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Price cuts ring up iPhone sales

by Scott Bicheno on 21 April 2008, 09:04

Tags: Apple (NASDAQ:AAPL)

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Talk is slightly cheaper

Mid-week price cuts by iPhone retailers O2 and Carphone Warehouse have resulted in a surge of demand for the costly device, or so they have us believe. However, the reduction in price only applies to the 8GB model with the 16GB unit still retailing at £329.

Combined with the relatively favourable pricing of the 16GB model and the lengthy contract, it's not surprising the 8GB version shed a few pounds. However the real reason may be somewhat more disappointing for those who just purchased a unit.

Many analysts and commentators are forecasting a 3G supporting iPhone with a revamped operating system to appear this summer. The smart money is on an announcement at Apple's Worldwide Developers Conference taking place from 9 June in San Francisco, at which one of the three main tracks is the iPhone.

So consumers tying themselves into an 18 month contract at this stage may end up lusting for the new iPhone before they enter the third month of their marriage.

Missed call

The device, not far short of its first birthday, has had, at best, a lukewarm response since its November launch in the United Kingdom.

Although sporting the best looks and interface of any handset, the lack of features such as 3G connectivity, GPS and MMS support coupled to the unsubsidised cost of the handset has caused many to shy away from it. The price-cut seems to have enticed many waverers to take the plunge.

There's also a price disparity between the three official iPhone outlets with Apple's own store still retailing the 8GB unit at £269.

Both O2 and Carphone Warehouse list the discount as only being available until 1st June, which is just as well since there's a very good chance that, by then, few will want the current incarnation of the iPhone anyway.



HEXUS Forums :: 1 Comment

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No one will be gutted if the 3G one costs twice the price and they if they force you to pay £35 for 18 months. Hell, the old one would still be a damn good bargain when the 3G one comes out if that happens (which it probably will!)