Apple iPhones and Samsung Galaxy Prices Hiked for SingTel-Optus New Subscribers
By Athena Yenko | April 28, 2014 3:49 PM EST
Apple iPhones and Samsung Galaxy smartphones will be pricier for new subscribers of SingTel-Optus contracts as the carrier increased the price both for Apple and Samsung, The Sydney Morning Herald reports.
Optus, like other carriers, had been rallying to increase prices for smartphones to augment the their profits.
''Optus has cut handset subsidies across its post-paid mobile plans [and] raised handset pricing in the past week. 'While Optus has stated its desire to stabilise/increase its market share, these moves are consistent with its goal of driving profitable growth. Optus handset subsidy cuts follow similar moves by Vodafone [Hutchison Australia] in February-March," Goldman Sachs analyst Raymond Tong said.
Optus' decision to increase its price puts the company in comparison with Telstra.
''[Telstra] may see this as an opportunity to raise handset pricing through its own subsidy cuts. [Optus' price increase] is another sign mobile industry pricing and competition remains rational [and that the] focus remains on driving profitability," Mr Tong said.
Optus had been strategising to increase its profit by lowering the company's expenditures and charging subscribers more for services. The company is also strategising to increase market share versus Telstra and Vodafone.
Telstra reported a growing subscriber with 1.4 million to date; Vodafone lost 1.2 million.
''Telstra ... has captured the lion's share of the mobile market and we expect that this dynamic will exert downward pressure on Optus' margins and cash flow over time,'' Ian Lewis, Moody's senior vice-president, said.
Optus was given a downgraded rating by Moody - from Aa3 to A1 - in February.
Hence, the company, through SingTel Group Chief Executive Officer Chua Sock Koong, announced that it will be focusing to drive customer growth in Australia.
In February, the company reported decreased revenue of $1.4 billion for its December quarter from $1.5 billion during the same quarter in 2013.
Subscribers fell to 9.43 million to 9.6 million. Its overall revenue from mobile sales in Australia declined from 6.9 per cent year-on-year for the December quarter, totaling to only $1.33 billion.
According to the company's report, subscribers were declining in Australia due to "equipment sales decreasing by $52 million from lower shipment volumes as device subsidies were reduced; mobile incoming revenue falling by $19 million from teh mandated reduction in the mobile termination rate from 6 cents to 4.8 cents per minute from 1 January 2013; and higher service credits associated with the device repayment plans reducing outgoing service revenue by $17 million."
To contact the editor, e-mail:
Most Popular Slideshows
- Pope Francis Meets Sudanese Woman Who Was Spared Death for Apostasy (PHOTOS)
- Malaysia Airlines Flight MH17: King Williem-Alexander, Queen Maxima Hold Solemn Reception Ceremony for Victims
- Jennifer Lawrence & Nicholas Hoult Allegedly Split: Mad Max Actor Cheats with Kristen Stewart & Riley Keough - Reports
- Transfer News: FC Barcelona Shockingly Sign Valencia Defender [PHOTOS]
Join the Conversation
- Fast Food Meat Scandal: McDonald’s Suspend Nuggets and McSpicy Chicken Filets
- Air New Zealand Flies Boeing 787-9 Dreamliner
- Malaysia Airlines Considers Changing Name After MH370 and MH17 Tragedies
- Solution to Your Old Unwanted Phones Comes with MobileMuster Scheme
- IBM Named Leader in Worldwide Managed Security Services
- Apple iPhone 6 on Two Confirmed Release Dates, New Parts Leaked Suggesting Bigger iPhone to Come
- Nexus 5 and Nexus 7 Android 5.0 L Material Design Coming with More Interface Changes
- Xiaomi Mi4 vs OnePlusOne vs Nexus 5: Mi4 is the ‘Perfect’ Phone
- Israeli Women Stripping Naked for IDF Soldiers
- Samsung Galaxy S4 LTE-A Android 4.4.2 KitKat Update Rolls Out: When to Hit Your Region
- HTC One M8 Android 4.4.3 KitKat Update Roll Out, Introducing the HTC One Remix
- Shocking Video of Pedigree Dog Culling in Bali Emerges [Video]