November 4, 2011 7:17 AM GMT
Cost cutting is the watchword at pretty much all operators at present, however some 3Q earnings (Chungwha Telecom, for example) reveal that smartphone sales are increasing operating costs (see separate post on Android costs).
What that means is operators are profiting by selling more smartphones and associated data services, but are losing out in the form of higher technical support costs.
Is it really worth it? If not, what do operators do?
Another point worth making is that Telefonica plans to cut the number of devices in its portfolio by 140 or more (taking the lineup to around 100 models) to boost earnings. Is that a good way to go, or do operators just need to spend more time testing devices before putting them on sale?