16 May '11, 2pm

iPad 2 not expected to make huge impact on telco profits

SINGAPORE: The Apple iPad 2 has hit the shelves in Singapore but sales of the table device are not expected to make a huge impact on telco profits. Instead, analysts said that factors such as high device subsidies, paid by the telcos upfront to acquire the tablets, coupled with cooling demand for the iPad may cause a dent on their revenues. The iPad had taken the world by storm when it was launched last year, but the novelty of the Apple tablet computer is wearing off. Analysts said that the market for tablet devices in Singapore has become more competitive and they believe that sales of the iPad 2 are not likely to be fantastic compared to its predecessor. SingTel, which is the first telco to offer the iPad 2 on the market with an accompanying 3G price plan, might not receive a huge boost to its revenue due to the high cost of device subsidies. In a bid to increase sales ...

Full article: http://www.channelnewsasia.com/stories/singaporebusinessn...

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