iPhone in the UK: Who will get exclusivity?
When Apple announced the iPhone they made it exclusive to Cingular in the US. However, the iPhone will be on sale in Europe by Q4 2007 and the UK mobile operators are in a rush to get a slice of the iPhone. But who will Apple sign the deal with in the UK?
First, what do Apple need? Unlike the US there is no widespread chain of Apple Stores to sell product through in the UK. There is the Regent Street store, a couple of other stores in Birmingham, Manchester and one coming soon to Scotland but these don’t cover anywhere near the population that a product targeted at the mainstream requires. So the first thing Apple needs is an outlet, a nationwide chain of stores where they can shift as many phones as possible.
The current iPhone is 2G, but Apple are looking at rolling out 3G phones in the future. That puts 3 (previous coverage here) at a disadvantage now. It’s then down to a battle of coverage and sales, so O2 and Vodafone are at the top of the list. Both operators have a fledgling but expanding presence in the 3G market as well as millions of subscribers.
If I was a betting man I would put my money on O2 and Apple signing the deal. O2 have what Apple needs, a large national chain of stores, great coverage and the potential for 3G in the future.
- O2: 80% (large chain of retail stores, great brand, young demographic)
- Vodafone: 60% (large chain of retail stores, strong brand, international presence but older business-centric demographic)
- Orange: 40% (smaller chain of retails stores, good branding, also offers VoIP / ISP services, international presence)
- 3: 25% (operates fast 3G network, patchy coverage, very young tech-knowledgeable demographic, offers competing music store)
Who do you think will win the exclusive rights to the iPhone in the UK? Place your bets in the comments.
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March 21st, 2007 at 7:18 pm
What about t-mobile? surely the front runner given their internet strategy.
March 27th, 2007 at 8:29 am
Wouldn’t touch T-Mobile with a 10ft barge pole. I had a contract with them a couple of years back. No network coverage in York, Leeds and just about the whole of Oxfordshire. Bit of a bummer when my work involved travelling to those cities/counties on a regular basis. I changed to Vodafone once the contract expired – much better.
Things haven’t improved much – I was in London last month, and about 6pm every night, the network was clogged to the point it dropped calls after about 30 seconds (too many people calling home, informing their loved ones that the tube is delayed, I suppose).
I am a mac fanatic, and would love an iphone. But I wouldn’t buy one if it was on t-mobile. They are useless.
April 3rd, 2007 at 12:51 am
I bet that Apple will launch in Europe with a 3G version of the iPhone. Apple never failed to surprise analysts. Which will put 3 on top of the list.
April 19th, 2007 at 7:05 am
Yes this is very interesting, but you fail to look at which company already has a relationship with Apple.
And to be honest, the two largest operators in Europe are doing something else in the UK
I suspect the deal will go to two companies, and companies that have strong European coverage! after all, this is only one UK owned network in the UK.
May 30th, 2007 at 3:06 pm
My hunch is with Orange. They have a reasonable coverage of stores and network, are strong players in 2G and hold their own in the 3G arena (3 aside of course).
But it’s not just retail and airspace that Apple will consider – it’s also about the marketing brand appeal and image.
All the mobile operator brands would be strongly enhanced via association with Apple but they themselves will be wary that their partner doesn’t bring them done.
Orange have the most innovative, coolest mobile brand in the UK so that’s where my money is.
May 31st, 2007 at 4:03 pm
I (as the target audience) think that it’ll be a showdown between Orange, Vodafone and O2. 3 simply does not have the customers nor the coverage to stand as competition.
Orange is flawed that its networks are constantly jammed and its transmitters in the North do not give anywhere near decent coverage as any other service.
Vodafone has wide coverage and relatively faster service. However, their contracts are not as attractive, offering less for the same price as other networks.
02 (BT Cellnet to people who bought their mobile in the 90s) has wide coverage with few dead spots and they offer decent contracts. But will their ties with Windows Mobile let them down?
Personally I hope its Vodafone or 02, because I can’t get Orange coverage at all within 8 miles of my house. Can’t wait for it to arrive, and I already have a savings jar 2″ deep of coins!
June 12th, 2007 at 11:05 pm
Why is everyone so sure that they’ll partner? The iPhone isn’t nearly as hyped over here, if it wasn’t for forum buzz I’d have never heard of it since it isn’t even on the Apple UK site. Surely that means that Apple may be better off just selling as many as possible rather since partners won’t be as eager.
June 18th, 2007 at 3:06 pm
apple and o2 have joint stores in ireland selling both apple and o2 products, and o2 recently offered free ipod shuffles with its contracts, i dont think o2 having windows devices made for them will make any difference as t mobile and orange normally get the same handsets with different names. Orange normally rebrand handsets with the orange logo on them something i think apple will not like. Also the uk market for phones is vastly different than the us market so who knows what will happen. I have seen a few articles saying it is going to go to t-mobile but being as they didnt go with the us t mobile be a bit odd to go with the uk version of the same company.
June 20th, 2007 at 9:34 pm
http://www.ipod.org.uk/
this website gives details about prices for the iphone in the uk
it also says thst t-mobile is the front runner
read it and you will see!
June 27th, 2007 at 9:50 am
I’d be surprised if it’s “Apple and Orange”. Orange wouldn’t be happy with all the fruit based PR.
June 27th, 2007 at 6:18 pm
I got to say that i think T-Mobile will get it! Fair enough they didn’t take it exclusive with T-Mobile in the U.S. but that was probabily just as it was better for them to take it out on AT&T Wireless(formerly Cingular)over there! But think about it if there taking it out in the U.S. with unlimited data contracts only they’ll do the same here and as far as i no T-mobile has been providing this for a long time for only £7.50 a month! Recently 3 mobile relesed Unlimited data for only £5 a month but I don’t think they have enough customers or banding for apple to chose, especially as they have incredably high expectations on how many of these iphones they can sell! This is of course if apple even make it exclusive to one network!
June 30th, 2007 at 10:20 am
i bet o2 and Carphone Warehouse!!!!
July 1st, 2007 at 4:15 pm
Man, T-mobile is useless..No network coverage at ALL..! i hope Vodafone gets it..!
July 5th, 2007 at 9:58 am
well my money would be on Vodafone, they might not have the best coverage in the UK, but the are the single biggest network in europe, why sign 10 deals when you can sign one.
July 6th, 2007 at 6:56 am
I would sign an exclusive deal with Carphone Warehouse across Europe and let them deal with the operators on a non exclusive basis.
July 10th, 2007 at 6:09 am
I Will bet my money on o2 or vodafone. simply because of what every1 has said above about things like good contracts and network coverage, vodafones international links and o2 have shared stores with apple in ireland selling o2 and apple products together.. this alone probably puts o2 in the lead.. also i dont think for one second they will sign two contracts/deals because they will then have to share the profit more and also spend more money developing things for the network… e.g the visual voicemail and i think that they will put iTunes store on the uk iphone which will cost more for the networks to develop…
July 10th, 2007 at 10:17 pm
Well the speculation may soon be over, rumour has it Jobs was spyed at regents Street store this week, and its closed on Monday 16th for a private function. Announcement anyone?
I think O2, myself. I can’t belive any other network will want to spend money on an Edge network and I DON’T beleive well see a G3 iphone this year. Reckon G3 takes too much power from the battery AND Jobs wants us to wifi surf whenever we can…