Tuesday, October 4, 2011

iPhone Deal Between Apple and Sprint Could Mean Apple A Step Closer To Apple "Owning" Carrier

Part of the prelaunch buzz of the next iPhone by Apple in a few hours is Sprint's supposedly deal with Apple to buy more than 30 million iPhones worth $20 billion over the next four years.

That comes out to about 7.5 to 8 million iPhones a year.  Crazy, I know but it makes for fun speculation while we wait for the main event. 

The Next Web suggests that Apple pretty much will own Sprint in many respects.  Figuratively, I would say that will be the case.  Sprint is counting on Apple to not only stop the bleeding at Sprint but also start to steal users, probably carriers without the iPhone and those who might be enticed by Sprint's offer of unlimited wireless data access.

Financially, TNW suggests Apple could become a virtual carrier on its own.  This isn't a new concept but one that has not been discovered for a while.  They also suggest Apple could buy out Sprint at some point in the future and set up Apple Wireless (I came up with that).  

Perhaps, as a part of tomorrow's announcement, Apple's one more thing is that "Apple has bought Sprint".  Okay, probably never gonna happen.  However, Sprint as the third iPhone carrier has possibilities that Apple can probably explore. 

And if Apple wanted to buy out Sprint, it would cost a mere $10 to 12 billion - so as yourself this.  Would go the better deal, a possible Apple buyout of Sprint or Google's $12+ billion Motorola buyout?

Obviously, Google has probably thought about becoming a carrier itself.  Google did bid on wireless spectrums a few years ago.  And that was before Android become such a dominate mobile force.  

Should Apple or Google ever consider becoming carriers, their entry into the wireless carrier market would be scrutinized until time ends.  That is just how powerful both companies have become.  And should either of them decide to get into the business of providing wireless access, they would likely be forced by regulators to make sure they cannot exclude devices from competing mobile platforms working on their network.

Between, the two, I see Apple as not the type who would share.  However, Google, who is more interested in selling ads, probably would not mind as much.

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