More Analysts Suggesting Apple Will Renew AT&T For Another Year

Two new voices have joined a chorus of analysts predicting AT&T will remain the exclusive U.S. iPhone carrier through 2011. A belief that Apple would cut AT&T loose this summer is giving way to a sentiment that the carrier will be given more time to improve its network and find a way to supplement its smartphone offerings.

Barclays Capital analyst Vija Jayant told investors Tuesday AT&T will probably remain the exclusive iPhone carrier through the rest of 2010. The analyst said Apple’s use of AT&T for the iPad “is a vote of confidence in AT&T’s network by the equipment maker.” The move “could suggest the iPhone exclusivity may continue, at least through the end of 2010,” he added.

Also joining that opinion is Pacific Crest’s Steve Clement. Clement points to the more positive tone taken by Apple toward AT&T and the carrier’s recent decision to beef up its network capacity as signs the New York-based company intends to keep the exclusive iPhone contract until 2011.

The two join Credit Suisse, which earlier this month, said there was a 75 percent chance, AT&T would retain exclusivity this year.

Remaining the exclusive iPhone carrier would be a huge feather in AT&T’s cap. The iPhone comprises 47 percent of the carrier’s smart phone users. Since smart phone users provide more revenue than average cell phone users, losing iPhone exclusivity would be mean a huge adjustment for AT&T. Secondly, retaining the exclusive U.S. iPhone contract through the rest of 2010 provides the carrier with the breathing room and profits required to build-out its network, reducing some very public headaches over capacity.

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[Via AppleInsider]

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