12 September 2007

Apple and the spectrum auctions

There have been numerous rumors that Apple will bid on spectrum in the upcoming auctions (see this, for example). In this article, Brian Caulfield of Forbes argues that this speculation doesn't make sense for Apple.

How would Apple's entry change the dynamics of the wireless industry?

1 comment:

Luai Hasnawi said...

Well here is another monopoly freak, Apple's CEO. I strongly agree with the Forbes article about why Apple would go into wireless business. I have seen lots of failing examples in my life for huge names. For example, GM plastic department was sold to SABIC (http://home.businesswire.com/portal/site/home/index.jsp?ndmViewId=news_view&ndmConfigId=1000669&newsId=20070910006230&newsLang=en ).Another example, Siemens cell phone departments. Siemens cell phone dept. was sold to Benq ( http://www.cnet.com.au/mobilephones/0,239025893,240055185,00.htm ). Also, AT&T does not exist anymore. All of these names are huge names in the market. They sell every thing. They want to make business in every field. In another word, they want to build the “empire of GM, Siemens or AT&T”. The result is clear. They all bankrupted.
I think if every company focuses in their own filed they can reach the level of perfection. Let’s see another example, Cisco. They are focusing on the network filed and they are successful in this field. No one can compete with them.
So I really do not think it is a good idea for Apple to go on the wireless business. I think this field in full of competitors. It will be so hard for Apple to survive. Very few people will transfer from T-mobile to Apples new network, others do not care. They have enough products to make business on.
I would like to close my respond with an Arabic idiom “A person who perform two crafts is a liar, and who perform three is a thief”. That’s sound funny isn’t it?