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A New Business Model Has Forced Its Way Forward for the New 3G Apple Iphone

A new business model has forced its way forward for the new 3G Apple iPhone

 

Why could we say this? There are two statements from Apple and AT&T that confirms this new trend is coming.

 Apple alerted the SEC that although it had signed deals with 70 countries…

“…Under the vast majority of these agreements, Apple will not receive follow-on revenue generating payments from carriers”

AT&T, for its part, warned investors of…

“…potential dilution to earnings per share (EPS) from this initiative in the $0.10 to $0.12 range this year and next.”

When the Apple IPhone was first introduced, Apple made some rather unusual terms connected to its launch. Customers had to pay full retail price for it  and carriers had to share a sizable cut of their monthly revenue with the manufacturer.

Now, the carriers will be subsidizing the cost of the phone, making up for it in monthly charges, and they are no longer funneling a share of that monthly revenue to Apple. Apple is now beginning to play by the rules that all other cell phone hardware manufacturers play by in the growing cell phone market.

This will also put some stress on the new market segment that made its way during the launch of the 1st generation IPhones, namely the unlocking business. The incentives for unlocking will disappear and that may make lots of unlockers around the world out of a job for the new generation IPhones under the new business model proposed now.

 

However, one major incentive for unlocking remains, especially for Europeans. Those who travel to other countries with unlocked phones can use local prepaid service plans rather than paying exorbitant international roaming fees to their home carriers.

Stig Kristoffersen

He has a background as civil engineer and geoscientist. He has worked mainly within the oil and gas industry from the mid 1980s. He has written a few fictional novels as well as being the author of some professional litterature within oil and gas sector, he is now an editor of some web sites.


www.lulu.com/stig

www.ec-ba.com

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