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Print 12 comment(s) - last by Aloonatic.. on Apr 17 at 4:08 AM

The English have something to gloat about over their American friends, thanks to Apple's new iPhone cuts.

The price on the 8GB iPhone in Britain had been £269, or about $530 USD; more expensive than the U.S. version, which retails for $399 USD.  However, O2, the carrier for the iPhone in Britain, and Carphone Warehouse, Britain's largest mobile phone retailer, slashed prices on the low-end iPhone.  The new price is 169 £ or about $333 USD. 

The 16 GB model remains untouched at £329 ($649 USD), significantly more than the U.S. price of $499.  The price cut on the 8 GB iPhone lasts through June 1st, according to the retailers.

The iPhone is already O2's fastest selling device.  It hopes the new price cuts will create even more momentum for the iPhone, which seems to be doing quite well in Britain despite some sales slowdown. 

O2's most basic plans start at £35 a month, or about $69 USD.  Some analysts had predicted that slowdowns in the U.S. economy and abroad could put a dent in the handset market, particularly for high-end models like the iPhone.  Carphone's Finance Director Roger Taylor refutes such claims, saying the market for premium phones remains strong.

While some say that the cuts may be an attempt by O2 to spur sales of the iPhone, which have slowed since its release, other analysts say Apple and O2 may have ulterior motives.  They point out that the mark down may be a precursor to the release of Apple's new high speed model of the iPhone, which will support faster 3G networks.

Apple declined to comment on these rumors.  Astute observers will note that T-Mobile similarly cut the price for the low-end model in Germany.

CCS Insight analyst Ben Wood commented, "More and more this is starting to look like they want to clear stock of an older model, with a looming revision to the iPhone which will likely include 3G.  But also we think the iPhone has slowed down during the first quarter and we think this (a 3G launch) should give sales a bit of a lift."

O2, owned by Telefonica, and Carphone Warehouse received permission from Apple to carry the iPhone, but have been tight lipped about precise sales figures.  O2 would only say that the phone is its "fastest selling device".  An Apple spokeswoman did mention that the cuts were a "O2-led promotion" and that Apple's retail stores would not change their prices.

In the U.S. and abroad, the iPhone has sold well over 4 million units, although as many as 1 million of these iPhones may be unlocked, putting a dent in Apple's revenue.



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"The English"
By martinrichards23 on 4/16/2008 12:46:24 PM , Rating: 4
quote:
The English have something to gloat about over their American friends


Surely you mean British? Maybe you feel that the Scottish and Welsh don't gloat, I can assure you that is not true, they make the most of any opportunity!




RE: "The English"
By headbox on 4/16/2008 1:47:44 PM , Rating: 5
English, Scottish, Welsh... you're all "Red Coats" to us.


RE: "The English"
By winterspan on 4/16/2008 9:57:01 PM , Rating: 2
HAHAHAHHA


RE: "The English"
By Aloonatic on 4/17/2008 4:08:11 AM , Rating: 3
Silence, rebel scum.

We'll get round to quashing your insurgency in the colonies soon, expect a troop surge any time now.


A rare Apple-is-cheaper-than-US situation
By psychobriggsy on 4/16/2008 1:50:21 PM , Rating: 2
Firstly, we put the pound symbol before the amount, not after it.

Secondly don't forget that all UK prices include 17.5% VAT, so take that off when comparing to US prices. £169 inc. VAT => $283 ex. tax.

It's probably the first time an Apple product has been cheaper in the UK than in the states. Not really a lot to gloat over there.




RE: A rare Apple-is-cheaper-than-US situation
By JoeBanana on 4/16/2008 2:48:29 PM , Rating: 2
They charge what they can get. I am sure if they could get more bucks out of them they would I know I would if I was in that position.


By Aloonatic on 4/17/2008 4:06:29 AM , Rating: 2
There's plenty of competition on this side of the pond when it comes to mobile technology.

From what I understand from a friend of mine who moved out to the US a couple of years ago, mobile phones are some what more expensive and limited in tech than over here too.

When I went out for his crazy baptists wedding (no alcohol, can't even buy it on a Sunday in the county he lives in, what's that all about???) I was amazed to see so many monochrome screens and a lot phones without bluetooth?

I think this is the main reason why the iPhone has made such a big splash in the US and not been that well received over here, leading to a need for price cuts.

That, and it's advertised as a mobile internet device, even though it doesn't support 3G networks. I'm amazed they haven't been sued for misleading advertising.

The iPhone has some good features but was never worth £269 price tag.

Few would spend that much on one other than those who fall into the usual Apply buyer demographic of more money than sense.


rumors
By headbox on 4/16/2008 12:30:43 PM , Rating: 2
They see a price drop to clear inventory, I see a weak dollar making US products cheaper overseas.




RE: rumors
By killerroach on 4/16/2008 4:03:39 PM , Rating: 2
Although they'd still be the same price relative to the US dollar... that or the company ends up not changing their exchange formulas and it ends up charging foreign customers even more.

Personally, the weakening dollar is a great thing if you're a US company looking to sell stuff overseas...


How?
By FITCamaro on 4/16/2008 12:54:40 PM , Rating: 2
quote:
In the U.S. and abroad, the iPhone has sold well over 4 million units, although as many as 1 million of these iPhones may be unlocked, putting a dent in Apple's revenue.


Even if the phone is unlocked they still made a killing on selling the device itself. The only revenue they loose from unlocked iPhones is those which do not run on the Apple approved network which pays them a certain amount of the monthly service fees (at least in the case of AT&T).




RE: How?
By maverick85wd on 4/16/2008 2:31:41 PM , Rating: 2
quote:
although as many as 1 million of these iPhones may be unlocked, putting a dent in Apple's revenue.


quote:
The only revenue they loose from unlocked iPhones is those which do not run on the Apple approved network which pays them a certain amount of the monthly service fees


you just answered your own question. I would imagine people that unlocked their phone did so to get around using AT&T


DONT BUY AN IPHONE!...yet
By daftrok on 4/16/2008 12:35:04 PM , Rating: 1
I highly recommend those who are considering to get an iPhone NOT TO GET ONE BEFORE WWDC 2008 in June. There is a high probability that a revamped iPhone will be released. I think this is why they are doing a major price drop in the UK (that and it might not be selling as well as here in the states); they are trying to empty out their inventory before June.




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