iPhone makes worldwide loss for carriers, says report

While Orange and T-Mobile compete with O2 to sell the iPhone in Britain, a report by Denmark’s Strand Consult reveals how it makes a loss for providers and struggles against other phonesApple’s iPhone is not the profit generating must-have gadget assumed by the mobile phone companies, according to new research, but is in fact turning into a worldwide loss-leader.The research, from Denmark’s Strand Consult, comes as Orange and T-Mobile are believed to be in talks to try to wrestle the Apple device from the exclusive grasp of O2 in the UK. The two companies – both of whom supply the phone in other European markets – are hoping to try to break into O2’s deal in November, which will mark two years since the phone went on sale in the UK. Owned by Spain’s Telefónica, O2 has always maintained that it has a “multi-year” exclusive deal with Apple but in most other countries, other than the US, the phone is available from more than one network.To read this report from The Guardian in full, see:
www.guardian.co.uk/business/2009/sep/06/telecoms-iphoneAlso see:Big City, Big Troubles
There’s something that most iPhone owners who are having problems with their service have in common: they tend to live in large cities.Ken Harker, senior manager of Internet technologies at Keynote Systems, a company in San Mateo, Calif., that tests and monitors the performance of mobile services, said he found that AT&T’s network was holding up just fine.

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