I’ve got bad news for anyone waiting for the much anticipated “price war” to erupt over the iPhone in the UK: it’s not going to happen.
There’s been much excitement about the iPhone being made available at lower prices ever since Apple announced it would not be extending its exclusive two-year iPhone deal with O2. But I’ve learnt it’s not going to happen any time soon due to one very specific reason.
The touch-screen operated iPhone is undisputedly the daddy of all mobile handsets right now. If you know someone who owns one, chances are you know someone who loves one.
Many admirers not on O2 have been waiting for the rollout of the iPhone across other networks, and the increase in competition is widely expected to act as a catalyst that will bring down the monthly cost of the iPhone.
There was notable disappointment when Orange, the UK’s third-largest mobile phone operator, unveiled its tariffs for its iPhone deal on Monday, and guess what, they are broadly in-line with those already being offered by O2 – around £30 a month for contracts, and an 18 month commitment.
Yes, there are slight variations over what is included in the monthly tariff, but the basic packages and, more importantly, the monthly cost to the consumer are very similar.
There’s a reason for this.
Those now pinning their hopes on Vodafone undercutting both O2 and Orange when it launches its iPhone package in the New Year will be equally disappointed.
A high-level Vodafone exec has told me the basic price ranges of the iPhone are being set by Apple at the negotiating table.
While some degree of variation is being allowed for, the general monthly costs, at least for the first round of contracts, have been stipulated by brand-protective Apple.
If you want an iPhone in 2010, it’s still going to cost you.
