Someone more familiar with the economics of this industry please explain how an exclusivity deal is more profitable than selling a product outright to anyone willing to buy it. Even if it's only a few months, I would think the potential loss in sales through other major carriers would be abysmal compared to any amount AT&T could have possibly offered for these rights, yet this happens time and time again. These deals are great for the carriers, but I just don't see how it's smart business on the part of manufacturers.
So why do these deals continue to happen? It seems like the OEMs are slaves to the carriers when in fact it should be the other way around. I don't see this happening in any other major market but the U.S. Why is that when the world's carriers are all owned by the same telecom corporations? Imagine if grocery store chains worked this way: Coca-Cola products are now only available at Safeway stores. Why would Coca-Cola ever agree to that? Ridiculous.
So why do these deals continue to happen? It seems like the OEMs are slaves to the carriers when in fact it should be the other way around. I don't see this happening in any other major market but the U.S. Why is that when the world's carriers are all owned by the same telecom corporations? Imagine if grocery store chains worked this way: Coca-Cola products are now only available at Safeway stores. Why would Coca-Cola ever agree to that? Ridiculous.