November 23, 2009 12:32 PM
Four reasons why iPhone's exclusivity deal will end in 2010
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When Apple announced it will end exclusivity deals with their iPhone in Europe, it didn't take a rocket scientist to figure out the massive effect this would have on profits and market share. Now analysts are more confident than ever that Apple will finally do the same here in the US.
According a recent survey from research company Bernstein, Apple’s share of Europe's mobile phone market now stands at 32 percent. Just three months ago the figure stood at 21 percent.
"The expansion of iPhone distribution has clearly benefited Apple, helping it to more than double sales in three months," wrote Pierre Ferragu, an analyst at Bernstein in a research note.
Broadpoint AmTech analyst Brian Marshall predicts that Apple, whom he says is "the greatest technology firm on the planet," will add Verizon as a U.S. carrier in 2010.
Here are 4 reasons why he believes this will finally happen:
1. AT&T Mobility's U.S. iPhone exclusive deal expires in June 2010.
2. Apple's per iPhone US$450 subsidy from AT&T will drop to $300 per iPhone when exclusivity ends.
3. 4% of AT&T subscribers have Apple iPhones, but they consume around 40% of the network's bandwidth.
4. Apple would have extra 14 million iPhone sales in 2011 if it rolls out the iPhone on the Verizon network.
Watch the video below:
James
More like 4 reasons why it should!
01:36 pm, Nov 23, 2009
abugida
"3. 4% of AT&T subscribers have Apple iPhones, but they consume around 40% of the network's bandwidth."
This is wrong. Last quarter alone AT&T activated 3.3 million new iPhones, which was about 4 % of their customer base at that point. However AT&T has been activating between 1 and 3 million new iPhones per quarter for the last 2.25 years now. The total number of iPhones on AT&T network must be well over 10 million now, or 12 to 15 % of their customer base.
07:53 am, Dec 2, 2009
