With all of the moral energy of the FCC focusing on exclusivity contracts, the device and application approval processes I came across a really interesting factoid about the iPhone experience in France.

There was an exclusive contract in France with Orange which moved from an exclusive channel arrangement to retailing through multiple carriers, and an unlocked service model. Market share for the iPhone in France jumped from 14-15% to 40% of the smart phone market! Competitive channel improves product penetration.

Intuitively, this makes a lot of sense since the #1 reason why users don’t buy an iPhone (in the US and probably true for the rest of the world) is that it is exclusive to the wrong network. There are many, many more factors that users and enterprises think about before buying a mobile device. They think about the device (of course), the network and the plan. To make a sale, the mobile operator or retailer must link all three factors.

Let’s see if a more intensive distribution of the iPhone really triples the market share.

[readon1 url=”http://www.fiercewireless.com/story/analyst-ts-iphone-exclusivity-likely-end-next-year/2009-08-31?utm_medium=nl&utm_source=internal”]FierceWireless Report[/readon1]

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