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O2 finally wins UK Apple iPhone contract |
jcwhite_uk
Joined: Feb 18, 2004
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From: Dorset, UK Phone:Xperia Z1
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O2 has finally won the contract to supply Apple's iPhone in the UK, according to the Financial Times, which also reported exclusive iPhone partner deals in Germany and France.
According to the FT, T-Mobile will sell the iPhone in Germany, while Orange will offer it in France. Apple's reported deal with O2 would bring an end to a period of intense negotiations, with the two companies first rumoured to have struck a deal at the beginning of July.
The operators have agreed to give Apple 10 percent of the revenue they generate from the sale of voice and data services for the device, according to the report, which cited unnamed sources. The operators hope to introduce the phone in time for the important Christmas shopping season.
Apple plans to announce the deal officially at the IFA international consumer electronics exhibition in Berlin next week, the Financial Times reported.
The iPhone first launched in June in the US through an exclusive partnership with AT&T. Initial reviews were positive, except for concerns about AT&T's slow EDGE (Enhanced Data for GSM Evolution) data network, and the fact that the iPhone's battery can only be replaced by returning the device to Apple. There were also activation problems during the first weekend, when thousands of customers tried to start up their phones at the same time and overwhelmed AT&T's servers.
Since then, speculation had been rife about who Apple would partner with in Europe. Most initial reports agreed that T-Mobile and O2 would be among the partners. Some reports, citing unnamed sources, said that Vodafone, Europe's biggest mobile operator, had been outbid by rivals in eleventh-hour talks.
Europe's splintered telecommunications market makes it harder for Apple to launch the iPhone here than in the US. None of the big carriers cover all of Europe's most populated markets, forcing Apple to strike deals with several operators.
The iPhone could provide a boost for operators in Europe, where customers tend to choose service based on coverage and where brand loyalty is not very strong, Niek van Veen, an associate analyst at Forrester Research, said.
It may also help them to secure longer term contracts with customers, who tend to favour prepaid calling plans in Europe over long-term subscriptions. That same factor could also work against the iPhone in Europe, however. Apple and AT&T require customers to sign up for a two-year contract for the device, an unusually long period.
Apple's steep demands may have made it harder for the company to reach agreements, van Veen said.
AT&T reportedly is also sharing a portion of the revenue from the iPhone. It's a new business model that Europe's operators may be reluctant to swallow, van Veen said.
"It's more than just a question of reach and what Apple wants, it's how much operators are willing to sacrifice their current [business] model for this phone," he said.
The contracts with T-Mobile, Orange and O2 were signed in recent days, according to the Financial Times. The top executives of T-Mobile and O2 campaigned for personal talks with Apple CEO Steve Jobs, the paper said.
The story appeared first in the Financial Times Deutschland (in German), and was reported later in English in the UK Financial Times.
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[ This Message was edited by: jcwhite_uk on 2007-08-22 10:55 ] |
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masseur
Joined: Jan 03, 2003
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From: Sydney, London
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FT article
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cokker
Joined: Aug 15, 2005
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From: Norwich, UK
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iPhones coming to the UK?
I'd never buy one in a million years and i feel sorry for the mug's who do...
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PeterKay
Joined: Jul 08, 2003
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From: The Ummah
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why the hatred?
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cokker
Joined: Aug 15, 2005
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From: Norwich, UK
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I have beef with apple from years back, just ignore me lmao.
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[ This Message was edited by: cokker on 2007-08-22 11:34 ] |
goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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2 years is an awfully long time for a contact.
If you consider CPW's swapit deal, you could have three new handsets in 2 years, versus just the one on a 2 year iPhone contract and you also have to consider just how far the tech would have moved on in two years.
Mobile TV, HSDPA etc will all be commonplace.
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[ This Message was edited by: goldenface on 2007-08-22 11:51 ] |
batesie
Joined: Feb 13, 2004
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From: London, UK
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no way, 12 month contracts only for me!
[addsig] |
Jools
Joined: May 21, 2003
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I will be very interested to see what tariffs/contracts O2 come up with for the iPhone.
If they're not allowed to subsidise the cost of the handset, it's probably going to cost £300 or more (inc. UK rip-off tax), plus the monthly contract.
If O2 are giving Apple 10% of call/data revenue, I wonder if that will mean a 10% increase in costs to the user. Or will the lack of O2 subsidies make up for that?
I really hope its not going to be on a 2-year £30pm+ contract. There's no way I would justify that - even if it is an iPhone.
I don't even like being tied in for 1 year - let alone 18 months or 2 years. I like to replace my phone more often than that.
Hopefully O2 will have to drmatically upgrade their data offerings too... |
goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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Me too! I'm very cost conscious and this to me doesn't represent even average value for money.
I think the novelty would wear off after 2 months and I'd be kicking myself for chaining myself to such a long deal.
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batesie
Joined: Feb 13, 2004
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From: London, UK
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On 2007-08-22 13:03:15, goldenface wrote:
the novelty would wear off after 2 months and I'd be kicking myself for chaining myself to such a long deal.
exactly. its a novelty thing only. not a serious device... think how outdated it will be in 2009!!!
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Jools
Joined: May 21, 2003
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As far as I know, you basically end up paying the full-price of a subsidised handset though the term of your contract. Is that right?
So... if the iPhone isn't subsidised at all, in theory, the monthly contract fee should be lower than other tariffs, or you could get more inclusive minutes/data. Or the minimum contract length could be shorter as you won't be paying off the full handset price.
Bet it won't work like that though...!
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jcwhite_uk
Joined: Feb 18, 2004
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From: Dorset, UK Phone:Xperia Z1
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Working on the US prices:
Phone price - $500 - Expecting £300 in the UK.
Monthly cost - $60 - About £30 a month in the UK
450 minutes, unlimited data, 200 texts
For 2 year contract (minimum) that is £1020!
I think you can get the N95 free on that sort of tariff in the UK on a 12 month tariff.
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Jools
Joined: May 21, 2003
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Based on the US/UK price of a Mac mini ($599), I reckon an 8GB iPhone will be £399 in the UK.
I seriously can't see them selling many at that price!
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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@JoosG4
I think that depends on what price the operator puts on the price of the handset.
Imagine what the price of the handset would be on a £15/month contract, if it existed. Isn't that how it normally works - the lower the monthly cost the higher the initial outlay.
(24months x £30) + £300 = £1020
£1020 - (24 x £15) = £680 for the handset.
or an equivalent of £680 for the handset on an equivalent £15/month tariff. 
And thats probably not including the data charges should there be any.
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himlims_nl
Joined: Apr 06, 2004
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On 2007-08-22 13:17:43, JoolsG4 wrote:
Based on the US/UK price of a Mac mini ($599), I reckon an 8GB iPhone will be £399 in the UK.
I seriously can't see them selling many at that price!
like n95 prices were quite high, but it's new it's innovative so ppl will buy.
i had the (luck?) to play with the iphone last week.
i wasn't too keen on it, but after a few min. i changed my mind.
the housing feels realy solid, and all seems to work quite nice and easy.
however due the lack of 3th party apps the iphone is not an option to me
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Posted: 2007-08-22 11:55
