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What is the iPhone business model?

For those who are still clinging to the belief that it’s AT&T “forcing” Apple to stop hacks which uncouple the iPhone from its provider, the latest news from Marketwatch should be required reading.

According to the report, Orange is struggling to get the iPhone in time for Christmas in France – and may, in fact, not get it at all:

“The difficulties stem from a French law that would require the iPhone to be sold both with and without contracts, undermining its exclusivity for Orange and Apple’s demand of up to 30% of voice and data revenues, Les Echos reports.”

As I’ve posted before, that proportion of revenues adds up to much more than the price of an iPhone over and 18 month contract, and – unlike the hardware – it’s almost all profit for Apple.

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