Why is apple watch only supported by a limited number of carriers? Is this anti-competitive behaviour?

The apple watch is only supported by a limited number of carriers in Australia. Other resellers, providing a service on the same network, don't provide apple watch support, even though the underlying network (technology) is exactly the same. Why is this? Is it because the carriers are restricting the resellers ability to compete?

Posted on Dec 13, 2023 6:22 AM

Reply
Question marked as Best reply

Posted on Dec 13, 2023 2:51 PM

Also many of the carriers you may be thinking of are MVNO (Mobile Virtual Network Operators), which means they sign a contract with a major carrier to use their physical facilities. Those contracts often DO NOT include Apple Watch support, because it requires tracking a 2nd IMEI number, and that would make their contract more expensive.


Since most MVNOs make their money by selling inexpensive pay as you go, or inexpensive monthly contracts, paying more to the carrier with the cell towers defeats their purpose of being inexpensive.


Some MVNOs do support the Apple Watch, such as Xfinity and Spectrum cable companies in the U.S. But many MVNOs do not.

7 replies
Question marked as Best reply

Dec 13, 2023 2:51 PM in response to thallam

Also many of the carriers you may be thinking of are MVNO (Mobile Virtual Network Operators), which means they sign a contract with a major carrier to use their physical facilities. Those contracts often DO NOT include Apple Watch support, because it requires tracking a 2nd IMEI number, and that would make their contract more expensive.


Since most MVNOs make their money by selling inexpensive pay as you go, or inexpensive monthly contracts, paying more to the carrier with the cell towers defeats their purpose of being inexpensive.


Some MVNOs do support the Apple Watch, such as Xfinity and Spectrum cable companies in the U.S. But many MVNOs do not.

Dec 14, 2023 6:53 AM in response to thallam

thallam wrote:

Under normal competitive conditions you'd expect at least some resellers to have some offerings with apple watch support. The fact that this has not happened suggests that there is something stopping the market from working as economic theory says it should.

As BobHarris mentioned, the only thing stopping them would be themselves not wanting to incur in extra costs to support the Apple Watch.


There is no dark conspiracy here preventing resellers from supporting the Apple Watch.

Its entirely up to them to want to support it.


Dec 14, 2023 6:42 AM in response to Phil0124

In Australia we have a few carriers. The carriers support the apple watch, so the support you mention is already there.


The issue is that those carriers also sell their network through resellers. They buy access to the carriers network and resell it at lower prices but also with lower data limits, or with other restrictions like limited international calls. None of the resellers offer support for apple watch even though the carrier they are reselling does.


Under normal competitive conditions you'd expect at least some resellers to have some offerings with apple watch support. The fact that this has not happened suggests that there is something stopping the market from working as economic theory says it should.

Why is apple watch only supported by a limited number of carriers? Is this anti-competitive behaviour?

Welcome to Apple Support Community
A forum where Apple customers help each other with their products. Get started with your Apple ID.