Apple fails to meet UK iPhone sales target

by Alex Donohue, Brand Republic 21-Jan-08, 08:55

LONDON - Sales of Apple's iPhone in the UK have fallen short of expectations, with mobile phone firm O2 selling a reported 10,000 fewer handsets than expected in the two months after launching in November.

According to unofficial figures, around 190,000 iPhone handsets were sold in the UK in the two months beginning November 9, 10,000 fewer than expected.

The low figure comes despite a massive on- and offline press campaign and much press coverage aimed at enticing consumers to sign up to the product's 18-month contract, at a cost of £899.

Apple, which sold the UK network rights for the iPhone to O2, has said it remains optimistic about the product's performance, citing "unprecedented" levels of customer satisfaction and a three-fold increase in the number of people visiting O2 stores.

However, consumer polls predicted a shortfall in sales back in November because of the high cost of signing up for an iPhone putting buyers off. The handset costs £269 and ties users to an 18-month £35-a-month contract.

A survey from GfK NOP last November found that only 2% of consumers were considering buying the iPhone for Christmas, while 72% of respondents said the price was too high.

Sales could also have been hit by recent reports that Apple could soon be offering a new iPhone with twice the memory, but for the same price as the original phone.

The iPhone currently has just 8Gb of memory, meaning it can store up to 2,000 songs. However, reports last week said that Apple could soon be releasing phones with 16Gb or even 32Gb of memory.

Meanwhile, analysts have pointed to an influx of cheap fakes and the reluctance of people to change their existing network provider as reasons for the shortfall in sign-ups.

Apple and O2 have so far declined to comment on the reported figures.