[MW Forums]

Talks between China Mobile and Apple to bring the iPhone to that country have failed, reportedly due to revenue sharing differences. more

[melgross]

This revenue sharing garbage is going to cause Apple more trouble than it's worth.

[kwill]

Is the iPhone revolutionary in China? The mobile phones there are far more advanced than what is available in the U.S.

[MGP]

It's not garbage, it's money - and it appears to be working just fine. I have no problem with Apple making money where it can, as far as China goes I am not surprised. Ultimately it will be demand that decides the outcome. No matter how many rip-offs China produces it will still NOT be an iPhone.

[hagen]

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This revenue sharing garbage is going to cause Apple more trouble than it's worth.

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What's included with the revenue sharing? No business will sign up for it unless there is value. Do YOU know what the services being included are? Didn't think so.
All I know is that Apple maintains the front end for licensing, SW and FW upgrades, future functionality, warranty and repair.

[Kwi-Chang]

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This revenue sharing garbage is going to cause Apple more trouble than it's worth.

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I have to agree somewhat. At some point Apple will have to make changes but it is not going to happen until each country has the iPhone for set amount of time - maybe 2 years or so - and then Apple will have to at least drop the % of revenue sharing requested/required.
Unless of course Apple comes out with the next generation of mobile devices that are compelling enough that the cell companies want to be associated with it.
Apple has every right to get some ongoing revenue from this product at least for a short amount of time.

[dbater]

Apple will continue to ask for a bigger piece of apple pie until the consumer says, " I want it cheaper!" then things will change, until then, Go, Apple, Go.... I love owning AAPL

[bigpics]

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This revenue sharing garbage is going to cause Apple more trouble than it's worth.

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Ever since the iPhone ramp up Apple's been involved in an unusual number of controversies -- both with other companies (media, telco, and others) and with its base. For the base, consider the precipitous early iPhone price cut, bricking phones, coming late to its own SDK party, leaving valued features behind in its upgrades, e.g., the dysfunctionality of Stacks for power users who actually believe in organizing files, no sound recording or file storage on new iPods, leaving simple features off the Touch that are on the phone, pushing people with more than the most modest video editing aspirations toward spending $199 on Final Cut Express with the dumbed down iMovie '08, however keen it is for tyros, etc., and the funny but classless use of a crashed Windows CRT for its PC icon on networks.
They've also raised a few eyebrows on what seems a greater number of quality control issues -- which admittedly may be due to the sheer volume of new software and hardware they've released this year, but a perception's beginning to be created nonetheless.
At base, much of these "growing pains" are coming from Apple's success in becoming a force in various markets that depend on partnering with other large corps, many of which are, to put it charitably, less than the most admired ones around. The RIAA/BMI complex and the vampiric, blood-sucking cellcos primarily.
An old adage is that if you lie down with dogs, you will get up with fleas. And Apple does seem to be scratching itself more of late......

[Kwi-Chang]

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Apple will continue to ask for a bigger piece of apple pie until the consumer says, " I want it cheaper!" then things will change, until then, Go, Apple, Go.... I love owning AAPL

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Nobody should complain having a great device like the iPhone with UNLIMITED data for as little per month as it is. Think back 5 years what a guy would of paid to have those capabilities! Apple earns it's money and invests it wisely.
My first Mac in 1988 cost about $3500 plus some software and a dot matrix printer - new iMac for under $1200 with lots of great software. We were paying electricians $18/hr then and today we are paying them $35/hr. A guy would have to work about 200 hours to pay for a Mac then and about 35 hours to buy one today.
Things are going in the right direction. Apple continues to bring better products at decent prices year after year.
China Mobile etc should not worry about a bit of revenue shared. Apple is helping them make money too. Also Apple has manufacturing in China and puts money into their economy so it is not a one way street.

[Kwi-Chang]

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This revenue sharing garbage is going to cause Apple more trouble than it's worth.

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Ever since the iPhone ramp up Apple's been involved in an unusual number of controversies -- both with other companies (media, telco, and others) and with its base. For the base, consider the precipitous early iPhone price cut, bricking phones, coming late to its own SDK party, leaving valued features behind in its upgrades, e.g., the dysfunctionality of Stacks for power users who actually believe in organizing files, no sound recording or file storage on new iPods, leaving simple features off the Touch that are on the phone, pushing people with more than the most modest video editing aspirations toward spending $199 on Final Cut Express with the dumbed down iMovie '08, however keen it is for tyros, etc., and the funny but classless use of a crashed Windows CRT for its PC icon on networks.
They've also raised a few eyebrows on what seems a greater number of quality control issues -- which admittedly may be due to the sheer volume of new software and hardware they've released this year, but a perception's beginning to be created nonetheless.
At base, much of these "growing pains" are coming from Apple's success in becoming a force in various markets that depend on partnering with other large corps, many of which are, to put it charitably, less than the most admired ones around. The RIAA/BMI complex and the vampiric, blood-sucking cellcos primarily.
An old adage is that if you lie down with dogs, you will get up with fleas. And Apple does seem to be scratching itself more of late......

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Theres another old adage which applies here too: You can't please all the people all the time.
I agree with the growing pains theory too. The iPhone, while it is a great product, took some of Apples attention & resources for some time and that, I think, is where the quality issues arose from.
Apple is once again reinventing themselves and re aligning the products. In the past they had to do a lot of their own software and bundle it with the computers they sold to make it a worthwhile option to get a Mac. Now with a good installed base of users and a growing marketshare (and growth in terms of units sold) they can start to move some of the software into a role as a revenue source while still bundling the basics with new Macs.
Despite some transition phase issues Apple still gets from 80 to 90% satisfaction ratings on their products. Most other companies can only dream of those numbers.
Stay the course I'd say even if there are a few bumps along the way.

[bigpics]

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At base, much of these "growing pains" are coming from Apple's success in becoming a force in various markets that depend on partnering with other large corps, many of which are, to put it charitably, less than the most admired ones around. The RIAA/BMI complex and the vampiric, blood-sucking cellcos primarily.
An old adage is that if you lie down with dogs, you will get up with fleas. And Apple does seem to be scratching itself more of late......

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Theres another old adage which applies here too: You can't please all the people all the time.
I agree with the growing pains theory too. The iPhone, while it is a great product, took some of Apples attention & resources for some time and that, I think, is where the quality issues arose from.
Apple is once again reinventing themselves and re aligning the products. In the past they had to do a lot of their own software and bundle it with the computers they sold to make it a worthwhile option to get a Mac. Now with a good installed base of users and a growing marketshare (and growth in terms of units sold) they can start to move some of the software into a role as a revenue source while still bundling the basics with new Macs.
Despite some transition phase issues Apple still gets from 80 to 90% satisfaction ratings on their products. Most other companies can only dream of those numbers.
Stay the course I'd say even if there are a few bumps along the way.

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All good points, and don't get me wrong. I'm way long AAPL, but as they become a major world corp and link arms with other megacorps and exchange some hard elbows and head butts with others, and with the FOUNDER not staying forever, there is a danger of them just becoming another soulless selling machine.
Apple can stay Apple -- focused around a vision of great products with innovative/intuitive features that people will recognize and love -- but as they grow, as they become increasingly partnered with companies that have a lesser vision, as they manage a constantly increasing number of product lines and products within those lines, as they deal with the pressures of the world investing community which is all bottom line and growth expectations, etc., they WILL have to work harder and harder to remember how and why they got there in the first place.

[Kwi-Chang]

Too right!
Clone the FOUNDER. I hate to be the guy who has to step into the top spot when he is no longer around - or even worse - step into the top spot when he is still around.