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Aug 24

iPhone Recurring Revenue For AppleEuropean iPhone carriers have agreed to give Apple up to 10% revenue share as recently reported from Financial Times.  Rumors about what AT&T and Apple agreed to are varied.  The FThowever, reported that Deutsche Telekom’s T-Mobile in Germany will share 10% of its ongoing revenue for rights to market and sell the cellphone.

The details about this kind of deal are not unheard of when carriers are asked to share their prized cash flow with a cellphone maker.  It is however, something that carriers do not do very often.  Even Nokia and Motorola do not have a deal with carriers to share ongoing revenue.  Research In Motion earns revenue from service plans that go with its BlackBerry cellphones.  RIM however, hosts and routes email through its servers so it too provides a service to customers.  Apple probably has shown its partner iPhone carriers that it could increase media downloads through a mobile version of iTunes.  This would mean some revenue share back to carriers in the future.

Apple iPhone cellphone users spend a lot of money.  A recent report shows that they spend on average more than $100 USD per month.  This means that when carriers do start to send Apple their revenue share, it will be a nice addition to Apple’s bottom line. Via MotleyFool.

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