iPhone price cut - weakness or strength?

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Andy
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iPhone price cut - weakness or strength?

Post by Andy »

iPhone price cut - weakness or strength?

O2 has announced it's cutting the price of the 8GB iPhone from £269 to £169. It's a big surprise, somewhat reminiscent of the one third price cut Apple introduced two months after its American launch. Those who've bought an iPhone in the last two weeks will get £100 back.

But the difference is this - it appears to be simply an O2 promotion, with Carphone Warehouse joining in, without any involvement from Apple. I've just confirmed with them that the price at the Apple store will stay the same - so there are going to be plenty of unsold iPhones stacking up there.

Apple won't say whether it is cutting the price it charges O2 for the phone, but I'd be amazed if it is lopping £100 off. So why is O2 giving away what must be all of its profit margin? A spokesman at the mobile operator reassures me that the phone has been its best-selling handset ever and this is simply a "promotion to maintain momentum".
Source and more information:
http://www.bbc.co.uk/blogs/technology/2 ... _or_s.html



Personally I think it was over priced to begin with, so its nice that its finally coming down in price.

Vista Ultimate R2
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Post by Vista Ultimate R2 »

Wow, that is a big reduction - now it just needs 3G, a better camera, and a pay-as-you-go SIM option
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mrpijey
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Post by mrpijey »

Surely not weakness. It's way overpriced being so crippled as it is. Lower the price and people MAY actually get interested in it for other reasons than the apple logo...
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defect17
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Post by defect17 »

Awwww no. I just arranged to buy an N95 from a friend.

Combined with an unlock this is looking pretty dishy now. Even puts it below the US price, which is a welcome change for those hailing from the UK.

KCLiVES
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Post by KCLiVES »

I thought this was due to the upcoming release of the 3G version later this year/start of next year.
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mercenaryhmster

Post by mercenaryhmster »

wow, if a 3g phone came out it would probably defeat every other device in it's class, shutting up most iphone haters

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Post by defect17 »

mercenaryhmster wrote:shutting up most iphone haters
I wouldn't count on it It's bad enough with the Mac haters..

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Post by XDude »

They problay overprice the iphone to make profit, then they have a price cut when it becomes main stream.

RentedMule
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Post by RentedMule »

This really REALLY isn't a troll, but it bares some need to be said:

My boss likes to give a gift along with christmas bonuses... something unique to each person so that they feel they aren't just a number on the payroll. My buddy, the guy in the cube next to me got an iPhone.

Let me tell you something (and my buddy who actually owns the phone completely agrees)... the phone sucks. It doesn't suck in what it does, or rather, supposed to do. It sucks in the actual execution of what it is doing. To be more clear, the little things that don't work right (or how you would expect them to) is what REALLY gets in the way.

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Post by empireum »

RentedMule wrote:It sucks in the actual execution of what it is doing.
Care to be more precise?

I'll chime in, the iPhone was (and still is, partly) way overpriced.

zhiyingzhu
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Post by zhiyingzhu »

well like everyone else, i would say this is a strength because the iphone is currently way to over priced, looks good for people who havent got it yet

Derf
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Post by Derf »

Vista Ultimate R2 wrote:Wow, that is a big reduction - now it just needs 3G, a better camera, and a pay-as-you-go SIM option
Actually, upon activation, you can chose for for-go the standard bill and go with a pay-as-you-go option, but the data charges don't make it worth it.

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Post by defect17 »

Right, well, I finally broke down and got one. My other phone (an HTC wizard aka T-Mobile MDA) completely died on me after a few weeks of struggling on. I Jailbroke and unlocked using the iPhone dev team's Pwnage tool. Currently on T-Mobile, but seriously considering a switch to O2 PAYG for the £7.50/month EDGE.

I'm thoroughly impressed thus far, especially because I finally have something that SYNCS PROPERLY WITH THE MAC. No-one else has come close, and for no other reason than incompetence, from what I can see.

Say what you will, but with the built-in functionality and Installer.app providing third-party solutions, it meets every demand I have. I challenge you to find a better phone for £169 on pay-as-you-go, that can cleanly sync. That requirement alone strikes Windows Mobile, Symbian S60 and Palm from my experience.

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Post by Vista Ultimate R2 »

Derf wrote:
Vista Ultimate R2 wrote:Wow, that is a big reduction - now it just needs 3G, a better camera, and a pay-as-you-go SIM option
Actually, upon activation, you can chose for for-go the standard bill and go with a pay-as-you-go option, but the data charges don't make it worth it.
Cool, I didn't know they let you do that - is it just O2's standard PAYG rates then or do they put you on some special expensive deal to try to get back some of the £35/month that they were expecting to get out of you? You could always just use it as a phone/PDA/WiFi browser, you wouldn't need to use the slow and expensive EDGE service.
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