Wednesday, September 19, 2007

T-Mobile Sells iPhone in German Market


T-Mobile will sell Apple's iPhone in Germany for 399 euros ($558) each. Service plans weren't immediately announced. As in the United States, where Apple picked at&t as its exclusive network services provider, customers in Germany will have to sign up for two years to buy and use the 8-gigabyte version of the phone-iPod-Web appliance.

In the U.K. market, where O2 has a five-year exclusive on service for the iPhone. And a pattern seems to be developing in terms of the business model.

Estimates of how much revenue O2 is going to share with Apple vary between 10 percent to 40 per cent and it is likely both figures are correct. The delta is what Apple gets paid based on the degree of churn the device can induce.

Apple might get 10 percent of revenue when an existing O2 customer gets an iPhone, but Apple might get the heftier percentage when a customer switches service providers and becomes an O2 customer.

at&t pays Apple $3 a month when one of its existing customers buys an iPhone plan, but $11 a month when a customer switches carries and becomes an at&t customer.

O2's ARPU (Average Revenue Per User) is around £23, so 10 per cent of that would be £2.30 while 40 per cent comes to £9.20.

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