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By some estimates, Apple (News - Alert) has managed to grab about 25 percent share of smartphones sold in the U.S. market, with a new advance possible on the strength of its new 3G model. In some ways, that means more challenges for competing handset manufacturers and service providers. The reason is that service providers are likely to respond, over time, with a new round of handset subsidies for competing models and lower prices to spur adoption of iPhone (News - Alert) competing handsets.


 
That will be good for users, if not especially helpful for mobile service provider bottom lines, reports Olga Kharif, Business Week staff writer. The aggressiveness will appear from July through December 2008.
 
Walter Piecyk, Pali Research analyst, says "we could see 30 percent to 40 percent price cuts in the industry." As a result, industry-wide service provider margins may slip to closer to 30 percent from the current 40 percent.
 
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
 
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Jim Cossetta, President, CEO, 4What Interactive, Creators of The VoIPTrainer, brought to you by 4What Interactive (News - Alert).
 


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