But how much of it is AT&T and how much is pressure from Apple? I'm convinced the margins for networks selling iPhone are the smallest of profit margins when you take in to account the wholesale purchase price of hardware (for which Apple will do no one any favours) and the insane profit share of airtime (circa 30% line rental and call revenue).

The reality is that networks don't want people to upgrade their phones every 5 minutes as these subisidies (especially on hardware as expensive as the iPhone) massively dilutes your profit margin. So I think a lot of this comes from the Apple Board room.

This is why I'm glad service providers cannot sell iPhone solutions. Consider the average margin on wholesale airtime to a service provider is roughly 20%. Out of that 20% you have to run your business, subsidise handsets and at the end actually make a profit. iPhone makes it very hard for you to do that (especially when you have to give 30% of your revenue to Apple). I have to say I'm on the side of the networks here because it just isn't in their interests to let customers upgrade early - this stinks of Apple pressure, a company that knows nothing about the mobile telecommunications industry thinking it can just apply its own financial model (and sadly the networks are bowing to the pressure).

__________________
Si MCTS
Co-Owner
Port3101 - Your BES Connection

Don't forget, you can follow us on Twitter and if you're really bored you can always follow me!!

The views expressed by me on Port3101 and its affiliated sites are my own and do not necessarily reflect the views of my employer.