[dstaley]

This is, by far, my biggest concern with this acquisition. In markets where the iPhone is the major revenue driver, what incentive will carriers have to optimize their network for non-iPhone modems? I can easily see the US carriers neglecting Qualcomm modems to the point where if you want the best cellular experience, you have to use an iPhone.

[Skunkleton]

A very large number of non-apple cell phones are sold in the US. This doesn't seem like a well founded fear.

[dstaley]

That's definitely true, but I suspect that when you filter down to postpaid unlimited data plans (likely the customers with the highest margins), the iPhone's share of the market increases considerably.

[SpaceRaccoon]

That's true, but there is the perspective that iPhone users are more valuable, as they typically spend more money.

[scarface74]

Not a large number of high end non Apple phones....

[nradov]

Samsung sells huge volumes of high end phones.

[scarface74]

The average selling price of Samsung’s phones is $235. (https://www.sammobile.com/2017/08/02/average-selling-price-s...). Most of their phones are low end.

[pessimizer]

An average selling price doesn't speak to whether they ship a huge number of high end phones, just that if they do, they ship far more low end phones.

[scarface74]

Samsung ships about twice the number of phones as Apple but has a third of the ASP. The conclusion that most Samsung phones are low end is not hard to reach.

[ineedasername]

But your contract with Verizon or whoever, minus monthly portion paid towards handset, is the same. Not only that, but iOS has a pretty decent install base of older handsets, a significant chunk of iOS's ~45% market share. So even if iOS users did represent higher revenue customers, it would be years and years before optimizing for new intel-derived 5g modems would impact more than a minority of users, while inconveniencing everyone else.

For a currently-possible comparison scenario, are there issues with providers optimizing their networks for qualcom to the detriment of Samsung?

[ajross]

Apple drives the bulk of application sales revenue for sure. They probably represent a large plurality of phone hardware sales. I don't think they represent a sigificant chunk of carrier revenue though. An iPhone contract doesn't make them any more money than a junky Huawei one.

[eridius]

Is the iPhone the major revenue driver for any carrier? What matters to the carrier is the plan they can sell you, not the price of the phone you're using with that plan. I could believe that iPhone users on average have more expensive plans (due to being less price sensitive), but in most markets Android has the dominant market share.

Edit: I suppose carriers are regional, so the iPhone might be the major revenue driver in the US, but Android can't be too far behind. Neglecting 40% of your userbase doesn't seem like good business.

[ineedasername]

iOS has < 50% market share in the US, and I think that's still where they have their highest market share. There should be no risk of other hardware platforms left as second class citizens under that status quo.