Apple's Achillies Heal

[Glaucus]

IPhone's Crutch of Subsidies

Last year, despite Apple Inc.'s high-profile launch of the new iPhone 4S, only 5% of the smartphones sold in Greece and 9% of those sold in Portugal were iPhones, according to research firm IDC. Most of the rest were phones running Google's Android operating system, which the company is promoting heavily as it seeks a firmer foothold in the wireless industry.

So, umm... pardon the pun.

But it gets worse for Apple:

Carriers around the world are having second thoughts about subsidizing phones, presenting a risk for all phone makers—not just Apple. That became clear in Denmark last year after several leading wireless carriers stopped subsidizing phones and lowered their monthly rates to keep up with lower-priced competitors. "We saw that the customers valued lower prices on calling plans, and simpler calling plans, higher than the subsidy on the phone," said Jon Erik Haug, CEO of the Denmark unit of Oslo-based wireless operator Telenor ASA.

Apple and affordable just don't mix, so they're at a bit of risk there. This will probably trigger an Android "race to the bottom" as we saw with Windows machines these past few years, but either way, Android market share is likely to grow a fair bit. Of course this all depends on the telecoms getting rid of contracts, which I certainly can't see happening. At least not here in Canada where we pretty much have a monopoly of sorts.

Either way, if you're planning an Android app, translating it to Greek or Portuguese might be a good idea.

 

[FluffyMcDeath]

I'm paying far too much for my plan. I haven't had a new phone in years - almost a decade, actually.

 

[faethor]

Wireless Carriers lost an estimated $14 Billion in SMS due to Social Messaging.
http://www.techspot.com/news/47533-carriers-lost-139-billion-in-sms-revenue-during-2011.html

 

[Glaucus]

I'm paying far too much for my plan. I haven't had a new phone in years - almost a decade, actually.

I'm paying $50 + taxes for unlimited voice, sms & mms & 5GB of data (+tether) per month through Telus. Same plan through Robers doesn't exist, but the closest (1GB data) is over $70. It's only $15 more than what I was paying before, and it was a 200min + 250sms per month plan! I get more for my money now, but it's still more then I'd like to pay. I might trim it down once my 2 year contract is up, but I have to admit the data plan is nice. I might just sign up for next greatest phone with LTE.

 

[Robert]

I'm paying far too much for my plan. I haven't had a new phone in years - almost a decade, actually.

£8:50 a month here. I only get 100 minutes talk time and 250MB data but it's enough for me.

Free Wildfire S was included. Not a great 'phone but, again, enough for me.