In the competition to carry the iPhone in Europe, it looks like Vodafone (VOD) is balking at Apple's demands; The Guardian reports:
Apple is understood to be demanding that its European mobile phone partners hand over a significant proportion of revenues generated by the iPhone and restrict the content that users can access.
The portion of network revenues demanded by Apple is believed to have been behind Vodafone's decision not to sign up as the exclusive partner for the iPhone in the UK. ... The iPhone is expected to launch in November in the UK through O2, in France with Orange and in Germany with T-Mobile.
So not only does Apple (AAPL) keep all the revenues from the $500 iPhones, but it gets a cut of the monthly service fees as well. I guess even (most) hard-nosed telecom execs have a hard time saying "No" to Steve Jobs. But if this report is true, good for Vodafone CEO Arun Sarin for sticking to his guns.
Update: Another tidbit about the economics of the relationship between Apple and the mobile carriers. Citigroup analyst Richard Gardner models iPhone revenues for Apple to include the entire $500 average selling price plus a $100 bounty from AT&T. (This is from a June 28 note of his). Gardner does not model in any cut of the monthly subscription revenues, however. (The $100 bounty would be more like a typical subsidy). So if Apple is also getting part of AT&T's monthly fees, not to mention that of the European carriers, that would significantly increase its profits from the iPhone.