iPhone Could be Hurt by AT&T Strike

[Omaha Steve]

http://www.mp3newswire.net/stories/9002/iphone_att.html

By Richard Menta 4/19/09

The possibility that we may soon see the largest strike in the US since the UPS strike in 1997 may cause pain to Apple and sales of its very popular iPhone.

On April 5th the contract between AT&T and the Communications Workers of America (CWA) expired. Talks between the two sides turned for the worse as the telecom giant, which earned $12.8 billion in profits last year, threatened major cuts to employee health care. The union balked at the new contract proposal and is now mobilizing its 90,000+ strong workforce for a strike. If a workers strike hampers or shuts down service it will effect all iPhone users.

Apple has an exclusive arrangement with AT&T who serves as the only service provider for the iPhone. If a strike comes to fruition iPhone service could be severely degraded. If the strike lasts for an extended period it could steer many customers to other telecoms. Trapped by their exclusive contract Apple could watch the strike derail iPhone sales as customers coming off contract turn to other services and, by default, other mobile phones.

As the economy continues to flounder Apple's stock price has made significant gains, thanks in part to strong iPhone sales. But the strike highlights the risks that come with exclusive contracts. AT&T is pushing to renew their iPhone agreement with Apple, but if the strike happens and if it gets bad, Apple will probably rethink that move.

CDMA iPhone anybody?

[Deja Q]

1. Yet nobody else who uses AT&T will be affected? Poor widdle iPhone... damn those overpaid workers...

:nopity: :sarcasm:

[mitchtv]

2. don't hespitate to call in reports if your LD calls

are noisy or incompleted management will be doing the job. Make sure you don't harass the local wire company workers, also CWA

[blackdot]

3. Normally the unions make my job difficult...

by allowing the employees to sit around and not do work. Now they want to strike which will just make my job even more difficult.
ARGH!

(I work for a phone company.)

[Donnachaidh]

4. would you rather the phone company you work for to outsource YOUR job?

Unions PROTECT American workers.

[onehandle]

5. I was already with Cingular, now AT&T when the iPhone was announced.

So I didn't have to switch. Bought one for me and one for my wife. Changed my everyday life in many ways.

That being said, I am watching this situation and the possibility of AT&T losing exclusivity very closely.

I would welcome another choice of carrier.

New iPhones are coming out in June. Could be interesting.