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Apple deserves credit for the iPhone, but I think if MS pulled off the same stunt, the whistle would play another tune. I just hope it'll come to DK soon!

All other handset makers should be embarrassed at the lack of advancement in their devices; they're the one who rested on their laurels and who will now pay the price for their complacency and mediocrity.

Well Apple is doing something different, they are asking/demanding money back to continue funding innovation for their product line from the carriers.

The carriers simply pass this cost onto the consumer, it's just a matter how much the carrier will bear as not to place itself out of competition with other carriers for coverage prices.

We wind up paying anyway. But by choosing a iPhone we are investing in innovation.

The other phone makers don't do this nearly as well as Apple.

Someone was wondering why Apple rolled out the phone in the US first, rather than releasing it globally... THIS is why.
Now they can point to solid success in the US as they negotiate with international carriers, and it seems to be working.
I'm sure it also doesn't hurt that they can deal with any technical hurdles in the US market to make the rollout in other countries that much smoother. For instance, I'll bet they'll be sure to suggest that carriers change their bill-printing policies for the iPhone if they're anything like AT&T;.
Trust me, world, it will be worth the wait.

-c

MW: 'makes' (a mean latte)

well.. much can be said, but they sure know how to make money in cupertino

"...MW: 'makes' (a mean latte).."

.....and Chrissy knows how to make a mean latte ! ...

I felt I knew how bad cellphone UI's were, but I did not realise how bad until I got my iPhone. The more I use this thing the more I ask myself why this good a phone could not have been done before.

Apple deserve all the revenue they can get from the iPhone because again they have shown the way to all the other cell manufacturers. Now hopefully these cell makers will see the way forward.
Posted from iPhone while at work.

Resting on the laurels

Gardner must have borrowed George Ou's dictionary.

"Matte Screen User" is right.
In the end, the money will be taken from the pockets of the consumers (or subscribers in this case). So we pay one way or the other.
But at least, one get's something for one's money!
Now let's just see who is going to carry the iPhone Europe...

The bill printing policies were AT&T;'s fault and are only indirectly related to the iPhone. It could have happened with the advanced feature set for any "smart" phone. If you are on an unlimited plan of any type (phone minutes, text messaging, etc.), then there is no need an itemized list.

AT&T;has handled other "smart" phones with text messaging capability and plans ranging from a fixed number of text messages to unlimited. I never heard of someone with a RAZR getting a 300-page phone bill --- someone at AT&T;just screwed up.

Remember, the Europeans were the ones slamming Apple months back for having a 'monopoly' with iTunes. Apple is being 'set up' for more of the same, down the road, as a result of earnings from iPhone revenue sharing. Apple should get what it can but be abundantly cautious. The phone companies will surely bit the hand that's feeding them an Apple.

bite not bit

@wandering joe:
"Apple deserves credit for the iPhone, but I think if MS pulled off the same stunt, the whistle would play another tune."

In my part of the world there is a reply to nonsensical "if" suggestions: "If your grandmother had had rubber wheels, she could have been a bus."

So, dear joe, please note: If your grandmother had had rubber wheels, she could have been a bus.

Something to consider about the "all-you-can-eat" plans for internet service, cell phones/wireless service, etc. is that the majority of customers are subsidizing the small subset of heavy users. Some of the proposals for use-based fees (e.g., GB of throughput for internet service) have some merit. People who are sending GB of spam or sharing GB of audio/video files 24/7 would pay more to do so. That is justifiable because they are stressing the capacity of the system.

People that use thousands of minutes of talk time and send tens of thousands of text messages and access GB of internet content are similarly stressing the cell phone and wireless data systems. The lady blogger who received the 300-page AT&T;iPhone bill sends 35,000+ text messages per month. That only costs her $20 per month more than someone who sends 200 or less text messages.

It is worth considering that the current fee plans support excessive use of shared resources by a small percentage of individuals.

MDN MW: Ironically, it was "support," as in why are we supporting these data junkies?

Sigh. I don't know what I should wear today.

How about a "I visited the mothership" Black AppleT-shirt?

wet of course.

Not only has Apple spent years and resources to develop the iPhone, but they continue to support each iPhone sold by improving and adding features to the software that runs it, via free downloads from iTunes. No longer do you need to dump your current phone and buy a new one to get some new feature. I don't see Nokia, Motorola, et. al. doing anything similiar. Given this, I don't have a problem with Apple collecting monthly fees from the carriers, since it's what continues to make the phone these carriers are supporting ever more useful, valuable, and desirable.

Build a better mousetrap...

"MacDailyNews Take: Resting on one's laurels typically means relying on past achievements instead of working to maintain or advance one's status or reputation. Apple is doing no such thing."

"MacDailyNews Take: Apple did the hard work and deserves to reap the spoils. Whichever carriers land iPhone deals will prosper. All other handset makers should be embarrassed at the lack of advancement in their devices*; they're the one who rested on their laurels and who will now pay the price for their complacency and mediocrity."

Now I'm not going to refute any of this because its true.....but man, you guys at MDN defend Apple Inc. like an overprotective mother. Its just funny sometimes .

And what has Apple done with all that power of the iPod? Raise the price for the consumer or keep it down despite pressure from the record companies?

Yes Apple gets a cut (good for them) from the cellular companies for bringing customers to them (or in my case not loosing me as a customer) but my AT&T;monthly data contract is LOWER that what many other users (including users of $99 windows mobile devices) are paying.

Anonymous,

Yes MDN protects Apple (still lol on your overprotective mother line) but it does get frustrating when journalist don't do their homework or just get lazy in their criticisms.

Apple is asking for a fair cut. Other handset makers cannot ask for such a "fair" cut, because they make generic devices that look and work the same, and make them available from every carrier. Why would the carrier give one such a company anything more than what they give everyone else?

Apple has again taken the path not taken. It is offering an exclusive contract to offer a unique product. The winner of the contract in each market has an advantage that is worth the cost of paying Apple a share of revenue. Apple deserves praise for being able to consistently out-think competitors.

iPhone MUST support 3G if it wants to be *really* successfull here in Europe. People are migrating rapidly towards 3G. iPhone will be huge even without 3G but will miss out some of the bonanza.

ken1w,

You make a great point! Apple is ASKING for a fair cut. If the other carriers don't think it is fair, then JUST SAY NO and let their competitor have the contract.

The public still wins because (at least in the U.S.) Apple's fair cut doesn't translate into higher carrier prices.

Apple are trying to change the way the cell phone market works. Forget the subsidized phones. Pay full price but then get reasonable plans with unlimited access for most features.

Also the iPhone can be updated to a much greater extent than regular phones. Therefore it be improved to match customer needs.

What I don't get is Apple only going with one network. Probably so that they can dictate the terms. Still I prefer choice and it may be a while before I switch networks and get an iPhone.

I seem to think that RIM gets a similar cut of every Blackberry that is sold.

C'mon folks, correct me if I'm wrong.

Yes RIM does get a service revenue, but that's because they provide a service, instant, secure, mobile email. and they get about $7 per subscriber per month to provide that service. At 9 milllion subscribers (and growing quickly) they will continue to grow and prosper.

But if this is true and Apple IS getting 10% of revenues...I like to think about the value of those cash flows in 5 years when they have sold tens of millions iPhones. I love that they are adding this very nice service revenue...very high margin and NEW!!

The sheer pleasure of using an iPhone is unprecedented. Apple has created a product that out performs all previous entries into the cell phone market. What is that worth to you?

We are fortunate to have this choice... and Apple made it possible...

magic word... "usually"... ain't it the truth

The one above is not me.

How is Apple's monthly payment from the phone companies different to the music companies asking for a share of revenue of iPod sales?

Seems pretty similar to me.

And whats the big picture? Negotiations with music companies. When baby middlebarfman says he wants a cut of each iPod sold, Apple can hold up the wireless model (and soon to be failed Wal-Mart experiment) and say, no, your music is going to pay for the opportunity to be on the iTunes store and iPod. Apple will be keeping the .99 price on 256 DRM free music, and Edgar, you will be giving Apple a MUCH bigger cut of that .99 than before.

In the short term, it won't matter to the artists cause they don't get anything from the labels anyway, but long term this could open up the much talked about but not yet realized direct artist negotiations with Apple, and eliminate the labels altogether.

Yeah, for the most part thats dreaming pretty big, but why not? If anyone had said in Dec 2006 that Apple would be dictating terms to the wireless phone providers that sokmeone would have been burned at the stake for blasphemy

Yeah man bring it do Denmark!