As Apple and AT&T get ready to launch the company’s much-anticipated—and much-hyped—iPhone on June 29, the companies have revealed that iPhone users will be required to have an account with Apple’s iTunes Store in order to set up and configure their devices.
The iTunes account will be separate from customers’ accounts with AT&T Wireless Services, which is the iPhone’s exclusive U.S. distributor. The iTunes account will, of course, make it possible for iPhone users to purchase music, video, games, and other media through Apple’s iTunes Store, but also enables Apple to set up a separate billing relationship with iPhone users independent of AT&T and, internationally and perhaps over time, other wireless operators offering the iPhone device. Early adopters of the Apple iPhone are likely to predominantly be existing Apple customers—and, thus, reasonably likely to already have an iTunes account. Users perhaps considering the iPhone as their first Apple product, however, may balk at having to set up an account with Apple separate from the company providing their mobile phone and data service.
Apple’s move to tie the iPhone to its iTunes Store will likely be watched carefully by other phone makers, including Sony-Ericsson, Motorola, and Nokia, who are each keen to tap into new revenue streams offered by mobile multimedia and digital content offerings.
