Jonathan Richards
Click here for a gallery of iPhone images Apple will put its new toy — the iPhone — in stores at 6:02pm on Friday, confident that customers will be willing" />
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Click here for a gallery of iPhone images
Apple will put its new toy — the iPhone — in stores at 6:02pm on Friday, confident that customers will be willing to pay the £80 premium for buying the device in the UK.
The device, which rolls a phone, music player and internet browser into one, sells in the US for $399 (£191), but in the UK customers will have to pay £269, assuming they do not sign up for a contract at the same time.
More than 1,300 locations — including Apple, O2 and Carphone Warehouse stores — will be open late this Friday to cope with the anticipated rush of people eager to lay their hands on what the technology world has taken to calling the "Jesus phone".
Most stores will close at 2pm to reopen at 6pm with the new product on the shelves.
O2, the partner network, has taken on 1,400 staff for the occasion, including one "iPhone specialist" for each of its 450 stores.
Matthew Key, the O2 chief executive, has said that the company aims to sell " hundreds of thousands" of the devices within the first couple of months.
In Apple stores, customers will be free to buy the device on its own, at which point they can take the risk of trying to "unlock" it from O2 — the only official network on which it can be used — using one of the many software packages available on the internet.
Otherwise, they will have to sign up to a minimum 18-month contract with O2 — at £35 a month — which brings the total cost of the package, including the device, to £899.
Existing O2 customers, who are expected to make up the bulk of early sales, will not incur any fee to break their present contract and sign a new 18-month deal so long as they were an O2 customer before September 18, when the deal with Apple was announced.
In the US, Apple sold more than a million iPhones in two and half months after its release in June, but analysts said that the UK market — where customers are accustomed to having a device included with their contract for no extra cost — was very different.
"Our view is that 200,000 in the first couple of months is a very aggressive target," Ben Wood, an analyst with CCS Insight, said.
"This is very different from the frenzied launch in the US, which will not be repeated. In addition, there's an alternative product which people interested in buying into a similar experience can get — the iPod Touch."
But, he said, there were other benefits for O2 to being associated with the iPhone, including the ability to entice more customers than usual into stores out of curiosity, and increased awareness of its brand.
The iPhone runs on a type of network known as EDGE, which is significantly slower than the most advanced technology for mobiles — 3G — and hampers some of the phone's key functions, such as browsing the internet, during which pages can take about 30 seconds to load.
Even then, EDGE is rolled out across only 30 per cent of the country, meaning that if owners stray beyond large cities, where EDGE coverage tends to be widest, speeds will slow down further still.
O2 is hoping, however, that three quarters of internet usage will be via wi-fi, either in users' homes or at one of the 8,000 British wi-fi hotspots run by the Cloud, with whom Apple and O2 have partnered for the launch.
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The iPhone's web browser DOES support java, flash is not included becuase of the massive strain it puts on the CPU. Any laptop user will be able to tell you that as soon as you load a flash movie, the CPU load goes up and the battery life plumets! The screen is also so bright that you can't even see the finger prints on it. Thirdly, £35 a month includes UNLIMITED data and a £7.99 a month subscription to the Cloud Wifi Network. I took my iPhone out around Leeds at the wknd and almost every bar and cafe has wifi, so besides the great EDGE coverage in Leeds (which is over 2MB download) I have wifi speed internet almost everywhere!But the 2killer features of the iPhone are the amazing interface and the software updates. Apple have already introduced loads of new features for the iPhone and more are sure to come. Every single person who has picked up my phone so far has been able to navigate the entire system without once asking where to find something, can you say that about your phone?
David, Leeds,
I think the iPhone is a waste of time. The internet browser doesn't even support Flash or Java. So why good experience will you get from the internet as they've boosted about.
Michael, Luton,
would just like to point out that, whilst the product on paper looks fantastic, and no doubt will sell to early adopters, its is significantly over priced. To pay £35 a month a only receive 300 mins or something like that, is shameful. Enticing customers to use wireless network on such a small device, you might as well use a laptop which most twenty some things already own Samsung Armani phone looks like a good alternative....
yusuf , London, UK
Why has everyone fallen for Apple's marketing machine? Through the process of a slick ad campaign alone, Apple believes they can penetrate an already saturated market with a distinctly average product, sure to covered in finger grease in a matter of hours. They offer their users no choice whatsoever in terms of which mobile operator they use, or which applications they can run on the iPhone (without invalidating their warranty). This is something we British consumers aren't used to. And to top it all off, they expect you to pay 269 quid for it. Hrm.
I saw about six adverts last night for the iPhone - I guess that Apple's advertising onslaught is all they've really got going for it. The disappointing thing is, people are stupid enough to buy into it.
Mike, Belfast, UK
Let's just take the headline
"Britons will pay an £80 premium for the Apple iPhone"
What nonsense...
The US price of $399 is before tax, so let's take our price before tax which is £229.
Then you are using the extraordinary current exchange rate of 2.05... let's use a slightly more realistic average of 1.7
This brings the pre-tax cost of the US iPhone to £235.
So OUR UK iPhone is actually SIX Pounds cheaper than it is in the US.
Happy Days!
Chris Fletcher, Leeds, England
What anti-US xenophobia? You're paranoid mate.
Mark, London,
"in the UK customers will have to pay £269, assuming they do not sign up for a contract at the same time."
No quite correct: it's £269 regardless of when you sign up for a contract. If you sign up for a contract when you buy the phone (and, you don't need to: Apple has designed the device to be activated and registered with O2 from your own computer) it doesn't lower the price.
Nik Fletcher, Hampshire, England
I think the article misses the point. Apple is not about price, it never has been. Apple is about value. Apple is to computers and technology, what business class vs. economy is in airline flight; convenience, comfort and frankly, better treatment.
The unescapable fact is there are enough people wealthy enough to pay for convenience, and in the case of the iPhone, that convenience is seamless integration with Apples' operating system - your email, contacts and appointments synchronise seamlessly to the iPhone. Not to mention music and movies. All it takes is one touch of the "Sync" button.
This is not the experience of Windows users who find their feature cellphones & pda "buggy" to say the least.
The real question is "are there 200,000 people in England who value convenience? I rather think the answer to that question, as the next 2 months will show, is "Yes." As for the anti-US xenophobia expressed here, it's sad to see that element here. Get a life, buy a Mac!
David, Los Angeles, California, USA
The link between apple and O2 is a real surprise.
O2 is owned by Telefonica, a continuing monopoly in Spain that makes BT's worst days appear as beautiful as most honeymoons.
fredkeeling, almunecar, spain
Two fact checks here:
1. "Britons will pay an £80 premium for the Apple iPhone, prompting fears that the launch may be less frenzied than in the US". The same iPhone model launched in the USA at £599, which is more expensive than the launch price in the UK. There's a premium on the current direct comparison to be sure, but £48 of that is the Exchequer's markup for VAT. The analyst's point about the iPod Touch is a better one. Plus Apple's more popular in the US generally, across established Mac & iPod lines.
2. EDGE will usually be slower than '3G' (basically a low-end 3G technology, it is often called '2.75G'), but far from being 'significantly slower', it actually overlaps - EDGE's optimal performance is 473.6 kbit/s. 3G begins at 384 kbit/s. It's a tradeoff - EDGE has better power consumption, 3G's has better UK coverage as your article implies.
John Allen, Oxford, UK
As an o2 customer of 4 years (whose contract needs renewing) and an apple user of almost as long, I imagine I'm in the target customer bracket.
Additionally, I'm in my mid twenties and have a good income.
All this and will I be buying an iPhone? No chance. Why? Simply too much money. Apart from £269, my monthly contract will go up and provide me with less minutes and texts, and I imagine another version will be released, at latest, within a year, so why would I want to sign-up for an 18 month contract?
I hope many people will feel the same and show that what apple and o2 are doing I can only describe as "retail arrogance"
Richard, Glasgow,
I have been following the iphone over the internet before it's launch in the USA and I can understand the hype due to it's easy to use interface, but I have also followed other mobile phones which I believe offer similar capabilities and which I would consider buying over the iphone when they are released. Samsung F700, Meizu M8 Mini One, Cect P168, Digiware D99i which all offer touch screen and video. On a slightly larger scale the Nokia N810 and ASUS eee PC 4G offer internet on larger screens using BluetoothWiFi connection to your existing mobile phone. Technology is advancing so fast the choices can only get better and I am sure the Iphone will only accelerate this. As you can gather I will be purchasing a device with more freedom of choice and less limitation for a smaller finanical outlay. The Iphone will sell but I feel their joy will be short lived once they realise there are better product available which do so much more for their money.
Steven Fox, Great Harwood, United Kingdom
Facts:
In the US and Canada, most phones are sold as part of a package (contract) and they are free, same as UK.
The iPhone isnt a phone, it just happens to have a mobile phone as one of its many functions.
Its an iPod nano 8 gig with full screen video - thats £129.
Its a phone, lets say £75.
Its a small computer with wireless, full web browser (NOT like a phone web browser), email, youtube etc. lets say £200.
You are getting £400 worth of equipment, which doesnt exist in this form elsewhere, plus you have to pay for your phone calls, (duh) but the web part and email is FREE!
Sorry, whats not to like? It will sell like water in the desert.
If you use one - you will NEVER go back to a 'mobile phone' again. I know, I have two.
harry Wolf, Vancouver, Canada
If you buy one of these you are a fool. It is already outdated and yet again we have to pay over the odds from our trans-Atlantic brethren.
iPhone pricing is based similarly to that of their nano's. Less for more knowing that idiots will open their wallets. Wake up and smell the coffee.
Ross , Glasgow,
Who really would want an iBrick? As with most Apple products, expensive and quirky. Tries so hard to be stylish it's dramatically uncool.
Adam Nottage, West Sussex, UK
I've used an unlocked one here in Canada, it's a wonderful device.
However, one must remember that North American wireless technology is significantly behind Europe and Asia... great device, crap connectivity, so the full potential of this device cannot be realised.
Save your cash, wait for the 3G version.
nicemandan, Calgary, Canada
You forget that in the US, prices do not include tax, but in the UK, you have VAT. The price quoted, 269, includes VAT. If you take out the VAT, you have a more comparable figure. Apple claims that there are other costs associated with selling in different countries, but does not disclose them. Cheers!!
A Clark, Roseville, USA/CA