While consumers may love the Apple iPhone, operators should keep their eyes open about this attractive, trendy smartphone, says a report from Strand Consult, which proposes to debunk 10 so-called myths about the iPhone.
The Apple iPhone isn't all that you've been led to believe.
That is the thesis behind a 106-page research report published in November
by Strand Consult titled, "The Moment of Truth-A Portrait of the
iPhone." The report discusses, and works to debunk, what it calls the 10
most significant myths surrounding the iPhone.
While Strand Consult said it believes the iPhone has an attractive design
and user interface and that Apple
is a unique company that understands
industrial design, it's frank about the smartphone within the context of the
mobile industry. The company stated in the report's introduction, "We
never believed that the iPhone was an opportunity for operators and we stated
at a very early date that the closer
the relationship an operator had with Apple, the worse business case they would
end up with.
The report continued, "We believe that there is a need for an objective
view on the iPhone both regarding advantages and disadvantages, and in relation
to whether the iPhone actually creates shareholder value for the operators-and
not just for Apple."
The 10 iPhone myths, according to Strand Consult, are:
The iPhone creates data traffic in a mobile
The iPhone helps operators to attract new
The iPhone is good business for mobile
The iPhone dominates the mobile services market.
App stores are a huge success that have
revolutionized the services market.
There is money to be made in developing iPhone
iPhone customers create the majority of online
mobile surfing traffic.
The iPhone has a large market share.
The iPhone was the first mobile to launch with a
The iPhone is a technically advanced mobile
In its effort to disprove these statements, Strand Consult has gathered
information from investor relations departments, as well as from operators. Its
client base includes 160 operators, and it quotes the chairman of one as
saying, "The iPhone effect is the effect that comes from moving our
management's focus away from the 99 percent of our customers that generate the
cash flow that pays our bills."
read about the 10 reasons the iPhone can't stop Android, click here.
On Oct. 22, AT&T, the exclusive U.S.
carrier of the iPhone, announced fiscal third-quarter revenues of $30.9 billion
and net income of $3.2 billion. The quarter included 3.2 million iPhone
activations, "with nearly 40 percent of the activations for customers who
were new to AT&T," the carrier stated in a news release.
Among its arguments in the report, Strand emphasized that the figure of 40
percent new activations means that "60 percent are [AT&T's] own
customers switching to the iPhone, thereby cannibalizing other AT&T product
offerings ... It is important that one does not become completely mesmerized and
dumbstruck by the hype surrounding the iPhone."
The free report is available on the Strand Consult