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Deutsche Telekom's (DT) T-Mobile unit won a German court decision upholding the telco's deal to exclusively sell locked Apple (AAPL) iPhones. The decision is a defeat for Vodafone (VOD) , which sought an injunction to prevent T-Mobile from selling so-called locked iPhones under the requirement that users sign two-year contracts. The move comes two weeks after a German court ordered T-Mobile to stop selling locked iPhones. T-Mobile responded by announcing it would sell unlocked, contract-free iPhones for $1,481, in an effort to honor the decision and compensate for the loss of potential revenue. T-Mobile's regular price for the iPhone is $591.85. The challenge by Vodafone could have threatened Apple's unique royalty and revenue sharing arrangement with its telco partners. In exchange for exclusive iPhone selling rights, phone companies agreed to share a percentage of the monthly subscription revenue with Apple. It is estimated that Apple enjoys a 10% cut of the proceeds. Deutsche Telekom shares rose 40 cents to $22.54 and Apple was up 59 cents to $179.45 in midmorning trading Tuesday. RELATED STORIES Sprint Shareholders Eye Shake-Up Rival Seeks Big PeopleSupport Stake Nokia Pays Price for Growth Read our conflicts and disclosure policy. |
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