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Apple's Negotiations and the iPhone in Europe
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You know what's missing from this thread?
Lots of totally speculative quotes of potential handset prices and tariffs. I think more people definitely need to weigh in with a bunch of total guesswork that doesn't actually add anything whatsoever to the discussion.
Lots of totally speculative quotes of potential handset prices and tariffs. I think more people definitely need to weigh in with a bunch of total guesswork that doesn't actually add anything whatsoever to the discussion.
You know what's missing from this thread?
Lots of totally speculative quotes of potential handset prices and tariffs. I think more people definitely need to weigh in with a bunch of total guesswork that doesn't actually add anything whatsoever to the discussion.
Why don't you head over to forums.macfacts.com?
Nevermind the complaining what's your guess? Based on what you've read on rumours pages of course.
I still think Apple might take a hit on the price if O2 really are coughing up 40%. No lower than to £199 though.
I suspect that 40% figure is more like 20% max. AT&T are rumoured to give up 10%.
Not long to go now.
To all the contract ninjas: Most people pay over the odds for the service they get. £30-35 for people who work is pretty much normal for phone bill.
According to The Guardian
O2 wins Apple iPhone deal - at a hefty price
http://www.guardian.co.uk/technology/2007/sep/17/mobilephones.apple
O2 wins Apple iPhone deal - at a hefty price
http://www.guardian.co.uk/technology/2007/sep/17/mobilephones.apple
Going with o2 in the UK is an absolute scandal. Apple is a company that prides itself on standing out from the crowd; devices that are a thing of beauty, technology to covet.
So choosing o2 is a bit of a contradiction. Of course o2 would agree to the terms - they are losing customers hand over fist since being taken over by Telefonica. Inflexible upgrades (some times you cannot upgrade, they force you into a lesser yet more expensive contract), date plans stuck in the 1980's, Indian call centres manned by people they have dug out of the nearest mental asylum and UK customer services so bad that they make Virgin Media look like a beacon of achievement.
Apple should have been less stringent and used a more reputable provider that is on the rise rather than one who is finished. Seriously, it just makes sense to have Apple working with Vodafone or t-mobile.
Never before have more true words been spoken. O2 is the worst carrier in the UK. The rip you off for everything, and are simply not competitive. (I couldnt believe just how much more expensive they were.. until I looked), My wife couldnt even cancel with them without them writing to us demanding money that we didnt owe, claiming they never received the cancellation letter (3 phone calls and 2 letters later.... Jesus!)
way to go apple. O2 sucks donkey balls, and I wouldnt want to be associated with them in the slightest.
What a disappointment.
I agree, when I was in Ireland last week I saw billboards and ads for very inexpensive long distance cell rates. But my travel abroad is tax deductible, so @ $.99 a minute plus long distance when I talk to the U.S. (and $20 for 20 megs of data) is not unreasonable. Is that the only reason??
I'm excited about getting my hands on an iPhone in the UK but the major issue for me is the tariffs and the data plans. At £45 odd for 1024 MB per month without voice/sms including (or very limited), I won't be that impressed. I hope they come up with something clever or actually close to unlimited.
The iPhone is one of the few handsets that I will buy regardless of what network it appears on.
Good points.
On the flip side then, the fact that the music content controlled by the publishers is bringing the customers into to the iTunes store which helps sell iPods, and they also market the music, still suggests the music publishers should get a cut of the iPod.
Oh, iTunes is known to make a small profit, and, well, iPods make a very nice profit, so they are not subsidized either.By the way, I think your argument holds up a little better than my previous paragraph simply because the music industry has zero investment in the iPod beyond the device driving sales of their content.
As for marketing, all the cell phone companies do marketing and the phone companies sometimes focus on a particular line. Who says the phone company isn't getting a kick back from the cell phone provider. Also, the marketing Apple is doing right now is large due to them entering a new business.
The most interesting statement you made was "So you are essentially saying the networks should be getting new customers for free?". Is Apple only getting a cut from new customers or all iPhone customers?
This whole argument is an endless circle. What counts isn't our opinion, but that companies are willing to sign these kind of deals in certain circumstances. It will be interesting to see how these exclusive deals help the cell phone operators bottom line.
I agree with Project. Apple comes to a carrier and says, "How would you like to make a lot of money without spending any. And get more press than you ever have in your history?" Seems like winning the lottery to me.
Supply, demand, and exclusivity. Apple has the hot product and that seems to be worth something to the phone companies. Great for Apple and the bit of Apple stock I own.
When Apple needs to futher expand its iPhone sales, they will be looking at different terms that will allow them to sell to more phone companies. Expect the revenue sharing to go down and eventually to zero. Well unless Apple sells like 50% of all cell phones! In that case the remaining phone companies will sign almost any deal. OK, that is just a big dream.
Well if Apple say to o2 give us 10% and you can sell the phone £269.99. o2 might have said our customers won't like that, how about we sell it for £199.99 and we'll give you 40% of the monthly tariff. Or something like that. Revenue sharing is what allows phones to be subsidised.
So generally the more you spend monthly (or the higher the percentage of revenue given to the manufacturer by the network), the less you pay for the phone.
I'm not a telecoms expert but that's what I guess happens!