Apple wins, ATT Loses with the new iPhone

Implications: Is this the end of the five year deal between Apple and ATT? It appears so.

Analysis: Apple's revenue sharing plan when it hit the streets two years ago was a major change in the telecommunications world and everyone wondered if it would become the new plan? It didn't and Apple has had to pull back and move to the standard sell cheap, give away free phones by the telecom providers. Apple was falling short of its predication of 10 million iPhones and falling US sales rate. The overall high cost of the phone and usage costs were to blame. After the "I have to have" crowd left the buying field the iPhone had to compete with the other phones on the market and the other providers that did not sell the iPhone.
ATT as the sole provider had a big benefit in that even people who found the iPhone too expensive, after a visit to an ATT store, were more apt to buy a different ATT product. Thus ATT had a surge in potential customers and witnessed an increase in lines. It also forced ATT to improve its network for iPhone II. Which in the long run is good for ATT.
Overall Apple still is not meeting its goals. What will happen July 11, when the new phone goes on sale. ATT at that point in time will still be the only provider in the USA. But will it last? I doubt it. Apple has in some overseas markets allowed two providers in the same country. They will be watching the sales trends very closely.
Apple is requiring customers to still only use the ATT network, but we need to watch and see if people start to break the contract and switch to other providers. Also if non-contract sales overseas increase with those phones showing up on gray markets in the USA and on the T-Mobile network.
Both Apple and ATT will see a major surge this summer as the low cost iPhone brings in more customer. But in the long run I see Apple once again changing policy and moving away from ATT to a sell to anyone.