Tuesday, February 26, 2008

One BILLION Dollars

Analysts at Marketwatch speculate Apple is losing buckets of money due to iPhone unlocking:
Sacconaghi estimated that between 25% and 30% of the more than 4 million iPhone units already sold have been unlocked to work on other wireless networks, and that each unlocked iPhone results in Apple's missing out on $370 in earnings over the phone's two-year contract period. If Apple were to hit its 10 million-unit sales target, the unlocked devices would cause the company to forgo between $1.1 billion and $1.3 billion over two years, he said.

But a blogger at CNET.com disputes the math with much aplomb:
Which is why -- and, jeez, how many times does the Macalope have to say this? -- it makes absolutely no sense to say that Apple is losing this money. If these phones are in countries where Apple has no contract, the only thing you can say is that Apple should get an exclusive contract there faster (easier said than done). If they're being used by people who just don't like the exclusive provider Apple's signed with, then these are people they'll never get anyway.

(Quick little postscript: I'd never noticed the "live updating" stock quotes inside a story at MarketWatch before. Pretty slick.)

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