A quarter of Apple iPhones unlocked
What's next?
More than a quarter of people who bought Apple’s iPhone are using them on wireless networks other than AT&T’s, the exclusive iPhone carrier in the U.S., a “stunning” number that will pressure the company’s business model…
Apple executives said last week the number of unlocked phones was “significant” but declined to give an estimate. Most analysts had estimated the portion of unlocked phones at under 20 percent.
The higher number is worrying for Apple because the company receives a cut of AT&T’s iPhone service fees, revenue that carries a high gross margin and has fueled optimism over its earnings potential…
If Apple cracks down on unlocked phones it could preserve its high margins but miss its sales target, whereas allowing them could erode profitability and make it tough to sign more carriers to similar revenue-sharing deals.
Looking at Apple’s business model - by product, they appear to spend reasonable time planning beyond the near term. This is looking more like a chunk of market space where they’ll be forced into reaction a lot sooner than they projected.
Posted: Tue - January 29, 2008 at 12:55 PM