[3GScottishUser]

Much has been said and written about the iPhone, but even before its initial launch, Strand Consult was very critical - a criticism that was based on our experience and analyses. On the other hand we are the first to admit that there are many that disagree with our statements and the conclusions that have come out of our analyses.

However we do not believe that people that read our analyses should judge us on what we predict will happen, but instead on what we previously predicted would happen today. Unlike many of those that sell information about the mobile future, we are not financially dependent on technology providers, phone manufacturers or infrastructure providers. We make a living from advising mobile operators on how to achieve success and make a profit for their shareholders.

In the report The moment of truth, a portrait of the iPhone we take a closer look at the iPhone, the iPhone effect and whether a mobile operator can actually measure the iPhone effect, or whether there are other areas or mobile handsets that an operator would do better focusing on?

We have had a close dialogue with a number of operators, we have examined their financial figures and analysed whether the iPhone has created value for those mobile operators that have been focusing on the iPhone. In the report we take a close look at the 10 largest myths about the iPhone:

1) The iPhone drives data traffic into mobile operators networks
2) The iPhone helps operators attract new customers
3) The iPhone is good business for mobile operators
4) The iPhone is dominating the mobile services market
5) App store is a huge success that has revolutionised the services market
6) There is money to be made by developing applications for the iPhone
7) It is iPhone customers that are generating the majority of online mobile surfing traffic
8) The iPhone has a large market share
9) The iPhone was the first mobile phone with a touchscreen
10) The iPhone is a technologically advanced mobile phone

Simply put, many of the conclusions that the media have published about the significance of the iPhone for mobile operators are not documented in the operators’ - or other key market players - financial statements. We can also conclude that the closer a relationship is between an operator and Apple, the larger negative influence it has on the operator’s overall business case from a shareholder's viewpoint

Unlike many others that have put forward statements about the iPhone, we have chosen to describe and analyse the value chain that the iPhone is a part of. We have analysed the iPhone effect from an operator's viewpoint and described the 10 myths that are currently dominating the iPhone world.

Get more information about the iPhone market in our unique new free report The moment of truth, a portrait of the iphone.

http://www.strandconsult.dk/sw3896.asp

[Ben]

Hmm. We've seen plenty of articles that invalidate some of these claims. For starters, O2 has over a million iPhone subscribers, and I remember reading that a large proportion of these were new customers. I, personally, would never have taken out an O2 contract if it wasn't for the iPhone. I honestly thought I'd never see the day.

And yeah, the App store IS a huge success that HAS revolutionised the services market...

As for saying the iPhone isn't technologically advanced - well, hardware-wise it uses what everyone else uses, give or take. But software wise - WOW. And is software not technology, now?

If you ask me, "Strand Consult" are just another organisation piggybacking on the iPhone for free publicity.

[3GScottishUser]

I think the point Strand and the BBC seem to agree on is that the iPhone has been a great success for Apple but not that great for the Mobile Ops who have offered it. All down to the revenue sharing I suppose.

I don't doubt iPhone has created demand for mobile apps and has attracted many more customers to 'smartphones' but it is now facing some big competition and the Mobile Ops look set to strike back with their own services and apps. Apple will need to stay well ahead of the game to remain attractive to the mobile ops who they charge a big premium to do business with. Without the Mobile Ops Apple have no future in the mobile comms market, so they better not let short term greed annoy the big Multinational Mob Ops or they could become the next Motorola!!

[Ben]

Hmm, see, AT&T were doing very well financially off the back of the iPhone if I remember correctly?

http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=26502

Looks like the iPhone is working out nicely for them according to those results!

But yes, I can appreciate that Apple have done very well out of the agreements they managed to negotiate with the mobile operators. But then it's their baby ;)

[miffed]

"The iPhone was the first mobile phone with a touchscreen"

Eh ? , when was that claimed , and by whom ? :confused:

the iPhone was the first phone with a DECENT touchscreen ..and the first one with an OS that was optomised for finger / touchscreen use. but I don't recall anyone ever claiming Apple invented the touchscreen on a Phone ?

I only have to look around me to see that the iPhone's uptake is nothing short of prodigous , I am not sure I need a study to tell me that :D

[3GScottishUser]

I think its easy to get carried away with what your own contacts and cirle have and use but its not always representitive of the market. I'm positive the iPhone has done very well with those prepared to spend £35+ a month on a phone deal. Where I work I know of only one staff member with an iPhone and that person is an Apple die-hard who favours Macs!! I have yet to see a student or young person with one because the price and the credit check probably are restrictive.

There are a lot of other high end phones in widespread use and the Blackberry seems to be one of the most visable especially the Storm.

We will never know if 02 have made much out of the iPhone. It has helped them gain a good foothold in the upper end of the market and I bet now that Apple have decided to distribute to Orange they will do their best to shift iPhone users onto alternatives that don't involve them in revenue sharing. The alternatives will have to be just as functional and appealing though and that could be the hard part.

The iPhone sits at the top end of the market and is probably the device most people aspire to own presently. New devices might just make it less appealing especially if they can be obtained with better bundles of voice/text/data at cheaper prices. HTC, Palm, Blackberry, Samsung, LG and Nokia have had a couple of years to develop new products and I expect all of them to have compelling alternatives at attractive prices on the market by the end of this year. Apple will need the new distribution that Orange will provide just to stand still.

To date Apple have made some shrewd moves and excusive tie-in with 02 has delivered commitment from both. That is no longer the case and it will be interesting to see how both the Ops and Apple fare with the new arrangment.

[Hands0n]

Get more information about the iPhone market in our unique new free report The moment of truth, a portrait of the iphone.

That says it all really, Strand jumping on the "controversial" bandwagon, free report (why would a consultancy firm give away anything, they're not a registered charity), and no doubt plenty of free advertising courtesy of Apple and the iPhone. They're not silly.

Of course, the article itself is baseless and a load of old tosh. O2 have made a huge acquisition based upon the iPhone, both in Contract and PAYG terms. Other mobile operators have also benefitted from the iPhone where customers have extended their contracts to incorporate data tariffs/add-ons to support the data usage of the iPhone.

For Strand to suggest that "It is iPhone customers that are generating the majority of online mobile surfing traffic" is a myth just goes to show their own ignorance. Any web statistic will show that the iPhone browser is the number one mobile browser in the world.

Perhaps Strand would be better off selling ice cream or bananas rather than trying to look credible when publishing controversial crap like this.