During Apple’s fiscal 2010
first-quarter conference call with investors on Jan. 25, Apple executives
announced record-breaking sales, revenue and income, but did little to dispel
the rumors
that on Jan. 27, AT&T’s exclusive hold on the Apple iPhone will come
to an end.
The first question on the call came from Gene Munster, an
analyst with Piper Jaffray. By his company’s estimates, Munster said, 40
percent of Apple’s iPhones ran on the AT&T network, whose bad press,
of late, has surely also impacted the Apple brand. “Can you remind us
what the benefits and virtues of sticking with a single carrier in the U.S.
are?” Munster asked.
If once upon a time there were benefits to sticking with a
single carrier, Apple seems to have forgotten them, as AT&T’s
contract nears its end — whether this week or this summer — and
Apple prepares to offer the iPhone to an additional carrier.
“AT&T is a great partner. We’ve been working
with them since well before we announced the first iPhone, to get it out. I
think it’s important to remember that they have more mobile broadband
usage than any other carrier in the world,” Apple’s Chief Operating
Officer, Tim Cook, responded, not quite answering the question.
Addressing the bad press, as Munster referred to it, Cook
continued:
"In the vast majority of locations,
we think that iPhone customers are having a great experience, from the research
that we’ve done. As you know, AT&T has acknowledged that
they’re having
some issues in a few cities, and they have very detailed plans to address
these. We have personally reviewed these plans, and we have very high confidence
that they’ll make significant progress toward fixing them."
It’s rumored that AT&T’s
exclusive contract will come to an end on the same day that Apple will
reportedly introduce its new slate device — which was a topic
that, during the conference call, Cook and Apple Chief Financial Officer Peter
Oppenheimer were even more tight-lipped about.
When another analyst asked whether the financial guidance
Apple provided included “any unannounced products,” neither man
acknowledged that a new product was imminent.
“I think you’re maybe alluding to our event on
Wednesday, and I don’t have anything to share with you today, so please
stay tuned,” Oppenheimer answered, putting an end to the topic.
In a press release on the earnings call, however, Apple CEO
Steve Jobs is quoted as saying, “The new products we are planning to
release this year are very strong, starting this week with a major new product
that we’re really excited about.”
Munster was among the first to report that Apple was
planning a slate product, writing
in a May research note to investors, “We
expect Apple to fill the gap between the iPod Touch and the MacBook with a new
tablet device (not a netbook) priced at about $500-$700.”
Those curious as to whether Munster
and the rumors are correct will have to take Oppenheimer’s advice and
stay tuned.
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