Linked by Thom Holwerda on Fri 22nd Mar 2013 11:08 UTC
Apple "European Union regulators are examining the contracts Apple strikes with cellphone carriers that sell its iPhone for possible antitrust violations after several carriers complained that the deals throttled competition." Well paint me red and call me a girl scout.
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kaiwai
Member since:
2005-07-06

Assuming that such availability exists in the EU I can't work out why there is this push for anti-trust against Apple when in reality it is badly run carriers whining with dumb customers too lazy to actually shop around for the best deal - yes, you can buy phones from retail stores and choose your carrier.

Because the carriers have to pay Apple twice as much as they pay for competing phones. The carriers effectively lose $300-500 per Apple phone sold.


Which is a load of crap - Telecom provide a $0 iPhone 5 32Gb at $159 per month and over its life (minus GST) it brings in $3318 to the company with the cost of the phone being $1042 (GST excluded) meaning that Telecom NZ makes $2000+ over the life of the contract off the consumer if he or she chooses the $0 offer. I'd like you to actually back up what you said with some evidence - you know, provide a link to a company providing the phone on contract at a low price and them not being able to recuperate the cost and make a profit - I'm here waiting and it's time for you to either put up or shut up.

Edited 2013-03-23 13:22 UTC

Reply Parent Score: 1

JAlexoid Member since:
2009-05-19

A) Apple requires minimal purchase agreements.
B) We are talking about EU here. Take a look at the prices in EU before spouting irrelevant facts about NZ.
C) Price for an iPhone in EU is about €650. Plans including iPhone are usually about €40 for 24 months. 24*40 = 960. That includes a cut to the salesperson(30-50), maintenance of the network and the device itself. Let's count it up? Apple's ASP for iPhone is $628 = €483(€580 with avg EU VAT).
960 - 580 - 35 => €345 - VAT = €287.5 before any operating expenses for 2 years. I know first hand that Apple is not the favourite vendor for EU operators to deal with. Now add to that minimal purchase agreements and you'll see that Apple is cutting deep into profits at the expense of other device makers.

Though I don't see on what grounds Apple could be found to violate TFEU Article 101 or 102, or any interpretations made by CJEU.

Reply Parent Score: 5

unclefester Member since:
2007-01-13


Which is a load of crap - Telecom provide a $0 iPhone 5 32Gb at $159 per month and over its life (minus GST) it brings in $3318 to the company with the cost of the phone being $1042 (GST excluded) meaning that Telecom NZ makes $2000+ over the life of the contract off the consumer if he or she chooses the $0 offer. I'd like you to actually back up what you said with some evidence - you know, provide a link to a company providing the phone on contract at a low price and them not being able to recuperate the cost and make a profit - I'm here waiting and it's time for you to either put up or shut up.


You're obviously a complete moron. New Zealand is probably the only country in the world where anyone pays such massive prices.

In Australia phones are typically sold on 24 month plans costing only $30-60/month [sometimes with a small handset fee].

In Australia (Vodafone) total cost on a 24 month contract:

iPhone 5 16GB -$1584 (~$800 gross margin)

Galaxy SIII 16GB - $1400 (~$1100 gross margin)

http://shop.vodafone.com.au/all-mobiles?type=Contract&pid=v:pers:ho...

Australian carriers also pay far more than other countries for spectrum. This further erodes profits.

Many Australian phone shops don't display iPhones. In fact the staff basically pretend they don't exist. The reason is because they aren't very profitable.

Reply Parent Score: 3