As expected, Apple announced the iPhone 3G at their World Wide Developers Conference in San Francisco . The phone will be available on July 11th for the reduced price of $199 for the 8GB version via a subsidy, as AT&T have adjusted their relationship so that Apple no longer gets a share of the revenue stream from the carriers - rumored to be as high as 30%. The new data plan for 3G will be $30 per month - up from the $20 per month for the old 2G service.
In the US, it seems as if AT&T will continue as the exclusive carrier. As an international traveler - I remain highly frustrated by AT&T's overseas rates and the inability without jail breaking the phone to swap SIMS card from foreign carriers. If Apple is really serious about enterprise - let's see proper support for the international road warriors who want all the benefits of the iPhone and the new MobileMe service.
Apple shares initially fell on the news that Apple was giving up a revenue stream but what most analysts seemed to miss was that Apple may have its eye on a bigger revenue opportunity - off deck advertising. With control of the iPhone applications via the SDK and distribution via the iPhone apps store - Apple is in a marvelous position to look at different advertising revenue streams - from display advertising, direct response, sponsorships, in application (particularly in gaming) advertising. Different models can be developed where Apple and the application developer can share the advertising revenue streams.
Mobile advertising revenue streams are in their infancy but Apple has all the foundations in place to take advantage of what will become a huge business. One to watch.
For a great read on mobile advertising opportunities check out Mobile Advertising: Supercharge Your Brand in the Exploding Wireless Market by Chetan Sharma, Joe Herzog, and Victor Melfi
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