Opinion of Michael.
It has recently been announced that iPhone’s exclusive deal with O2 has come to an end.
The iPhone will soon be made available to Orange UK customers, bringing O2′s 2 year deal with the Californian computer company to an end. Pricing plans have yet to be made public, however a website has been created so potential customers can register their interest. The Californian technology company is hoping that branching out to new networks will help it sell more handsets, while Orange is desperate to enhance its offerings ahead of a proposed merger with the UK side of T-mobile. That move would create the UK’s largest mobile network, and would mean that the iPhone – often seen as an elite, high-end product – would be available to more than 49 million mobile users across Britain. This will no doubt create competition to the O2 network, but is this announcement too late?
Does 02 still have the upper hand? Having benefiting from the initial 2 year period of exclusive rights I would imagine anyone who wanted an iPhone may have already transferred networks in order to get their hands on the impressive handset and become an early adopter of the latest craze. If this is the case, it could be a costly move from Orange. Vodafone have also managed to clinch a deal with Apple, however the deal does not allow them to compete with O2 and Orange until after Christmas. This is a slight blow for consumers who would benifit even further from the increased competition of another network provider trying to compete on price. The cost of the handset itself may also be reduced for pay and go consumers due to Apple being able to sell more units on mass because of increase distribution; therefore decreasing the cost per unit of production, which produces more margin at base line level to decrease prices through the chain of distribution. O2 clearly have a battle on their hands and all us budding customers are eagerly waiting to see who can produce the best deal.
Source: www.guardian.co.uk
Filed under: Off the record, iPhone, O2, Orange, Vodafone
