Do they work behind the scenes with the carriers? Absolutely, but the consumer doesn't see it. They see that their iPhone works. Consistently and without any br

Do they work behind the scenes with the carriers? Absolutely, but the consumer doesn't see it. They see that their iPhone works. Consistently and without any branding or experience difference accross cariers. AT&T doesn't get to customize or pre-install anything and Verizon can't lock out features. (Teathering is perhaps a small exception in this, but the point is largely true). The point is that as you model a product/service experience, don't confuse what happens behind the line of visibility -- it doesn't matter to the consumer -- and Apple has done a great job of shifting that line of visibility to abstract away the carrier experience as much as it can. As others have mentioned, don't for a second think the consumer isn't paying the full cost of the phone. They are and more -- but that subsidy doesn't differentiate any carrier from another. They all do it. So, once again, the consumer fails to see any differentiation based on carrier. As I discuss at length above, consumers are primarily buying the Apple experience and platform -- and the carrier is secondary.