iPhone now £169 in UK
April 17th, 2008
O2 UK have reduced the price of the 8GB iPhone by £100 in the UK. In a move reminiscent of the iPhone price cuts in America, it’s now £169 ($333) when you take out a £35/mo. 18 month contract.
People are speculating that this is because Apple is planning to launch a 3G iPhone later this year and that they want to shift stock of older 2.5G phones. Another speculation is that the iPhone is selling well short of it’s sales targets.
I remember when the iPhone came out in the UK; there was so much media speculation. I was actually walking down the high street at 6pm exactly when the iPhone was first released for sale. I had a little play on the iPhone and I was actually the only person in the O2 shop at that time! Only one person I know currently has an iPhone.
Amongst the younger demographic, £35/mo. is hell of a lot to spend on a phone contract especially when you get so many free texts and minutes on pay as you go (although I do know some people who claim to spend £100+, I’d say most teenagers spend around £20/mo). The initial upfront cost of an iPhone was also a prohibiting factor at £269. At the same price, you could get an iPod Touch which had no subscription. Certainly with the software updates, you can do pretty much anything you could do on an iPhone on a Touch.
Though with the price cut, the iPhone is now roughly the same cost as an iPod classic and £100 cheaper than an iPod Touch.
I don’t really know whether the iPhone has taken off amongst young professionals. But I can’t say I’ve seen any of them with an iPhone… but I’ve seen a lot of people with Blackberries. My guess is that the price cuts is due to low demand for the iPhone.
Apple (and most companies) always reduce their prices on desirable items after a while. The initial price is for initial adopters and those willing to pay a premium to have things first, and then a big reduction is to tempt those who wanted the item but found the initial price prohibitive.
Although the iPhone is a better overall device, I have to say that if I pay a premium for a ‘fashion’ phone my guilty pleasure is currently the quite expensive Nokia 7900. OLED display!!!!
It is not Apple, but O2 who reduces the price: actually at the Apple Store the price is still at 269£st. The cut is similar, in my opinion, to the T.Mobile discount in Germany (99€,80 £st!).
I don’t think you can buy an iPhone without subscribing a contract.