Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Apple
    • Apple
    • Mobile
    • Small Business

    Apple iPhone Hurts the Carriers That Offer it, Says Report

    By
    Michelle Maisto
    -
    August 18, 2009
    Share
    Facebook
    Twitter
    Linkedin

      Verizon Wireless may want to rethink its desire for an Apple iPhone of its own.
      According to a new study from Copenhagen-based Stand Consult, carriers that have paid considerable subsidies in order to offer consumers iPhones have not benefited by their rights to the exclusive and highly sought-after smartphone, Reuters reported on Aug. 17. In some instances, the carriers are worse off for it.
      “According to the research we have conducted on the operators, not one of these has increased their market share, revenue or their earnings as a result of introducing the iPhone,” Strand Consult writes in the report. “On the contrary, some operators have sent out profit warnings because of the iPhone.”
      AT&T, the exclusive provider of the iPhone in the United States, called the on-sale date of the iPhone 3GS its “best sales day ever,” for both its retail and online stores. For the second quarter of 2009, it reported 2.4 million iPhone activations, but fiscally its results for the quarter were flat.
      Reuters reports that SingTel, Southeast Asia’s largest carrier, has reported a profit loss of 3 to 4 percentage points due to the iPhone. TeliaSonera, the top Nordic operator, reports that the iPhone hasn’t help to boost market share or lift revenue, despite a healthy marketing campaign. Sweden’s TeliaSonera, likewise, has reportedly lost a percentage point of market share over two years.
      “It does seem a bit counterintuitive,” Ken Hyers, a senior analyst with Technology Business Research, told eWEEK. “Certainly AT&T has benefited, in terms of new subscribers signing up, and signing up for more expensive data plans. The typical iPhone plan costs twice what other subscriber data plans are.”
      Hyers says situations likely vary from operator to operator and depend on the portion of marketing, for one, that falls to Apple versus the operator.
      “But what it comes down to, is could AT&T have acquired those subscribers without the iPhone?” said Hyers. “Its ability to compete with Verizon would definitely have been impacted.”
      Additionally, when a new iPhone comes out, AT&T has not only signed up millions of new subscribers, but enjoyed its current subscribers updating their devices.
      “As a retention tool, the iPhone is working very well. Plus, they’re the subscribers who are willing to pay the most,” said Hyers. “And of course the data plan is where the most revenue is coming from.”

      Michelle Maisto
      Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×