Apple loves control. So far, with the iPhone launch, it has not been disappointed. Everything has gone according to plan. Apple could hardly have hoped for better reviews or more hype. But, in spite of the frenzy waiting to hit Apple’s stores on Friday, the company is taking a risk. It is ceding some control. Everybody who buys an iPhone must take a two-year contract with mobile operator AT&T.

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Thorold Barker

on the factors that will determine the success of Apple’s new iPhone

That has implications. First, the performance of the new smart phone will rely heavily on AT&T’s network, which is currently not that fast. If customers shell out $599 for an iPhone and it does not live up to expectations because of the network, will they blame Apple anyway for forcing them into AT&T’s hands? After all, it is no arm’s length arrangement. Apple gets a cut of the mobile service revenues and its in-store iPhone “geniuses” will presumably be reduced to giving some customers advice on airtime packages.