iPhone sales cost Optus $44m

By Brett Winterford on 04 November 2008

Optus parent SingTel has announced that the popularity of the Apple iPhone will actually cost the carrier AU$44 million in Australia in its first quarter of sales.

(Credit: CNET.com)

Optus was one of three carriers in Australia that announced they would support the iPhone as of July. Offering what consumers saw as more attractive plans than Telstra and Vodafone, Optus claimed it accounted "for the majority share of iPhone 3G activations in Australia" during the September quarter.

As a group, SingTel activated some 170,000 iPhones in Australia, Singapore, India and the Phillipines during the period.

But the bargaining power of the Apple brand has come at high cost to the carrier.

"Higher subsidy costs are associated with the iPhone 3G," SingTel said today in a statement to its shareholders. "Consequently, the successful iPhone 3G initiative will have a dilutive impact on earnings and margins in the near term."

The Singapore-based carrier said the cost of selling the iPhone in Australia would reduce its September quarter earnings (EBITDA) by AU$44 million in Australia, and S$27 million in Singapore.

It's not all bad news, however. The carrier boasted that 55 per cent of customers of its new iPhone customers in Australia were new customers to Optus.

In the long-run, the company expects to profit from the data iPhone users consume.

The carrier estimated that iPhone users consumed 1.5 times the amount of data as regular post-paid mobile users. "iPhone subscribers will deliver positive value," the company said.

Topics: carrier, iphone, mobile, optus, singapore telecommunications, singtel

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Comments (5)

  • doanbien commented on 07/11/2008 19:23

    wonderful

  • Andrew commented on 06/11/2008 14:40

    This little Black Duck will be taking his business elsewhere once my contract is up. Optus coverage, network speed and hidden billing practices being the start of my disappointment

  • Gizmonty commented on 05/11/2008 21:33

    Yeah, I signed up for a $79 iphone plan with Optus and wish I'd gone for the $49 as I can't get close to the data-cap. I usually give up on web-surfing when I'm out and about on 3G. Wi-fi at home is the only useful way of using it, and then I'd rather just use a computer. I do love my iphone but it comes with a lot of Optus-generated disappointment. Once my contract's up I'll be doing my best to leave Optus.

  • Snowman commented on 05/11/2008 15:59

    With the speed I get from my 3g iphone I doubt I would ever hit the quota limit.. Optus are kidding themselves if they think they will make it up on usage..

  • Tom commented on 05/11/2008 13:35

    Eeek! I was hoping to sign up to an iOptus iPhone plan in February. I hope they don't bung the prices up.

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