Starting to rethink this iPhone thing

I wish I could remember who came up with this idea:

(Paraphrasing) Staying with AT&T is like enduring an abusive relationship where the iPhone is the beautiful child that keeps you in it.  No matter what the abuser does, it's extremely hard to walk away because of that attachment.

I really like my iPhone - I was quite suspicious at first because of all the hype, but after 2-3 months of a Samsung BlackJack (what a cruel joke that pitiful windows mobile OS is), I gave the iPhone a try and was hooked.  I stuck with the first generation when the 3g and 3gs models came out because why pay for an upgrade (an expensive upgrade) when the AT&T network in NYC is so pitifully bad.  I can have my EDGE calls drop just as fast and as often as 3G calls, thank you very much.

But it's time and the iPhone 4 seems like a real upgrade in functionality at a reasonable price point (at least for the 16GB model).  I'm also generally not an early adopter either, but my ur-iPhone is getting so worn out at this point, I thought it would be OK to upgrade ASAP.

Well the ordering fiasco took care of that and it's even making me wonder if I really want to continue to do business with either company.  The website accepted my order (after multiple attempts), but I didn't think to take a screen shot.  When I didn't get a confirmation email I started to be suspicious and so I thought I'd check to see if the reservation had gone through.

Well Apple have just stopped answering their phones (perhaps wisely) at their 1-800 number and the stores are no better.  AT&T at least answer, but they have no clue (why am I not surprised?)  Eventually I spoke to someone at the SoHo Apple store and no, I don't have a reservation.  But even if I did, I'd still have to wait in line with hundreds, if not thousands of others.  That's not going to happen, so in some way, I'm glad it didn't go through.

BUT - it made me think that there's a certain point where companies start to lose their direction.  They become bloated, arrogant, and unresponsive.  BP crossed that line years ago as did every aspect of the financial "services" industry.  Most of the cell phone companies (I'd except T-Mobile), all cable TV companies I've ever dealt with and some of the larger technology companies start to resemble the DMV more than they do client-focused, responsive, and innovative organizations (and I think I'm being uncharitable to the DMV by comparing them to the cable companies).

Apple is getting very close to that line right as they also cement their high-value niche in the technology marketplace.  Their computers are great in terms of functionality, durability, and innovation.  They invented a product segment with the iPod, and radically changed another with the iPhone.  I'm unconvinced by the iPad, but that's another post - and plenty of other people seem to disagree with me.

The trouble is that when they partnered with AT&T, they partnered with the worst of the US cell carriers and AT&T has provided shockingly poor service ever since that day.  In other countries where they made similarly poor partner choices initially, they have widened that out, but the only other national GSM carrier is T-Mobile and I guess that doesn't look attractive to Apple.  We get used to laughably poor service, but when you get better network coverage in Mexico and rural Argentina than you do in New York City, there's an issue.

In addition to the mis-steps in the provider category, there have also been multiple concerns with the way the app store functions that, it seems to me, drive away the very people who were originally Apple's core demographic.

I'll probably end up with a new iPhone in late July or early August - when I can walk into a store and just buy one.  There's the powerful force of inertia, the fact that I don't mind iTunes, have multiple Macs and a few apps I really like.  But I'll be spending the intervening time looking for an alternative GSM smartphone on a different provider, and I suspect I won't be the only one.

(updated 6-17-10, 5:53 EST to clarify some sentences)