Will freeing the iPhone double its marketshare?


One of Apple’s most criticised decisions is their exclusive carrier deals such as with AT&T where iPhones are sold exclusively with certain carrier contracts in return or subsidised pricing. But is this a good or a bad thing? Apple built their business on such deals, but analysts predict that soon, things may change.

Morgan Stanley’s Kathryn Huberty predicts:

In the top six iPhone markets that are still exclusive, we believe that Appleís market share could rise to 10%, on average, in a multiple carrier distribution model from 4% today. These six markets represented almost 70% percent of iPhone shipments in C2Q09.

The predicted change for the US market could grab Apple 12.2% market share, up 7.4 points from the current 4.9%. The reason is that in many countries, customers pick the carrier first and the phone second. (Strange, eh?)

Currently, the only countries where Apple sells “unlocked” iPhones are those where it is illegal for exclusivity deals. On the other hand, in Russia, the average sale price of an iPhone 3GS is between $800 & $1200 depending on the model: a significant difference from AT&T’s $199-$299 deals.

What will Apple do? We’ll have to find out. But if they change their business model it will give them additional leverage and even more opportunities to TAKE OVER THE WORLD!

[via Silicon Alley Insider]
  • Gokunama

    I know a lot of people that chose BlackBerries over iPhones in Canada cause iPhone’s carrier there has a poor network. Makes a difference, dunno that I’d want to pay $1200 for my next iPhone though…

  • Jim

    You’re paying about $2500 – $3500 for the device with the current contract. Calculate all the money you shell out during that time.

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