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New iPhone tariffs fail to provide anticipated sales boost

Long two year contracts are blamed

New iPhone tariffs launched last weekend (3 April), which made the handset free on £35 and £45 per month contracts, failed to provide the sales boost that many had hoped.

More in link


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Posted: 2009-04-08 15:59:47
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yeah, they gave with one hand, and took with the other

I know its seen as a run out before the new model comes so maybe they should do what they did last year with the 2G and just sell them sim free or improve the payg prices
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Posted: 2009-04-08 16:02:42
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Thoroughly good news as far as us customers are concerned, the networks need to know that 24 month contracts are not what people want, particularly when there's a new model literally peeking it's head around the corner (and we're in the midst of a nasty recession). I thought those were spectacularly poor value deals when they announced them.
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Posted: 2009-04-08 16:19:38
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Well I do think they were trying to pull the wool over people's eyes by reducing the price but only on 2 year contracts - what did they expect?

Its hard enough getting someone to sign up to an 18 month contract.

The problem here is that its exclusivity to O2 but I seem to remember reading somewhere that this will be coming to an end.
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Posted: 2009-04-08 17:09:36
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According to the article linked to above, the O2 exclusivity will be "reviewed" in July. Who knows what that means in terms of who's reviewing whose performance...

As someone who was happy to pay £99 to get the iPhone on the £30pm 18m tarrif, I can actually look at the "new" tarrifs and safely say I'd still choose to pay £99 upfront and sign the exact same contract. Except of course I'd be an idiot to do that now, since the new model's going to appear in a matter of weeks.

I feel sure that a new deal designed to cause a sales "spike" should be making me feel stupid for not waiting, not glad that I already signed up last October.
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Posted: 2009-04-08 17:17:33
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Lol, take with one hand give with the other?

O2 have been doing this with all other phones for about 2 years now, offering a discount to customers who stay with the network for 24months rather than 18months. So what if it hasn't set the world alight? It's just a new option, I imagine they'll properlly cut the costs nearer the time.


As for the review, it's a 5 year contract, but the half way point is July, so Apple are going to be reviewing O2, hence the price cut I guess.

Apparently, on the back of them getting exclusive rights to sell Mac Book's in store, Orange are on the verge of sharing the iPhone in the UK with O2, so who knows.....


To be totally honest I don't really care, I hope the iPhone goes belly up completely if you ask me, ghastly phone in my opinion, always has been and always will be
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Posted: 2009-04-08 17:44:27
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Its amazing really!

Some of my friends have got ridiculously deals with their operator just for staying with them for more than a year or two - a new phone every year and a deal cheaper than their last, free home broadband etc.

One particular friend has got an amazing deal with Orange, so cheap it hurts!

I really do hope Apple Inc extends the availability to other networks.

I think its a great device but just a bit pricey still and O2's hold on it should be relinquished.

2 year contracts must be the bain of instore seller's lives really - I mean no-one upgrading for 2 whole years?


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Posted: 2009-04-09 18:12:15
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You'd be very, very suprised.

You want to know what the demographic of the vast majority of our customers are?

This might shock you, but it's people buying a simple basic phone to make calls with, send texts with and THAT'S IT. So we sell loads of Samsung J700's, Nokia 2630's and 2760's, Sony Ericsson T303's etc for around £30-£40.


People who buy the Pixon's, Renoir's, C905's etc don't buy them for even half their features. We probably get one person a fortnight who wants WiFi, and just as many who want GPS.

We do get a few people who want a good camera, hence the C905/Renoir/Pixon crowd, but that's about it.

The X1 is about as popular as small pox


So for these people, 2 year contracts aren't a problem because they really don't care that much.


Anyway, as I said before, I don't mind if O2 lose the iPhone, I'd probably prefer it actually lol
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Posted: 2009-04-09 18:22:19
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Daedalus - don't you think that might be because the casual customer coming into a shop to poke around at phones isn't necessarily going to be a "power user" (for want of a better term) interested in the higher end stuff? I'd take a guess that most people who are chasing after things like GPS and wifi do their research and decide exactly what they want, and then probably go ahead and buy it online too, without needing to consult a sales clerk.
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Posted: 2009-04-09 18:26:29
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@Daedalus85

Really? So 24 month contracts are not that hard to sell? That does me surprise actually. I suppose the average shopper isn't arsed and the majority do just want calls and texts.

I suppose if you pointed out the simple economics of their contract then they'd see sense. A lot of their total contract price does include the price of the phone after all.

Myself, as a 'power-user' would be looking for a bit more than a T303 for 2 whole years but then again, I rarely stick with the phone I get with my contract anyway.

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Posted: 2009-04-09 18:31:23
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