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1/4 of all iPhones are Unlocked

Published Jan. 29, 2008
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1.45 million iphones are MIA. Actually, its about 1mm since 480k are being held in AT&T inventory (man that's a lot!). So what's a company to do? If they crack down on unlocked iphones margins are maintained but sales targets could suffer... "a strategic dilemma"... yah, you think???
clipped from www.reuters.com
SAN FRANCISCO (Reuters) - More than a quarter of people who bought Apple Inc's (AAPL.O: Quote, Profile, Research) iPhone are using them on wireless networks other than AT&T's, the exclusive iPhone carrier in the U.S., a "stunning" number that will pressure the company's business model, an analyst said on Monday.
Bernstein Research analyst Toni Sacconaghi said analysis of sales numbers from Apple and AT&T Inc (T.N: Quote, Profile, Research) revealed about 1.45 million phones were "missing in action" at the end of 2007.

If Apple cracks down on unlocked phones it could preserve its high margins but miss its sales target, whereas allowing them could erode profitability and make it tough to sign more carriers to similar revenue-sharing deals.

"Besides the financial implications, we believe the prevalence of unlocked iPhones presents a significant strategic dilemma to Apple," Sacconaghi wrote. Continued...

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