[UK] Is a price drop inevitable?

[jonnyb]

So the Regent Street Apple store still has stock left from the launch and there's a survey showing that most people will not buy an iPhone because it's too expensive.

As much as I love my iPhone, as a Mac-devotee I'm hardly a typical UK mobile phone consumer. I have to admit that to your average punter used to free feature-loaded handsets and monthly deals including hundreds of minutes and thousands of texts, the iPhone isn't a good deal ( yes, I know it's an ipod, internet device etc etc...)

Apple are marketing the iPhone in the UK along US-centric models with a complete disregard for the very well established conventions of the UK mobile phone market. The UK market won't go for it in big numbers until it's a lot cheaper.

I think a price cut is inevitable. The question is - when? (and will us early adopters get some vouchers if we whine hard enough )

 

[CD3660]

The answer to your question will be determined by how the sales figures over a reasonably significant period of time match up to expectations (Apple and O2's, not ours).

The survey you referred to suggested that 72% of people thought it was too expensive. In my view those figures are favourable to Apple. It means that almost a third of people don't think it's too expensive, and I don't believe Apple expect to sell to anywhere near that percentage of the population.

 

[Luke Redpath]

I'm still struggling to understand why people think the iPhone is "too expensive" unless you are taking the contract fees into consideration too.

You don't hear people complaining about paying up to £200 for an iPod or competitor's mp3 player so for an extra £70-100 you also get a mobile phone and wifi enabled internet device with the best UI in the world.

The O2 contract rates aren't brilliant but they aren't terrible either. At the end of the day, the sort of person who spends £40 on a cheap and nasty phone and pays a tenner a month on PAYG because "that will do" isn't really the sort of person the iPhone is aimed at.

 

[CD3660]

I'm still struggling to understand why people think the iPhone is "too expensive"

I completely agree. The hardware at £269 is perfectly reasonable. It must be the fact that people are conditioned to get their mobile phones free in the U.K. and that the tariffs are not, at first sight, as good value as they are with other phones.

I'm happy though!

 

[theGAPkid]

I'm still struggling to understand why people think the iPhone is "too expensive" unless you are taking the contract fees into consideration too.

You don't hear people complaining about paying up to £200 for an iPod or competitor's mp3 player so for an extra £70-100 you also get a mobile phone and wifi enabled internet device with the best UI in the world.

The O2 contract rates aren't brilliant but they aren't terrible either. At the end of the day, the sort of person who spends £40 on a cheap and nasty phone and pays a tenner a month on PAYG because "that will do" isn't really the sort of person the iPhone is aimed at.

I wouldnt mind paying the £269 IF the contract offers were cheaper / better value. 200 texts? I pay £15 for 340 texts AND a free phone. And I know you can say you get the free wireless etc, but the original £269 AND a minimum of £35p/m plus any extra costs is too much for quite a lot of people. (for me anyway )

I think a price drop will come. Not sure when, but I sure am waiting!

 

[CD3660]

I think a price drop will come. Not sure when, but I sure am waiting!

Don't start holding your breath just yet!

 

[Luke Redpath]

200 texts? I pay £15 for 340 texts

Fine, but do you also get unlimited data and wifi hotspot access?

If you send loads of texts then the iPhone plans probably aren't for you. I don't send more than 200 texts a month so it suits me just fine. Who over the age of 21 needs to send that many texts a month anyway? Somebody I know sends thousands of text each month; it's crazy.

 

[j26]

... the sort of person who spends £40 on a cheap and nasty phone and pays a tenner a month on PAYG because "that will do" isn't really the sort of person the iPhone is aimed at.

Yes, but there is the sort of person who doesn't use the phone that much, is happy on PAYG spending a tenner a month or less, and would like the iPod/phone combo, who would buy the iPhone but for the contract (and a few missing features that should appear in the next version)


Like me. I'm sure I'm not alone, and people like me would be the ones to drive sales figures in markets where the majority of punters are on PAYG (like Ireland where there's 1.1 phones per person in the country and about 2/3 are on PAYG)

 

[Luke Redpath]

Yes, but there is the sort of person who doesn't use the phone that much, is happy on PAYG spending a tenner a month or less

If you use your mobile phone so little, why do you even care about the iPhone? Just buy an iPod Touch.

Yes, loads of people love the iPhone but don't want a contract. That's life. I just wish people would stop bloody whinging like Apple have committed some kind of great sin. They can sell their products to whoever they want and if they want to rule out a certain portion of the market that's their lookout. Me...well I've got an iPhone and I love it so I really couldn't give a toss.

 

[CD3660]

Yes, but there is the sort of person who doesn't use the phone that much, is happy on PAYG spending a tenner a month or less, and would like the iPod/phone combo, who would buy the iPhone but for the contract (and a few missing features that should appear in the next version)


Like me. I'm sure I'm not alone, and people like me would be the ones to drive sales figures in markets where the majority of punters are on PAYG (like Ireland where there's 1.1 phones per person in the country and about 2/3 are on PAYG)

You have to remember that Apple are not only interested in the profit that they make on the hardware. They are also taking a tidy share of the 'tariff cake'. This is why the tariffs are more expensive than normal tariffs.

 

[Eraserhead]

that the tariffs are not, at first sight, as good value as they are with other phones.

Remember the iPhone contacts are 18 months, vs the norm of 12 months, and you don't get £100 cashback like you would with other phones. (The phone is free as well).

Fine, but do you also get unlimited data and wifi hotspot access?

Is it really worth £20/month more?

 

[j26]

If you use your mobile phone so little, why do you even care about the iPhone? Just buy an iPod Touch.

I travel 1,100 miles a week. I'd like one device to cover most of my needs, rather than having all the separate devices in my pockets and bags. I'd like not to need to carry all these cables to connect to my Macbook. I'd like seamless integration with my computer.

Edit: You added to your post, so I'll reply here. If loads of people would like an iPhone but don't want the contract, then it seems to me that the marketing of the phone is a bit wrong and they will lose a lot of customers. Many people would spend more than the contract price to have the iPhone sim free, or even locked to a network, but not a contract (me included).

I'm not whinging, merely observing that the iPhone, which I was championing on this site well before it was even announced, is not a product that suits me. If you want to call that whinging, that's fine. Its just that I have money that Apple won't be getting, which ultimately is Apples loss. I can live with my workarounds until the right product come up for me.

 

[CD3660]

Remember the iPhone contacts are 18 months, vs the norm of 12 months, and you don't get £100 cashback like you would with other phones. (The phone is free as well).

A lot of contracts are for 18 months nowadays, and even more of those 'cashback' deals are a complete con. I got stung by one of those once!

 

[CD3660]

I travel 1,100 miles a week. I'd like one device to cover most of my needs, rather than having all the separate devices in my pockets and bags. I'd like not to need to carry all these cables to connect to my Macbook. I'd like seamless integration with my computer.

Sounds like the iPhone is perfect for you. You'd better just cough up!

 

[j26]

Sounds like the iPhone is perfect for you. You'd better just cough up!

I'd love to, but there are cheaper, and in some respects better options out there.
I have better uses for my money than an iPhone at the moment.

 

[CD3660]

I'd love to, but there are cheaper, and in some respects better options out there.
I have better uses for my money than an iPhone at the moment.

That's entirely your choice. One of the advantages of living in a free country.

 

[stekerrod]

If you use your mobile phone so little, why do you even care about the iPhone? Just buy an iPod Touch.

Yes, loads of people love the iPhone but don't want a contract. That's life. I just wish people would stop bloody whinging like Apple have committed some kind of great sin. They can sell their products to whoever they want and if they want to rule out a certain portion of the market that's their lookout. Me...well I've got an iPhone and I love it so I really couldn't give a toss.

I agree to an extent, no matter how apple sold the iPhone at what price with what features not everyone wouldn't be satisfied! If you're not prepared to pay the money for an iPhone don't! I think its awesome and worth the money so I was okay with the amount it costs, people deal with it and move on people!

Rant over I can breathe again.....

 

[OllyW]

Fine, but do you also get unlimited data and wifi hotspot access?

Is it really worth £20/month more?

O2 data package £7.50
Cloud Wi-Fi (iPod touch) £3.99

Not really

 

[j26]

That's entirely your choice. One of the advantages of living in a free country.

True, but I can still rue the fact that Apple decided to create something that doesn't suit my needs. I can also hazard a guess that my views represent the views of a significant number of people, and that Apple will find Europe a much harder nut to crack than the US unless they change their model.

I wouldn't like to see Apple squander the opportunity they now have.

 

[CD3660]

I wouldn't like to see Apple squander the opportunity they now have.

Judging by Apple's phenominal success so far, I think that they have the matter well in hand.

 

[Luke Redpath]

Is it really worth £20/month more?

It is to me, but it's also down to how much you value the iPhone. I value it enough to pay a small premium on my monthly contract (even though it's only a fiver more each month than the contract I was on previously anyway).

 

[j26]

Judging by Apple's phenominal success so far, I think that they have the matter well in hand.

In the US maybe, but I can see with doing so much travelling, that in Ireland at least, the iPod is losing ground to music playing phones, particularly Sony Ericsson. People want a convergent device, but are not willing to pay ridiculous cash for it.

The Irish phone and music player market is not too unlike the rest of Europe, so I think it's fair to say that Apple will start to lose mindshare, and consequently marketshare and sales overall in Europe unless they do this right.

 

[CD3660]

The Irish phone and music player market is not too unlike the rest of Europe, so I think it's fair to say that Apple will start to lose mindshare, and consequently marketshare and sales overall in Europe unless they do this right.

I really don't believe that Apple will be loosing sleep over this.

 

[sjo]

I really don't believe that Apple will be loosing sleep over this.

they should.

 

[Stella]

I'm still struggling to understand why people think the iPhone is "too expensive" unless you are taking the contract fees into consideration too.

It doesn't matter if the iPhone is the "best" in the world - it doesn't change the fact that if the UK public think the contract rates and the upfront cost are too expensive, then it won't be purchased.

A lot of people in the UK ( and anywhere else ) have priorities that exceed that of the iPhone, such as paying mortgage / rent, food, council tax, utility bills etc etc.

If they need a cell phone they'll opt for a cheaper phone with cheaper rates that is affordable.