“Apple is understood to be demanding that its European mobile phone partners hand over a significant proportion of revenues generated by the iPhone and restrict the content that users can access,” Richard Wray reports for The Guardian.
“The portion of network revenues demanded by Apple is believed to have been behind Vodafone’s decision not to sign up as the exclusive partner for the iPhone in the UK. That contract is understood to have been won by O2 although the mobile phone operator stressed that no deal has yet been signed,” Wray reports.
“The iPhone is expected to launch in November in the UK through O2, in France with Orange and in Germany with T-Mobile,” Wray reports.
Full article here.
Restricting content? How so?
yes, i would like to know also.
this is what they mean, all content comes from iTunes
It is also restricting content that can be accessed.
In the past, mobile operators have cajoled handset manufacturers into putting buttons on their phones that access the network’s own internet portal, where users can download games or buy music. With the iPhone, however, all the power rests with Apple.
are all cell phone companies whose names begin with “V” idiots??
In Europe, it is common to be able to transfer files back and forth from your computer to you cell phone. Also, you can easily connect your cell phone to your computer so you can use the other’s internet ability. Also, phones are sold unlocked.
That is almost unheard of in the US.
They will rue the day.
Well go on…. Start rueing!!
Apple isn’t really restricting content, they don’t want the carriers to impose their content on the user.
i can understand that carriers are reluctant to give away a share of their revenue, it’s unheard of.
i really don’t like those deals, they are not in the interest of the users.
MW: INCOME ! 😀
“That contract is understood to have been won by O2 although the mobile phone operator stressed that no deal has yet been signed,”
That’s a good Apple partner, keep quite until Steve says you can speak!
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Why all the resistance?
RIM has the same type of subscription revenue arrangement with the Blackberry.
Let us all keep this aspect in mind when we’re presented with iphone FUD.
When you buy a mobile phone (Bi, Before iphone), your phone was either obsolete or out of date as soon as the newer handset was released.
With the iphone, this will not be the case, perhaps with the exception of 3g licencing permitting. The iphone will continue to recieve upgrades through its lifetime, hopefully free of charge, making a renewable platform not likely to outdate. That is where I see the fee from the carriers being spent.
Updates cannot be free forever, someone has got to pay for them, the carriers make excessive profits which end up in very few pockets, this way, at least for starters, the immediate benefit is less handsets ending up in landfills or needing recycling, (Mud in your eye Greenpeace!)
Carriers benefit from extra revenue generated by developers creating platforms for the iphone. It is upto the carriers to come up with a deal to pay developers to develope portals they can get revenue from because their deal with Apple does not preclude them from making more offerings as long as they are compatible with Safari obviously!
Example 1. Jah Jah! Booyaksha!!! Job done in more ways than one.
Good summary, Crabapple – I for one, absolutely despise the fact that if I accidentally hit the “wrong” button on my current cell phone (sadly, no iPhone love yet) I get unceremoniously connected to some branded website where I can purchase any one of a number of things – all revenue generating for the carrier, of course. And it costs me every time I accidentally push this button (which just happens to be in the CENTER of everything, including the screen interface – it’s the default), even if I immediately cancel the operation. Total rubbish.
“In Europe, it is common to be able to transfer files back and forth from your computer to you cell phone. Also, you can easily connect your cell phone to your computer so you can use the other’s internet ability. Also, phones are sold unlocked.
That is almost unheard of in the US.”
Well, too much freedom can be bad. Apple profits from tight control, things are done their way, the right way.
Before any one of those iPhone ‘bashers’ (for lack of a better term) begins complaining that it is unheard of for carriers to pay handset maker back portion of their monthly revenue, we must not forget that iPHONE ISN’T SUBSIDISED. Carriers have no problem spending $200 in order to make the phone free (with that ever-popular two-year contract). Suddenly, now they don’t like giving that money to Apple; one would think they love their consumers so much, they’d rather give the money back to the customer…
We need to keep in mind that Apple is as much a money-making business as any other. However, it is clear here that some corporations (wireless carriers, for example) have profit as their only goal and in pursuit of that goal have no regard for the consumer; while others (let’s say, Apple) carefully analyze the needs of the consumer and address them, in pursuit of the (more-or-less) same goal. The result is angry customers (former) or happy customers (latter). Hopefully, eventually the former will realise that the approach of the latter will translate into better profits and customer retention.
Then again, if the wireless carriers are anything like record labels, they’ll never figure it out, and Apple will have to keep squeezing them in order to provide service and products that people actually like and want to use. Let’s hope Apple’s “insanely great products” provide them will the necessary leverage against all others who are clueless in this business.
…In Europe, it is common to be able to transfer files back and forth from your computer to you cell phone. Also, you can easily connect your cell phone to your computer so you can use the other’s internet ability. Also, phones are sold unlocked.
That is almost unheard of in the US….
If you were a cellphone manufacturer, you’d now be spending serious money working on the user interface and around the Apple patents. That would include, of course, the “transfer files back and forth from your computer to you cell phone,” including media files or even documents useless to a cellphone that you may want to transfer to other computers.
The iPhone lit a fire under quite a few arses. I hope they can up their game because constructive competition benefits users.
“”Apple is understood to be demanding that its European mobile phone partners hand over a significant proportion of revenues generated by the iPhone .”
———————-
Isn’t this a bit like Universal demanding a cut of every iPod sold?
Just asking…
@Pete
Yes,it is. But we don’t mind when Apple does it!
This completly Sucks!!!
“Isn’t this a bit like Universal demanding a cut of every iPod sold? “
no, think about it….
“Isn’t this a bit like Universal demanding a cut of every iPod sold?”
shhhh… We don’t talk about things like that here..
“shhhh… We don’t talk about things like that here..”
hehehehe
cult? what cult?
This isn’t the same as Universal asking for iPod commission, because in that case, Universal would be receiving compensation regardless of whether or not their product were actually being used.
In the case of iPhone, it will always be Apple’s product being used.
It would be the same if Apple were to demand a cut of every AT&T bill, regardless of equipment being used with that plan.
While the iPhone is a Power house for any carrier, I hope apple plays fair and isnt looking to be greedy by going to the potential weaker carrier but one that is more interested in giving apple what they want.
@TheConfuzed1
In the case of Universal/Apple: It is Apple’s iPod not Universal’s.
Apple makes it’s money from the iPod, Universal makes it’s money from songs sold via iTunes.
In the case of AT&T/Apple: It is AT&T’s network, Not Apple’s..
Apple makes it’s money from the iPhone, AT&T makes it’s money from the users 2 year contract with their network.
Anyway you slice it, it’s the same situation. The truth is just a little harder to swallow when it’s Apple being the bully.
“Anyway you slice it, it’s the same situation.”
The great thing about being a member of the Apple cult is that you don’t need to look at things logically.
All you need for life are three simple rules:
Apple makes the best products no matter what faults they have, and no matter what features the competition may have.
In business dealings with Apple, the other company is always wrong.
Accept Steve Jobs into your life and you will be saved.