Tuesday, March 6, 2012

Operator subsidies: the success of the iPhone a double-edged sword

For Google (the Po) companies, European economic turbulence has brought a ray of hope: in those by the debt crisis of the impact of countries, Google operating system installed smart cellphone is beat iPhone.

Last year, although apple launched high-profile new iPhone 4 S, but research institute international data corp. (IDC) said, in the Greek sold smart phone, the iPhone only 5%, accounting for more than in Portugal is only 9%. The rest of the mobile phone, most of the installation is Google andros operating system.

The above results pointed out the apple one of the few a weakness: rely on mobile operators to make more consumers buying machine subsidies can afford iPhone. This practice has proven very favorable to apple: the company announced the latest quarter revenue rose 73%. But operators were paid the price: in the United States, operators Sprint Nextel, for example, the company launched iPhone last fall, but is expected to to 2015 years to profit from the iPhone.

In the United States and Britain and other countries, the operator subsidy policy last year in the smart phone market help iPhone won more than 20% of the share. But the iPhone in parts of southern Europe showed the market, if operators not wish to most of the cost of buying machine subsidies users (Denmark and Spain and other countries of the some operators do), then apple's market position may be moved. In parts of southern Europe, most users and no and operators to enter into contracts, they have to buy back mobile phones.

The Portuguese operator Optimus contracting spokesman silva said, low-cost equipment (basically was the eminent equipment) into the smart phone market help to the popularization and use.

In Europe, the price is less than 200 dollars and not take consumption of cell phone contract andros abound, this help Google and apple with low price competition. In Portugal, mobile operator vodafone website information display, the company provides the least expensive apple mobile phone (8 G capacity of the iPhone 4) sold for $680. And as long as the $106 minimum andros mobile phone, even the samsung (the Po) electronic high-end phones Galaxy S II than the cheapest price of the iPhone to low.

Greece the largest Mobile operators Cosmote Mobile Telecommunications SA Mobile data and service director Curtis souness, said last year's most popular smartphone is samsung's Galaxy Mini, which does not take the contract price simulates for $188. Curtis souness said, in this economic situation, we have to launch the low end of the smart cellphone.

Google andros partnership, said of JieLin our competition more dependent on buying machine subsidies. If your business ecological system only very expensive phones, so in the long run, it may generate a serious complications.

Analysts say, in the United States, each with a user to buy two years consumption of iPhone contract, operators will have to pay about 400 dollars to apple. Sprint admitted that the iPhone subsidies than other smart phone, the average cost of the high cost of subsidies by 40%. The goal is to reduce the operators of the user buying machine threshold, in the days to come through the service contract earn back and realize the profit of the cost. In addition, do not take contract "prepaid" business operator allows consumers to pay full price to buy mobile phones.

Apple recently sold a record quarter of 37 million in the iPhone, an increase of more than one times, but Wall Street has been tortured for prepaid operators of apple for strategy. Apple has been kept in the market listed nearly three years old type iPhone 3 GS, in order to attract consumers buying machine control budget. But Greek operator Cosmote without contract offer 3 GS price is still $535.

Relevant equipment subsidies debate is just trying to control the wireless industry and benefit from that mobile operators, Internet companies and mobile phone manufacturers between three party of combining component.

Global operators are in reflections on the buying machine subsidies, this to include an apple, all mobile phone manufacturer constitute a risk. Last year, the trend in Denmark is obvious: the Danish domestic several large operator subsidies users no longer buying machine costs, and reduce a month to use fee in order to catch up with the competition. Headquartered in Oslo wireless operators Telenor ASA Denmark division of the chief executive, said, we found that, compared with buying machine subsidies, users attach more importance to cut call package cost, they hope we introduced more simple meal.

In Spain, the Spanish telecoms also begin to question the buying machine subsidies. The company's chief executive gill has accept Spain shimon peres, the state newspaper interview, we can't keep in such subsidies will level. When you buy the television or other consumer product you will pay the price in full. In our view, users buy cellphone operator network and services and investment of the practice of the more healthy.

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