AT&T to Target iPhone to Enterprises

[Nikos Kartalis]

AT&T plans to market the iPhone to business users in addition to consumers but analysts aren't recommending that enterprises supply workers with the phones.

Cingular, which was acquired by AT&T, recently decided that the iPhone will appeal to business users and the operator is now working hard to ensure that its backend enterprise billing and support systems will accommodate the device when it ships, said a source familiar with the company's plans, who spoke on condition of anonymity.

An AT&T spokesman said he couldn't comment on the iPhone beyond when it will become available and its price. The phone is expected to become available in June. It will cost US$499 or $599 depending on the memory size. Initially, AT&T will be the exclusive provider of the iPhone, although other service providers are expected to eventually start selling it as well.

The idea of marketing the iPhone as an enterprise product baffles some analysts.

If AT&T announces that it will be marketing the phone to enterprise customers, "we'd be against it," said Ken Dulaney, an analyst with Gartner, who said he hasn't heard of such a plan from the operator. "We'd immediately tell our customers that'd be a very serious mistake."

No matter what kind of reputation a vendor has, if it's making its first phone, Dulaney would be unlikely to recommend it. "Building a phone is one of the most difficult things to do," he said.

Also, the iPhone is expected to have a number of shortcomings for business users, he said. For example, it doesn't have a removable battery. "You'd be crazy to buy without that," Dulaney said. The phone has multiple processors, which consumes more battery life than single processors, he said.



News Source | PC World