40% more sales. Here is what would be according to RBC Capital, an analysis company, the strategic turning point that will change the iPhone's market policies. Mark Abramsky elaborates his thesis in a note released to investors during yesterday.
To multiply Apple's forecasts, bringing from 10 to 14 million the number of phones that Apple could have sold in the 12 months of 2008 the various factors that should be brought into play by Apple: hardware with 3G support, diffusion in multiple countries , the sales platform for applications and the opening of the business market. But one thing more than others, according to Abramsky, could be decisive: the unlocking of the iPhone and the reduction if not the complete elimination of the exclusives in various countries.
The RBC Capital analyst then lists a number of high-impact benefits that would result from the change in strategy.
Firstly, the elimination of the carrier lock would give all customers the opportunity to purchase iPhone and use it with the mobile operator of their choice. This alone would help multiply iPhone sales outside the US by two if not three. The possibility of subsidizing the telephone will also produce an increase in sales. 'At & T would be happy to use a $ 200 discount on the iPhone – says Abramsky – to steal a customer from Verizon.' Finally, the reduction if not the elimination of the exclusivity in some countries would leave more choice for the purchase and management of telephone services.
In order to have an overall beneficial effect and no effect on the part of mobile operators, in the form of discontent, or on the balance sheet, Apple should set a higher price for unlocked phones or accept lower profits that will result from the lack of percentages from carriers against the hope of having a higher market share.
More sales on the iPhone could actually produce a significant profit, says Abramsky, capable of easing the loss of percentages by the operators and a quick calculation shows that this would be possible at least according to some calculations by the same analyst.
According to Abramsky, a $ 400 Apple iPhone had a gross profit rate of 35% during the March quarter, up from 32.9% in the December quarter. How to say that it is $ 140 gross for each iPhone. If Apple were to sell 4 million more thanks to the new strategies and admitting that $ 400 was the average price of the phone, Apple would bring home $ 560 million more by the end of the year. A figure that, on balance, seems more than capable of alleviating what would be lacking from the renunciation of commissions provided by mobile phone operators.