ugh negotiator: Sprint, for example, signed a four-year, $15 billion deal with Apple that committed the carrier to sell at least 24 million iPhones. 70With each new generation of product, Apple also dropped the price of prior generations. bination of big subsidies, low prices on older models, and expanded distribution caused revenues and unit volumes to explode (see Exhibit 1b).As a result, Apple vied with Samsung for the largest market share in smartphones. 71 Analysts also estimated that Apple generated more than 50% of the cellphone industry’s total profits, with less than 4% unit market share. 72 This document is authorized for use only in 2013-Strategy by Vasco Santos at Universidade NOVA de Lisboa from February 2013 to June 2013.
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