New iPhone Debut Stokes Carrier Competition

Your next video will start in

Recommended Videos

  • Info

  • Comments


Sept. 9 (Bloomberg) -- Bloomberg's John Butler examines the competition for iPhone customers as the latest edition will debut across all wireless carriers for the first time. He speaks on Bloomberg Television's "Market Makers."

You're in luck because apple is expected to unveil its latest version of the iphone tomorrow.

All four major u.s. carriers will carry it at the same time.

It is a good thing if you are a consumer.

The come analyst a bloomberg industries, he is with us from princeton university.

-- telecom analyst at bloomberg industries, he is with us from princeton university.

It has to be bad for the carriers.

I thought immediately that it is going to get ugly next year in terms of the pricing.

When you think back to a couple of years, the iphone was really used as a weapon to draw in subscribers.

And now that every carrier is going to get its as soon as the new i've flown is released -- the new iphone is released it levels the playing field.

Only to the sense that the carriers cannot compete with each other on price.

Doesn't apple set the pre--- set the retail price and it is everything else the carriers offer?

Really they are going to compete hard on the price of the service, not the device.

You can have at&t and verizon having exclusivity on the iphone as rent and t-mobile sort of out there in the wings saying we have no iphone to offer.

Now everyone has it.

That competitive weapon is taken off the table.

The way you paint it it seems a positive for everyone.

Apple has more distribution outlets.

The consumer can potentially get to -- get cheaper service.

Where is the negative?

The negatives for the carriers.

If soft bags, sprint and t- mobile, if they decide to get aggressive on price -- at&t and verizon can get thrown into that fray.

After all, when you think about it, data services are all commodity.

How much margin erosion could there be.

We know the iphone was a big business for all four carriers.

If they are going to complete -- compete with each other on the high-end iphone, this mid tier iphone as well, what i can assure you they have no impact on the financials.

-- what kind of impact did they have on the financials?

Those people on the low-end can kind of come up in terms of that device.

It is suddenly within reach.

Apple is an aspirational brand.

But, again, they are not that premium customer that does not care about price and service.

Eris price and seven since hitting there.

Newer services -- you see at&t and verizon getting into content distribution.

We are hearing a lot about the connected car the connected home.

That is all aimed at protecting the value of that franchise and keeping subscribers in the fold, if you will.

Good to see this morning.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change