40% revenue share for Apple in O2 iPhone deal

The guardian is reporting that Apple can command a 40% revenue share over whatever O2 (a UK wireless operator) will make from iPhone users. It’s *huge*! (or “mad” as O2’s competitors say)

Obviously Apple’s unique position with the iPhone allows it to dictate the terms, but what about the other phone manufacturers? There are two options:

1/ Most will continue to create devices that aren’t so cool. They will therefore submit to the wireless carriers demands
2/ Many will come up with uber-sexy phones that carriers will drool on. It’s unlikely, but in this case, Apple will have more competition and the carriers win.

As we said before, Apple is currently an exception, and their success is not likely to spread to the rest of the industry.