SINGAPORE (Thomson Financial) - Singapore Telecommunications Ltd is
launching iPhone in September, but the telco has declined to confirm or deny
that it has struck a deal with iPhone maker Apple Inc, local broadcaster Channel
News Asia reported, citing industry sources.
A spokesman from SingTel declined to comment on the report.
While Apple is targeting to sell 10 million iPhone units this year in Asia,
talks with telcos around the region have dragged since last year over Apple's
unprecedented demand that it be given a revenue share from each iPhone sold to
mobile phone subscribers.
"The news, if true, is positive for SingTel. Given iPhone's (appeal to
consumers), we believe iPhone would lead to higher market share for SingTel.
However, the impact on SingTel's bottom line should not be very significant
given Apple's hard bargaining tendency and tough competition from StarHub," said
DBS Vickers in a note to clients.
Even though iPhone is not yet available in Singapore, DBS said Singaporeans
have bought an estimated 10,000 units since the mobile phone was launched in the
US in June last year, with some paying as much as 1,000 Singapore dollars for a
unit.
If the news is true, SingTel would likely be the first telco to officially
launch iPhone in Asia. China Mobile had in January ended talks with Apple about
the launch of iPhone in China.
Apple has also held talks with other Asian telcos, including NTT DoCoMo,
Japan's biggest mobile phone company.
(1 US dollar = 1.38 Singapore dollars)
jonathan.burgos@thomson.com
jb/zr
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