The iPhone Effect

How the iPhone Led to the Sale of T-Mobile USA
“The iPhone effect cannot be underestimated in this decision,” said Theo Kitz, an analyst at Merck Finck, a private bank in Munich. “Without being able to sell the iPhone, T-Mobile was in an unsustainable position and T-Mobile USA became a problem child.”




After Apple's iPhone became the world's leading smartphone, not being able to sell the iPhone became a major problem for T-Mobile. And now, its competitive position has further worsened because starting this February, Verizon has started to sell iPhones too. Is this really the 'iPhone effect'?


Comments

Post a Comment

Popular posts from this blog

Ireland's Economic Comeback

Image
On Wednesday, the International Monetary Fund (IMF) released a billion dollars of financial help to Ireland, as the country complied with the requirements set up in its 2010 bailout plan. The plan, which saved Ireland from bankruptcy after it suffered a massive banking crisis starting 2008, is reaching its end, as Ireland is getting ready to start issuing sovereign debt again in December. However, the country has to reach a minimum annual growth of 2% for its debt to become sustainable. Ireland is now out of its second recession in five years with a 0.4% second quarter expansion. This positive data, however, falls short of the optimistic 1.3% growth over the entire year predicted by the Irish government. Irish exports have grown by 4.3% over the same period, while household consumption grew by 0.7%. The IMF decision came almost one week after other good news for Ireland: on Friday, September 20, Moody's announced positive forecasts on Ireland's sovereign debt, which it now judg...
Read more

Obama pushes for diplomacy on Iran's nuclear program

Image
President Obama and Iranian President Hassan Rouhani both openly stated their support for a new diplomatic effort regarding Iran's nuclear program. Obama, addressing the UN General Assembly on Tuesday, stated that there was "basis for a meaningful agreement." In recent weeks, Rouhani, who was elected in June, has suggested that he is open to developing a program in which Iran is allowed to further their nuclear energy program but prevents them from building a weapon, claiming that a nuclear weapon program would "contradict our fundamental religious and ethical convictions." Obama said that Secretary of State John Kerry was working with the Iranian government to resolve the negotiations about Iran's nuclear program. In his statement to the UN General Assembly, he stated that success in the negotiations would be a "major step in a long road to a difficult relationship, one based on mutual interests and mutual respect," adding that "the roadblock...
Read more

The Next Bubble: Are We There Yet?

My previous two posts make it clear that all the conditions are in place for a bond bubble: strong fundamentals, technical momentum, and a mechanism for positive feedback. But these conditions are merely necessary; they are not in themselves sufficient to generate or identify a bubble. Nonetheless there are certain indicators that suggest we may be entering bubble territory. Let’s start by looking at the fundamentals again. One sign that a market has transitioned from boom to bubble is when the fundamentals change from bullish to bearish, but prices keep rising. I believe that this is true for the bond market. Let’s consider each of the factors I identified in my earlier post , in order: 1. Monetary policy seems to have regressed in recent years. In particular, central banks are no longer strict inflation-targeters; they have become asset-price-targeters instead 1 . Central banks are also less independent than before 2 . Finally, central banks have explicitly moved from tryin...
Read more