[imr]

Perhaps the market will change to be more like the console market, where the hardware is sold at a loss in exchange for future revenue from other sources. I would look for phone manufacturers to start asking for a percentage of app sales.

[MBlume]

Have you bought a phone lately? The telco pays for most of the phone in exchange for your agreement to use their service for two years.

[imr]

Sure, but now phones generate other revenue than just the service contract. You don't think phone manufacturers would want some of that?

[rsynnott]

They want it, but they're not going to get it. In any case, for the time being, app store revenue is minimal compared to device revenue; last year the whole sector took under 2 billion dollars in sales globally, only a third (less sales taxes etc. in some cases) goes to the operator.

[sliverstorm]

More like, have you bought a phone in the last ten years?