America Movil Secures iPhone Deal; Unlocked iPhones Continue To Dog Apple And Partners
By Dianne See Morrison - Thu 08 May 2008 04:20 AM PST
The Apple (NSDQ: AAPL) iPhone deals are coming in thick and fast. Days after Vodafone (NYSE: VOD) announced a 10-country deal to carry the iPhone, and Telecom Italia said it too would sell the device in Italy, comes news that Mexico telecoms firm America Movil will bring the device to its Latin American operations later this year, which includes over a dozen countries. Again, like the Vodafone deal, no mention if this is exclusive or not. Bloomberg reports, however, that Apple’s latest agreement won’t have a significant impact on iPhone sales. According to Yankee Group analyst Willy Swain most people in the region who can afford the device already have one—that is an unlocked one.
Meanwhile, more evidence that the grey market for unlocked iPhones is hurting not just Apple’s revenues, but its partners. Reuters reports that communications software maker Synchronoss Technologies has blamed lower-than-expected results and a weak current quarter forecast on the increasing number of unlocked iPhones. The San Francisco based company gets paid to activate the cell phone on AT&T’s network, meaning it does not get a penny if the cell phone is unlocked and set up on another carrier. On a conference call to discuss the company’s results, Synchronoss CEO Stephen Waldis warned, “The gap between the number of iPhones expected to be sold and the actual number that we are activating continues to be significant, and we expect this trend to continue.” He also added that the firm expected that their related transaction revenue from the iPhone would decline by “approximately $30 million in 2008 compared to 2007.” Apple itself called the number of unlocked iPhones “significant,” when it reported last quarter results in mid April. Like Synchronoss, Apple loses out when the device is unlocked—forgoing the revenue share that exclusive partner carriers fork out to it.
Tags: america movil, iphone





