iPhone Business Model & impact to Exchange Hosting Providers.

Hosting Providers welcomes Apple’s announcement of support for Microsoft Exchange ActiveSync in the beta release of iPhone 2.0 software as it offers direct push technology whereby iPhone users can access email, contacts, calendar and IT administrators can do remote wipe if device is stolen..

iPhone is still sold through Mobile operators and unfortunately Apple is struggling to clinch a deal with other operators outside US.Though there is a limited availability in few countries in Europe.

How about Asia? Looks like operators in this region are still thinking about a best business model which suits to the users in this region. However, receiving a share of the revenue generated per handset is still Apple’s underlying business model. Whatsoever, this translate to lesser sale volume for Apple compared to Nokia..

Initially when Apple came to the market with iPhone, Nokia and others had little fear, but actually this gave them a hope of a new business model which many had never thought about it. Apple realized the potential of a converged mobile equipment and tactfully managed to negotiate a good deal with operators in US where it receives a percentage of the revenue generated per handset. In reciprocal to this deal, operators get a great deal of discount of iPhone from Apple when they sell it.

In Europe, there is a modest reception in Germany and UK. Apple is yet to formalize a deal in Asia where the mobile market is huge, especially China & India. Japan, Korea & Singapore users will be very keen to have iPhone because of the gadget love. iPhone synchronization with Hosted Microsoft Exchange ActiveSync allows companies to get the best from this device now.

What is the impact to Hosting providers?

Those customers who would like to standardize their mobile device with iPhone and have international presence especially in Asia will have impact. Alternatively, they can choose other devices which support ActiveSync. You can find more details about these devices in my previous post…

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