operators have agreed to give Apple 10 per cent of all revenue generated from iPhone users

According to the FT/Register

T-Mobile, Orange and O2 are to sell the iPhone in Germany, France, and the UK respectively, according to the Financial Times. The paper also reports that the operators have agreed to give Apple 10 per cent of all revenue generated from iPhone users.

At the iPhone launch, I had asked – Is this the tail wagging the dog? (The iPhone is extraordinary not because of it’s UI but because it’s the tail wagging the dog )

And indeed at 10% revenue share .. it does appear to be ..

But .. once again .. the real beneficiaries will be existing device manufacturers – who will now be able to negotiate a higher revenue share. Interestingly enough, according to the Register, Apple does not want the Operators to subsidise the device ..

This means, the customers are now going to get used to non subsidised devices .. and this means a shift of power to the device .. a good thing as I say in the Chicken vs. Egg blog .. (The Chicken and the Egg: The device and the network – which came first)