RSSThe UK iPhone: O2's Costly Investment
By Tim Conneally | Published September 18, 2007, 12:30 PM
The impending launch of the iPhone in Great Britain has had many paying rapt attention to see which mobile network would support the device. With the launch date set for tomorrow, it appears no one was paying closer attention than the carriers themselves.
A full two months ago, the BBC cited early reports that Apple's choice of carrier for its iPhone was O2. Owned by Spain's Telefonica, the company reportedly edged out its competitors by agreeing to hand over the largest proportion of customer-derived revenue - as much as 40%. The remainder is to be divided between O2 and its exclusive retailer Carphone Warehouse, which not only gets a commission but also its own revenue share.
More expenses will yet be incurred when Apple installs the EDGE technology required by the device.
But according to The Guardian, the deal was "last minute."
Apple reportedly had each of the UK's major carriers - O2, T-Mobile, Orange, and Vodafone - believing at some stage that they had secured an exclusive deal with the Cupertino company for operations in France and Germany as well as the UK. But it appears now that the companies will be dealing with Apple on a smaller scale, with T-Mobile concentrating on Germany, and Orange on France.
The question is obvious: With such a high percentage of revenues being turned over to Apple, can O2 make a worthy return?
12:25 pm ET September 18, 2007 - Apple officially announced its partnership with carrier O2 today, unveiling the tariffs (rate plans) that will be available to customers.All plans include visual voice mail, unlimited access at any of the 7,500 wi-fi hotspots affiliated with The Cloud, and unlimited data (subject, of course, to fair use policies.) The base level tariff is £35 for 200 minutes of airtime and 200 SMS text messages; the mid-range offering is £45 for 600 minutes and 500 text messages; and the premium plan goes for £55 and gets 1200 minutes and 500 SMS text messages.
The vaunted phone will go on sale in the UK on November 9th through Apple's retail and online facilities, as well as through O2 and Carphone Warehouse. The 8 GB model will be available for £269 (including VAT.)
Wow, any K-Y included in that package at least?
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|Hmmm $399 in America. Which works out as £200 over here. So ripoff Britain has to pay 34.5% extra in initial cost.
USA
£30 ($59.99) - 450 Mins - 200 Txt
£40 ($79.99) - 900 Mins - 200 Txt
£50 ($99.99) - 1350 Mins - 200 Txt
Well also looks like we are paying an extra £5 per month as well for less minutes.
This is why ill just be getting the Ipod Touch and sticking with my Motorola.
Laters
ash
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|Actually the minutes are about on par with some providers (although, not ATT) with $/min
The $$ for initial cost is BS, but they'll cry b/c they have to ship it across the Atlantic (even tho EVERYTHING for those phones are definitely made, assembled, programed, etc. in Japan/China)
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|"More expenses will yet be incurred when Apple installs the EDGE technology required by the device."
Maybe it's just me but why the hell is Apple spending money installing an obsolete technology like Edge???
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|So when they have 3G in iPhone 2.0, you can spend more money buying the same product again.
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|Hefty contract prices when most other phones are available for FREE with more minutes, texting and 3G!
EDGE... Bit of a problem there too, eh?
I'd personally choose to go the pre-pay or pay-as-you-go option in the meantime.
Oh no! There is no pre-pay or pay-as-you-go option!
Looks like little teenage Johnny won't be getting an iPhone in his Crimbo box after all - unless mummy and daddy are willing to shell out for an overpriced contract.
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|maybe not in europe but there is most defintely a pre-paid iPhone option offered through at&t
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|But we don't have at&t.
We're stuck with o2, which isn't offering the option.
Pretty stupid considering almost 70% of mobile phones in the UK are pay-as-you-go phones and that a quite probable 70% of those feeling the 'need' to have one are pay-as-you-go customers.
Fantastic way to immediately alienate a huge chunk of your potential customers.
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|Okay, so the iPhone's coming here, to the UK. A few problems with that. The biggest problem is that, well... I'm quite sure that the UK doesn't have EDGE. And what with the iPhone not having 3G and all...
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|They will sure be include in iPhone 2.0. This is part of the strategy for milking it's loyal customers.
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|It does, i'm with Orange and it switches to EDGE when its available (I don't have a 3G phone).
Its a nice phone, but the price tag will put me off - I refuse to pay THAT much for a phone on a contract!
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|Good job the iPhone SIM stuff has been cracked :-)
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|There always seems to be some sort of compatibility problems... Standards people!..
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|Since when did phone manufacturers "dictate" which cellphone operator is used? Its like Nokia released a phone and said that it works only on operator X. Is theres something wrong with iPhone or this just some Apple scheme?
I just dont understand this but then again, we are talking about a (smart)phone which you cant even change the battery yourself. Feature which has been considered "standard" in most cellphones.
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|how bout since they make the product. other companies sell exclusive phones through specific carriers why shouldn't apple?
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|I couldn't care less which operator got the phone contract.
All I'm looking forward to seeing is the PRICE here in Blighty.
It's almost guaranteed to cost a packet. Certainly much more than the US price.
It'll be fun to watch all the saddo's in the queues getting ripped off.
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|I know business some time make bad decision, this is by far the worst. This is a piece of s*** phone for the price. And the company is giving up 40% of the revenue to sell it.
Remember, it's revenue, not profit. That mean Apple is getting 40% of the sales from O2. Unless 02 has a net profit margin of over 50%, I don't see how they can pull this off.
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|"The question is obvious: With such a high percentage of revenues being turned over to Apple, can O2 make a worthy return?"
No. They'll go down, and we'll all be happier for it.
(The bas****s charge enough for tickets at the O2 [formerly Millennium] Dome for gigs to stay afloat though...)
/hopeful
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