o2 Confirm Deal for the iPhone - Launch Set for 9th November

As predicted previously in this blog O2 have beaten off stiff competition from other mobile phone providers such as Vodafone to sign a deal for exclusive distribution rights for the Apple iPhone within the UK. According to an article written in the Guardian O2 won the bidding war by reputedly signing a deal which would give up to 40% of the revenues it makes back to Apple!  Although O2 have sole rights to the distribution they will also be using Carphone Warehouse outlets to sell the device on O2 contracts to gain maximum exposure for the must have gadget for 2007 - in fact Apple have already shipped it’s first 1 million units with a target of 10 million by the end of 2008 as the product is rolled our worldwide.

The Apple iPhone was launched in America on June 29th 2007 and combines the usual features you would expect from a mobile phone together with a web browser with Wi-Fi access, and a digital music and video player.  The iPhone is as you would expect from Apple with an innovative and stylish design that will make gadget junkies drool. Key features include touch screen technology with a 3.5″ screen, a 2 megapixel camera and the ability to sync with iTunes and 8GB of storage. The iPhone also runs on OSX so Mac Users will know what to expect with beautifully simple navigation.

Early reports indicate that users will be tied to an 18 month contract and initial figures suggest that the contracts will be slightly more expensive than competitors on comparable tariffs in terms of minutes and texts but that price is being offset by the fact that you get unlimited online data and web surfing which will really give Internet users on the move something to smile about! Early reports suggest that unit will sell for £269 but with prices recently dropping in the USA we may see a different price proposition by the time the Apple iPhone launches with o2.

The relatively high price charged by o2 can be explained by the fact that they have to invest in upgrading their own network with the “Edge technology” that is required by the iPhone together with the 40% revenue return to Apple. When o2 signed the deal for the Apple iPhone it seemed that it would be the “must have” gadget of the year but Apple recently announced the launch of their new range of iPod’s including the new Apple iTouch which has all the features you get from the iPhone (including the web browser and Internet access) without the facility to make phone calls. Whether this make a dent in the sale of iPhones remains to be seen. O2 for one will hope not!