Apple iPhone Forced to Unlock in Europe – Crying to the Bank …

While Apple is being forced to unlock the iPhone in Europe, it is tragic … because Apple is going to pay so much more in taxes from the HUGE profit they will be making … yea, that’s quite a tragedy.

The deal will be much like T-Mobile’s just-announced revised deal in Germany. Get the iPhone for $590 (in USD) if you sign a 2-year contract (monthly rates are like the US – about $50 to $100 (converted to USD)). If you want to buy an unlocked phone, it’s @$1,500 (USD).

So the consequences for Apple will be either make $500 + $20 a month from T-Mobile for each iPhone customer … or make some $1,300 in one fell swoop now.

Oh, what a tragedy for Apple.

While $1,500 is a lot for a phone, people have a choice but the bottom line is it doesn’t hurt Apple’s bottom line.

Consumers can get the full experience with T-Mobile or get slightly less with another carrier but don’t have to worry about a contract. It’s a win-win for Apple.

That’s why Apple is on a roll. They win by winning and they win by “losing.”

They will not only INCREASE sales but make more money upfront as a “consequence” of the ruling.

So, yes, the tax department will have to work a little harder and Apple will probably have to come up with more upgrades to deter people from buying a US phone (where the dollar is much cheaper), unlocking it and using it in Europe but all the bricking fears will silence most buyers – most that want an unlocked phone would rather pay $1,500 for an official phone they can take into an Apple store versus saving some money upfront but maybe worrying that every 2 months, there will be some major upgrade and their phone might die … you can bet adding the ablity to run 3rd party apps next year wll be a major upgrade and brick many unlocked older phones.

Again, win by winning and win by “losing.”

That’s how you plan ahead and run a business – where your worst consequence is you make more money and have more tax hassles …

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6 Comments

Filed under Advertising, Apple, Financial, Internet, iPhone, Marketing, mobile, Retail

6 responses to “Apple iPhone Forced to Unlock in Europe – Crying to the Bank …

  1. James Katt

    I love Apple and the iPhone.
    Apple should charge unlocked phone owners for iPhone upgrades. That way, Apple gets paid for the work of creating the upgrades. Locked iPhone users are already paying each month for the upgrades. It’s only fair.

  2. mark

    Generally agree, but it’s possible that T-mobile will get a share of the premium.

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  4. “They win by winning and they win by “losing.””

    So that’d be win-win? 🙂

    (METROXING: I’m being paid by the word? 🙂 )

  5. Eliakim

    Yeah, you’re exactly right. The news is spinning this as a “loss” for Apple. It’s so – absolutely ridiculous – that they can’t see this for what it is. Either Apple gets the whole thing “up front” (in the purchase price) or they get it over the term of the contract (through the service provider).

    And, besides that, it shows how totally idiotic and ridiculous these people are who scream for the iPhone to be unlocked. I mean, who in their right mind is going to want to *pay twice* for the privilege of having the iPhone. I mean, they pay for the profits to Apple and the service provider, through the higher purchase price — and then — they pay *again* to another provider that they choose.

    Are they total idiots, who want to pay for all of the profits to both Apple and the service provider and then pay all over again for another service provider. Are these totally demented people?

    LOL!

    P.S. – I’m not ragging on iPhone, because I’ve got one and I’m using it through AT&T and love it. It’s these totally idiotic and stupid people who think they are getting something better by going to another service, paying double or triple the iPhone price and paying for another service provider and not even getting all the functionality. Are these people for real?

  6. Pingback: iphone europe » Blog Archive » Apple iPhone Forced to Unlock in Europe - Crying to the Bank …

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