A roadblock to Apple’s integrated business model

A good way to educate a kid (or a dog?) is behaviourism: when the kid behaves the way you want you give him a reward.

It’s exactly what seems to have happened recently with Apple’s project to embed programmable SIM cards in its next generation of devices. This project was for Europe which is always seen as a complex market from the other side of the atlantic ocean: many operators and different languages.

The idea was to simplify and by the way to by pass operators and make more moneyin the process. In other word, to climb up one step in the value chain and gobble up some (most?) margin from the operators.

Apple has apparently dropped the project under operators’ pressure (Orange, Vodafone, Telefonica) as they are the main sellers of the iPhone. And here comes the reward: iPad will soon be subsidized in the main EU5 markets! That’s a nice treat that will push higher tablet sales.

Orange UK & iPad teaser

Orange UK & iPad teaser

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One thought on “A roadblock to Apple’s integrated business model

  1. Pingback: 2011 trends « Bertrand Issard's Blog

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