Taken from:
In the phone world (and most other places) competition is good for all - it keeps the prices low and pushes all to improve their products and services. In the phone world, a 'monopoly' (not quite) by Apple may not be good. Consumers already are pressed by long term contracts and high switching costs - but maybe other phones (like the Windows Phone) might even the playing field.
In the article:
AT&T and Verizon Wireless want Windows Phone smartphones to succeed in the U.S., partly to provide leverage against Apple's demands for subsidies and other concessions required for selling the popular iPhone.
Both carriers need a strong competitor -- like Windows Phone -- to go up against the iPhone and Android phones, analysts said. The wireless carriers could then tell Apple that they can sell quality smartphones that don't cost the carriers as much as the iPhone to subsidize. The iPhone sells well but also eats into carrier profits because of the subsidy and related costs.
"Mobile operators are sick of taking orders from Apple, [which is one] reason why carriers like AT&T and Verizon are backing Windows Phone," said Yankee Group analyst Katie Lewis. "IPhones are occupying an increasingly dangerous share of operators' smartphone sales," she wrote.So, the great success of the iPhone allows Apple to demand subsidies from the telecomm companies. Kindof like Apple saying to AT&T and Verizon: "Hey, if you want to sell our iPhone, we'll want you to set it at a higher prices (because the consumers want it); and we want you to pay us for the privilege of selling a higher priced phone!!!"
In the phone world (and most other places) competition is good for all - it keeps the prices low and pushes all to improve their products and services. In the phone world, a 'monopoly' (not quite) by Apple may not be good. Consumers already are pressed by long term contracts and high switching costs - but maybe other phones (like the Windows Phone) might even the playing field.
