The new iPhone, smaller than the current model and offering faster surfing speeds and a GPS connection, goes on sale in the US today and will be available to UK customers next month.
In the UK, where O2 has an exclusive contract with Apple, customers who sign up to the most expensive 18-month contract, costing £75 a month, will be offered the iPhone handset for no extra charge.
It will also be available to pay-as-you-go customers for the first time.
The change in strategy is designed to help Apple sell 10m iPhone handsets around the world this year, following disappointing sales in Europe. Previously, Apple charged customers a one-off fee for its iPhone handset in addition to a committment to sign a contract with the relevant network partner.
Apple has sold 5.4m iPhones, a small proportion of the £1.2bn global mobile phone market that is dominated by manufacturers such as Nokia, which sold 437m phones last year.
The iPhone has been popular in the US but of the 5.4m handsets sold, Jupiter Research estimates that fewer than 350,000 were shifted in Europe.
Apple's original strategy gave the company an estimated 15% of the operator's average revenue but under the new model, with operators paying to cover a proportion of the cost of the phone, Apple will take a smaller share of that revenue.
Comments
Phone lovers note - The N96 is due out in a month - A far better phone - No touch screen granted but a far far better OS inside (Symbian S60 3rd edition)
Apple dropped a real clanger with their exclusive O2 deal. I'm an agency MD and creative - Apple's number one fan I have the amazing (and first ever) opportunity to align all my IT through one supplier - but I'm on contract with Orange. They lost my business on the phone front. Permanently.
"free" iPhone? for £75 a month for 18 months? Doesn't sound like that much of a bargain.
It's particularly frustrating that O2 aren't offering it to business customers still - been waiting for months for them to open it up. We are very big spenders on our company contract, and they just won't give me a bl**dy iphone?!
Not much of a bargain at all! I have an iPhone and will not get the new one unless O2 hold the line rental I am currently paying!
wow that’s a good deal £1,350 a year for the new I-phone... im gessing u'll also get 10,000 free minutes and 1,000,000 free texts a month which of course u’ll never use...
Ricky - that's £900 a year, or £1,350 per 18 months. Still a cr*p deal, but let's get the figures right...
If by 'better' you mean more features then I agree. But if you believe it's better in the sense that the N95 is 'better' than the iPhone then I beg to differ. By comparison the N95 had a slow and clunky interface and relatively crude display, not to mention poor battery life. Nice camera though.
That's comparing with the current iPhone. The new iPhone will have ability to run downloadable applications and will happily co-exist with Blackberry-style corporate email (admittedly the Blackberry keyboard seems more ergonomic).
I'm a huge Apple fan admittedly, but resisted the iPhone initially because of its perceived flaws and because I didn't want to leave a network I'd had good service from for 15 years. When I did relent and started using the iPhone I "got it". It really does render other phones irrelevant in the same way the iPod renders other mp3 players irrelevant. Anything else seems very last century.
haha Many thanks Patrick... yes my mistake 18 months... as they dont do yearly contracts... but yes still crap deal...
The new iPhone release isn't just about the hardware - there's the huge potential for boutique apps created using the Apple SDK developer's tool. The future of the iPhone (ie apps, widgets etc) has been handed to developers and democratised. It's never been so easy to develop for a mobile phone.
Purchase thousands of genuinely useful apps and ported video games via iTunes (a proven sales platform), many of which are free? A no brainer surely?
Well yes I agree that iPod rendered the portable music market "won" and it has stayed that way even to date! I am amazed that i can find an iChoo baby pushchair designed for iPod (vommit!) I hate iTunes and i dislike the iPod compared to my N95 player as it can sync with Win Media easier (in my mind) then iTunes.
Have you seen the Symbian fan base out there? - google it !
My opinion is based on using the N95 for the last 7/8 months - and using every single nook and cranny it offers. Nokia Maps is as good as tomtom's - and for very little cost. The player is better then the iPod - giving a richer and LOUDER sound. the camera is awesome. Video player and recorder awesome. When using Divx films are really really clear. You can collect your email on the move if you so wish - Have you seen the plethora of web2.0 apps that most of the major websites offer for free? not on the iPhone my friend!
Tell you what - lend me your iPhone and i'll lend you my N95 and lets test!
ooops wrong forum !
Aroo - 09/06/2008
Was it available as a rental before or did you have to buy it? Seems like a crunch for Apple...
(excuse the pun)
the O2 deal is the killer in the country. We simply aren't used to being locked down and a new phone on the market itsn't going to change the mobile buying habits of that many people no matter how slick it is. They should have gone for a multi operator approach like all other vendors do, but that wouldn't have given Jobs the negotiating power he wanted for his kick back deal. Shame - it could have been the new iPod if they'd done it right.
Comments
AwallafaShagba - 09/06/2008
Phone lovers note - The N96 is due out in a month - A far better phone - No touch screen granted but a far far better OS inside (Symbian S60 3rd edition)
Gellan Watt - 09/06/2008
Apple dropped a real clanger with their exclusive O2 deal. I'm an agency MD and creative - Apple's number one fan I have the amazing (and first ever) opportunity to align all my IT through one supplier - but I'm on contract with Orange. They lost my business on the phone front. Permanently.
Michael Byrne - 09/06/2008
"free" iPhone? for £75 a month for 18 months? Doesn't sound like that much of a bargain.
JACK HORNER - 09/06/2008
It's particularly frustrating that O2 aren't offering it to business customers still - been waiting for months for them to open it up. We are very big spenders on our company contract, and they just won't give me a bl**dy iphone?!
Matthew Gray - 09/06/2008
Not much of a bargain at all! I have an iPhone and will not get the new one unless O2 hold the line rental I am currently paying!
Ricky Harewood - 09/06/2008
wow that’s a good deal £1,350 a year for the new I-phone... im gessing u'll also get 10,000 free minutes and 1,000,000 free texts a month which of course u’ll never use...
Patrick Barlow - 09/06/2008
Ricky - that's £900 a year, or £1,350 per 18 months. Still a cr*p deal, but let's get the figures right...
Adrian Langford - 09/06/2008
If by 'better' you mean more features then I agree. But if you believe it's better in the sense that the N95 is 'better' than the iPhone then I beg to differ. By comparison the N95 had a slow and clunky interface and relatively crude display, not to mention poor battery life. Nice camera though.
That's comparing with the current iPhone. The new iPhone will have ability to run downloadable applications and will happily co-exist with Blackberry-style corporate email (admittedly the Blackberry keyboard seems more ergonomic).
I'm a huge Apple fan admittedly, but resisted the iPhone initially because of its perceived flaws and because I didn't want to leave a network I'd had good service from for 15 years. When I did relent and started using the iPhone I "got it". It really does render other phones irrelevant in the same way the iPod renders other mp3 players irrelevant. Anything else seems very last century.
Ricky Harewood - 09/06/2008
haha Many thanks Patrick... yes my mistake 18 months... as they dont do yearly contracts... but yes still crap deal...
Dan Williamson - 09/06/2008
The new iPhone release isn't just about the hardware - there's the huge potential for boutique apps created using the Apple SDK developer's tool. The future of the iPhone (ie apps, widgets etc) has been handed to developers and democratised. It's never been so easy to develop for a mobile phone. Purchase thousands of genuinely useful apps and ported video games via iTunes (a proven sales platform), many of which are free? A no brainer surely?
AwallafaShagba - 09/06/2008
Well yes I agree that iPod rendered the portable music market "won" and it has stayed that way even to date! I am amazed that i can find an iChoo baby pushchair designed for iPod (vommit!) I hate iTunes and i dislike the iPod compared to my N95 player as it can sync with Win Media easier (in my mind) then iTunes.
Have you seen the Symbian fan base out there? - google it !
My opinion is based on using the N95 for the last 7/8 months - and using every single nook and cranny it offers. Nokia Maps is as good as tomtom's - and for very little cost. The player is better then the iPod - giving a richer and LOUDER sound. the camera is awesome. Video player and recorder awesome. When using Divx films are really really clear. You can collect your email on the move if you so wish - Have you seen the plethora of web2.0 apps that most of the major websites offer for free? not on the iPhone my friend!
Tell you what - lend me your iPhone and i'll lend you my N95 and lets test!
ooops wrong forum !
Aroo - 09/06/2008
Was it available as a rental before or did you have to buy it? Seems like a crunch for Apple... (excuse the pun)
Howard Scott - 09/06/2008
the O2 deal is the killer in the country. We simply aren't used to being locked down and a new phone on the market itsn't going to change the mobile buying habits of that many people no matter how slick it is. They should have gone for a multi operator approach like all other vendors do, but that wouldn't have given Jobs the negotiating power he wanted for his kick back deal. Shame - it could have been the new iPod if they'd done it right.