iPhone Too Expensive For UK Shoppers November 26, 2007
Read more Apple , Gadgets , Gizmodo UK , Mobile Devices , Mobile phones , Smartphones , iPhone
It will come as little surprise to anyone following the iPhone saga but new research has pointed out that most UK shoppers will not be slipping an iPhone into a loved one’s Christmas stocking because it's just too damned expensive.
Market watchers, GfK NOP, found that 72% would not buy an iPhone because of the price. The survey polled 500 people and found that although the iPhone brand was well recognised, only a measly 2% considered it as a Christmas purchase.
I'm thinking of adding it to my Christmas list 2%
I quite like it but there are lots of other phones I'm also thinking about 5%
I like the look of it but it is too expensive 26%
I'm never going to buy it at that price! 46%
Forget about it, I don't like it 8%
I've never heard of it and it doesn't interest me 12%
Richard Jameson of GfK NOP commented:
"Apple’s history proves that it has the magic touch when it comes to product development and marketing, however the iPhone has yet to capture the imagination of the UK public. iPhone hype is in full-force, but our data shows that it is very much a considered purchase, with its high price turning many consumers off. We must take into account that the UK mobile market’s success has been down to subsidised handsets, therefore the iPhone’s price really stands out and consumers are not used to paying in excess of £200 for a phone.”
"This is a highly competitive market and the mobile phone manufacturers have very strong brand loyalty. Apple needs more than cutting–edge design to penetrate this market and will have to work much harder in the UK than it did in the US to make iPhone a mass-market proposition.”
So, will Apple do what it did in the US and cut the price soon after launch? Doubtful, but there's always hope.-Martin Lynch
Editor and Contributor | Martin Lynch
Contributor | Tamlin Magee
Comments
For me it's not the price of the phone but the price of the contract. A £35 contract can get you a free phone so why should we pay that much when we have to pay in advance for the phone?
Exactly what MacBuck said - if you're going to line the pockets of O2 for 18 months then the least they could do is present the phone at a reasonable price.
Apple and O2 are just taking the proverbial.
I paid £40 for a Nokia N95 on an 18 month £35 contract that gives me WAY more than 200 mins and 200 texts. In the face of that, apart from the "pretty" and "wow" factor, there is no compelling reason to get an iPhone over the competition. In the UK it will always be seen as just a phone rather than the convergance device Jobs wants us to see it as. I don't know anyone who would consider it as a full replacement for thier iPod even though that's the idea. If people saw it that way I could see them deciding £200 is actually not that unnreasonable...but they don't.
I'm a long time Apple user and an early adopter of new technology; and I can see how an asking price of £269 is reasonable for what you’re getting in your hand. As a stand-alone product it’s a great price …... or is it when you start to compare the iPhone against using a separate mobile and something like an iPod Nano; or iPod classic with all that extra storage space. Then there are products like the Archos 606 … but lets not get into that argument because they are 2 different beasts and Archos is just as bad for charging extra on plug-ins to let you use the machine properly in the first place!
However, I wont be buying one just yet and I think a lot of that comes down to principle and as Tes said, the fact more expensive phones have been subsidised in the past. In effect, we are paying the mobile providers (in this case Apple and O2) for the privilege of being tied into an expensive (for what you get) contract for 18 months! I have a simm only contract with Orange which costs £35 a month and provides 900 minutes and unlimited texts; and although I don’t get a phone, it was pretty cheap to go on Amazon and buy a RAZR for £40. It suits me fine because its cheap and I can text without too much hassle. Having been a Windows Mobile HTC user for some while, I can appreciate texting (virtually blind by touch alone) as opposed to using a stylus or fingers, which is a right pain/near on impossible whilst doing anything other than being sat down!
Then there’s the issue of memory. I know only too well Apple will bring out a 16GB version soon, which is more suited to my needs. Then there’s the issue of 3G which again will be coming … so why buy outdated technology now, why not just wait till the new year! In the meantime I’m happy carrying a mobile where I don’t need to worry about usage (I can call freely knowing I’ll never run out of minutes or free texts) and a new iPod Nano in my wallet – although this is pointless for anything other than showing photo’s as carrying the Nano in a wallet works great; its carrying the headphones everywhere everytime that’s a pain!
I guess it all comes down to convergence and what you’re prepared to pay for it all … but then I start to think ‘Hang on, if we’re talking about convergence and replacing all the things I’d like to carry round in one go (phone, iPod, camera, PDA), how come they didn’t bring out an iPhone with a 5megapixel camera, MMC expansion… maybe even more memory as standard?
So, when Apple bring out a 16GB 3G model for no more than £225; one that possibly includes 500 minutes and 300 texts minimum (having more is pointless as its just so damn hard to text with the thing anyway you’ll soon reduce the amount you send!), then I’ll rush down the shops to buy (and then probably sell my lovely new 8GB iPod Nano!) Until then, I’ll hold off purchase of what is essentially a phone/iPod impulse buy rather than the necessity of a great mobile phone.
One final note … as a long time apple user, I fear their getting a bit too commercial, dare I say greedy! I’ve always loved Apple for its design, innovation and exclusivity and I’ve never minded paying over the odds for this; but now Apple has become more commercial and mainstream, I’m starting to think ‘should I be paying more for something everyone will buy and accept less cutting-edge features (like no 5megapixel camera) for my money?’ Me thinks not!
Why would anyone buy a cripled device for such a high price. Doesn't anyone realise that there is no MMS nor Bluetooth send. You take a picture (by the pathetic 2 Mpixel camera) and all you can do is email it. Try that at a pub to your mate!
Although I think it's a cool gadget, I think the problem in the UK will be that people will not want to take the flak from other people that spending £269 on this phone will get them. In America its cool to have the very latest gadget but that isn't enough in the UK. Right now I would like one but I won't run the risk of being thought to be a fool for paying so much. Specially when Apple have already shown that as soon as sales dip they drop the price ! How will I look if I buy one today and then in January they drop the price, stupid that how !
Real 3G/HSDPA is the blocking point for me. Half the value of an internet phone is that you can internet without having to go find a WiFi spot.
Of course, there's other issues about syncing with PC programs, but I could solve those. There's just no incentive to as yet.
- Camera needs a flash
- Bluetooth needs improving
- 3G 3G 3G 3G!
- t-mobile
Then bam, I'd get one, otherwise I'd rather just get an iPod Touch.
To azz0r: you probably wouldn't even bother to carry the iPod touch around everywhere. I'd love one but I'd only use it occasionally being honest, so having it mixed with a mobile would be ideal; then its always there if you need it.
To NickE: Who cares what people think, I dout anyone would call you a fool even if the prices did drop; they'd just say unlucky you, but respect for being there first!
If O2 wants to do what no one else in the UK mobile industry does ... i.e. charge for a mobile and not subsidise it like most others, then I think the buyer should at least have the option of choosing 12 or 18 month price plans to suit, with prices/price plans to reflect the fact you've paid the full retail price for the phone. If you dont wanna pay for the phone then fair enough O2, charge a fortune for an 18 month contract - but I think its takin the mickey when you give such a poor deal for a phone that people also have to buy!!!
I just renewed my O2 contract - sans iPhone. In fact sans any phone. Here;s why: I have a 'legacy'contract of about £100 / year with O2. I use the phone mostly for business calls that I can charge. I declined the phone upgrade (I already have a KRZR which is good) and got a £75 discount on the contract. Net, I have a £25 annual contract inclusive of free minutes and texts, although I never send texts!. Now tell me why I should fork out for an iPhone at £300 or thereabouts and pay £35 a month for 18 months. I can afford to, but I'd be crazy to do this. To sum up the situation...corporate greed! Now, don't get me wrong, I'm a capitalist and want free enterprise to get rich because that will benefit me via new product development etc. but the really successful consumer companies respect their consumer base and try hard to shift volume by offering the consumer what they want at a price that they want. Apple & O2 have, I suspect, been guilty of believing in rip-off Britain and thought they could get away with screwing their consumers because the Brits will pay anything. Wrong, wrong, wrong! I'll buy a Nokia N95 or their next upgrade in the US next time I'm over there at a very reasonable price. I also predict that when the inevitable upgrade to the iPhone arrives, the launch will be significantly delayed in the UK because of the inventory they haven't been able to shift.
I renewed my contract with vodafone last year for 12 months. The contract was 12 months at £13 a mnth and it included a free sony ericsson k800i with enough free texts and talk time (I can't remember how much) but I've never had to pay for any texts or talktime to-date. With deals like that, why would I want to fork out for an I-Phone. I much prefer the look of the new LG anyway. I must be a cheapskate ;-)
Maybe the UK has more of a "free upgrade" culture than other countries where we generally don't pay outright for a handset, instead waiting until renewal time.
I suppose PAYG customers would buy a handset, but isn't it only children and criminals that use PAYG these days?
There is already T-Mobile HTC units with 3G, high-res camera, Internet browsing and all the rest at half the price or even less, not to mention all the extra PocketPC software you can get to extend it. iPhone is just a hype. At that price, not a chance!
The new iphone is brill - despite its shortcomings i.e no 3g low spec camera etc. I want one - I want one, and I want one now!!! All my friends want one, everyone I know wants one - but no one I know including myself has one - why - bad pricing - cost to much, to much uncertainty about future iphones etc Apple who have led the way with some of the most innovative products in the last decade or so have made a major cock up with the launch of the iphone - and with there shinanigins are beginning to loose all their hard earned customer loyalty and are now being seen as the new microsoft. _ Please Steve make amends - drop the price and do a way with the silly lock in contracts and I and my friends will rush out and buy one tomorrrow - along with half of Europe!
Many of you are absolutely right, there are even reports of a recall of the iPhone after Christmas because of problems with the units ... I'm leaning more towards a larger unit light the HTC shift because for my needs it would suit me better. I find that lack of a user exchangeable battery, 3G and poorer photo and connectivity capabilities in comparison to my 2 year old HTC Exec have not helped the iPhone at all. I love the UI and how easy the iphone is to use but otherwise it just doesn't come up to scratch. In the case of the iPhone Geek love wins over tech capabilities.
Went into my local O2 shop yesterday, and having played with the Iphone i was inpressed by the interactivity, but compared with my T-Mobile contract Nokia N70, interactivity is not enough, no picture messaging,no sat nav and surprise, surprise, when i asked the salesman to set the phone up so i could see the edge only download speed (not the hotspot setup in the shop)i was told that it was not possible. £269 maybe as i am after all a gadget freek, but not combined with a not very good £35 a month O2 contract that by comparison is not competative. Would i buy one if i could use it with my current provider, maybe, would i buy one for £100 and the O2 contract, maybe, would i sign a £40-50 a month 18 month contract with the phone for free, possibly.Would i pay £199 pounds for an unlocked phone, yes.
Come on Apple, the market is there for the taking.
Its not just the contract cost. £35 a month isn't so bad, but after 18 months you have to stay with O2! I'ts our choice who to take a contract with and after paying that kind of money for a phone, I'ts our choice if we want to change at the end of the contract period!
I would rather stand naked on some town hall steps giving out £5 notes for 8 hrs a day all January, than sign up to that kind of contract.
If any of you buy an iPhone on that kind of contract, you have more money than common sense or you're thick as Pig Sh*t!
This is Consumer Abuse at its worst and nothing less. Clear your minds and buy something better for less.
PS. - I'm not anti-Apple as I have 2 current iPods myself (We have a total of 5 current iPods in a household of 4 people!)
I have a contract with O2 and a Nokia E61 phone. (O2 don't do the E61 or E61i anymore) so I'm thinking about the future with regard to O2 (I wanted an iPhone), but now I will only settle for an E61i. I may have to buy a SIM free E61i for £10 less than the iphone and then haggle for the best deal for a Voice, Text and Data only contract. At the end of any contract I can still move on, just as I can now!
The Devil is in the details they say! In this case, the Devil is in the contract!