The apple revenue share model?

I was talking since the announcement of the iPhone here in my office that Apple for sure wasn’t thinking about making money only with the devices. It was obvious that they would want more control and profit also on the network level. My surprise was that they actually did it. So is the design, even with so much problems, so powerful that can make companies known for the hard business model to change it’s opinion like this?

Anyone in contact with carriers knows that when it comes to money, specially revenue share they are quite hard to deal, and to be honest I think no one in the industry believed that someone could do what apple did with AT&T.

So after reading some websites “talking about it” I could actually be sure that apple does charge the operator for a share of each customer’s money when Brazilian Carrier director said said that the Apple business model is not suitable for Brazil:

“Eles querem compartilhar receitas, mas por que eu vou compartilhar minhas receitas (de serviços) com uma empresa que só vende a infra-estrutura (aparelho)?”,

In a cheap translation, it would be something like :

“They want to share the revenues, but why would we share our revenues in the services with a company that is only selling the hardware / infrastructure (the device itself) ?”

So, now its time to wait for 2 things in the iPhone world :

1) See who’s going to joing the AT&T bandwagon of slavery to apple
2) Wait for the confirmation of the cheaper iphone, dubbed the iphone nano.

Permanent Link » · Written on: 07-20-07 · 2 Comments »

2 Responses to “The apple revenue share model?”

  1. Collet Kudze wrote:

    In fast moving markets, handsets are perishables , and have a short lifespan. With this revenue sharing model, Apple has to produce new devices onto these markets pretty fast.

    We wait to see the success of this model and its sustainability

    August 22nd, 2007 at 11:01 pm
  2. handful wrote:

    Yes Collet, I agree, and that’s why I’m (and a lot of people of course) are for sure expecting a cheaper model and also at least a new device a year. The iphone come out, nice ui and experience but is already behind time feature wise. So not only they will need to speed up a little bit the innovation but also make sure that they can keep up to the hype.

    People will charge for this, and the carriers will even more, as they are paying for the first time.

    August 23rd, 2007 at 6:05 am

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