Controversial iPhone report released
A Danish mobile consulting group has released a report stating that while the iPhone may be popular with many users, it is not really making any money from those carriers that sell it.
In a new analysis of the iPhone, Strand Consult of Denmark puts forth the theory that the iPhone is more of a loss leader for wireless carriers than it is a profit maker, although the report was met with skepticism from at least one seller of the iPhone. The opinion voiced by Strand in its report is bound to be controversial, though that is certainly nothing new in analysis based around Apple, which seems to engender either love or hate from those that track the electronics giant from Cupertino.
It seems odd that a product could be seen in such a negative light when so many worldwide wireless carriers expend so much effort trying to get their share of the iPhone pie. Even as the report was released, carriers Orange and T-Moble are in a match to wrestle control of the iPhone in Britain from O2. Similarly, Vodaphone, who controls the iPhone in much of Europe, though not in the lucrative British and German markets, has openly said that it would like more territory to sell in, according to a Guardian story. Vodaphones finance director, Andy Halford, said recently of the iPhone, “It’s a good product and we would love to have it in the portfolio in more countries.”
Still, Strand Consult insists that the iPhone is not a money-maker for carriers because of the heavy subsidies that wireless carriers have to provide to Apple, in addition to the manufacturer’s replacement cycle, and the share of revenue that it demands in some of it’s sales areas. Strand report says “We have not found one operator which has created shareholder value with iPhone. A lot of competitors are actually doing better.”
Andrew Harrision, speaking for O2 as the chief executive of their exclusive iPhone stock company, was very clearly in disagreement with the Strand report. He said, “The impact of the iPhone on our industry has been huge, raising the technological bar and forcing other manufacturers and operators to reconsider their strategies.” It does not seem likely that the wireless carriers, who should certainly know their own business, are wrong about the profit potential (and reality) of the iPhone.
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September 8th, 2009
ehhh, Andrew Harrision work for CPW, who do sell mobiles (or car phones if U want) for O2, but also for Orange, Voda etc.
so he would hardly speak for O2.
maybe you should “investigate” before posting entry’s