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99 Euros is approximately £79.

That's cheap indeed, but not as good as the free 8GB one that I've been offered nor as cheap as the 16GB that I could have for £59.
 
In the UK we also have a Pay & Go option which can come out cheaper, depending on your topping-up and phone use habbits, of course.
 
They would rather people buy iPhones, they get more money in the end.


Way too simple to say that. There are too many factors at play.

They have a very consistent pricing and upselling strategy. Shuffle > Nano > Classic > Touch > iPhone. Pricing the iPhone on PAYG at the level of the Nano/Classic destroys this upselling strategy and devalues the line as a whole. And the iPod is 30% of their business. Sure they'd rather you have an iPhone than a Nano, but not at the price of a Nano.

They will have a far higher margin on a Classic @ £169 than an iPhone @ £169

They are the dominant company in the MP3 player market worldwide. Being in that position gives them tremendous market power. They will get better flash and HDD prices over Microsoft for instance. But they aren't a real power yet in the mobile market and won't have the same pull.

The accessory market for the iPod is huge and they take a cut out of every one sold (certified). They don't want to jeopardise that.

In light of all this I am fairly sure they will price the PAYG option as slightly higher than the Touch line to keep that upsell strategy in place and maintain their margins. If you want a cheaper iPhone you take out the contract with O2.
 
the problem is with the plans the iphone comes with, the cheapest one cost 49euros that is 75.5$
if they'd offer 26euros plan i would definitely get one.
 
After two years,
Orange €1275 $1,971
AT&T $1,975
O2 $1,597

Waiting to see what's offered over here, my current contract is about $20/month unlimited data (That would be $480 over two years).
I'd like to see Apple sell it unlocked for it's real price like any other iPod, $600-$700 would be fine.
 
a little note:
in France u can cancel ur plan after 12 months but u'll have to pay 1/4 of the remaining fees.
 
True, but they wont be more than the first gen iPhone, im almost certain, I am hoping for something in the £170-£250 price range, lower would be great of corse!

I really don't think it's gonna b this cheap! If they have it that cheap people will buy it and unlock it which will impact on people signing up to iphone contracts, which is exactly what o2 will want to avoid.

I could see it being between £300 and £400 easily.
 
I really don't think it's gonna b this cheap! If they have it that cheap people will buy it and unlock it which will impact on people signing up to iphone contracts, which is exactly what o2 will want to avoid.

I could see it being between £300 and £400 easily.

The Italians have released details of their PAYG and that's what they show.
 
the problem is with the plans the iphone comes with, the cheapest one cost 49euros that is 75.5$
if they'd offer 26euros plan i would definitely get one.

If you're working for an enterprise, you can get a iPhone plan starting at 29.9€.

Check the Orange site for more details. They haven't updated the iPhone prices on these pages yet, but it's bound to happen.
 
You are also talking about France charging 49 euro ($75) a month for 120 daytime minutes.

You'll probably end up around the same monthly fee if you use any plan with whatever phone adding in the rest of the options that come with the iPhone plans. So yes it's a bit expensive to use cell phones in France, but it has very little to do with the iPhone.
 
Actually with Orange, you can sign up for one year, and you'll end up paying 642€ ($990) for that year and an unlocked iphone if so you please.
53,5*12+99 741€
But true, that would absolutely be the best offer in a case similar to mine. ($1380 / two years)
 
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