Apple denies rumor that it is looking to launch its own cellular service
In a rare move, Apple on Tuesday responded to a questionable rumor, outright denying that it's planning to start its own mobile virtual operator network and become a wireless provider, much like MetroPCS or Boost Mobile.
In a statement to CNBC, Apple said it has not discussed becoming an MVNO, and has no plans to do so. The statement squashes a rumor that claimed Apple was looking to piggyback on established wireless networks, buying extra capacity from carriers like AT&T and Verizon.
That rumor, started on Monday by Business Insider, seemed suspect from the start: iPhone users are among the most profitable subscribers for wireless carriers, and for companies like AT&T and Verizon to sell excess capacity to Apple would see them essentially forfeiting those customers.
MVNOs, which include MetroPCS and Boost Mobile in the U.S., lease their voice and data service from major carriers. That excess capacity is sold to smaller companies at a discounted rate, who then sell budget mobile plans to customers.
In 2012, CEO Tim Cook said Apple doesn't need to "own the pipe," referring to investment in carrier networks. He noted that Apple is focused on delivering quality devices and would rather leave network operations to its partners.
AppleInsider's own sources said earlier this year that the company is considering shipping its anticipated "iPhone 6s" with the Apple SIM card, which could make it easier for customers to select wireless plans. But that too would likely create concern amongst carriers around the world.
The Apple SIM launched last year, but it is limited to the iPad Air 2 with cellular connection. That alone was enough to upset Verizon, which refused to support the Apple SIM. As a result, Verizon customers in the U.S. must buy an LTE iPad from Apple, and then obtain a SIM card separately from Verizon.
Prior to the launch of the first iPhone, Apple co-founder Steve Jobs reportedly considered creating a proprietary wireless network, based on unlicensed Wi-Fi spectrum, which would've allowed the the company to completely dodge deals with existing carriers. Patent filings show that around the same time the company was exploring the idea of a phone that would jump between multiple carriers on a distinct roaming network.
In a statement to CNBC, Apple said it has not discussed becoming an MVNO, and has no plans to do so. The statement squashes a rumor that claimed Apple was looking to piggyback on established wireless networks, buying extra capacity from carriers like AT&T and Verizon.
That rumor, started on Monday by Business Insider, seemed suspect from the start: iPhone users are among the most profitable subscribers for wireless carriers, and for companies like AT&T and Verizon to sell excess capacity to Apple would see them essentially forfeiting those customers.
MVNOs, which include MetroPCS and Boost Mobile in the U.S., lease their voice and data service from major carriers. That excess capacity is sold to smaller companies at a discounted rate, who then sell budget mobile plans to customers.
iPhone users are among the most profitable subscribers for wireless carriers, and for companies like AT&T and Verizon to sell excess capacity to Apple would see them essentially forfeiting those customers.
In 2012, CEO Tim Cook said Apple doesn't need to "own the pipe," referring to investment in carrier networks. He noted that Apple is focused on delivering quality devices and would rather leave network operations to its partners.
AppleInsider's own sources said earlier this year that the company is considering shipping its anticipated "iPhone 6s" with the Apple SIM card, which could make it easier for customers to select wireless plans. But that too would likely create concern amongst carriers around the world.
The Apple SIM launched last year, but it is limited to the iPad Air 2 with cellular connection. That alone was enough to upset Verizon, which refused to support the Apple SIM. As a result, Verizon customers in the U.S. must buy an LTE iPad from Apple, and then obtain a SIM card separately from Verizon.
Prior to the launch of the first iPhone, Apple co-founder Steve Jobs reportedly considered creating a proprietary wireless network, based on unlicensed Wi-Fi spectrum, which would've allowed the the company to completely dodge deals with existing carriers. Patent filings show that around the same time the company was exploring the idea of a phone that would jump between multiple carriers on a distinct roaming network.
Comments
I think squashing this rumor shows that the cellular companies must have expressed some concerns. It is very much in the best interests of apple and the cellular carriers to maintain good relations with each other. Both have made a lot of money off of the iPhone. If Apple ever goes the MVNO route (or something similar), it will have to be handled very carefully.
Google's move into wireless probably helped to feed this rumor about Apple.
http://time.com/3831727/google-fi-wireless/
....
Apple does not need propaganda to be successful. But they need to stop the negative propaganda. if it means playing a little dirty so be it. I think that's the only gripe I have with Tim Cook. The dude is too nice sometimes and too pricipaled. Some times you need to get your hands dirty.
I seem to recall rumors/reports of a prior Apple CEO who would call up the Journalist and cuss them out (at a minimum).
"So...you're telling me there's a chance" - 1994 - L. Christmas
Getting into the MVNO business would have been ill-advised. It's a low margin, zero-growth, dog of a business best left to useless companies like Virgin and no-name start-ups.
Quite apart from that, Apple would have ticked off some of its most important business partners worldwide.
In fact, rather than get into more such vertically integrated stuff, I'd love it if Apple could hive off its content (books, music, movies, TV shows) business at least as a separate subsidiary (if not a spin-off).
Google entered phone manufacturing, high-speed Internet service and a wireless service... I don't see a huge backlash by competitors yet.
Google entered phone manufacturing, high-speed Internet service and a wireless service... I don't see a huge backlash by competitors yet.
How successful have they been with any of those, other than throw things at the wall and generate a lot of bogus buzz?
If anything, that's Exhibit A for why Apple shouldn't.
I think squashing this rumor shows that the cellular companies must have expressed some concerns. It is very much in the best interests of apple and the cellular carriers to maintain good relations with each other. Both have made a lot of money off of the iPhone. If Apple ever goes the MVNO route (or something similar), it will have to be handled very carefully.
I would think that AT&T and others gave them hell about this, hence the quick refutation. It's quite possible Apple WAS checking this out, but won't be for a while.
Apple likes to own the whole enchilada!
What would you expect Apple to say/
Isn't an MVNO a regulated business -- just like a carrier? A Bank?
Where's the ROI or other opportunity for Apple by becoming an MVNO? A Bank?
I like this.
I think it is time for Apple to start embarrsing CNBC and other outlets for publising pure lies and bullshit.
I think Apple should hire a group of unsavory gentlemen. I'm not saying they should order a hit but some threats could come in handy. Have some of these thugs have a meeting with some of these 'journalist'. And explain to them that lies and bullshit will no longer be tolerated.
Its time to use that $200 billion cash pile for its advantage. Start threatening to buyout media outlets like CNBC or Business Insider. Start threatening public humiliation of 'journalist' who continue to write articles based on total bullshit. Start threatening companies like Slice with lawsuits.
IN other words stop playing nice.
Apple does not need propaganda to be successful. But they need to stop the negative propaganda. if it means playing a little dirty so be it. I think that's the only gripe I have with Tim Cook. The dude is too nice sometimes and too pricipaled. Some times you need to get your hands dirty.
The journalists would squeal louder than Spotify to government agencies saying Apple is stifling their rights to publish lies about Apple. The government agencies would sue Apple for daring to want honest journalism and defend with the journalists' rights to publish even more lies about Apple.
Getting into the MVNO business would have been ill-advised. It's a low margin, zero-growth, dog of a business best left to useless companies like Virgin and no-name start-ups.
Virgin Mobile USA and Boost Mobile are both owned by Sprint. They aren't MVNOs, they're a Sprint brand. In fact, those two are where most of Sprint's growth comes from.
What investment is there really?
The point was that the fact that Google has entered those markets may have fed the rumor, regardless of whether or not it would be good for Apple.
And it's because Dr. Dre entered the building. /s
You're also forgetting: BusinessInsider. It's clickbait.
Edit: or in this case, SEO link bait.
I like this.
I think it is time for Apple to start embarrsing CNBC and other outlets for publising pure lies and bullshit.
All they really have to do is respond to the bullshit rather than ignore it. When some analyst comes out with a report ‘confirming’ the existence of, say, a new Apple TV, Apple should just release a statement like the one it just did about MVNO. Tell the world that that analyst has been sniffing model airplane glue and is unqualified to make such a claim.