Canada’s Rogers says Apple iPhone ‘slammed brakes’ on rival devices

Apple Online Store“Sales of other phones on Rogers Wireless’ network virtually ground to a halt the day of the iPhone 3G announcement in late April, company president Nadir Mohammed said today during a call discussing the company’s latest quarterly results,” Electronista reports.

“Although the cellular business helped drive Rogers’ year-over-year quarterly revenue increase of 11 percent to $2.8 billion without the iPhone on sale, the company executive notes that demand for other devices ‘slammed on the brakes’ the same day as Rogers announced it would launch the Apple device during the summer,” Electronista reports. “Although the up-front discount on the device is the largest the company has ever had, the higher average revenue per user is expected to more than offset the initial price of the phone as nearly all customers are likely to sign up for a data plan and potentially extra features.”

“Rogers has committed to buying at least $150 million in iPhones and will spend more as necessary,” Electronista reports.

More in the full article here.

32 Comments

  1. Beleaguered RIM? Not yet of course. There must be some real scambling going on at some very big companies making mobile phone devices. I expect what Rogers is saying in public other more “Corporate” companies are experiencing but not saying.

    Some in the press have criticized how long it takes to do in store activation. While that may be a bit of a pain for the customer, I do not think it is the limiting factor right now. It seems like every phone being built is getting sold and activated.

  2. “the higher average revenue per user is expected to more than offset the initial price”

    So … Roger’s therefore admits they are gouging Canadians for their data packages and making a tidy sum in the process. Gosh, who couldn’t have predicted that!

    The moment the other providers step up to the plate with 3G coverage, I’ll be gone from Roger’s.

  3. Hey, Marco.

    Cut the repeated “lol” acronym, OK? Once is kinda’ cute, but 30 of ’em is just plain insipid. And how about throwing a few “you’s” into your postings instead of “u’s”? What are you, 13? (Or are you Prince in disguise?) If you’re so damned dissatisfied with the iPhone and its QC, vote with your feet and not your fat mouth, OK? Put Apple out of business with your dissatisfaction and get a RIM-job, OK? I’m sure you’ll enjoy it much more, in ALL respects.

  4. @ Brau:

    No, Rogers said that it expects iPhone users to buy more services. Most mobile phone users don’t buy a data plan, which is significantly more per month than just mobile phone service.

    Now the prices may be gouging, but that’s another discussion . . . .

  5. SB Dude,

    I’m in the City National Plaza Building catty corner to the US Bank Building (Library Tower) and the Bonaventure Hotel. Looked outside to see if I could see the other buildings sway but it was not noticeable. Maybe a couple of feet, 3 at the most.

    Nice day for some beach volleyball.

  6. I just helped a relative get an iPhone in Canada. There were no lines and the cost was pretty high. A 16GB phone cost $350 + tax, ($50 extra since he didn’t get an expensive enough voice plan — his voice plan only cost $30/month). Data was $30/month but voicemail+callerID+SMS cost another $15/month. Add on $35 activation fee and $7/month of taxes/fees and, over the course of a three year contract (required) it adds up to about $3000.

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