Piper: Vodafone will bost iPhone sales, skew revenue

Vodafone's announcement of iPhone sales in 10 different countries carries with it both positive and negative aspects, say analysts with the research group Piper Jaffray. The most dramatic change is in the number of potential subscribers, which should jump from 152.7 million to 292.5 million. This offers the possibility of a major boon to device sales, even though like the rest of the world, most Vodafone subscribers will not be rich enough to afford an iPhone and an accompanying plan.

Piper notes that Vodafone's deal is likely non-exclusive, as suggested by other analysts. This is because Vodafone has not mentioned any exclusivity deals, something previous iPhone carriers have been careful to emphasize in their initial announcements.

Non-exclusive deals may push unit sales even further for Apple, but are not expected to contribute substantially to CY08 figures, which are being modeled at 12.9 million. This may even have a negative impact on revenue sharing for CY09, though not strong enough to damage the company. Piper estimates a 33 percent gross margin for sharing in both calendars.

Filed under: iPhone, Apple, Investor
Other story tags: Vodafone