No revenue cuts from iPhone 3G

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Apple will stop its practice of taking a cut of revenues from mobile operators selling its iPhone, but only on its next-generation handset. Unveiled June 9, and due on sale July 11, the new 3G version of the iPhone will be cheaper than the handset currently sold, to help Apple reach its target of 10 million sold by the end of the year. So far, around 6 million iPhones have been sold.

iPhone 3G supports Wi-Fi, 3G and EDGE networks and automatically switches between them to ensure the fastest download speed The battery lasts 10 hours for talking on 2G networks and five hours using 3G, with up to five to six hours of web browsing, up to seven hours for video playback and up to 24 hours for audio playback.

An 8GB model of iPhone 3G will cost US$199 and a 16GB model will be US$299, compared with US$399 and US$499 for the first-generation, non-3G handset. Apple is selling the phone on the tegline “Twice As Fast. Half the Price.”

Apple had been taking a cut of revenues from monthly fees and services such as web browsing but will no longer do so with the new model (although it will still get a cut of the fees from those still using their first-generation model). The company is also now agreeing non-exclusive deals with mobile operators, allowing multiple services to offer the handset in each country, but meaning also that Apple would find it hard to demand a premium fee for allowing operators to sell the handset.

Not taking a revenue cut from services used through the handset should also imply that operators can subsidise the phone through their monthly plans. Operators rolling out the phone globally incllude AT&T in the US, O2 in the UK, Optus in Australia, Bharti Airtel in India, SingTel in Singapore, Hutchison Telecom in Hong Kong, Orange in Austria, France, Switzerland and Portugal, Softbank in Japan, Telecom Italia Mobile, Telefónica in Spain, TeliaSonera in Scandinavia, T-Mobile in Austria, Germany and the Netherlands. Vodafone will launch the phone in Australia, Italy, New Zealand and Portugal.

Source: Rapid TV News