This pre-announcement rumor coverage documents speculation about Sprint receiving exclusive rights to launch the iPhone 5 with 4G WiMAX connectivity, representing the intense carrier competition and technological uncertainty that characterized smartphone industry evolution during the transition to 4G networks. Patrick Bisch examines Boy Genius Report's claims about a $20 billion deal between Apple and Sprint that would delay iPhone 5 availability on AT&T and Verizon until the first quarter of 2012, when it would launch with LTE connectivity instead of WiMAX. The rumor reflects the complex carrier relationships and technology betting that defined early 4G deployment strategies.
The business analysis covers the reported $20 billion commitment that Sprint allegedly made to secure iPhone 5 exclusivity, representing a massive financial gamble that wouldn't break even until 2014 according to the speculation. Bisch questions the strategic logic of Apple granting exclusivity to the third-largest U.S. carrier rather than maintaining broader distribution, especially after the successful multi-carrier expansion that had brought iPhone to Verizon earlier in 2011. The rumor suggests different 4G technologies for different carriers - WiMAX for Sprint, LTE for AT&T/Verizon, and HSPA+ globally - reflecting the fragmented 4G landscape that complicated device development.
The skeptical evaluation addresses the implausibility of Apple returning to single-carrier exclusivity after successfully expanding iPhone availability across multiple networks. The personal perspective from an AT&T customer worried about losing access to the latest iPhone shows how carrier exclusivity affected consumer purchasing decisions and brand loyalty during the competitive smartphone wars. The timing context of being published just 24 hours before Apple's October 4th event emphasizes the frenetic speculation that surrounded major Apple announcements.
This iPhone 5 exclusivity rumor captures the uncertainty and speculation that characterized smartphone industry coverage during rapid technological transition periods when business relationships, technical specs, and competitive strategies remained fluid until official announcements. Looking back 13+ years later, the rumor proved completely false - Apple announced iPhone 4S rather than iPhone 5, launched simultaneously across multiple carriers, and never granted Sprint exclusivity for any iPhone model. The WiMAX technology mentioned became obsolete as the industry consolidated around LTE, while Sprint's financial struggles led to eventual acquisition by T-Mobile rather than iPhone-driven success. The massive financial commitment described here reflects the high-stakes betting that characterized early 4G deployment, though carriers eventually discovered that exclusive content deals provided less value than network quality and pricing competition. The rumor shows how industry speculation often projected past patterns (original iPhone AT&T exclusivity) onto future scenarios without considering changed market dynamics and Apple's evolved strategy. While Sprint did eventually become an iPhone carrier, the partnership never involved exclusivity or the transformative financial arrangements described in this rumor. This moment represents the peak period of carrier competition for iPhone partnerships, before the smartphone market matured and Apple's negotiating position became so strong that carriers competed primarily on network quality and service rather than exclusive access to devices.
This summary was created by Dave Rogers. The original post was written by Patrick Bisch and published on October 1, 2011.
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