Analyst on iPhone hacking

Following Monday's Apple statements against hacking, American Technology Research analyst Shaw Wu argues that despite media headlines, the actual impact on the iPhone market will be minimal. Wu claims that the only group affected will be hackers, and that this group is fairly small. The majority of buyers, it is suggested, will leave their iPhones unmodified. Wu further argues that Apple's position is necessary, for multiple reasons: among these is the need to keep the iPhone a "secure and stable" platform, and meet contractual obligations with AT&T as well as Europe's O2, T-Mobile and Orange.

Keeping customers on the official iPhone networks is of course financially beneficial, due to revenue sharing agreements that see a certain amount of money siphoned for every iPhone sold.

In the longer term, Wu suggests that Apple will eventually open up distribution to multiple carriers within a country, but will hold on to exclusives for the time being due to the marketing and resources committed by all parties. The only financial threat to Apple is said to be lower spending by US shoppers, which should be counterbalanced by unique products and international exposure.

by MacNN Staff