We discussed about euro disney with such a question. why was the launch of euro disney a failure? and here is similar (the market)situation. Apple's U.S. blockbuster isn't a hit across the Atlantic. How will it fare elsewhere?
Main problem is diffrent from euro disney. if you ask me. That is price!!
When Apple's iPhone first went on sale in Europe six months ago, hopes were high that the device would be just as big a hit there as it had been in the U.S. But analysts are now raising concerns that the iPhone may not translate as well overseas, with sales sluggish in Europe because of the device's high price and strong competition from Nokia (NOK) and others. "Our research indicates that European shipments to date have been far below [expectations]," says analyst Richard Windsor of Nomura Securities (NMR).
Mixed Signals
Apple and the three European car�riers have not disclosed up-to-date sales figures, and the company declined to comment on European sales. The carriers all have said they are happy with demand for the device.
Still, the iPhone's price has been an issue. Most phones in Europe are heavily subsidized, and customers can get even some high-end models for free. The iPhone had not been subsidized, selling for $600 or more with a 12- or 24-month service contract. In the past two weeks, however, two carriers have reduced the price for the iPhone.
A New Approach?
The Cupertino (Calif.) company drives a hard bargain with its wireless partners, which may make them reluctant to subsidize the iPhone. It takes a cut of the revenue that wireless operators collect for voice and data services each month, something no other phone�maker is believed to get. Strategy Analytics estimates Apple gets $5 to $20 per month for each customer from its wireless partners.
Apple's experience in Europe raises questions about the iPhone's prospects around the world. The company has said it wants to sell 10 million units by the end of 2008. But Apple may need to change its business model to reach that target, perhaps by moving to nonexclusive contracts or giving up its cut of service revenues. The company may make less money off each iPhone, but it could sell many more. "If they really want to be successful in this market, they had better [change]," says Shiv K. Bakhshi, director of mobile research and devices at research firm IDC (IDC).
http://www.businessweek.com/magazine/content/08_17/b4081000500950.htm?chan=rss_topStories_ssi_5
20700110 - Kim SungKi
6th Entry
No comments:
Post a Comment