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For Now, a Cingular Sensation
As if it were a moon rock, attendees examine an iPhone during the Macworld Expo in San Francisco, where Apple introduced it this week.
(By Eric Slomanson -- Bloomberg News)
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Likewise, Apple was looking for "a partner that was trying to innovate, and the similarities we've had with Cingular were more than you might expect," said Eddy Cue, Apple's iTunes vice president.
And with Apple's ambitions to market the phone globally, Cingular seemed like a logical choice. Cingular -- unlike Verizon Wireless and Sprint Nextel -- operates on a technology standard known as GSM, which most cellphone providers in other countries use.
"When you go to the world with a phone, it has to be based on world standards, it has to be GSM," Bajarin said.
Others, however, noted that T-Mobile also uses the GSM network but was left out of the deal with Apple. Some said Apple could develop an iPhone compatible with the CDMA network used by Sprint Nextel and Verizon Wireless.
Apple, and chief executive Steve Jobs in particular, seems to have called most of the shots, analysts said, but Cingular will benefit, too. "On the phone, Cingular is probably the big winner," said Rob Enderle, a San Jose-based technology analyst and writer. "It's going to be a store draw" for Cingular's retail outlets.
Before Apple ships the product to stores, however, it may have to win a courtroom battle. Cisco Systems, a Silicon Valley maker of computer networking equipment, claims the trademark to "iPhone" and has sued Apple in federal court in San Francisco. Cisco and Apple were engaged in negotiations before Jobs unveiled the iPhone prototype, and such disputes often are resolved before trial.
In Cingular stores in Washington this week, clerks said a few customers had asked about the iPhone, but the employees had no information to offer. Greg Kats, a Washington resident who owns an energy consulting business, said the product's price and unproven performance left him uncertain whether he would be an early buyer.
"I don't like clutter, and the Apple devices tend to be clean," said Kats, 47. The iPhone's touch-screen virtual keypad -- rather than raised buttons -- for sending e-mail also may be a plus, said Kats, who finds thumbing messages on his BlackBerry clumsy. But he worried that the exclusive arrangement might keep the iPhone's price from dropping.
Staff writer Yuki Noguchi contributed to this report.


