School of Management Professor N. Venkat Venkatraman, chairman of the Information Systems Department, says word that Apple may be expanding its iPhone offerings beyond the AT&T network to include the Verizon network shows Apple’s market power.
“Apple is the market leader — not because of share but due to its ability to define the rules of the game. With its iPhone, it redefined the rules of engagement with the network carriers. Over the last two years, they have succeeded in making sure that their point of view is embraced by the carriers.
“Now, as it seeks to expand beyond a niche market, Apple is again trying to write the new rules of engagement. Will it continue with exclusive links with AT&T and forego market expansion possibilities or offer different products for different carriers?
“I think it will offer different products for different carriers in the next go-around. And in doing so, Apple retains its role as a leader in setting the rules. It has huge power by virtue of its app store and billion downloads.
“The carriers have to decide if they are competitors to Apple’s app store or partners in co-creating the ecosystem.”
Contact N. Venkat Venkatraman, 617-353-7117, email@example.com