O2 lands expensive iPhone deal
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As Apple’s European iPhone plans get closer to reality, the details of each arrangement are beginning to see the light of day. Britain’s O2 is set to announce the iPhone on their UK network on Tuesday, but the agreement didn’t come easy for the carrier. The Guardian is reporting that O2 will be forced to hand over up to 40% of their iPhone service revenues to the mighty Apple. In addition to the service tariff’s, O2 will be sharing device commission and revenue with Carphone Warehouse, which is a 3rd party handset retailer that has reportedly signed on as the exclusive brick and mortar retailer of the device. We can all agree that the iPhone is a groundbreaking piece of hardware, but is this sort of agreement really going to benefit O2, or any other carrier that sees fit to sign on with similar conditions? Considering the recent availability of the iPhone SIM unlock tool, we’re inclined to think not, but who are we to pass judgement? The bottom line, at least for consumers, is that the iPhone is coming to Europe. Happy?
[Via Engadget]
On Sep 17, 2007 @ 3:02 am, Galvatron Said:
That agreemet is not worthit the unlock app the manufacture only benifits tha carrier cannot make an subsidized contracts. 3rd party retailer. It’s not worth it for 02. They have shot themselves in the foot. You don’t se palm rim or nokia saying we want 40 percent of the sals an servic charges after we have sold you an entire shipment of product. Heck I can see some more prtsting from the frence within a year or less
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On Sep 17, 2007 @ 3:05 am, CB17 Said:
Yeah see the thing is, here in the US it’s OKAY for AT&T to sign into whatever contracts necessary to become exclusive because there really aren’t any other real alternatives for GSM carriers here so unlocking is pretty irrelevant. In the rest of the world…well let’s just say O2 needs to read Engadget and BGR more.
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On Sep 17, 2007 @ 3:57 am, Galvatron Said:
well tmo is the only other GSM alternative in the US but yeah your right the need to look at apple and att’s PIMP hooker reationship geuswhat apple is the pimp witha big iSLAP
note to tmo germany uk vodaphone and orange DO NOT SIGN CONTRACTS WITH APPLE IT WILL DESTROY YOU!
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On Sep 17, 2007 @ 4:31 am, paul Said:
i hope O2 realizes they’re getting a raw deal here. apple have invested squat in O2’s network infrastructure, why is apple demanding a 40% kick-back when all apple supply them is a low-end phone (no 3g, no hsdpa, no gps, no mms, no value-added service, the list goes on) apple deserves a big slap for asking for money. bunch of crooks. if the O2 guys are reading this, here’s a tip –> HELLO? WHAT ARE YOU STILL THINKING?
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On Sep 17, 2007 @ 5:59 am, ppcmd Said:
The real question is how does violating the copyrighted software that locks the iphone affect any legal standing of the resellers. My guess is nothing. O2 just paid a significant extortion rate to Apple for a phone that is not truly going to increase their revenues enough to cover the 40% tariff to Apple.
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On Sep 17, 2007 @ 8:17 am, dukeoconnor Said:
If you’ll read the article, Apple is not demanding a 40% rev share. That’s what O2 bid, and to call it a demand is inaccurate if not deliberately manipulative. Obviously if four companies were trying to outbid each other, they must have seen a potential benefit in what Apple was offering. That’s not to say that O2 made a good deal, but if what Apple was asking were as out of line as some of the comments imply, any or all of the companies involved could have simply passed, as Verizon did in the US.
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On Sep 17, 2007 @ 8:22 am, Lee Said:
Come on guys you are smarter than this.
Everyone knows the carriers are in the razor blade business and always have been. They are in the business to sell air time not hardware. Phones are a necessary nuisance and most companies subsidies a lot more than 40% of the phone anyway when you sign up.
The iPhone has provided AT&T has 3 million new subscribers with 2 year contracts you think they care about a hundred dollars they have to give Apple ?
Anyone that knows any thing about marketing can tell you that the cost to acquire a new customers is a lot more than this. The free advertising and branding for a UK carrier is probably worth it.
In todays market it is not about the technology, its about marketing. The industry roadside is full or high tech roadkill that had better technology.
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On Sep 17, 2007 @ 8:28 am, OM Said:
well said Lee…
do you think if O2 was losing money on this deal that they would sign up for it? please, there are usually fairly intelligent people running these companies and the last thing they want to do is ruin their company.
they are going to make money because out of the 1million iPhones sold, how many do you think are unlocking them? and are they unlocking them in order to use them on other carriers and lose features of the iPhone? i doubt it. people are unlocking their iPhones because they can and also so when they travel they can use their phone locally.
Galvatron…if you’re missing a few keys on your keyboard, let me know i may have a spare on laying around…
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On Sep 17, 2007 @ 8:40 am, System Said:
When Apple just announced they sold 1 million iPhones how does that give ATT 3 million iPhone customers? Check your stats.
If Tmob in Europe hooks up with Apple then will they include as part of the contract terms that would forbid Tmob from enabling advanced features of the iPhone? Like visual voicemail?
Also paul quit being a dope. You haven’t seen the Euro version of the iPhone so you don’t know if it is 3G or not. If the iPhone is low end what do you consider high end, a two year old RAZR?
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On Sep 17, 2007 @ 8:41 am, System Said:
Sorry that should say would that forbid Tmob from enabling those features in the US market.
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On Sep 17, 2007 @ 10:41 am, Galvatron Said:
LOL even from a amarketing perspective this is bad appls locking hard ware for one an it’s no secret anymore. also th rington shenanigans th you have to buy the song an the song again as a ring ton without 3rd party apps you can’t load your own via th file sysstem an the dubly high service costs. also if you look in tmoUK’s website Nokia’s N95 whic embarasses the i brick is a standerd phone too the eurpeans this is a crap phon evn if the ero ibrick is sporting hsdpa the eu dosn’t think to highly of itunes
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On Sep 17, 2007 @ 11:19 am, eJay Said:
“On Sep 17, 2007 @ 3:57 am, Galvatron Said:
well tmo is the only other GSM alternative in the US but yeah your right the need to look at apple and att’s PIMP hooker reationship geuswhat apple is the pimp witha big iSLAP
note to tmo germany uk vodaphone and orange DO NOT SIGN CONTRACTS WITH APPLE IT WILL DESTROY YOU!”
Yea Galvatron, Im sure multimillion dollar companies are going to listen to some cart boy from Target who cant friggin spell…
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On Sep 17, 2007 @ 11:22 am, eJay Said:
If the iPhone is going to be on O2 as reported its going to be on EDGE no on 3G. People get 3G out of your mind. Its not going to happen for a while…
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On Sep 18, 2007 @ 3:06 am, paul Said:
Lee, you are looking at the American way of the mobile phone business, in the US the carrier sells you the phone bundled with some air and a contract, in Europe and Asia, you can walk into a electronic store and buy a un-activated phone and put in your while sim and it’ll work. So we are talking about 2 businesses here, 1 is air and the other is hardware. So there is no commitment between the hardware manufacturer and the carrier.
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On Sep 18, 2007 @ 5:27 am, Galvatron Said:
@ ejay takes one to know one ow wait i don’t work at at target apple fanboy and i make more than the averge cart boy ejay = white apple trash
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On Sep 18, 2007 @ 2:39 pm, AlphaVirus Said:
This is typical of Apple, first sell and overpriced product to a company then request another % of the revenue they make. And people who are stuck under apple’s religion wonder why regular people bash on them, they need to think for themselves and stop letting apple consume their already weak minds.
O2 could have made a better decision then this, they have better get a high amount of these sold or else they wont make any money. Apple taking 40% and another company taking another portion. O2 is just trying to get bragging rights that they got a shiny apple product to sell, you lose.
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