Apple’s iMessage to cut into carrier’s profits

The holy cash cow of cell phone carriers - text messaging - will be further undermined by Apple’s new iMessage program – which will allow texting and sharing media among all iPhones, iPads and 3rd generation and higher iPod Touch devices.  Essentially it extends the concept of BBM from Blackberry.

Unlike SMS messages, iMessage texts are not limited to 160 characters per message. In addition to text, the application lets users share photos, videos, locations and contacts. Also, all sent and received iMessages are securely encrypted.

Two trillion text messages are sent in the U.S. each year, according to Sanford C. Bernstein analyst Craig Moffett. That translates into $20 billion in revenue each year, with $7 billion a year taken in by Verizon alone.

Other companies such as Samsung are also planning new initiatives in this area.

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Appleinsider