Is Apple making a mistake?

A study was released this week that Apple is loosing market share for the iPhone and that Google’s Android phones are now in the second spot. Grated there are a few issues with the study. They are: it was a recent study, people are waiting for the new iPhone, and a whole host of other things. But the article got me thinking that the exclusivity deal with AT&T for 5 years is way too long in the world of mobile. This was reported on Mashable this week, the deal ends in 2012.

I understand the advantages with exclusivity deals. But it is when a new phone is out you want to give a carrier the phone for a short period of time, say six months. But, 5 years seems a little excessive. I have thought from the beginning this deal was way too long. Here’s my reasoning why they need to expand carriers:

  • Certain consumers do not like AT&T and will never consider them as a carrier
  • All other phones are carried by multiple carriers which gives them a wider base of customers
  • People will get Android phones as an alternative to iPhones
  • Other countries have multiple iPhone carriers
  • It will be good for AT&T and ease up network issues plaguing NYC, SF and other major cities with heavy iPhone usage.

These are just a few of my ideas why Apple needs to open up the iPhone in the U.S. the longer they wait the more ground they loose in market share.

Tim is the founder of Element33. A social media agency specializing in education, management and strategy for small businesses. He comes from a traditional marketing agency but has embraced all things digital. He considers himself a marketing nerd and believes that all marketing is tied together. This means no matter what silo you are in, social, email, seach, etc, changes in one will affect the other!

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