
After several months of anticipation, the wait for the arrival of the iPhone in the UK is over. At a press conference in London today, Steve Jobs – the Chief executive of tech giant Apple – revealed that the iPhone will go on sale in the UK on November 9th. He also confirmed that the unit will be supplied by network provider O2, and sold exclusively through the Carphone Warehouse.
Amid massive hype and marketing campaigns, Apple may have a tough time breaking into an already saturated mobile phone market. Surprisingly, there will be no operator subsidy, meaning that technophiles will have to pay the princely sum of £269 to own the coveted device - for the hoards of dedicated Apple followers expecting a free iPhone, this will sorely disappoint. Over and above the expense of purchasing the handset, it is likely that customers will be tied into a lengthy and expensive contract with O2, which will result in bills of up to £700 for iPhone services over the duration of the contract.
In an unprecedented move, it has also been reported that Apple will receive up to 40% of the revenue earned from O2 customers. This is practically unheard of in the mobile phone market, and exceeds Apple’s US deal. Nonetheless, O2 are bound to reap the rewards of being exclusively associated with one of the best known brands in the world today.
Whether or not Apple will benefit by restricting their distribution to one mobile operator however, is a matter of contention. Some analysts predict that a lack of subsidy on the handset, and a limited distribution will impact on Apple’s share of the mobile market. Others suggest however, that the brand is strong enough to sell, no matter what the conditions; people simply want an iPhone no matter what.
In a marketplace saturated with handsets, some of which offer similar, and in some cases better features, the strategy is a risky one. The HTC touch, for example, offers similar touchscreen technology, the full Mobile Office suite, plus better connectivity options over and above those features shared with the iPhone. Similary, the HTC TyTN II (Kaiser) has a larger resolution 3MP camera, 3.5G HSDPA downloads (a vast improvement to the 2.5G standard on the iPhone), a sliding keyboard, GPS, plus full PDA functionality, as well as a host of other features absent from the iPhone. With such choice available, the buyers may be required to choose between the branding of the iPhone, versus the functionality of the alternative units.
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