The missing iPhones

Herald Link

Apple has recently announced that 1million or 27% of the iPhones sold to date are unlocked and not operating on AT&T networks. This is huge, especially considering Apple gets paid a percentage of the network service fees. The Herald article states that with a predicted volume of 10 million phones sold at the end of 2008, this will result in a profit $US 500million lower than expected. This is the result of limiting the customers options and not adopting multiple business models or revenue streams that are relevant to the evolved digital age (the one where customers are smarter, more resourceful and demand better value). Businesses seem to rely on limiting the customer to using a particular accessory, complementary service or product in order to generate larger revenues. While still feasible with some products, it seems that this business model is coming under threat with tech/it products.

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