ruin it?

[Louisiana84]

Apple can afford AT&T.

[Boz]

Apple can afford AT&T.So then I guess it follows that they could afford T-Mo and Sprint, too?

[foosball]

Since Apple has 1 billion dollars cash just sitting around, they could probably buy who ever they want.

Sent from my Incredible 2

[BGilomen]

Since Apple has 1 billion dollars cash just sitting around, they could probably buy who ever they want.

I dunno... Nowadays, a billion doesn't go as far as it used to. :)

[hkleiner]

I dunno... Nowadays, a billion doesn't go as far as it used to. :)

Yeah might be a small downpayment, but any of the networks are going to be WAY more than that.

Sent via Brain Drain

[Boz]

Yeah might be a small downpayment, but any of the networks are going to be WAY more than that.

Sent via Brain DrainYeah. But if they do buy, after the billion dollars, maybe they can put the balance on their American Express or something... :yay:

[foosball]

Thats just the cash they have on hand. Its burning a whole in their pockets.

Sent from my Incredible 2

[trohrer]

Actually, its more like $110 billion cash on hand.

[foosball]

It grows all the time. That is just their top pocket money. Wow

Sent from my Incredible 2

[MatthewsNC]

It grows all the time. That is just their top pocket money. Wow

Sent from my Incredible 2

My guess is that if Apple wanted to they could buy the whole Big 4 in the cell phone industry from a financial standpoint. Of course political reality would not allow that. But obviously Apple can buy whomever they want. The question is, who would they want and why. Further, do they really want to do this as it is a huge jump for them. It is one thing to design great devices and build them out of the US and then sell them successfully here in the US. It is quite another thing to take a complete cell phone company and support that huge network and build it out while taking care of a huge number of employees that will expect something better than they now have. All I can say is it will be interesting. Apple has been on quite a roll, do they want to risk that now with a huge turn in their attention?

[Cardiac]

They would have to buy an existing company such as Sprint. There isn't any bandwidth left, no matter how much money they would offer the FCC. The 2-3gHz spectrum is full.... $100 Billion isn't enough money for God to make additional spectrum ;)