In an article for Forbes, Everybody In The Pool, David M. Ewalt discusses the possibility of Apple launching a mobile phone company providing cellular and data services piggybacking on Sprint's national cellular network.
This way of doing business in the mobile market, known as the "mobile virtual network operator," or MVNO, is an increasingly popular and successful model for all different kinds of companies. In December, Disney subsidiary ESPN launched its own mobile network, offering consumers custom sports news and multimedia. Internet service provider Earthlink did the same in October, targeting high-end users who like to use their phones for e-mail and data access. And since its launch in 2002, the Virgin Group's youth-centric Virgin Mobile USA has surged to over three million subscribers, and a public offering is reportedly in the works for later this year.
The leap to wireless could be even easier for Apple, since it already specializes in making cool, user-friendly handheld gadgets, and has sold over 15 million iPod music players to date. With each new generation of the devices, Apple has added features like more memory and color screens. It makes sense that the company would want to merge two devices already in consumers' pockets, combining a cell phone and a music player.
In July 2004, Apple announced it would partner with handset maker Motorola in making a version of its iTunes software to run on Motorola phones. The software has been delayed but is expected to be made available soon. Observers say the companies also might have collaborated on a new hybrid iPod phone. Apple has no comment on the rumors, but Jobs has been enthusiastic about the cellular marketplace. "The mobile phone market...is a phenomenal opportunity to get iTunes in the hands of even more music lovers around the world," he said in a statement announcing the partnership.
