Archive for January 2014
AT&T – number two mobile operator in USA – announced at CES in Las Vegas last week a sponsored data scheme.
The AT&T scheme, which will operate on its HSPA+ and LTE networks, will allow private firms to cover the cost of transmission of content they provide to customers. The sponsor company will pay for the data transmission of consumers browsing or downloading their content. AT&T said that mobile shopping, mobile health care and companies with “Bring Your own Device” employee arrangements would be some of the sponsors it would target with the new arrangement.
This reverse charge data scheme may possibly be revolution in data charging or more likely an initiative, like charging for receiving mobile calls and texts, which finds application in the Americas only.
Rob Conway, chief executive of the GSMA for 12 years until September 2011 and a major force in the mobile industry, has died.
The GSMA annouced Rob’s passing and its commitment to honour his contribution to the mobile industry at the Mobile World Congress event in Barcelona 24th to 27th February. Rob presided over this major industry event during his lengthy tenure as CEO .
Apple have just announced here that iTunes sales of Apps rose to $10Bn in 2013. They also report over one million iPhone and half a million iPad apps available (many are the same app desined to work on both devices).
Apple says that it has paid out to date $15Bn to app developers. As Apple pay 70% of the sale price to the developer, this means it has collected $21Bn for the 50Bn app downloads to date. Apple customers paid $1Bn to download a record 3 billion apps in December 2013 alone. The majority of app downloads are free which contributes to the average revenue per download being around just 33c.
Asymco claims that Apple makes $2Bn p.a. from the iTunes store but that almost all of this revenue comes from sales of their own Apple software and that Apple’s margin on apps and music, which comprise the majority of iTunes sales, is very low.
The Asymco estimate, reported here, is that the margin on iTunes music sales is just 1% and 2% on app sales.
Apple of course runs iTunes principally to assist it to sell more devices and computers. All up in FY 2013 (to 28 September 2013) Apple booked $37Bn in profit so the iTunes contribution to this if the Asymco analysis is on the money is just 5.5%