Both iPhone 3GS and iPhone 4 are highly popular devices. When Apple introduced iPhone 4 a few weeks ago, it was no surprise to see many iPhone 3GS owner make the switch to iPhone 4. That was before all the media outlets started talking doom and gloom about Apple and its latest phone’s issues. According to a survey by ChangeWave, iPhone 4 owners are pretty satisfied with their smart-phones. The trouble is, iPhone 3GS has a much higher satisfaction rate. The good news is many of iPhone’s issues could be potentially solved if Apple added other carriers to the mix.

Apparently, iPhone 4 owners have experienced less dropped calls than iPhone 3G owners. It would be naive to accept this little statistic at its face value. We do not know how many of those participants were already using a case. It is safe to say that AT&T has a pretty high rate of dropped calls. AT&T has struggled to keep up with iPhone for the past couple of years and is partially at fault here too. Read the rest of this entry »

It does not take a genius to realize that AT&T was not ready to handle iPhone’s load from the get go. Getting an exclusive contract with Apple may have been a major coup for it. But AT&T’s flaws got exposed badly as the network has failed to keep up with iPhone’s growth. Things were so bad that Steve Jobs considered pulling iPhone from AT&T network at least 6 times. AT&T has made some investments to try and handle the issue, but iPhone issues still persist (so do the restrictions on things one can do with an iPhone).

AT&T clearly did not know what it had in its fold with iPhone. Apple’s products are more than just about hardware or software. They are about the experience. Apple iPhone is certainly not what it intends to be without video messaging and tethering. Yet, AT&T has had some of these restrictions in place just to keep up. Steve Jobs was not pleased (according to Wired.com’s story on this relationship):

Jobs actively considered splitting with AT&T early in the partnership. Just months after the iPhone launched, and not long after Rinne asked Apple to limit YouTube usage, Jobs was investigating another possible solution: dropping AT&T and striking a deal with Verizon. But because Verizon’s network ran on a different transmission technology, making the move would require an entirely new chipset. So around the end of 2007, when the iPhone was only a few months old, Jobs asked a team of executives and engineers to look into it.

Jobs and his team would continue to discuss switching to Verizon, but these were always short conversations. “Every time the issue of switching came up, it always seemed to cause as many problems as it solved,” according to a source who attended some of these meetings.

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Apple has been selling iPhone with AT&T as its exclusive provider for a few years now. People who signed up for the first iPhone did so knowing that they would have to spend the following 2 years with AT&T. We all know there is no other option beyond AT&T for iPhone owners at this point. That only means one thing: a class action lawsuit against Apple and AT&T for misleading consumers. Apple never confirmed or denied that its exclusive contract with AT&T was for 5 years. Things will get a bit messy if Apple confirms the existence of such contract (by all accounts it seems that’s the case).

Verizon iPhone can’t come soon enough for Apple. The company is getting in more legal troubles, including lawsuits over iPhone 4 and its defects. Even in Europe, the company is facing privacy and software challenges. Verizon iPhone is rumored to be on schedule for 2011. Apple has not confirmed such phone, so one can’t read too much into all these rumors. Read the rest of this entry »

iPhone websites such as this one get some flak for being too harsh on AT&T. After all, the company is doing its best to handle a super device in iPhone. We all knew that AT&T would have issues handling iPhone 4 orders. The demand for the device is going to be huge, and it is no wonder the device is already sold out. We can forgive AT&T for technical issues that frustrated iPhone fans when ordering iPhone. But it’s tough to forgive AT&T for exposing its customers’ private information to random people.

Just a few days ago, we found out about a major security hole in AT&T’s systems that may have exposed a good number of iPad 3G owners’ information. Things get worse. It seems AT&T was making huge mistakes when accepting orders online. According to multiple sources, a few users who used AT&T’s online order system were sent to the wrong accounts. That means some people’s information has been exposed to the wrong people. Not very encouraging if you are planning to do some business with AT&T. Read the rest of this entry »

The case of AT&T is very curious. The company goes through many ups and downs or so it seems. One day, we get the impression that the company is taking steps to right the wrongs of the past. The very next day the company decides to threaten a customer who had the audacity to contact AT&T’s CEO about AT&T’s smartphone plans. Giorgio Galante may have been a bit aggressive with his e-mail, but we could not find anything in that e-mail that would justify a cease and desist threat:

I don’t think even Steve Jobs can spin 2GB for $25/month as a good thing for the consumer…. Please don’t have one of your $12/hour “Executive Relations” college students call me – I’ve found them to be generally poorly informed (Engadget.com readers know more than they do about AT&T) and they have little  authority to do anything sensible.

An employee at AT&T seems to have responded to the above e-mail with a cease and desist order if Giorgio “bothered” AT&T’s CEO again. The company was quick to right its wrong and apologize for mistreating the customer. Here is AT&T’s response that was posted on CNN:

We are apologizing to our customer. We’re working with him today to address his questions and concerns. This is not the way we want to treat customers. From Facebook to significant customer service channels, AT&T strives to provide our customers with easy ways to have their questions addressed.

This is a big PR problem for AT&T. The company simply does not afford to give customers the impression that they are bothering it with their e-mails and complaints. In anything, AT&T’s CEO needs to be more involved with customers (like Steve Jobs). Read the rest of this entry »