Studies Show 25% of iPhones in the USA are Unlocked

It has been reported that a large number of Apple iPhones in America have been unlocked to work on other networks. This news will come as a shock to US phone network AT&T, which is the exclusive network provider for the iPhone.

Since its launch last summer, the iPhone has only been available on one network in each country. However, as studies indicate that around one in four US iPhones have been unlocked, many iPhone users seem to be using their phones on other networks too.

One of the most notable studies, which was conducted by Bernstein Research, showed that around 27% of iPhones sold in the USA last year were unlocked to work on other networks. Another study, this time conducted by analyst firm Piper Jaffray & Co., showed that around 25% of iPhones had been unlocked. Apple have admitted to being aware of a “significant” number of iPhones that have been unlocked in the USA, but they have yet to make a statement on the results of these studies.

The mass unlocking of iPhones does not only have a financial impact on AT&T; as Apple currently takes a percentage of each iPhone user’s monthly AT&T tariff, the technology giant looks set to lose an large amount of revenue too. Toni Sacconaghi, an analyst with Bernstein Research, has estimated that an unlocked iPhone generates around 50 per cent less revenue and 75 per cent less profit than a locked phone running on AT&T. This year, if Apple manages to shift 10 million iPhones in the USA as predicted, as many as 30 per cent of this amount will be unlocked and freely used on other phone networks. Sacconaghi has estimated that this could cost Apple around $500 million in lost revenue.

These studies indicate that Apple may have to reconsider their current iPhone strategy of network exclusivity. In Germany recently, Vodafone took T-Mobile – the exclusive supplier of the iPhone in that country - to court in order to try and overturn their exclusive deal with Apple. Although Vodafone lost the case, analysts are expecting a number of other companies to follow suit.

Source:

BBC
Times