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New iPhone tariffs fail to provide anticipated sales boost |
goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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New iPhone tariffs fail to provide anticipated sales boost
Long two year contracts are blamed
New iPhone tariffs launched last weekend (3 April), which made the handset free on £35 and £45 per month contracts, failed to provide the sales boost that many had hoped.
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masseur
Joined: Jan 03, 2003
Posts: > 500
From: Sydney, London
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On 2009-04-08 15:59:47, goldenface wrote:
Long two year contracts are blamed
yeah, they gave with one hand, and took with the other
I know its seen as a run out before the new model comes so maybe they should do what they did last year with the 2G and just sell them sim free or improve the payg prices
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anonymuser
Joined: Dec 17, 2002
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Thoroughly good news as far as us customers are concerned, the networks need to know that 24 month contracts are not what people want, particularly when there's a new model literally peeking it's head around the corner (and we're in the midst of a nasty recession). I thought those were spectacularly poor value deals when they announced them.
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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Well I do think they were trying to pull the wool over people's eyes by reducing the price but only on 2 year contracts - what did they expect?
Its hard enough getting someone to sign up to an 18 month contract.
The problem here is that its exclusivity to O2 but I seem to remember reading somewhere that this will be coming to an end.
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anonymuser
Joined: Dec 17, 2002
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According to the article linked to above, the O2 exclusivity will be "reviewed" in July. Who knows what that means in terms of who's reviewing whose performance...
As someone who was happy to pay £99 to get the iPhone on the £30pm 18m tarrif, I can actually look at the "new" tarrifs and safely say I'd still choose to pay £99 upfront and sign the exact same contract. Except of course I'd be an idiot to do that now, since the new model's going to appear in a matter of weeks.
I feel sure that a new deal designed to cause a sales "spike" should be making me feel stupid for not waiting, not glad that I already signed up last October.
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Daedalus85
Joined: Apr 23, 2007
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From: Suffolk, UK
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Lol, take with one hand give with the other?
O2 have been doing this with all other phones for about 2 years now, offering a discount to customers who stay with the network for 24months rather than 18months. So what if it hasn't set the world alight? It's just a new option, I imagine they'll properlly cut the costs nearer the time.
As for the review, it's a 5 year contract, but the half way point is July, so Apple are going to be reviewing O2, hence the price cut I guess.
Apparently, on the back of them getting exclusive rights to sell Mac Book's in store, Orange are on the verge of sharing the iPhone in the UK with O2, so who knows.....
To be totally honest I don't really care, I hope the iPhone goes belly up completely if you ask me, ghastly phone in my opinion, always has been and always will be  
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goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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Its amazing really!
Some of my friends have got ridiculously deals with their operator just for staying with them for more than a year or two - a new phone every year and a deal cheaper than their last, free home broadband etc.
One particular friend has got an amazing deal with Orange, so cheap it hurts!
I really do hope Apple Inc extends the availability to other networks.
I think its a great device but just a bit pricey still and O2's hold on it should be relinquished.
2 year contracts must be the bain of instore seller's lives really - I mean no-one upgrading for 2 whole years?
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Daedalus85
Joined: Apr 23, 2007
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From: Suffolk, UK
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You'd be very, very suprised.
You want to know what the demographic of the vast majority of our customers are?
This might shock you, but it's people buying a simple basic phone to make calls with, send texts with and THAT'S IT. So we sell loads of Samsung J700's, Nokia 2630's and 2760's, Sony Ericsson T303's etc for around £30-£40.
People who buy the Pixon's, Renoir's, C905's etc don't buy them for even half their features. We probably get one person a fortnight who wants WiFi, and just as many who want GPS.
We do get a few people who want a good camera, hence the C905/Renoir/Pixon crowd, but that's about it.
The X1 is about as popular as small pox
So for these people, 2 year contracts aren't a problem because they really don't care that much.
Anyway, as I said before, I don't mind if O2 lose the iPhone, I'd probably prefer it actually lol
My opinions on this forum are that of my own and not of the company I work for. |
anonymuser
Joined: Dec 17, 2002
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Daedalus - don't you think that might be because the casual customer coming into a shop to poke around at phones isn't necessarily going to be a "power user" (for want of a better term) interested in the higher end stuff? I'd take a guess that most people who are chasing after things like GPS and wifi do their research and decide exactly what they want, and then probably go ahead and buy it online too, without needing to consult a sales clerk.
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goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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@Daedalus85
Really? So 24 month contracts are not that hard to sell? That does me surprise actually. I suppose the average shopper isn't arsed and the majority do just want calls and texts.
I suppose if you pointed out the simple economics of their contract then they'd see sense. A lot of their total contract price does include the price of the phone after all.
Myself, as a 'power-user' would be looking for a bit more than a T303 for 2 whole years but then again, I rarely stick with the phone I get with my contract anyway.
[ This Message was edited by: goldenface on 2009-04-09 17:33 ] |
Daedalus85
Joined: Apr 23, 2007
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From: Suffolk, UK
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Exactly, I can't keep my phones for any more than 9 months at the very most, so upgrades don't mean anything other than a bit of money each year to me really.
As for 'power users' I agree to a cetain extent, but the people we get coming in who want those features tend to have done a 'bit' of research online (read: poking about aimlessly on forums ) and assume they know what they want based on the first review they read, but really they don't. It's a case of steering them towards a phone that has the features they're actually going to use.
Just for the record, I don't believe in 'hard sell'. We get slightly more 'commission' of sorts for certain handsets, but it doesn't bother me, I sell what they really want, I'd rather see people get a good phone and not a turd
My opinions on this forum are that of my own and not of the company I work for. |
goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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Good man!
OT but when I walk past my local Voda shop they have someone waiting inside the door to 'greet' people as they walk in - standing there like a Sentry officer on duty. It makes you think twice about venturing in anyway.
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Bonovox
Joined: Apr 13, 2008
Posts: > 500
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24 months contracts are a joke. Who would wanna be stuck with same phone for that long or worse still a faulty phone for that long. The iphone is not worth a 24 month commitment.
Phone?? What phone?? |
golemsmate
Joined: Nov 09, 2007
Posts: 442
From: United Kingdom
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I can get £20 off any pay and go phone with o2 or 30% off ANY contract including the iphone.
does this make it a better deal? it can be used in any o2 store |
jack00
Joined: Feb 20, 2003
Posts: > 500
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I'm on a 24months contract currently and its ending in december.
i consider buying a new phone every year as "simply not worth it". these small (cam,software) upgrades don't make me put another 300euros onto the table. technology wise it makes more sense to wait 2 years, cause the hardware jump is larger...and you get better tarifs.
i'm looking forward to december, palm pre / Idou here i come.
it also makes a difference when you buy it sim free, here in austria you get alot of "financial support" from your provider if you just take the sim - especially during christmas.
[ This Message was edited by: jack00 on 2009-04-14 22:28 ] |
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Posted: 2009-04-08 15:59
