Note To Mobile Networks : iPhone Can Hurt Your Financial Health

A recent report by a Danish consultant firm Strand Consult revealed that the network operators selling Apple’s iPhone devices aren’t actually seeing any increase in the profits, and have even seen their profits drop in some of the cases.

Apple has traditionally penned an agreement with a mobile operator in each country, such as O2 in the UK and AT&T in the US, to distribute its blockbuster iPhone in their corresponding regions.

Incidentally, profits for AT&T sunk slightly in the past quarter, but its market share with the iPhone has swelled considerably, and hence the operator wants to continue to have exclusive distribution rights on Apple iPhone in the US.

In its research study, Strand Consult claimed that it hasn’t found even a single operator that has “created shareholder value with the iPhone”.

Quoting the same, the analyst firm said: “According to the research we have conducted on the operators, not one of these have increased their market share, revenue, or their earnings as a result of introducing the iPhone. On the contrary, some operators have sent out profit warnings because of the iPhone”.

The company quoted examples like SingTel, Southeast Asia’s largest mobile phone company, which claimed that it had operating profits dropped by 3 to 4 percentage since it has introduced the iPhone.

Our Comments

It might be just a mere coincidence but we believe that Apple is using these mobile network operators merely as a springboard to world conquest. Once Apple will have enough momentum, it will be able to dictate its terms and conditions to the rest of the market rather than a handful of telcos.

Related Links

No Profit In iPhone For Carriers

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Study: iPhone is a detriment to carriers


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iPhone Profits Elusive Among Carriers

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Telecom operators hurt selling iPhones

(The Washington Post)

Report: Carriers aren't cashing in on iPhone hype

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