Add to del.icio.us     Digg this

Apr. 30, 2008

Yesterday, Rogers Communications said it will offer Apple’s new iPhone to its customers later in 2008.

Rogers is the largest wireless carrier in Canada with slightly under 7.32 million subscribers nationwide.

Overall, Rogers has about a 37 percent market share of Canada’s approximately 20 million wireless subscribers.

A few days ago, the carrier reported strong quarterly profits, a lower 'churn rate' and an increased ARPU, with a corresponding increase in overall data revenue.

Rogers emphasized its efforts to continue with strong growth. However, the relatively modest size of the Canadian wireless market echoed the last two iPhone launches in Austria and Ireland.

Details on the exact timing and service pricing at Rogers remain to be announced. “We can’t tell you any more about it right now, but stay tuned,” said Ted Rogers, CEO at the carrier.

Apple’s second, third and fourth steps were also fairly prodigious strides, as Deutsche Telekom’s T-Mobile in Germany, the U.K.’s Number Two, and France Telecom’s "Orange" launched the device late last year.

In contrast, Apple’s fifth and sixth international markets -- 02 Ireland with 1.6 million subscribers and T-Mobile in Austria with about 2 million subscribers -- were decidedly minor incremental additions.

But in the context of Apple’s planned expansion to international markets, Canada resembles another baby step, after the iPhone’s blockbuster launch at AT&T Mobility in the U.S. last year. The American carrier, with more than 71 million subscribers, has so far been the engine propelling Apple towards its goal of 10 million units by the end of 2008.

First-quarter market share analysis by Strategy Analytics last week reflected that Apple’s share of the global handset market slid from 0.7 percent to 0.6 percent, as device shipments slumped to 1.7 million in the first quarter from 2.3 million in the fourth quarter -- greater than the typical seasonal, first-quarter letdown.

On April 3rd, Germany’s T-Mobile cut the price on its iPhone offering, leading to speculation on whether the device was selling as briskly in Europe as anticipated.

These latest numbers had wireless industry analysts questioning whether Apple will have to adjust its business model for the most attractive international markets, including China, where operators have stated that sharing data revenue is not an acceptable condition.

Apple's new iPhone has yet to enter the hot Asian-Pacific region, according to Ben Wood, analyst at CCS Insights. The company’s overall goal of 10 million is based on capturing about a 1 percent of annual handset shipment volumes of about 1 billion per year in the iPhone’s 18 months on the market.

Wood added that “other operators appear to have decided that Apple’s contractual terms, including the sharing of resulting data revenue aren't attractive at this time.

We believe Apple needs to rethink its approach. Apple’s secretive and U.S.-centric model to design the iPhone has resulted in some missteps in its marketing strategy.”

Add to del.icio.us     Digg this

    This article was featured on Business 5.0.

Source: Rogers Communications.