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 …