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Copenhagen-based Strand Consult has recently released a study that shows the iPhone is actually hurting carriers more than helping them.
“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. … We have not found one operator which has created shareholder value with iPhone. When looking at the numbers we can’t see the iPhone effect — a lot of competitors are actually doing better.”
For those eager to get their hate-on, here are the ten iPhone “myths” that the report examines:
- The iPhone drives data traffic into mobile operators networks
- The iPhone helps operators attract new customers
- The iPhone is good business for mobile operators
- The iPhone is dominating the mobile services market
- App store is a huge success that has revolutionised the services market
- There is money to be made by developing applications for the iPhone
- It is iPhone customers that are generating the majority of online mobile surfing traffic
- The iPhone has a large market share
- The iPhone was the first mobile phone with a touchscreen
- The iPhone is a technologically advanced mobile phone
Yowza. This sounds like some spicy reading for a shareholder-based analysis. Keep in mind that these conclusions are drawn even after carriers sell record numbers of iPhones. Yeah, customers are happy, and Apple surely gets their cut, but mobile operators are clearly stuck between a rock and a hard place when finding pricing that works. As if cutting the iPhone 3G price to $99 wasn’t hard enough on them, when exclusivity deals end for the big ones, like AT&T, carriers will have to deal with added competition pressures. China Unicom is prepping for a big rollout, and I’m certainly left to wonder if the iPhone will turn them inside out as well.
[via Reuters]
About The Author
Simon Sage
Simon Sage’s education largely surrounded writing, technology and online community, leading him to begin his blogging career at www.BlackBerryCool.com and to quickly discover a vibrant and active community surrounding BlackBerry and mobile technology. In exploring RIM’s platform, he has learned what enterprises are looking for in mobility as well as what makes the innocuous BlackBerry so appealing to them. Recently Simon’s been covering RIM’s gradual move into an already-crowded consumer market, and the impact of burgeoning challengers, such as the iPhone, as well as long-time leaders, like Nokia, on BlackBerry’s advancement. With plenty of content under his belt, Simon will be branching off a bit to see what other smartphone manufacturers are working on while still using BlackBerry as a barometer. At IntoMobile, you can count on his posts being even-handed, well-informed and thought-out.
