iPhone: AT&T Exclusive for 5 Years

Since the official announcement of the iPhone a few months ago we’ve known the device would be exclusively offered (at least at first) on Cingular (“The New AT&T”). However, what we didn’t know was how long the exclusivity deal would last. Today USA Today reported that the contract would last a whopping 5 years, yes one half decade. So, if you want an iPhone before 2012 you’ll have to switch carriers if you’re not already an AT&T customer.

What strikes me most about this deal is a concern about product life cycles. The first generation iPod was introduced in October of 2001, the second generation in July of 2002, and fast forward to the fifth generation Video iPod, October 2005. That’s 5 iterations in 5 separate years. The other iPods (Mini, Nano, and Shuffle) have also seen refreshes in approximate one-year intervals. If the iPod is updated on average once every year, where’s the logic in deciding that the iPhone is going to last 5 years? Most people don’t even have a phone for 5 years. People tend to break their phones or want upgrades about every two years, especially teenagers. After all, that’s where the “New After Two” plan comes in. While the iPhone has tons of cutting edge features that haven’t ever been all combined into one sexy package, who’s to say there won’t be better phones coming along sooner. For instance, Meizu already has an iPhone knockoff in the works in China.

Another interesting tidbit is that Verizon claims to have an upcoming phone to combat the iPhone. "We do have a very good response in the mill. You'll see that from us in the late summer," says Denny Strigl, Verizon CEO. One of the main problems with an iPhone-killer is that it isn’t an iPhone. This is the same rudimentary problem that MP3 players have they simply aren’t iPods. Apple has the inside advantage with the iPhone. It’s hard for other phone companies to make smart phones that cater to the needs of Mac users. However, Apple’s got all the rights they need to make a phone that integrates perfectly with iTunes, iCal, and any other Apple software. It’s an advantage that no other phone company will ever have, and that is why there won’t ever been an iPhone-killer.

[Via Engadget]