Apple iPhone: is there resale in it for Cisco?

Stan Beer
Friday, 23 February 2007 03:35

Business IT - Technology

Since the joint announcement from Cisco and Apple agreeing to share the iPhone brand, there has been much speculation as to what deal has been done under the table. Some analysts speculate that Cisco forced Apple to pay a settlement. However, a company with a market cap of US$165 billion would be more interested in longer term benefits than up front cash. Why did Cisco let Apple off the hook? One word: resale!

In a nutshell, Cisco has relationships with major corporate telecommunications users while Apple is virtual newbie to the corporate telecoms space. One of Cisco's thriving business arms is its voice and unified communications division. It could be a match made in heaven.

Cisco sells a range of IP telephony products but one area where it misses out is the space where RIM Blackberry and Palm Treo play. A glance at Cisco's product list in this area is a Nokia GSM handset that has 802.11 IP telephony capability - hardly an inspiring product.

Needless to say, the Apple iPhone, with voice, internet access and 802.11n wireless capabilities would sit very well indeed in Cisco's kit bag of products to sell to corporate clients.

Meanwhile for Apple, which has never been a player in the corporate space, the iPhone could be the key to unlocking a business bonanza from a previously untapped market. Cisco, a major corporate player, could be the facilitator of that process as a reseller of Apple iPhones in the corporate space.

When viewed in those terms, an agreement between Cisco and Apple to "share" the iPhone brand takes on a whole new meaning.