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Apple’s strategy of tying the sale of its iPhone to one network per country may be unravelling after it was revealed yesterday that Italy would be the first country to sell it on a non-exclusive basis.
Vodafone and Telecom Italia said yesterday that both had won contracts to bring the iPhone to Italy this year — ending an almost year-long period in which only one operator per country had distribution rights to the phone.
Vodafone, the world’s largest operator by market capitalisation, has won the right to distribute the device in nine other countries, including Australia, New Zealand and India. The Czech Republic, Egypt, Greece, Portugal, South Africa and Turkey will also get the iPhone through the Vodafone tie-up, boosting Apple’s target to sell ten million iPhones this year.
Apple now faces the prospect that operators in other countries may revolt against its onerous terms, which are understood to involve the network sharing 10 per cent of revenues in return for the right to distribute the iPhone exclusively for a two-year period.
Will Draper, an analyst for Execution, said: “This is definitely a sign Apple is capitulating.”
Apple is expected to announce a faster, 3G version of the iPhone next month.
Ben Woods, telecoms analyst at CCS Insight, said: “I think Apple has recognised that its exclusive deals with operators pushed more people to unlock iPhones and meet demand from customers on competing networks who wanted Apple’s hot product.”
Apple is understood to have shipped 600,000 iPhones to the three European operators that have won contracts to distribute the device: O2, which has a deal covering the UK and Ireland; Orange, in France; and T-Mobile, in Germany and Austria.
Vodafone’s announcement yesterday fuelled speculation that Apple was about to launch the 3G version, with June 9 and June 29 as possible dates.
Vodafone shares closed down 2.7p at 160.8p last night. Apple ended the day up $1.93 at $186.66 on Wall Street.
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I love the user interface of the iphone and I really wanted to get one. But O2 charges almost double the price in ireland when compared to the UK for the same monthly service. Compared to the price of other phones like the N95 8GB the iphone could never sell in Ireland.
Joe Walsh, Cork, Ireland
I would have liked to buy an iPhone when it comes out, but won't if I can't use it with the network I choose.
Peter Martin, Melbourne, Australia
I was dead set on an iphone until I realised I had to take out a small mortgage to buy and then run one.
gordon freeman, C17, UK
The majority of people who wanted an iPhone will have bought an iPhone by now, regardless of the selling price. Reducing the price will only entice a small amount of new customers and the other minority that wanted one but couldnt afford the original price.
Apple should consider making a smaller version like a nanoPhone. a scaled down version of the iphone. And perhaps enabling that phone to be utilised with just one hand as this would have a wider appeal.
Chris Mailen, Billingham, Teesside
Apple needs to join the 21st Century where global market applies. I select the phone network on the quality of their services for my needs - and not on whether it will let me use an iPhone or not. I love my Apple products, but it won't make me change phone operators.
KELVIN, adelaide, australia