iPhone, exclusivity and the great British public

As one exclusive mobile network contract is signed, another one ends and devices open up to more operators. But what does this mean for users?

By Maggie Holland, 14 Oct 2009 at 08:30

People queuing for iPhone 3GS outside O2 store

gallery

“The Palm Pre is already being touted as the ‘iPhone killer’ and our research certainly suggests it’s going to shake up the market,” said Kevin Evans, associate director at TNS Technology, in a statement.

“The decision to offer the Pre free to those on a 24-month contract is in sharp contrast to the £269 price of the iPhone at its launch, while the launch timing capitalises on the fact that thousands of UK iPhone early-adopters are approaching the end of their 18-month contract period, while the next-generation iPhone is not expected until next June.”

IT PRO asked its readers whether they would be keen to get an iPhone when the market opens up. The results weren’t that surprising.

“I will probably buy an iPhone now that the other carriers will be able to sell it. My resistance to date has primarily been because I have a fundamental aversion to companies that restrict price and distribution like Apple have been doing,” wrote one reader.

“Of course if the new players try to do a little price fixing of their own then I will not be owning an iPhone next year.”

It would seem that those keen to get their hands on an iPhone will definitely benefit from new deals as a result of the market opening up. Meanwhile, those who’ve been looking for a viable alternative to the iPhone may just have found that in the Pre and – if they’re happy to sign up to a two-year deal – are likely to be smiling when they look at their bank balance too.

But there is a further twist in the tale. Apple is unlikely to rest on its laurels after just three iterations of its iconic device, so all eyes will be on Steve Jobs et al in 2010 to see what form the next iPhone will take. After all, it would be a terrible shame to end things here.

If or when a new iPhone is announced, we’ll be back to square one again. There will no doubt be a potential new exclusive deal on the table and those who’ve just signed up for the current iPhone on a new network will be left wishing they’d been a little more patient or working out their options.

1 2 3 4 5

Email to a friend

Print this page

< Previous Strategy : Analysis & Insight Next >

3 comments

You need to Login or Register to comment.

The iPhone

An interesting article but perhaps there is something else to factor in. A friend of mine bought into the iPhone at launch and when the Mk II came along, got an automatic upgrade and was left with the original phone as a spare, he gave it to me. Having played with it and whilst seriously impressed with the technology, I gave it to my 32 year old son as more "his thing" than mine.

This same friend is now coming to the end of his current contract so, on the basis that this time I keep it, I will get his MkII as he upgrades to MkIII, I will put it on pay as you go.

Point is and given the success of the iPhone in terms of volume, there must be thousands of ex-contract phones out there which must have an impact on the market.

By popskihaynes on Tuesday Oct 20

iphone has failed in the UK

Apple are very sore after signing excluive deals with mobile operators in Europe.This is a very competative market although the Iphone have sold well initially the competition have court up and overtaken the technology and value package the iphone has offered in the past.Now unable to move with the market due to exclusive deals which restrict the company steve jobs will be kicking himself for been so stupid to do these deals in Europe.A east end man recently said American don't understand strategy and competition as we do.Consumers require a choice of operators as converage varies aroung Europe.Conclusion Steve jobs tried to fix the price but competion beat him into the ground an opportunity missed.

By trickii on Tuesday Oct 20

O2 were never up to the job with the iPhone

I personally purchased an iPhone 12 Months ago on an 18 month contract with 02. All was well until the 11th month when the phone and SIM failed unfortunately for me I had just started a long stay in Eastern Europe, after many failed attempts to contact them by land-line , I decided to suspend any DD payments to them until I made contact and they resolved the problems with their hardware, 9 weeks later I received an email response telling me to pay my bill, no mention of what they could do to help with the failed hardware, in fact it turned out that there was nothing they could do or would do outside of the UK. So, lets get this correct, if you want an iPhone and you are a UK resident you can only get one exclusively from 02, they can't support you from anywhere else in Europe (Orange & Vodafone can) they offer an 18 month contract with a product warranted to 12 months, but if it does happen to go wrong they had no problem offering and upgrade and another 18 month + 6 month contract, again no support in Central or Eastern Europe. If I had been given the choice I would have bought from Orange they have branches all over the world so where ever you are with your "Mobile iPhone" your are close to quick support options. 02 never the less took this consumer choice away with their exclusive deal with Apple knowing full well they are a UK only company incapable of supporting a customer anywhere else in Europe. Oh and to end, they had a solution for me, I could get out of the contract by giving them £400 and keep the faulty iPhone & SIM. So in my personal experience, do think twice about using 02 if you travel abroad. They should never have had exclusivity in the first place, I expect thousands of customers forced to use 02 will now migrate back Orange and other network providers. "PULL YOUR SOCKS UP 02"

By Blogpartner on Tuesday Oct 27