Friday, 3 August 2012

RIM May License BB10; OEM Interest Questionable

Blackberry 10 Licensing

In an interview with the Telegraph, RIM's CEO, Thorsten Heins, has stated that RIM may look to license the Blackberry 10 platform to larger OEMs. While this signals that RIM may finally be ready to face market realities, this strategy may not be as easy to execute, as it seems.

Thursday, 2 August 2012

AT&T; Looking to Limit iPhone Sales

AT&T iPhone Sales


Looks like AT&T really wants to prove me right. According to a report from BGR, AT&T has instructed its retail staff to push Android & Windows Phone based smartphones and limit sales of iPhone models. Even though AT&T has issued a denial, certain impromptu checks by Forbes staff show they may be some truth to this report. This obviously comes as no surprise to regular readers, but for the benefit of all readers let's take a quick look at the primary reasons behind this move.

Wednesday, 1 August 2012

[News Update] Nokia Surges on Lenovo Buyout Rumor; Lenovo Denies Interest

Nokia CEO Stephen Elop


According to a report from Reuters, Nokia's stock price has jumped by more than 10% on rumors of Lenovo's interest in buying the Finnish cellphone maker. Volumes were nearly double that of Nokia stock's 90 day daily average. Gianfranco Lanci, head of Lenovo's EMEA operations categorically denied any interest in Nokia.

[News Update] iPhone Pricing "Dictatorship" to Blame for Emerging Market Struggles

iPhone 4S

MTS' Vice-President of Marketing, Vasyl Latsanych, has strongly criticized Apple for being heavy handed about the iPhone's pricing policies in Russia. MTS is the iPhone's largest carrier in Russia, where the device is priced above $1000.

Here's the full quote from Vasyl Latsanych:
They’re more in a dictatorship mode where they say, ‘This is what you have to do or you don’t get the iPhone’. Being arrogant with your partners in big markets doesn’t pay off.
The quote clearly reveals some tension between Apple and MTS. It is not a stretch to assume that Apple is facing similar issues with other distribution partnerships in emerging markets. The pricing model and response from carriers are probably the key reasons behind the iPhone's market share weakness in emerging market economies. Many countries like Russia, India, etc. do not follow a carrier subsidized model, which means Apple needs to pick a side in the margin vs. volume debate. So far, Apple has picked margins and volumes have suffered as a result.

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