T-Mobile, Orange and O2 land Europe iPhone deal
It'll all be over by Christmas
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T-Mobile, Orange and O2 are to sell the iPhone in Germany, France, and the UK respectively, according to the Financial Times. The paper also reports that the operators have agreed to give Apple 10 per cent of all revenue generated from iPhone users.
The companies concerned have dismissed the story as speculation and rumour, though the FT quotes "people familiar with the situation".
Sharing 10 per cent of revenue is a remarkable development. While manufacturers such as Nokia have been embedding applications into their phones to bypass the operator, this marks a real shift in power to the handset manufacturer - a development other manufacturers are unlikely to ignore.
Part of the attraction of the iPhone, to operators, is Apple's insistence that operators do not subsidise the device. This makes the launch low-risk as consumers pay the full price, but puts the iPhone on the shelf beside a free Nokia N95.
The FT is predicting a UK launch this autumn, with Germany and France following next spring, but remains silent on the matter of 3G capabilities.
O2 paid £4,030 million for its 3G license, so launching a data-centric device which makes no use of that investment would be politically difficult.
If Apple really has convinced the operators to pass on 10 per cent of all revenue, it will open the doors to other manufacturers to demand the same. Nokia would already like to be seen as a service provider, and Apple may give it the opportunity to have a go.
COMMENTS
Jeans schmeans
I have run a profitable business (unconnected with web, art, design or film) using Macs for many years. I won't say what or why, for fear of stirring the labile emotions of OS zealots.
When the time comes to upgrade the Treos, the iPhone will get very serious consideration, not because of the cover art swoosh, but because of the applications and OS level integration with the software that helps makes my business better than the competition. I can see a lot of potential advantages.
Can't promise thousands like me, but don't fall into the trap of assuming "the normal people" won't use the iPhone to make a better business make more money. I know that most won't, which for me is a Good Thing.
And I get all my kecks from Matalan.
only first version
the first iPhone is surrounded by lots of hype and advertisement and won't sell in big numbers. Especially if it is not subsidised.
This makes the 10% look OK because it won't be that much money for a lot of press coverage.
The second version will attract only a fraction of the hype and the negotiation position of Apple will change.
the target public for iPhone are the well-off fashion victims who pay half the iPhone's price for a pair of jeans. But the normal people will opt for a less prestigious phone.
I wonder what exchange rate Apple will use. The 600$ will surely become 600€ if not more.
cheers,
Micha Roon
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