Apple Will Continue To Make iPhone, But Won’t Develop Their Own Wireless Network
The rumor mill went out of control when Business Insider reported that Apple was going to develop their own wireless network. James Cook reported the alleged “news” yesterday.
“Apple is in talks to launch a mobile virtual network operator (MVNO) service in the US and Europe, Business Insider has learned. Sources close to Apple say the company is privately trialling an MVNO service in the US but is also in talks with telecoms companies in Europe about bringing the service there too.”
Business Insider goes on to note that instead of paying your carrier every month, you will instead pay Apple directly for calls, data, and even texts. You will basically get rid of T-Mobile, AT&T, Verizon, or whatever network you currently subscribe to. You would think that the major wireless carriers would be freaked out by this news. However, they aren’t; the news isn’t true in the first place. CNET quotes Apple’s denial.
“We have not discussed nor do we have any plans to launch an MVNO.”
CNET explains that a MVNO is a wireless service provided by a company that doesn’t own the network infrastructure that powers the service. Apple’s main competitor, Google, is creating an MVNO. However, Apple is concentrating on the release of the iPhone 6s and 6s Plus. Apple Insider explains that despite the drop in Apple’s stock, the next iPhone launch is expected to be huge.
“Analyst Amit Daryanani of RBC reiterated his outperform rating for shares of AAPL in a note to investors, a copy of which was provided to AppleInsider. In it, Daryanani noted that Apple’s manufacturing and component purchase commitments as of June 2015 stood at $21.7 billion, a massive 40.9 percent year over year increase.”
A huge percentage of the manufacturing and component purchasing commitments are based on Apple’s flagship device, the iPhone. It’s important to note that despite not meeting Wall Street’s impossible expectations, Apple did sell more iPhone units during the second quarter of 2015 than they ever have.
Although the next iPhone is expected to sell incredibly well, Apple will have competition from Samsung, who is set to announce the Galaxy Note 5 in a couple weeks. Engadget says that like the update to the next iPhone, the update to the Galaxy Note will be evolutionary, not revolutionary.
“From all indications, at least the Note 5 is going to be more of a refinement (at least, in terms of hardware) of the Note 4 than a revolution. You’re still looking at a 5.7-inch quad HD display, a 16-megapixel rear camera and 32GB of built-in storage.”
The fact that both smartphones will be released around the same time is great for consumers. However, you can bet that Apple and Samsung will be slinging mud at each other — at least for the next couple of months.
[Photo by Justin Sullivan / Getty Images]
