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September 18, 2012

Comments

This would tread extremely close to an anti-trust suit if I ever saw one. They would effectively be locking out the existing cellular telephone companies out of their ability to be profitable because they rely quite heavily on the customers with smartphones made by Apple and/or running the Android OS.

Apple and Google would pretty much be taking all those customers away because it would no longer make sense for the customers to use AT&T, Verizon, Sprint, T-Mobile, etc when they can just bundle their carrier service with the phone manufacturer itself. It's the same concept as to why "Ma Bell" was broken up under anti-trust laws and not allowed to provide long distance service itself for a very long time.

Not sure about profit since Apple/Google still needs to pay for all the operational costs. Control is for sure and it makes sense for Google to buy Verizon instead of Motorola. I really don't think Apple will go that way since I don't think current Apple executives are risk taker. I wouldn't say so if Steve Jobs were still the CEO since he really was a risk taker (e.g. Apple Retail, iPod and iPhone).

While I know it would affect sales in the short term I think its becoming a better and better idea for companies like Apple and Google to create their own wireless networks. They are giving up substantial profits and control over to these cellular network companies. And as the patent shows us they are looking to expand cellular capabilities into TV's and computers and probably eventually iPods they would be releasing even more control of their products to the wireless carriers.

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