Pelephone CEO: complaints on iPhone subsidy 'whining'

The CEO of Pelephone told an emergency meeting of local communication industry figures Friday that arguments against mobile operators subsidizing the iPhone were made "by a CEO who didn't succeed in bringing in the device."

Gil Sharon explained that mobile phone providers have always subsidized the phones. "The money is in the calls," not the devices, he said.

Meanwhile, The Wall Street Journal reported yesterday that Apple Inc. co-founder and CEO Steve Jobs, whose recovery from pancreatic cancer appeared less certain when he had to take medical leave in January, received a liver transplant two months ago but is recovering well. Apple manufactures the iPhone, whose imminent arrival in Israel is stirring up the local cellular swamp.

"Companies have to invest and bring consumers the best," Sharon told the panel on Friday. "The entire world wants the iPhone, the entire Western world already has launched the iPhone, and in Israel negative emotions have begun emerging because it hasn't come here yet. There's demand and there's a will, and we made a very good decision that will provide a return on investments," Sharon said.

Pelephone and Partner Communications (Orange) are set to begin distributing the iPhone in about two months, at a heavily subsidized price in order to meet Apple's demands.

Jobs on the job

The Wall Street Journal didn't reveal a source for the report, which comes as Jobs, 54, is expected to return to his day-to-day duties at the company. CNBC said it had confirmed the Journal's account, which said Jobs had the transplant performed in Tennessee.

Apple spokesman Steve Dowling told The Associated Press he had no comment. Dowling reiterated what has become Apple's standard line about the CEO's health: "Steve continues to look forward to returning to Apple at the end of June and there is nothing further to say."

Few CEOs are considered as instrumental to their companies as Jobs has been to Apple following his 1997 return, after a 12-year hiatus. With Jobs serving as head showman and demanding elegance in product design, Apple has expanded from a niche computer maker to become the dominant producer of portable music players and a huge player in the cell phone business. News and rumors about his health send Apple stock soaring or plunging.

Jobs disclosed in August 2004 that he had been diagnosed with - and cured of - a rare form of pancreatic cancer called an islet cell neuroendocrine tumor.