A recent report from a major telecoms company, Verizon tells us that the iPhone is ‘bittersweet’ for them. This is due to the almost 11 million iPhones that they have sold over the due course of 2011, that’s including the 4.2 million they shifted in the last quarter. While Verizon themselves do admit to be down on their wireless margins, but this is due to the shear amount of iPhones that they have sold.
We all know that AT&T have definitely lost quite a few customers now that the iPhone is no longer exclusive to their network, and that Sprint have blamed their past troubles on not having the iPhone. But the U.S isn’t the only place where this carrier ‘war’ is occurring, as one of the leading telecom companies in the United Kingdom, O2 is reporting to be down on sales of the iPhone over the past year as it has lost its exclusivity.
As you can probably comprehend, the iPhone has been dominant to the mobile device and telecoms industry, and from what we can see, this is just the beginning of it.
But its not all good for the likes of Verizon and their recent endeavor of the iPhone as there is a bitter side which many people fail to understand. When someone chooses to buy the iPhone from a carrier, like Verizon, they subsidize the cost. Apple charge about $500 for the latest iPhone and carriers charge $199, that’s $301 that they have to subsidize for every iPhone that they sell. That is considerably more than what they have to do for the other handsets that they sell.
This means that the more iPhones that they sell, the more that it effects the bottom line. That explains all of the marketing and advertising that has been going on lately for phones other than the iPhone.