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iPhone for Orange: 700 Millions Euro

By linathael. Original by Lionel - 04/02/2009 21:17:34 CET - Category: iPhone
Following today's legal decision in France and the lost of its exclusive partnership for the iPhone, the economic newspaper, Les Echos unveiled figures indicating that the iPhone was a real cash-machine for the carrier, and further explain why it keeps fighting so strongly to continue the legal action:
- iPhone= 15% of total sales
- Every customer having subscribed to an iPhone-bundled plan represents 86 Euro/month cash-in
- If Orange get the iPhone for 409 Euro, and subsidize it for 310 Euro, it is still worth 139 millions Euro obtained directly from customers.
Those figures most likely strongly supported the court in its decision to stop this exclusive partnership, judging that Orange already strongly benefited from its position, and it would impact customers' rights and anti-monopoly regulations to let such partnership continuing any further. In coming days, we will know if Bouygues and SFR offer substantially cheaper iPhone-bundled subscription plan or not, or if they simply expect to play the "cash-machine" game too.
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