My friend’s disappointment about the iPhone

Technology — Tags: , — Joe Anderson @ 8:29 pm Friday 9 November 2007

The Apple iPhone was released today in the UK. I hadn’t got any hopes up as I knew how expensive the contract would be and I realised that the chances of unlocking an iPhone permanently are near zero due to the fact Apple fixes unlocks via. updates.

A good friend of mine was anticipating the iPhone launch but hadn’t been following developments of its release in the UK as much as myself. She didn’t know that including the contract, an iPhone would start at £900 (about US$1,900 or €1300) and whilst this does include 200 mins and 200 texts monthly for 18 months she thought it was still pretty costly.

It’s interesting how Apple Store UK fails to mention the contract on their homepage yet mentions a fairly generous pricetag of £269 and the phone’s 8GB of memory.

One of Apple’s key markets are students and teenagers who are surely unlikely to be able to afford to splash out a minimum of £35/month for a minimum of 18 months. I wonder what Apple’s motivations behind contracting their phones are… the consumer would no doubt be much happier if they were unlocked!

My friend realises that a price nearing £1000 isn’t worth it for any phone, regardless of how cool it is. When you add into this the fact that the iPhone lacks 3G it seems even more of a rip off…

I think it’s also worth noting how the British consumer is being charged more than Americans. The total cost for an American iPhone with a 2 year contract (entitling 450 mins and 200 texts) costs US$1900… a British contract for 18 months and less than half of that amount of minutes costs the same amount!

Apple need to remember who their market is, especially outside the land of freedom fries and other Americanisms, and not lose touch with the consumer by solely pursuing profits as they blatantly have done with the contracting of the iPhone. I won’t be getting an iPhone due to its hefty price tag in addition to its lack of 3G (whilst 3G isn’t widespread in the UK, it certainly can come in useful!).

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5 Comments »

  1. Are you really this ignorant? Apple doesn’t determine the contract price. The service provider — AT&T, O2, T-mobile or Orange — does. So, your gripe is really with O2.

    Comment by soulphone — 10 November 2007 @ 4:24 am
  2. @soulphone Apple get a percentage of the contract fee so of course they have some input. Don’t post a comment to someones blog beginning with the phrase “are you really this ignorant”, especially when you don’t seem to know all of the facts yourself.

    Comment by jon — 10 November 2007 @ 10:42 am
  3. I’ll have to wait until it arrives here (probably some time in 2010 or whatever) but this baffles me.

    I’m not sure I fully understand. I assume that 900 pounds is stretched across those 18 months, right? Because if someone here had to fork over 1,300 euros at the PIN machine for a phone, I don’t think a single one would be sold.

    I suppose it’s like with early desktops we paid thousand for. Things will settle down and prices will drop. But then there’ll always be the next thing around the corner too.

    In any case, I really don’t know what Apple’s doing on the phone market other than that it’s hot and everybody just has to get in these days.

    Comment by Nils — 10 November 2007 @ 4:54 pm
  4. We Americans like the French now, especially with Beaujolais season just around the corner. Mmmmm, wine.

    Even though I’m an ATT customer, I’m not getting an iPhone. Why? Because I find that I am capable of being apart from my email for minutes and even (gasp!) hours at a time.

    Also, the maps on there are not nearly as awesome as they are in the commercial. I have been frustrated multiple times when trying to use them to find a restaurant or the East Palo Alto Ikea.

    Comment by Abi — 10 November 2007 @ 11:06 pm
  5. Nils: Yes, that is over 18 months. It is the total of phone + contract.

    Comment by Joe Anderson — 11 November 2007 @ 4:38 pm

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