Wednesday, January 25, 2012

Apple and Emerging Markets

Chinese carriers aren't so interested in paying handset subsidies, so they're going with cheaper phones. Srry iPhone, you'll have to continue focusing on upselling The Next Big Thing to the domestic market:


For instance China Unicom’s EBITDA margins for its mobile division have declined sharply in recent years from 42% in 2008 to about 24% expected by the end of 2011, mainly due to high level of subsidies associated with higher priced smartphones. By selling cheaper smartphones, these companies will be able to reduce their subsidy costs while keeping data usage and consequently ARPU levels intact.


And if you always mis-read that carrier's name as China Unicorn, well, you and I would probably get along.


Linky

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