| iPhone - the Paris Hilton of mobile phones? |
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| by Alex Zaharov-Reutt | |
| Friday, 05 December 2008 | |
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Page 4 of 4 Strand Consult continues: Featured Whitepaper
5 Best Practices for Smartphone Support
“These operators let other operators subsidise handsets and instead sell SIM cards with inexpensive data traffic at competitive prices. “Their low SAC gives them a positive cash flow on the customer far earlier than the Apple partner operators that are subsidising, marketing and selling iPhones.” Strand Consult says “the conclusion is simple”. It notes that “this is not good business for shareholders of operators that are Apple and iPhone partners - on the contrary it is far better business not been (sic) an Apple and iPhone partner. “Operators that choose not to carry iPhone products have an increased probability of serving their shareholders interests over those that move their management’s focus, subsidies, marketing and distribution power on a product that is as beautiful as Paris Hilton, but increases production costs and where there may not be a relationship between revenue and costs. “The fact that the iPhone is currently receiving so much attention from the press is probably due to an uncritical press that have allowed themselves to be seduced by Apple's unique PR machine - and that have not analysed and examined the underlying business models and the financial success of the iPhone from an operator’s point of view.” So, are Strand Consult being too harsh on Paris Hilton and the iPhone? Or are they spot on? I wonder just how many telco shareholders are using the very iPhones, very happily, that Strand Consult suggests the telcos should dump. As for forcing telcos to drop prices on data, I’m personally all for it – data must become as ubiquitous and affordable as mobile voice, as it has been doing – otherwise no-one will use it, and all the wonderful mobile apps would dry up, rather than blossom as currently has been happening. I can certainly understand Strand Consult wanting to help operators from the cost monster that is the iPhone, as Strand Consult has described, but seeing as ALL the top smartphones are heading in the iPhone’s direction, putting your head in the sand now over the iPhone seems the exact wrong approach – at least, it does to me. Instead, I think operators should embrace the fact users want to gorge themselves on data, and should stand up to Apple and demand better terms, especially given the rush of iPhone-like devices that get better and better with every new version – witness even the announcement of the Nokia N97 that is doing its best to out-iPhone the iPhone, even down to delivering data right to the home screen from Facebook, email and other apps. Strand Consult: aside from seemingly recommending operators bury their heads in the sand – what else can you recommend they do to turn the ever increasing data usage for online products and services into true telco revenue, so profits are made instead of costs being racked up? Please give us a 10 point report on that, I’d love to read it, and I’m sure the world’s telco operators would too. You can read Strand Consult's report here. |
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