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Czech Carrier Dumps iPhone Over Apple's 'Business Terms'
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Didn't Verizon do the same when the iPhone 1 came out? And look now, they changed their mind, probably regretting not taking it since the beginning.
Apple terms may not be pleasant to every carrier, but at the same time Telefonica is a very difficult company to deal with. They like to do things their way, and don't like it when they can't control the situation.
It's a problem for Apple. It has been reported that in Australia Apple demands and gets higher subsidies for iPhone than other phones manufacturers get (by $200). If wireless providers stop offering such high subsidies Apple will become as profitable as Motorola.
People don't buy iPhone because its on O2. People buy iPhone because they want an iPhone. O2 is not the only carrier in UK. So its not apple's loss.
I actually see a larger portion of the NOKIA N-series and E-series than I've seen anywhere else in the world. I also see a fair amount of SE smartphones as well.
I see more iP3/4 in Stockholm than Frankfurt (split time living in both places), but it's still much less than what I see in the US (grew up in the states and travel back almost monthly.) It baffles my mind, when the contracts are so expensive in the US as well (roughly 2000/2 years).
Smartphone usage in Europe is much more diverse than in the states.
Since Czech O2 calculated that the iPhone demand didn't cover the cost of subsidising the thing, it's actually their gain.
Czech O2 makes more money by not supporting the iPhone, otherwise they wouldn't have dropped it.
According to a survey carried out by SIFO in May this year iPhone and Android had 41% each of the smartphone market, and 14% of the general cell phone market. Link in Swedish
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Care to pinpoint where in Europe is that? Because I would say that doesn't ring true in Poland nor in Spain.
Or maybe it's that the iPhone is insanely, mindbogglingly popular in the US, even more than here? Must be boring, because whenever I pop into a bus or coffe shop here, most computers and phones I see are Apple's...
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Wow, that sounds like another company I know of...
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You can't say it is true - if Apple's terms made it financially unviable for O2 to carry the iPhone, then not carrying it is a win for them, not a loss. Without access to their books, you can't say either way, but it's interesting to presume that they couldn't figure out whether it's profitable or not. Verizon didn't exactly hemorrhage cash when they didn't have the iPhone.
Really? My father works for Vodafone, the largest mobile telecommunications company measured by revenues, so i think i know a bit more than you.
http://en.wikipedia.org/wiki/Vodafone
http://en.wikipedia.org/wiki/Telefónica
What do you not understand in the text below?
Yeah you're right, but Verizon isn't exactly hemorrhaging money now that they have the iPhone either.
iPhones are going to sell...more then any other phone. That's a guarantee. If O2 were to work something out, I think they'd make far more money then the menial amount they "save" by not doing this...but yes, I don't have access to their books obviously
Hi here's some actual data to discuss around:
OS Market Share by Audience Installed Base
3 Month Average Ending August 2011
Total EU5 (DE, FR, IT, ES and UK) Mobile Subscribers, Age 13+
Source: comScore MobiLens
Device Platforms Share (%) of Devices in Use
Apple iOS.............30.5%
Symbian...............28.7%
Google Android......23.5%
RIM......................8.1%
Microsoft...............5.5%
Other Platforms......3.7%
Top Smartphone Platforms
3 Month Avg. Ending Aug. 2011 vs. 3 Month Avg. Ending May 2011
Total U.S. Smartphone Subscribers Ages 13+
Source: comScore MobiLens
Share (%) of Smartphone Subscribers
.......................................May-11....Aug-11...Point Change
Total Smartphone Subscribers 100.0%...100.0%.....N/A
Google...............................38.1%.....43.7%......5.6
Apple..................................26.6%....27.3%......0.7
RIM....................................24.7%....19.7%.....-5.0
Microsoft.............................5.8%......5.7%......-0.1
Symbian..............................2.1% ......1.8%......-0.3
Sources are listed. Data is the latest I could find.
(I found some more stuff, but I gotta run)
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I wouldn't say that. iPhone is pretty popular here in the Czech Republic and Apple is also the fastest growing computer brand. The trouble is that iPhones are not subsidized very much. With my plan iPhone 4S would be just 500 CZK (28 USD) cheaper than unsubsidized unlocked iPhone 4S from Apple Online Store and that's not on O2. As someone else has already stated O2 is the greediest operator here so chances are that subsidized iPhones from O2 would be more expensive than unsubsidized ones directly from Apple.
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Actually, Apple's share of the smartphone market is almost the same in Germany (24%) as in the US (27%). The US has a much greater Android presence, though - 55% (US) vs. 35% (Germany). The difference is probably due to Symbian - 1% of the US market and 25% of the German market.
Contracts have become less expensive in the US, too. With the 200 MB dataplan, a 24 month contract is $1320. With the 2GB plan, a 24 month contract is $1560.
But even that may overstate the cost, since, despite the contract, AT&T typically allows a discounted upgrade every 18 months. Which results in a cost of $990 (200MB) or $1170 (2GB) before getting a new phone. [I assume Sprint and Verizon will offer the same deal once they've had the phone long enough]
And of course the discounts you get are substantial - while an unlocked 4s costs $650/$750/$850, the subsidized phones are $200/$300/$400.
Of course dumbphones are $0 and the monthly cost is probably only $40/ month. But the difference isn't all that great, really.
You're assuming they didn't try to "work something out", and it's possible the situation in the Czech Republic is different enough that it doesn't make sense, as it did for Verizon. Personally, I'm going to assume that O2 didn't walk away from money they could have made for no particular reason.
I'm getting fed up with O2 in the UK. They're web site and iPhone app hasn't worked properly for months. I made a complaint and they didn't even bother calling me back. Frustrating because they're the only UK carrier that supports Visual Voicemail - otherwise I'd move to another network immediately.
Very valid point and something American's don't think of because it works so much differently here with carrier contracts.
They really don't need to sell the iPhone to profit from it. The subsidy Apple demands is REALLY REALLY high. The highest of any phone in history. So, let customers buy them unlocked and pop in your sim.
Still, foreign carriers do have contracts, and it does potentially limit new subscribers or chance churn on their networks for another carrier. Unlocked devices over there are more than they are here, so $700 to avoid a contract and drop in your own sim? That doesn't work for everyone. You can technically drop Sims in ehre, but with only 2 carriers and 3G data not working with that option, no would would probably do it.
Though, over seas, you need to remember our states are BIGGER than your countries. There is a reason why our business model is different. The state of Florida is larger than England and has more population.
Link
It's not obvious thought if the $200 applies to Australia or not because there is no public data. Sprint (in US) does pay $200 per iPhone than industry average.
yeah, that is because they have other options. nice to see companies start to realize iOS devices is not a need
I saw the everyday Joe pick the wrong OS to make popular with Windows - I thought I would see them do another mistake with iOS - still a chance people not that dumb
I saw the everyday Joe pick the wrong OS to make popular with Windows - I thought I would see them do another mistake with iOS - still a chance people not that dumb
Um... Florida has approx. 19 million inhabitants. England approx. 51 million.
well you must be in a weird place on earth cause the iPhone 4S sold in ONE weekend alone what the Galaxy 2S has sold in over 3 months.
Just cause you don't see people carrying them does not mean that the galaxy is selling more. You may just be confusing them, since 90% of android phones look the same.
Two points here:
1. You realise that in order to permit lots of users running lots of data, you don't want large ranges? You need to implement small cells for maximum frequency reuse.
2. As others have pointed out, the whole BS with US carriers screwing the customers is due to the bundling that Apple does with the carriers. In the mainland europe the subsidies are small, leading to a large up-front cost, but thereafter competition amoungst the service provider keeps them in line better, because it's much easier to swap out the SIM (especially as the GSM frequencies are unified across europe)
Oh right, so even though it's the same name, it's run as separate business in the different country's? Makes a bit better sense.
And to everyone else. Don't act so dimb, do you REALLY think they need Apple? No, Apple NEEDS the carriers, without them the iPhone is an iPod Touch, nothing more, and if O2 in the UK were to ditch it, then considering according to this research:
http://www.telecomsmarketresearch.c...ator_Subscriber_Statistics_2.shtml#Telefonica
Teflifonica has over 22 million UK customers, it would be a MASSIVE blow to Apple if O2 in the UK dropped the iPhone, Not to O2. Because the other carriers would also look at the deals Apple is giving them. And plenty of those customers rate free SMS, minutes etc, way above an iPhone. Not to mention signal strength which in some areas you can only get best with one certain provider, like O2.
There are PLENTY of other smartphones out there O2 could offer to it's customers with very lucrative deals.
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