O2 to Launch Multi-Million Pound Ad Campaign for iPhone

[dontwalkhand]

Would these run in addition to the ads Apple has? Watching the UK keynote, the same ads from the US would be there, but tailored for UK customers.

 

[CD3660]

I would imagine that they will just show the normal Apple ads (adapted for the U.K.) with, perhaps, a brief postscript that they are available only on o2.

 

[Project]

A couple more: microphone, volume buttons, ringer switch, proximity sensor, different headphones (with mic and button). Casing (size and materials) is different too and the screens are I believe not quite the same size. Batteries may differ too?

+ another £15 to the BoM. The phone is still unsubsidised.

Exactly. That's a form of subsidy. Glad you agree with me.

No it isn't. Its revenue sharing.

 

[lofight]

it's alot of money, it's going to be a pretty big campaign.

 

[emotion]

No it isn't. Its revenue sharing.

Yes and they use that revenue sharing arrangement to subsidise the price of the iPhone.

You surely must be able to see that?

 

[72930]

This is going to bring a massive amount of people into the already-packed Apple Stores...they really need to open up new ones...

 

[Project]

Yes and they use that revenue sharing arrangement to subsidise the price of the iPhone.

You surely must be able to see that?

Look up the definition of a subsidy.

Given the price of the iPod touch, the iPhone's £269 is clearly NOT subsidised. Apple is clearly not making a loss on the sale of the iPhone at that price. The revenue share is an agreement for Apple to make more money on the iPhone per month... that is not a subsidy. It is revenue.

In the traditional phone market, the cost of the phone is subsidised in order to tempt users to buy into the agreement. The subsidy is recouped on the monthly contract. The complete opposite is happening with the iPhone.

 

[emotion]

Given the price of the iPod touch, the iPhone's £269 is clearly NOT subsidised.

All I'm saying is that neither of us can have a definitive answer to that. Only Apple know that.

However, if Apple are keeping the price artificially low by using the revenue sharing money, that is how the subsidy is possible for them. Via the route they've taken.

Simple.