Apple's iPhone, a pain for Telcos and Retailers?

iPhone users may love their gadget to bits and bless Apple for inventing such a marvellous product; but Apple's Network partners and retailers may not sing along as the initial euphoria subsides.

According to Shaw Wu, one analyst from American Technology Research, iPhone users are heavy consumers of bandwidth consuming more than 10 times the amount of bandwidth per month compared to other devices like the more business oriented Blackberry.

iPhone users' generous allocation of bandwidth resources combined with Apple's inclination to get the best deal for its users mean that phone companies like O2 had to devise costly unlimited internet plans to cater for iPhone users.

And this could turn out to be not only costly in terms of logistics and network investment, but its relationship with network retailers has proved to be a major cash cow for Apple as well.

In last week's Quarterly revenue presentation by Apple, 'payments from carriers' accounted for a significant portion of the $378 million figure revealed by Apple's CFO, Peter Oppenheimer.

Apple has already sold more than 5 million iPhones according to the latest estimates and with more than 200,000 software development kits downloaded by Apple developers, the second half of 2008 could be full of promise for Apple, but less for its partners.