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AT&T And Apple's Angry Allegory

July 20, 2010

Many customers have been frustrated by some aspect of the exclusivity agreement between AT&T and Apple. Now, it appears that the two companies are not that happy with each other either. An article on AppleInsider.com discusses many tense times between the two giants. Most of the disagreements seem to involve Apple trying to bring more features to the iPhone while AT&T is focused on the good of its network and the bottom line. While these positions seem reasonable, the way they went about their arguments was anything but. According to their sources, Jobs has seriously discussed severing ties with AT&T at least a dozen times. They report that once in 2007, Apple investigated refitting iPhones with CDMA chips so they could be used on another network but found the modifications would require a complete redesign and abandoned the idea. AT&T allegedly placed blame on Apple when Apple complained about how the Infineon chips used by the iPhone worked on AT&T's network. AT&T was quick to point out that using the Infineon chips was not their choice. If you ever wondered why it took so long to get tethering in the U.S., it's reported that Apple was fighting for the service to be free. AT&T apparently won that battle since a year later it finally came out for $20 a month. The bickering wasn't just about services and money either. AT&T employees allegedly told Apple employees that Steve Jobs had to wear a suit to meet with the AT&T Board of Directors to which they responded "We're Apple. We don't wear suits. We don't even own suits." Obviously this unhappy relationship won't last forever. Apple has allegedly been talking to Qualcomm who, as reported on AppAdvice.com, is developing a chipset that works on both GSM and CDMA networks. This chipset will likely be ready for handsets in the second half of 2010, lending more credence to the rumors of a Verizon iPhone in 2011, when AT&T's 5-year exclusivity agreement expires. Does any of this change your opinion of AT&T and Apple? Was any of it a surprise? Let us know in the comments.

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