Apple, AT&T, and Starbucks — The Growing Link
A few years back, Starbucks founder and CEO Howard Schultz sat in on one of Steve Jobs’ keynote speeches, presaging a vital computer/caffeine partnership. It wasn’t long before those little iTunes download cards starting showing up on the Starbucks counter, and iTunes was featuring a specially designated iTunes + Starbucks feature. iTunes cards often feature music of the month and the download cards are for a full album. It’s saved a vast amount of space and made the search for music an entirely different experience. The larger the selection of iTunes cards, the more Starbucks will seem less like a coffee shop and more like a record store of the past. But that’s not the end of the story; it becomes even further intertwined when a third party comes into the mix.
Around the time of the launch of the first generation iPhone, Apple decided upon AT&T to provide wireless service. It was highly publicized that Apple was looking for a company that would allow them to get royalties off monthly cell phone payments on the iPhone. As we all know, Apple priced the iPhone at $599, with no savings by signing on for two years. Without a doubt, Verizon Wireless missed the boat here when they declined the opportunity to work with Apple, citing that they could make a phone of their own, without having to pay third party royalties. And so it evolved that Apple and AT&T teamed up to provide service for the iPhone.
Perspective consumers were dismayed when discovering that the device would be running on AT&T’s slower “EDGE” network, known for having notoriously abysmal data service. Add into the equation that 3G technology was already working and delivering close to Wi-Fi speeds. In preparation for the major launch of the original iPhone, AT&T prepared their EDGE network lines and markedly boosted speeds. Without a doubt, these preparations were all tailored for the iPhone.
Eventually, AT&T’s CEO (and rumors around the blogosphere) acknowledged the development of Apple’s next iPhone: the iPhone 3G. AT&T delivered again, by upgrading the EDGE network to 3G. Apple was now ready to release the iPhone 3G on the network.
Right before the announcement of the new iPhone 3G on June 9th, Starbucks was in hot water with T-Mobile, which initiated a lawsuit as a result of Starbucks’ sudden jilting of T-Mobile, in preference for AT&T. Starbucks was preparing to have iPhone/iPod Touch + Starbucks content and music ready for their Wi-Fi consumers. And who does Schultz choose for cafe wireless? None other than AT&T. The new AT&T wireless internet at Starbucks allows 2 hours of free internet when connected to a Starbucks Rewards registered card account. Registration is free, and has made a trip to Starbucks even more appealing.
There have already been a number of rumors about iPhone users receiving unlimited free Wi-Fi service inside every Starbucks. Now more than ever, the probability of the two products working in tandem seems a given. Apple, AT&T, and Starbucks are collaborating so closely these days that one can envision these three companies developing an even closer partnership to serve their niche consumers.
posted in Apple (AAPL), AT&T (T), Starbucks (SBUX), iPod, Rumors, Media Event, iPod Touch, iPhone, iTunes, Steve Jobs, Mac, 3G | 0 Comments




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