1. JazzL5's Avatar
    Interesting article from the LA Times posted 2/10/12 (reposted today by MaximumPC).

    Apple's iPhone takes big bites out of wireless carriers' profits - Los Angeles Times

    Apple through its' iPhone is the modern day vampire sucking the profits from the ignorant carriers.

    Serves them right!!

    Wake up RIM. Seize the day. Opportunity knocks and you need to respond now!!
    04-19-12 02:00 PM
  2. lnichols's Avatar
    Interesting article from the LA Times posted 2/10/12 (reposted today by MaximumPC).

    Apple's iPhone takes big bites out of wireless carriers' profits - Los Angeles Times

    Apple through its' iPhone is the modern day vampire sucking the profits from the ignorant carriers.

    Serves them right!!

    Wake up RIM. Seize the day. Opportunity knocks and you need to respond now!!
    The problem is that iPhone suck profits at the initial sale because of the high subsidy costs, the carrier hoping to make it up in higher priced plans. The Blackberry sucks $5 per month from the carriers monthly data intake in the cost of the BIS license for the account. So Blackberry costs the carrier $60 per year per Blackberry in service, or $120 over the life a two year contract, plus the initial subsidy for the phone. This IMHO is why carriers have been pushing Android so hard, and now why AT&T and T-Mobile are starting to push Lumia's hard, no monthly fee and a lower subsidy. More money stays with the carrier with Android and WP7 sales over the course of a contract. Apple was great for AT&T when they were the only one who had it. Verizon isn't pushing the iPhone hard, they are still pushing Droids hard, they only got the iPhone so those customers who had to have one wouldn't leave, but I bet Verizon management would prefer you buy a Droid over an iPhone any day of the week. I think that RIM needs to figure out a way to eliminate the BIS fee to get carriers back on board. WP7 simply isn't taking off like the carriers were hoping it would. It will be hard for RIM to do, because it is a source of great revenue for them, but they have to come up with new ways to generate revenue that don't hurt the carriers bottom line while still delivering the customer what they expect. This is why I think they will either need to be bought by or form a strategic partnership with a content provider (like Amazon) that can eat the costs of RIM NOC's and just make it a value add at no cost to the carrier or end user.
    James Nieves likes this.
    04-19-12 02:16 PM
  3. fernandez21's Avatar
    I think RIM first needs to cement themselves as the 3rd platform in both market share and mind share. Right now windows phone is still a distant 4th, but their mind share is growing while RIM's sales are declining. Microsoft has their marketing department out in full force right now trying to get windows phone mind share even higher (just check out the comments section on the verge's review of the lumina 900). After RIM cements itself at 3rd place, then they can start setting their heights on apple/google.
    04-19-12 02:20 PM
  4. Czar_of_Berry's Avatar
    Well put. Thanks for the insite nichols
    04-19-12 02:21 PM
  5. Thunderbuck's Avatar
    Yes, I think this represents some opportunity to RIM, but the fact is that Apple is profitable enough that it can gradually bring prices down for the carriers after a launch (not unlike the motion picture model where the studios get the bulk of opening week profits, but theatre owners get higher profits as time goes by).

    RIM needs to innovate. There's a window for them to do that, particularly if there are some cool things coming from BB10 and NFC.

    If RIM can do something cool, that can distract people from the Apple/Android competition, they can shake some sales loose. That's their best hope.
    04-19-12 02:22 PM
  6. Spencerdl's Avatar
    That explains alot, thanks for the info OP. My carrier, Sprint, went up $10 on all plans, does not wavie activation fees any longer, my friend hasn't gotten a raise in two years, stopped promotions and wont budge on deals for phones......now I know why. I thought Sprint and the US big three carriers had lost their minds and all this time they were just being greedy, but it's about that rotten fruit
    04-19-12 02:38 PM
  7. lnichols's Avatar
    That explains alot, thanks for the info OP. My carrier, Sprint, went up $10 on all plans, does not wavie activation fees any longer, my friend hasn't gotten a raise in two years, stopped promotions and wont budge on deals for phones......now I know why. I thought Sprint and the US big three carriers had lost their minds and all this time they were just being greedy, but it's about that rotten fruit
    Sprint got into the dumbest deals imaginable with Apple. They have committed to buy Billions in iPhones, whether they can sell them or not. They are then therefore committed to Billions more in subsidies. Why do you think that all of the commercials you see now from Sprint are the "why limit the iPhone" ones. I decided to leave them after 10 years because of the $10 per phone increase on my four lines, and other nickel/dime stuff. I wish them no ill will, but they have made some really dumb moves (WiMax, iPhone, Lightsquared, etc.).
    Spencerdl likes this.
    04-19-12 02:48 PM
  8. G-bone's Avatar
    Course, if that Times story were about BB, it would have been picked up by every form of media in the known universe, been the lead story, included few facts, been embellished with outright lies ,been repeated and returned to again and again, and ultimately become an urban legend!
    P. S. - the fee for BIS is worth every penny. When you've got to get a message through, it's BB - nothing else can cut it. I know -I live in a poor coverage area, Android and Apple can't cut it. If I were giving my kid a mobile for emergencies, it would damn sure be BB!
    04-19-12 02:53 PM
  9. dbmalloy's Avatar
    With the move to LTE and away from all inclusive data plans I do not see why the Carriers will not love Apple even more.... when you charge by usage... you make money.... so unlike the 3G era where all in one packages were a selling point... that will not be the case as LTE becomes implimented.... Just ask all the new Ipad users with LTE packages who hit their data cap in less than a week.....

    Evenutally the deals the carriers will fall away as the market changes.....
    04-19-12 02:55 PM
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