Nokia, like Apple, will seek its slice of the revenue sharing pie
The argument of the iPhone being an industry "game changer" repeatedly suffers the same pitfall: people end up arguing about the device, not the deal. Fact is, the oh-so-secretive, revenue-sharing model which Apple struck with AT&T, O2, T-Mobile, and Orange as part of their non-subsidized, carrier exclusive has changed the rules of carrier / device maker dance. Now Nokia, as you'd expect with their 40% market share, is asking for their slice of the pie. "As far as mobile phones are concerned we are sticking with our old business model," said Nokia CEO Olli-Pekka Kallasvuo, "that is, we get paid for our devices. But for providing new services we are seriously considering a shared turnover model." Hear that carriers, Nokia just put you on notice. With this and carriers now fighting to be seen as more open than their peers, well, we have a feeling that in a few years we'll barely recognize the US cartel of today. [Via MocoNews.net]
Reader Comments (Page 1 of 1)
JayMonster @ Dec 11th 2007 8:45AM
So the power cartels move from the Service providers to the handset makers who can decide whether or not those "new open networks" are actually open on their particular device. And naturally, since the service providers presumably need to make some more in addition to the fees that they must peel off to the (unsubsidized) phones, consumers can expect to pay more for their services.
Yeah, thanks Apple, now we can look forward to the whole mobile device world to ensconced in your secretive, screw the consumer mentality. Thanks a lot.
adrian @ Dec 11th 2007 11:23AM
A lot of people were putting down Vodafone for fighting the T Mobile/Apple deal, but Vodafone knew other handset makers would want to do a similar deal. Looks like Vodafone may be right and consumers will lose out in the long run.
akatsuki @ Dec 11th 2007 11:41AM
The transformation from just outright purchasing your phone to a license style usage fee has begun. I was never a fan of the iPhone deal if only because after Apple sells you the phone, they are hardly adding much value. They aren't producing content and haven't really improved the phone much as of yet. Will they want to split your cable modem bill next, sure.
Joe @ Dec 11th 2007 1:35PM
Regular software updates add value. How many software updates does Motorola release for handsets? How easy are they to apply?
You don't have to be a fan "of the deal" as long as you're happy with what you pay for the phone - outright and monthly. If you feel you're getting a deal, then great. If not, then buy something else.
My $.02
rav97 @ Dec 11th 2007 7:36PM
That's the problem with Apple: the start doing evil things, but then they don't follow through. The logical next step after devising the evil business model known as "revenue sharing" would have been to patent it, so that other handset manufacturers (like now Nokia) who decided to imitate Apple in their evilness would have to pay them royalties. Instead, they get nothing.
It serves them right, for being evil in such half-assed way!