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Tue, Oct 13, 2009
The Business Times
Will other telcos get bite at iPhone?

THE iPhone may be the apple of SingTel's eye, but its rivals may not share quite the same taste for the much-hyped handset.

The Business Times understands that Apple has been in discussions with other local operators about selling the iPhone, but requirements to commit to high sales volume and revenue-sharing terms are believed to be the hurdles.

"As long as the iPhone adoration continues, Apple wields the market power in the telco relationship, and will always be a tough negotiator," said Mr Aloysius Choong, a research manager with IDC Asia-Pacific.

"But in the coming years we should see the company shift towards a market-share focus, especially as it builds up its mobile portfolio."

The impasse leaves SingTel with a monopoly on the iPhone, though exclusivity is not a condition in its pact with Apple.

When contacted, Apple, StarHub and MobileOne declined to confirm whether talks have taken place.

But recent developments suggest Apple is increasingly leaning towards a multi-operator play to meet its aggressive sales targets for the iPhone.

In some markets, such as China, Australia, Canada, Hong Kong and India, multiple operators were given the right to sell the handset right from the start.

According to Morgan Stanley analyst Kathryn Huberty, Apple's market share could more than double if it adopts a multiple- operator approach in the top six iPhone markets that are still exclusive.

"We expect Apple to broaden iPhone carrier distribution over the next two years," she said.

 

This article was first published in The Business Times.

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