China and the iPhone

Carl Ford : 4G Wireless Evolution
Carl Ford
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China and the iPhone

It may be that ATT is good as it gets with the iPhone.

I have already commented on the fact that Telefonica is not having the same dramatic impact with the iPhone as ATT (Verizon [ NYSE: VZ] announced a 30% drop in earnings and slower growth than ATT ).

In China the Nokia E71 has a good following (I am still an N95 fan) and the  cost of the iPhone is equivalent to a $1,000 US dollars over there.  The discussion of Nokia's efforts to protect patents Apple may have violated seems late, but I suspect it will work itself out like many of these do before the court has to make a decision.  IMHO, It probably has more value in the EU to show market / thought leadership than financial value.

More importantly as China continues to manage the operations of their end users the ability to use WiFi has been disabled.  Like the issues of Skype via TOM in China, a closed iPhone with only the carriers network is not as interesting as an IPhone with WiFi.  However, it allows the state to know what it wants to know.

Of course in China if you capture less than .001 of the market you are still busy, so the iPhone success is pretty much a guarantee.


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