the case for learning
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summer 2009 issue 41
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summer 2009 free case
This case was prepared by Jordan Mitchell, Research Assistant, under the supervision of Professors Sandra Sieber and Josep Valor, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright ©2008 IESE.
Apple’s iPhone: Calling Europe or Europe Calling?
On November 9, 2007, Matthew Key, O2’s chief executive, was elated that Britons were flocking to purchase the iPhone. But zealots wondered, “Will the iPhone be worth it for O2, considering the concessions given to Apple?” Released on June 29, 2007 in the United States, Apple’s iPhone was viewed as a breakthrough for its touch panel user interface, web-browsing and multi-media capabilities. Besides the initial $599 price, consumers had to deal with AT&T Mobility in monthly service packages ranging from $59.99 to $99.99. Despite the cost, the iPhone sold one million units in just over two months. For its European launch, Apple selected UK’s O2, Germany’s T-Mobile and France’s Orange. Rumours swirled regarding the negotiated revenue-sharing percentage. In the United States, AT&T had agreed to pay an estimated 10% to 20% of monthly iPhone revenues to Apple, an industry first. Had O2 chosen wisely?
Mobile Telecommunications in Europe
Wireless and mobile services made up nearly half of the $1.5 trillion (€1.1 trillion)...
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