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Rory Cellan-Jones

iPhone price cut - weakness or strength?

  • Rory Cellan-Jones
  • 15 Apr 08, 15:40 GMT

O2 has announced it's cutting the price of the 8GB iPhone from £269 to £169. It's a big surprise, somewhat reminiscent of the one third price cut Apple introduced two months after its American launch. Those who've bought an iPhone in the last two weeks will get £100 back.

But the difference is this - it appears to be simply an O2 promotion, with Carphone Warehouse joining in, without any involvement from Apple. I've just confirmed with them that the price at the Apple store will stay the same - so there are going to be plenty of unsold iPhones stacking up there.

Apple won't say whether it is cutting the price it charges O2 for the phone, but I'd be amazed if it is lopping £100 off. So why is O2 giving away what must be all of its profit margin? A spokesman at the mobile operator reassures me that the phone has been its best-selling handset ever and this is simply a "promotion to maintain momentum".

The new 16GB version isn't coming down in price, so perhaps O2 has seen customers trading up and is worried that the 8GB version looks a bit dear.A woman walks past an iPhone advert in central London

But there has just been a massive and expensive-looking advertising campaign in the UK national newspapers, so it looks as though that may have been a waste of money. And the man at O2 admitted that “a lot of people who wanted it have now got it" and that the price has been holding some potential customers back.

So a few questions hang in the air.

What does Apple - notorious for controlling pretty strictly the pricing of its products - think of the behaviour of its sole UK operator? Has the iPhone, after a sparkling debut, turned into a sluggish seller in the UK? Or does this simply mean that the 3G iPhone will be arriving in June when O2's cut-price promotion ends?

Comments

It's a tempting proposition, but the evence suggests we are going to see the 3G iPhone sooner rather than later - June. WWDC kicks off around that time, which would be a great time for Apple to announce a 3G model and/or multiple versions of the iPhone at differing price-points.

Apple must know exactly what they are doing and what can be offered; the pricing and launch cycle has already been well tried aned tested on the iPod.

I say hold out until Q3 or at least until after WWDC.

  • 2.
  • At 05:29 PM on 15 Apr 2008,
  • Jaker wrote:

You think you're bad, but in Ireland we're really fleeced with 02s Irish deal, but then again it alway's been a "Rip Off Republic". Will we see this discount? Doubt it!

  • 3.
  • At 05:33 PM on 15 Apr 2008,
  • Peter wrote:

No mystery here.

1. There will be a 3G iPhone this year (Steve Jobs confirmed this last year)
2. We're pretty close to 1 year since the iPhone launch.
3. Walt Mossberg (of the Wall St Journal, and pretty close to Apple) said at the start of the month that the 3G would arrive in 60 days, which ties in with (2) above.
4. Companies often cut prices to move inventory when a new model is on the way.
5. Apple keeps a tight track on stock, and manufactures pretty much on-demand, with stocks at its retail outlets carefully calculated. O2 and other resellers have to buy bulk and manage their stock.

O2 cutting the price is EXACTLY what I'd expect at this point. Better to sell them at cost (or slightly above) than to swallow the loss.

  • 4.
  • At 05:37 PM on 15 Apr 2008,
  • Michael W wrote:

Seeing as the iPhone in the UK hasn't done as well as Apple thought they most likely have quite a large back stock of them left which they need to clear before the 3G Version is introduced in the next couple of months.

The same move was done in Germany a couple of weeks ago where the price was hugely reduced. Clearly just the fact Apple are most likely going to stop making EDGE iPhones when the 3G finally ships and they need to clear stock.

I don't think it's a big deal tbh.

  • 5.
  • At 05:41 PM on 15 Apr 2008,
  • Paul Freeman-Powell wrote:

The iPhone is still a rubbish phone, by today's standards. Give me a Nokia N82 or Nokia N95 8GB any day, as they're 3G and have 5 megapixel cameras with, in the case of the N82, a proper Xenon flash. And both take breath-taking video recordings.

Until the iPhone has all that, I'll still think it's an overpriced gimmick.

  • 6.
  • At 06:04 PM on 15 Apr 2008,
  • Chris Hall wrote:

Is there any chance of the £35 minimum monthly charge coming down? It's the only thing stopping me from buying an iPhone. If it was £25 I would go for it.

  • 7.
  • At 06:06 PM on 15 Apr 2008,
  • Graham Jones wrote:

My mobile is so technologically advanced it allows me to make and receive phone calls, it even rings to tell me when someone is calling. When I need some bread toasting I will get an I-Toaster but until then I will use a mobile for the purpose it was intended.

  • 8.
  • At 06:08 PM on 15 Apr 2008,
  • Ben wrote:

I believe the main reasons the iPhone is not doing well in the UK is because of the network provider, O2.

I have been with the same network provider for the past ten years who offer a fantastic service. Also, I have only had two different mobile phone numbers in the past ten years.

I would really like an iPhone but feel that I should not get one because they do not offer it with the network provider of my choice and I would have to change my number. The O2 coverage in my area is not up to scratch and is poor in many towns and villages.

All this with an overpriced tag? Is it worth it? Even with £100 off I still would not buy one!

Offer the iPhone on Vodafone and I will buy one!

  • 9.
  • At 06:10 PM on 15 Apr 2008,
  • ian patterson wrote:

Seems like simple stock clearance for the least powerful model ahead of product upgrades. Perhaps Apple themselves didn't have many in stock so don't feel the need to do it.

Or perhaps O2/CW need to sell more to meet agreed sales goals with Apple (not that any have been publicly stated).

  • 10.
  • At 06:15 PM on 15 Apr 2008,
  • Barbara wrote:

are you sure? i have just checked the O2 web site and its STILL displaying £269 for the 8GB phone.. not the reduced price....

  • 11.
  • At 06:15 PM on 15 Apr 2008,
  • David Howell wrote:

It's clear that the initial demand at the high price has been met, and they're now reducing the price to attract more customers, particularly for the 8GB model, and indeed to clear stock for the 3G model.

No story here.

After looking a the Iphone vs other Smartphones in the market. I feel it doesn't do a lot for it's money. I currently own a Nokia N82, which easily beats the iPhone. When it comes to features, application compatibility, & general performance. It even has Auto Rotate thanks to Nokia adding in piece of software, that accesses what is known as the Accelerometer within the phone. How cool is that!?

  • 13.
  • At 06:18 PM on 15 Apr 2008,
  • will amado wrote:

iPhone 2.0 will launch shortly, probably at WWDC. iPhone SDK works with the 2.0 operating system (compatible with OSX Tiger) and will lead to a host of third party software becoming available through iPhone. The discounts sound like a stock cleaning exercise.

  • 14.
  • At 06:18 PM on 15 Apr 2008,
  • Jas wrote:

this is disappointing. i bought an iphone 4 months ago and it is the best phone. i thought £269 was reasonably cheap for the phone as it just like a pc in your pocket and is easy to use. £169 just seems to cheap for such a well-made phone

Don't think its a 'surprise' at all... T-Mobile did exactly the same a few weeks ago in Germany, and with all the hype expecting the 3G iPhone there was bound to be a price cut soon.

  • 16.
  • At 06:21 PM on 15 Apr 2008,
  • Alex Robinson wrote:

Paul Freeman has clearly never used an iPhone. The gimmick on every mobile phone is the camera. I can't think when I've ever used a phone camera rather than a proper one, but maybe thats just me. Also i have never been in a place where edge hasn't been fast enough or wifi hasn't been available. Maybe i'm just lucky.

Anyway o2 dropping the price of the 8 gig isn't really much cause for concern. They have got to get rid of the stock before the iphone 2 appears imminently.

  • 17.
  • At 06:22 PM on 15 Apr 2008,
  • ian patterson wrote:

Seems like simple stock clearance for the least powerful model ahead of product upgrades. Perhaps Apple themselves didn't have many in stock so don't feel the need to do it.

Or perhaps O2/CW need to sell more to meet agreed sales goals with Apple (not that any have been publicly stated).

  • 18.
  • At 06:31 PM on 15 Apr 2008,
  • Scott wrote:

I work for CPW and after the initial launch of the I Phone, it seems that the interest has all but gone so a price drop is what is needed. It seems many customers are being wise and are not touching the I phone as phones such as the new N95 are far better and over all are more user friendly as they aren't restricted in the same way Apple I Phones are.

  • 19.
  • At 06:39 PM on 15 Apr 2008,
  • Sam Shawl wrote:

I think that cutting the iPhone's price is showing a weakness in it's sales, why would you take £100.00 off a well-known phone, something is wrong, I don't think enough are being sold, that is why the price is going down.

  • 20.
  • At 06:43 PM on 15 Apr 2008,
  • william waite wrote:

I think the drop in price was all ways inevitable. Once the hype dies down realistic buyers want to get the product at the right cost and will hold out for the fall in price. It is the same with most technological goods and is not a big surprise.

  • 21.
  • At 06:43 PM on 15 Apr 2008,
  • Sam wrote:

Peter is spot on. But my guess is that they would be cutting prices even without a new phone on its way.

The people who want a new item first will always pay more. Thus it makes sense to charge them most. But after you've sold as many as you can to the keen beans, you want to keep on selling it so you bring the price down. It's still a good (profitable) price, but some people were willing to pay even more.

It's just one way of hitting as many points as possible on the demand curve.

  • 22.
  • At 06:44 PM on 15 Apr 2008,
  • Lloyd W wrote:

"overpriced gimmick" says it all. the nokia n96 is due in q3 but you don't see any n95-2 reduction, do you?

  • 23.
  • At 06:45 PM on 15 Apr 2008,
  • joel paget wrote:

in response to paul freeman dated 15/04/08

The Iphone is absolutely the market leading product in itself, rich html pages on safari and the best mp3 player ever made with regular updates for the applications ( who can match that???)

Of course it doesnt appeal to every ones needs , but the manufacturers need to take note , bear in mind this is apple first attempt in the phone market and it has been a outstanding sucess. With a very easy user interface, it delivers the ultimate multimedia experience.

Being a mobile phone retailer myself , the Iphone has created its own place in the market, and nearly every touch phone has been compared to it in every review i have ever seen.

At last o2 have taken the intiative to capture the consumers who have been priced out, if this handset was free on contract from the start every man and his dog would own one !

Nokia's might have 3G connections, but what's the point of having a 3G connection that charges you a fortune to use it?
I bought a 16Gb iPhone in February, used its EDGE / GPRS connection loads more than any of the 3G connections I had on various 3G phones put together during the last 3 years and thoroughly loved it.

  • 25.
  • At 06:52 PM on 15 Apr 2008,
  • Matt Whitby wrote:

I was sorely tempted to get one, but £269 is way too much for a phone. You're talking over £700 for the first year with the cheapest tarrif.

When there's a £20/month tariff and a £100 phone that's my tipping point.

  • 26.
  • At 06:52 PM on 15 Apr 2008,
  • james wrote:

Razors and Razorblades...

Sell the razor at a loss, and make all the profit on the customer continually buying new blades.

this seems exactly the same.

  • 27.
  • At 06:53 PM on 15 Apr 2008,
  • Anon wrote:

As a Carphone Warehouse employee I'm quite surprised by this price cut, especially as were told that there was a "five-year agreement" between o2, CPW and Apple meaning the price would be fixed. What nobody has mentioned is that this is only a temporary price-cut until 1/6/08, possibly the launch date for the 3G IPhone? It is a fantastic phone despite being heavily criticised, for me the only thing that held it back was the price rather than any feature which it may/may not have. A good move for us and o2 but I doubt it will lead to an increase in sales.

  • 28.
  • At 06:53 PM on 15 Apr 2008,
  • Roddieboy wrote:

If Vodafone were release fone on their tariffs then perhaps perhaps perhaps but still there are plenty other better phones on the market.Altho i have a apple iMac and it's brilliant,far better than a PC by far...yahoo.......

  • 29.
  • At 06:54 PM on 15 Apr 2008,
  • momo wrote:

nokia n95 8gb is a lot better than the iphone.why would someone pay £200+ for a handset not forgetting the 18 months contract..
people will end up paying more than £1500 by the end of their 18 month contract..is it really worth it? with only 2 mega pixel camera and no idea if its got wi-fi...dont really know y people are mad about the iphone..
the nokia n95 8gb is a smart looking phone with all the latest tech you can ask for...think twice before getting an iphone..

  • 30.
  • At 06:56 PM on 15 Apr 2008,
  • Carphone Guy wrote:

Re: Paul Freeman-Powell..

You do realise that both of those N series phones will go wrong at some point dont you?

There is a reason no one at Carphone Warehouse owns an N series. Its because they're a bit rubbish.

  • 31.
  • At 07:00 PM on 15 Apr 2008,
  • David Carson wrote:

"It's a big surprise"

Hardly. The only surprise is that it didn't happen concurrently with the German price cut.

"I've just confirmed with them that the price at the Apple store will stay the same - so there are going to be plenty of unsold iPhones stacking up there."

Not likely. Apple is doubtlessly channelling its remaining stock of iPhones to retailers where the price cut will be less concern to its regular customer base. It's one thing for O2 to have a six week sale promotion (attracting mainly new customers), it's another matter entirely for the Apple Store (online and storefront) to reduce prices and thereby annoy the faithful.

"Apple won't say whether it is cutting the price it charges O2 for the phone, but I'd be amazed if it is lopping £100 off."

Then prepare to be amazed. O2 could not do this promotion without Apple's consent and assistance. Common sense would suggest the companies are both taking a cut - as is the norm for EOL promotions. This is all pretty basic stuff.

  • 32.
  • At 07:01 PM on 15 Apr 2008,
  • Tobias wrote:

I think this is damaging for Apple. Their brand has been maintained by rarely reducing prices and never allowing resellers to undercut them. This is the first time I've ever heard of this - Apple's brand strategists will be tearing their hair out.

As for the usual comments about the iPhone being a rubbish phone, that's simply not understanding that the device is light years ahead of anything else on the market - if somewhat deficient in one or two features. Its USP is its utterly simple user interface.

A Nokia N95 is a great phone in the same way that UNIX is a great operating system. Great for techies and useless for everyone else. Only Apple can package it in OS X to come up with a world beating user friendly product.

  • 33.
  • At 07:04 PM on 15 Apr 2008,
  • Ian Parkinson wrote:

1. Mossberg has not confirmed the arrival of the 3G iPhone in 60 days. He has since stated that he was simply repeating the rumours he had read in the internet and has no inside information. The June date is still just a rumour.

2. While the iPhone might not be what every Nokia N82 or N95 owner may want, it more that suits many other people. It is a free market and people buy the product that best meets their needs. It would be a sad world indeed if we all used the same phone, car, TV, computer, etc, etc. It is all about choice, so don't decry a product as an overpriced gimmick just because it is not what you want.

  • 34.
  • At 07:14 PM on 15 Apr 2008,
  • Paul wrote:

I already have a 60gig video ipod and after playing with the iphone I plumped instead for a 3G LG Viewty with 5mpeg camera and 120fps video. Whilst the iphone is a nice looker it really doesn't cut it as a phone in comparison to others on the market and the price is ridiculous when the other phones capable of more functionality are available free on contract. Still, there will always be fashionistas with more money than sense!

  • 35.
  • At 07:17 PM on 15 Apr 2008,
  • George wrote:

I am dying to see the ecosystem of applications that will be released with the v2 of the operating system which is going to overshadow the 3G phone itself.

We are going to see big changes, specially in all smart-phones and i imagine two possible scenarios; specialization of devices or cut down of functionality to appeal to older people (for example), whoever competes with Apple in this field is around 5 years behind or more and no way they are going to catch up as nobody has catch up with the iPod yet.

May sound exaggerated, may sound like a apple fan (i am not) but the fact is that i can see the Xcode development environment and it is soooooooo superior, it is not about mega-pixels, it is not about gps, it is not about breathtaking video recording, it is about software, and that is the problem the mobile phone industry has.

  • 36.
  • At 07:19 PM on 15 Apr 2008,
  • Martin wrote:

Good thinking from O2. If people buy from O2, then some handset subsidy is a good idea. Otherwise people will just buy from the Apple shop and unlock them, since it only takes a minute to do and it's not rocket science.

That said, the O2 tariff is pretty good for heavy users: 600 cross-network minutes, 500 texts and unlimited data for 35 quid a month. You pays your money and takes your choice.

Just don't listen to the pro- or anti- Apple camp, as they are each as nauseating as each other. At the end of the day it's a great product - great ease of use, more than the sum of its parts. Yes, the 3G version would be better still, at least inside the major conurbations where there is decent 3G coverage. But if you'd rather buy a Nokia, fine, just don't keep whining on about it.


  • 37.
  • At 07:20 PM on 15 Apr 2008,
  • Neil wrote:

If Nokia took £100 off the price of the N95 8GB, would the BBC report it, or even notice? If HTC took £100 off the HTC Touch, would the BBC report it? If any company other than Apple took £100 off the price of their phone, would the BBC report it?

The answer is almost certainly no, which leads to the question: Is the BBC's infatuation with the iPhone breaking the corporation's own charter by promoting it over other products?

Whatever happened to the pathetic "Other (Product Type)s also available" line used when advertising the Radio Times, the BBC doesn't even bother trying to excuse their product promotion anymore.

  • 38.
  • At 07:22 PM on 15 Apr 2008,
  • Paul wrote:

I already have a 60gig video ipod and after playing with the iphone I plumped instead for a 3G LG Viewty with 5mpeg camera and 120fps video. Whilst the iphone is a nice looker it really doesn't cut it as a phone in comparison to others on the market and the price is ridiculous when the other phones capable of more functionality are available free on contract. Still, there will always be fashionistas with more money than sense!

  • 39.
  • At 07:22 PM on 15 Apr 2008,
  • Russ James wrote:

Never mind dropping the price...

It's about time Apple stopped being stupid enough to think that everyone's going to go on as poor-a-network as O2 just to get their phone, and start allowing the likes of Vodafone, Orange and T-Mobile to retail it.

Oh, hang on, that would drive up the supply and demand thus cutting RRP even further...

Anyone else smell a rat?

  • 40.
  • At 07:29 PM on 15 Apr 2008,
  • Martin wrote:

Good thinking from O2. If people buy from O2, then some handset subsidy is a good idea. Otherwise people will just buy from the Apple shop and unlock them, since it only takes a minute and it's not rocket science.

That said, O2's tariff isn't bad for heavy users: 600 cross-network minutes, 500 texts and unlimited data for 35 quid a month. You pay your money and take your choice.

Just don't listen to the pro- or anti- Apple camp, as they are each as nauseating as each other. At the end of the day it's a great product - great ease of use, more than the sum of its parts. Yes, the 3G version would be better still, at least inside the major conurbations where there is decent 3G coverage. But if you'd rather buy a Nokia, fine, just don't keep whining on about it.


  • 41.
  • At 07:32 PM on 15 Apr 2008,
  • NR wrote:

I smell a 3G iPhone on the way :)

I'll be very tempted to go for one at £169, it was the contract that was originally putting me off for £35 pm but that is like 3 months free contract almost. Looks good to me, 3G will just cost more anyway and coverage in Europe is poor. I'm not a fan of gadgets rolled into 1 as I use an Nikon SLR for photos, DVD camera for video but the iPhone seems to combine an iPod (best mp3) and phone together very well. I have a 30gb iPod video right now and have fancied a touch but maybe i'll go iPhone.

  • 43.
  • At 07:47 PM on 15 Apr 2008,
  • Justin Garrison wrote:

I am a big apple and technology fan and bought an iphone the DAY they came out and have never been so let down by a product in my life. It's a cute phone but once you get passed the fun which took 10 minutes the phone is terrible and very limited. The best thing i did with my iphone was selling it on ebay less than a month after buying it. O2 and CPW can give them away i would still tell people to stay away. Apple took a big hit on this one.

  • 44.
  • At 07:50 PM on 15 Apr 2008,
  • david wrote:

As others say the secret's out that the 3G iphone is coming in the summer and it seems highly likely that Apple is trying therefore to clear its stocks before launch. It has a track record of doing this in the past with other products (Macbooks, iPods etc). They already started to discount iPhones in Germany before this announcement, too. I am surprised that this journalist did not include these observations and the obvious implications in the article.

  • 45.
  • At 07:56 PM on 15 Apr 2008,
  • Khoa Huynh wrote:

I am one of these 'loyal' O2 customes that have remained on the network but have sat on the fence.

To be honest, even with this price cut (which now puts me right back in the iPhone's target market now, being a student) I think time has made the iPhone's value proposition pass by.

I am now going to hold out for the SonyEricsson XPERIA X1 which better suits my mobility and multimedia needs.

  • 46.
  • At 07:58 PM on 15 Apr 2008,
  • Jon wrote:

It's just a phone with a few gimicky bits attached, get a life and spend your money on something more worthwhile. Save it for when food/taxes becomes even more expensive, or give it to charity. I'm fed up with this 'greedy I must have it now' culture.

  • 47.
  • At 07:59 PM on 15 Apr 2008,
  • Tom wrote:

Wow only £600+ for just owning a phone for a year! If you buy 10 you can just about get the BBC website on them all at once!
But then you wouldnt look cool!

  • 48.
  • At 08:00 PM on 15 Apr 2008,
  • Ryan wrote:

I want one, but with the 3g version coming soon and hopefully a better camera? there's no way I'm forking out any money for the current model unless o2 offer me a free upgrade of course ha ha.

  • 49.
  • At 08:00 PM on 15 Apr 2008,
  • Neil wrote:

If Nokia took £100 off the price of the N95 8GB, would the BBC report it, or even notice? If HTC took £100 off the HTC Touch, would the BBC report it? If any company other than Apple took £100 off the price of their phone, would the BBC report it?

The answer is almost certainly no, which leads to the question: Is the BBC's infatuation with the iPhone breaking the corporation's own charter by promoting it over other products?

Whatever happened to the pathetic "Other (Product Type)s also available" line used when advertising the Radio Times, the BBC doesn't even bother trying to excuse their product promotion anymore.

  • 50.
  • At 08:01 PM on 15 Apr 2008,
  • Colleen wrote:

Peter is exactly right, no coincidences here, just standard business practice.

  • 51.
  • At 08:03 PM on 15 Apr 2008,
  • Ryan wrote:

I want one, but with the 3g version coming soon and hopefully a better camera? there's no way I'm forking out any money for the current model unless o2 offer me a free upgrade of course ha ha.

  • 52.
  • At 08:04 PM on 15 Apr 2008,
  • Jon wrote:

It's just a phone with a few gimicky bits attached, get a life and spend your money on something more worthwhile. Save it for when food/taxes becomes even more expensive, or give it to charity. I'm fed up with this 'greedy I must have it now' culture.

This is standard apple tactics of clearing stock. Dump it on resellers. They have done it for years and normally means a new product is coming. WWDC is the place to watch.

  • 54.
  • At 08:07 PM on 15 Apr 2008,
  • Kashif Khan wrote:

I was one of the first six UK Iphone customers when my friend who works for O2 got me the much awaited Iphone. I was thoroughly disappointed with its limited functionality. It is jack of every trader but master of none in mobile phone, Ipod, messaging, web browsing and sleek look disguise it well. I tried to return it but O2 make it so difficult to have the phone back as they will struggle to sell it. The worst phone I had for thirty years of mobile invent.

  • 55.
  • At 08:08 PM on 15 Apr 2008,
  • Thomas Tengsted wrote:

Old model handset reduced in price.

Where's the news?

Nothing to see here, move along now.

  • 56.
  • At 08:08 PM on 15 Apr 2008,
  • Alex Smith wrote:

one word: Blackberry.

people wanted the iphone, looked around for an alternative, and found Blackberry phones.

3G? how many people actually video call?

it's that the iPhone is second best to the Blackberries.

market share says so - 45% blackberry, and mid-20% for iPhone.

Blackberry is turning into a consumer phone, not only a businessman's phone.

  • 57.
  • At 08:10 PM on 15 Apr 2008,
  • Jonathan wrote:

My experience of the iPhone is extremely poor:

* it needs rebooting multiple times per day because the EDGE network fails to reconnect after passing through an area of low coverage.

* Syncing with Outlook *really* screws up your calendar, if you can get it working at all (hint: strip out all mtgs over 8 weeks old).

* It's not 8GB at all, but rather about 7.2GB once you've lost a chuck of memory on mandatory code.

* It ties you in to a very restrictive contract.

* Phone reception is poor.

* The camera is useless and has no video

Frankly, its a piece of very well designed cute junk. Sad thing is - I've got it for another 12 months. My advice is not to buy one at any price.

JWL

  • 58.
  • At 08:13 PM on 15 Apr 2008,
  • Kashif Khan wrote:

I was one of the first six UK Iphone customers when my friend who works for O2 got me the much awaited Iphone. I was thoroughly disappointed with its limited functionality. It is jack of every trader but master of none in mobile phone, Ipod, messaging, web browsing and sleek look disguise it well. I tried to return it but O2 make it so difficult to have the phone back as they will struggle to sell it. The worst phone I had for thirty years of mobile invent.

Apple needs to join the real world and realise iPhone aint anywhere near the best phone out there and even at this reduced price, its still too expensive for what it is......

  • 60.
  • At 08:15 PM on 15 Apr 2008,
  • alberto gurgel wrote:

O2 is not really interested in selling Iphones, what lies beneath is the 18 months contract that comes with it. The truth is a lot of people buy the Iphone at the Apple shop and then unblock it to use it on their current network.

  • 61.
  • At 08:18 PM on 15 Apr 2008,
  • Aas Mohammed wrote:

Cut in price of 8GB iPhone may boost up its sale in India.

I use my iPhone for to do list management, emailing, web browsing and bookmarking, twittering, using facebook, checking the weather, route planning on the move, taking photos, taking notes, listening to music and podcasts, phoning and texting people.

The iPhone is a revolutionary device, and if I knew there was going to be a price reduction when I bought it, I'd still have got it.

  • 63.
  • At 08:19 PM on 15 Apr 2008,
  • Aas Mohammed wrote:

Cut in price of 8GB iPhone may boost up its sale in India.

It's only being discounted because everyone knows there's a 3G version coming out in June (one of Apple's worst-kept secrets in years), and aren't buying the current model.

I use my iPhone for to do list management, emailing, web browsing and bookmarking, twittering, using facebook, checking the weather, route planning on the move, taking photos, taking notes, listening to music and podcasts, phoning and texting people.

The iPhone is a revolutionary device, and if I knew there was going to be a price reduction when I bought it, I'd still have got it.

  • 66.
  • At 08:26 PM on 15 Apr 2008,
  • Alex Smith wrote:

two words: blackberry.

consumers wanted the iPhone, looked for substitutes, and found a better alternative; Blackberries.

3G? who video calls?

blackberries are selling better than iPhones. blackberries have 45% of the market share of high tech phones, compared to iPhone's mere 20-od percent.

plain and simple - blackberries are better than iPhones.

and the consumers know it.

  • 67.
  • At 08:29 PM on 15 Apr 2008,
  • John Blotty wrote:

Surely the problem is the fact that O2 is not a business provider but its business model is aimed at consumers. I loathe and detest the service provider I use but I have to use them because they are offer business users like me the extensive and copmprehensive serive I need. Unfortunately!

  • 68.
  • At 08:32 PM on 15 Apr 2008,
  • Alex Smith wrote:

two words: blackberry.

consumers wanted the iPhone, looked for substitutes, and found a better alternative; Blackberries.

3G? who video calls?

blackberries are selling better than iPhones. blackberries have 45% of the market share of high tech phones, compared to iPhone's mere 20-od percent.

plain and simple - blackberries are better than iPhones.

and the consumers know it.

  • 69.
  • At 08:35 PM on 15 Apr 2008,
  • Steve Johnston wrote:

I'm a massive fan of the iPod and think Apple scored a huge own goal when they signed an exclusive deal with 02. I have spoken to loads of friends and family who refuse point blank to buy an iphone until it's 3G and available on a decent network.

  • 70.
  • At 08:42 PM on 15 Apr 2008,
  • Philip Harfleet wrote:

Anybody who dives in early on with these high-priced gadgets must be bonkers! Prices always fall after a while and now we're entering a period of belt-tightening there must be plenty of companies pushing for cash as soon as possible.

I still have a Vodafone mobile on pay as you go, no camera or any other gimmicks. Works just fine - for making the odd call or text. Why on earth there are so many people who cannot live without the latest mobile phone is a complete mystery tied up in an enigma.

Oh well, takes all sorts...

  • 71.
  • At 08:44 PM on 15 Apr 2008,
  • Andy wrote:

people in the UK are used to paying for an expensive contract and getting a free phone, or getting a cheaper contract and paying a few hundred pounds for a phone with it.

With the contract that you have to get with an iphone, you would get any other phone free! Nevermind £100 cheaper, it's still overpriced for the contract you have to get with it.

  • 72.
  • At 08:46 PM on 15 Apr 2008,
  • Aaron Irwin wrote:

The iPhone has seemingly underperformed since a bright launch. Part of that is because, as a phone, it's not as capable as 95% of the current market but I also think a lot of people are put off by the stranglehold that Apple and their partners (O2 in the case of the U.K.) have on the market.

Should I want to spend £200 on a phone, I can go look at the new Sony Ericssons or Nokias on the market, spend less money on a tariff than the iPhone-friendly O2 tariffs and also have my choice of network (perhaps offering better data transfer speeds). The only real big selling point that the iPhone has is the interface. But I can get the same interface and most of the "cool" functionality in an iPod Touch seeing as I carry an iPod around anyway and still use a decent phone.

The other posters have also hit upon the 3G rumours, so the price cut in the basic models could be just to shift stock before the 3G models are announced (rumoured to be June). I don't think there's any coincidence that T-Mobile Germany are offering cheaper iPhones at €99 (price dependant on contract, I believe).

  • 73.
  • At 08:54 PM on 15 Apr 2008,
  • brian wrote:

Until the iPhone is available as a pay as you go phone and available to use on any network then it can do well like the ipod.This is the UK not Zimbabwe, dictatorship is just not gonna work.Customers need to have a choice as in contract or pay as you go and what networks they prefer Yo that's my word

  • 74.
  • At 09:01 PM on 15 Apr 2008,
  • brian wrote:

Until the iPhone is available as a pay as you go phone and available to use on any network then it can do well like the ipod.This is the UK not Zimbabwe, dictatorship is just not gonna work.Customers need to have a choice as in contract or pay as you go and what networks they prefer Yo that's my word

  • 75.
  • At 09:08 PM on 15 Apr 2008,
  • Andrew wrote:

I love my iphone and I don't think that it is overpriced even at £269 the features are really easy to use and the phone is so sexy to hold and to look at. Yes there are other phones that do more but none have the wondeful navigation and simplicity to use that the iphone has. I will consider upgrading to the 3G version as I am sure that Appple will make this version even better!

  • 76.
  • At 09:09 PM on 15 Apr 2008,
  • Niall wrote:

A phone having 3G doesn't automatically make it great - I cancelled my previous contract which was on 3G to get an iPhone

as well as all the web and email stuff it does so much better than other phones - it's also a fantastic video iPod and now can stream (via wifi) from BBCs iPlayer (watched Mad Men last night) the quality of the screen is amazing

I had video recording capability on my old 3G phone too; how much did I use it in the 18 months of ownership? er ... oh yeah, once to try it out

I'm aware that a lot of people fall for 'integer marketing' (5 megapixel this - 3G that) as that's always been the way

others 'get' what a difference a carefully engineered user inteface means to your day when you have to keep in touch with lots of people and get lots of info

  • 77.
  • At 09:09 PM on 15 Apr 2008,
  • Juan Canham wrote:

I for one am still waiting for my gphone :P

  • 78.
  • At 09:09 PM on 15 Apr 2008,
  • george wrote:

Hey Paul,

rubbish? Can't afford an iphone huh? Jealousy is such an ugly emotion

  • 79.
  • At 09:15 PM on 15 Apr 2008,
  • Tony wrote:

"The iPhone is still a rubbish phone"
Not the most intelligent comment I've ever read! And clearly very very wrong.
There may well be features 'missing' and that is nothing new for Apple. Sometimes they are at the forefront of innovation, as they are with some of the things in the phone, for the UK market, but the phone was developed primarily for the US market where things are a little behind.
All of the 'desired features' will appear in time and it will still be the sexiest phone ever invented.

  • 80.
  • At 09:16 PM on 15 Apr 2008,
  • Aaron Moore wrote:

I just said today that i would buy the current iPhone when the new 3G ones appear since the price of the current ones will drop by then. And now this has happened!

If all goes well ill be popping into my local O2 shop tomorrow!

  • 81.
  • At 09:19 PM on 15 Apr 2008,
  • Suhayl wrote:

O2 is just clearing the 8gb phones out while they still can. The new models will be here soon. Apple has very limited stock of the current iphones so they aren't bothered. I can tell you the iphone is the best phone on the planet. Nothing comes close.

  • 82.
  • At 09:23 PM on 15 Apr 2008,
  • Sean wrote:

The iPhone is the first handheld which can surf reasonably well, which leads to huge bills and massive profits. Why not subsidise the handset, it works for razor blades and XboX.

  • 83.
  • At 09:26 PM on 15 Apr 2008,
  • Wills wrote:

@ Paul, since getting the iPhone, my N95 is gathering dust...

  • 84.
  • At 09:26 PM on 15 Apr 2008,
  • robert ronson wrote:

The iPhone price has fallen to clear the backlog as there is a new 3G phone in the offing. It has also been discounted in Germany. To suggest the iPhone is in trouble is ludicrous. Is that why everyone is running scared trying to copy it.

  • 85.
  • At 09:28 PM on 15 Apr 2008,
  • Tom Sandifer wrote:

iphone will be beaten by the nokia n96 just wait till Q3

  • 86.
  • At 09:37 PM on 15 Apr 2008,
  • Anwar wrote:

I think its about time they reduced the price, but I don't plan to pay the MacTax for a iPhone, I like my SonyEricsson P1.

  • 87.
  • At 09:41 PM on 15 Apr 2008,
  • SiHi wrote:


The present iPhone represents very poor value for money, but Apple is like BMW in that people will buy anything with the right logo on it.

It looks like most people realise this and have given the iPhone a miss and hopefully companies like Apple will learn that they can't just over-hype a product to death in the expectation that the guillable UK public will blindly part with theirr cash.

  • 88.
  • At 09:48 PM on 15 Apr 2008,
  • Alberto Gurgel wrote:

O2 is not really interested in selling Iphones, what lies beneath is the 18 months contract that comes with it. The truth is a lot of people buy the Iphone at the Apple shop and then unblock it to use it on their current network.

  • 89.
  • At 09:49 PM on 15 Apr 2008,
  • Ryan wrote:

Seeing as most phone companies "give away" the phone with a contract O2 are still onto a winner. I believe that the continuing momentum message along with the 3G version round the corner is the reason. As Apple will class every sale to O2 of a handset an actual sale. They will be pushing stock through this channel to make up the numbers. Every phone Apple has in it's own channel isn't sold until it is bought by a customer.

The Nokia N95 and N82 are "free" with most contracts. Do we count this as a sign of it being a bad product? The fact that O2 consider the iPhone their best selling handset it must be a relief they are not giving it away!

  • 90.
  • At 09:53 PM on 15 Apr 2008,
  • Alberto Gurgel wrote:


O2 is not really interested in selling Iphones, what lies beneath is the 18 months contract that comes with it. The truth is a lot of people buy the Iphone at the Apple shop and then unblock it to use it on their current network.

  • 91.
  • At 09:54 PM on 15 Apr 2008,
  • olive s wrote:

Another marketing ploy to get rid of back room stock of a phone that hasn't held it's own in the marketplace

T-Mobile have already reduced the price of the iPhone in Germany to £70, a cut attributed to too many handsets being acquired by the network - I would suspect a combination of a similar over-purchasing by O2 and Carphone Warehouse, and the upcoming 16GB iPhone have contributed to the cut.

Frankly, the cut isn't before time - there's no reason really why a greater cut couldn't be made.

  • 93.
  • At 10:00 PM on 15 Apr 2008,
  • Alberto Gurgel wrote:


O2 is not really interested in selling Iphones, what lies beneath is the 18 months contract that comes with it. The truth is a lot of people buy the Iphone at the Apple shop and then unblock it to use it on their current network.

  • 94.
  • At 10:02 PM on 15 Apr 2008,
  • Alan Mc wrote:

Having negotiated a deal in January with O2 for an N82 i can speak from experience. I looked at the specs and the contract length for the iPhone as it was on my shopping list, but decided the end on no account justified the means, the phone was just too expensive! During my talks with O2 i got the distinct feeling i was being pushed towards an iphone, almost as if they were under pressure to make sure no opportunities were missed.

  • 95.
  • At 10:03 PM on 15 Apr 2008,
  • Benjamin wrote:

I have nothing but distain for Apple and their products, I have used their computers and tinkered with the iphone in the past and although they are beautifully engineered and don’t crash all the time like your average windows PC does so don’t take me as a Windows fanboy.

Apple has managed to control inter-compatibility with the rest of the market making you have to buy Apple branded products for other apple products. I deplore Apples communist approach to their products such as forcing you to use itunes and then forcing you to have a certain contract on the iphone just to screw more money out of you.

Not long now until Google with their new “Android” OS take on the big mobile phone makers and knock Apple down a few notches.

Still Apple must be doing something right they have a lot of fans.

  • 96.
  • At 10:07 PM on 15 Apr 2008,
  • Alan Mc wrote:

Having negotiated a deal in January with O2 for an N82 i can speak from experience. I looked at the specs and the contract length for the iPhone as it was on my shopping list, but decided the end on no account justified the means, the phone was just too expensive! During my talks with O2 i got the distinct feeling i was being pushed towards an iphone, almost as if they were under pressure to make sure no opportunities were missed.

  • 97.
  • At 10:07 PM on 15 Apr 2008,
  • Adrian Cox wrote:

With the cut in price, I expect the next move will be giving them away free at £45 per month instead of £35. This would interest more people and O2 would make more over the length of the contract still.

Interesting the similarities with the way the iPod was rolled out. I expect Apple will release an 'iPhone Mini' within a year as a kind of budget style iPod Shuffle.

  • 98.
  • At 10:09 PM on 15 Apr 2008,
  • Steve the Poacher wrote:

its not a good deal even with £100 off, there's Nokias with the same features plus you're not tied to an horrendously expensive service provider deal. They will never sell them in large enough numbers until they are about £100 plus unlocked.

I cannot believe it! I joked on a blog post that having bought an iPhone (a little over two weeks ago), a newer, 3G-version would be released.

Well, I wasn't quite right, but a price cut of £100 hasn't exactly brightened my day.

I find the 2 week cut-off rather annoying too. I understand that technology progresses, and there are price cuts, but to be offered nothing because I happened to buy just over two weeks ago is really frustrating. Perhaps there should be a smaller refund for people like me?

  • 100.
  • At 10:10 PM on 15 Apr 2008,
  • Steve wrote:

All they did was put the price up by £100 to start with then cut it now to make it seem like a bargain and many people will fall for it.

  • 101.
  • At 10:12 PM on 15 Apr 2008,
  • Carl Davies wrote:

Paul,

That's a crazy statement, the iPhone is the most amazing hand held device I have ever used. I work in the mobile industry and the return rate of nakia symbian handsets compared to the iPhone is ridiculous. iPhone is an iPod, Internet device as well as a phone.

Don't compare iPhone to subsidized nokias, it's like comparing a rolls to a ford!

I think that O2 have made a sound move, everyone who wanted an iPhone has 1, so why not try and dive into another market? Consumers can now be easily up sold to iPhones now and reach that 10m mark apple were hoping for!

  • 102.
  • At 10:12 PM on 15 Apr 2008,
  • R.Pearce wrote:

I'd love one - I have an iPod touch and it is the only usable browswer on a small device, the software is great too - but there is no way that I will buy one if it means buying in to a montly contract. Do people never add uo how much they really end up paying? I'll get one cheap on ebay when the next big thing comes along! Never be an early adopter!

  • 103.
  • At 10:20 PM on 15 Apr 2008,
  • Steve the Poacher wrote:

its not a good deal even with £100 off, there's Nokias with the same features plus you're not tied to an horrendously expensive service provider deal. They will never sell them in large enough numbers until they are about £100 plus unlocked.

  • 104.
  • At 10:29 PM on 15 Apr 2008,
  • Daniel wrote:

The problem is not with the phone but the very limited operator: 02. I certainly think that O2 are overpriced and provide poor service.

  • 105.
  • At 10:29 PM on 15 Apr 2008,
  • Graham Hardy wrote:

I remember when the iphone was out for only 3 months in the US before Apple dropped the price by $100, much to my surprise the users that had already bought one complained to Apple directory and was sent itunes vouchers and cash to the value of $100.

Probably the truth of the matter is that O2 is experiencing financial difficulties and are desperately trying to make the figures look nice for 2008,

And sorry to say that Apple release just one innovative product each year - this year is the airbook.

  • 106.
  • At 10:39 PM on 15 Apr 2008,
  • Dave hickman wrote:

typical. I bought the 8 gig iPhone just over a month ago after saving for it. As it was over 2 weeks ago I can't get any money back. That's what you get when you buy technology. A new one out after a week and price cuts just after you bought it. An email to the carphonewarehouse might be in order I think.

  • 107.
  • At 10:39 PM on 15 Apr 2008,
  • Mark C wrote:

The numbers for iPhone sales have never been made public and the simple reason for this is, they have been well below target.

It was launched too late in Europe and was severely under spec compared with it's rivals. Apple have to work quicker to compete in the premium mobile phone market.

  • 108.
  • At 10:48 PM on 15 Apr 2008,
  • J Wong wrote:

It's an interesting strategy. As a straight purchase, it's certainly worth considering. I currently own a N95 plus an ipod touch. A £169 8G iphone undercuts the comparable ipod touch (as that's £199 retail) and has phone capabilities. Any gadget geek worth their salt will immediately jailbreak and unlock the iphone as soon as possible. It's a nice holdover until the 3g version arrives in the summer. Might pop over to a local CW tomorrow...

  • 109.
  • At 10:51 PM on 15 Apr 2008,
  • charlie hesketh wrote:

It's just a phone...........

  • 110.
  • At 10:51 PM on 15 Apr 2008,
  • Paul wrote:

I've yet to see an iPhone out in the wild...

T-Mobile have already reduced the price of the iPhone in Germany to £70, a cut attributed to too many handsets being acquired by the network - I would suspect a combination of a similar over-purchasing by O2 and Carphone Warehouse, and the upcoming 16GB iPhone have contributed to the cut.

Frankly, the cut isn't before time - there's no reason really why a greater cut couldn't be made.

  • 112.
  • At 10:55 PM on 15 Apr 2008,
  • Ian Stevens wrote:

I have to strongly agree with the points made above - apple are very good at controlling stock, and this apparent price cutting is purely to remove the backlog of iPhones in the UK before the introduction of the new model, which (when released) would cause the old iPhones to be rendered unsellable - the are purely preventing any loss.

And a new iPhone makes sense - as Paul (post 5) said, there are many other better phones on the market - why woud you buy an iPhone lacking these features when you are after a top-notch phone? Apple also tend to release a new iPod every year - surely the iPhone would be the same?

And finally, having looked at purchasing an iPhone, the main block for me was the very highly priced 02 contract - surely lowering this (the lowest is £45 per month) would encourage a greater sale of iPhones.

But basically, it's a clearout. Wait, and get a new one.

  • 113.
  • At 10:55 PM on 15 Apr 2008,
  • Alan Mc wrote:

Having negotiated a deal in January with O2 for an N82 i can speak from experience. I looked at the specs and the contract length for the iPhone as it was on my shopping list, but decided the end on no account justified the means, the phone was just too expensive! During my talks with O2 i got the distinct feeling i was being pushed towards an iphone, almost as if they were under pressure to make sure no opportunities were missed.

  • 114.
  • At 11:07 PM on 15 Apr 2008,
  • patrick the i-t wrote:

As someone who worked for apple dealers almost 20 years ago and saw them lose opportunity to become major player Then , I can see same thing happening again with Iphone
If die hard apple fan you go and buy anything they make just like those die hard Sony game players , but normal public ar bit more skeptical about these thing , plus with sony ericsson X1 (Iphone Killer ) coming out in few months I see iphone selling for 129 by xmas , why are 02 only mobile phone company selling it .. stupid it just like 1991 again when apple refuse to allow any else to make their pc look what happen then

  • 115.
  • At 11:11 PM on 15 Apr 2008,
  • Jay wrote:

Apple. The only company which gets away with charging more for less.

  • 116.
  • At 11:12 PM on 15 Apr 2008,
  • Michael wrote:

Apple make the most incredible products ever made, im writing this message from my ipod touch and its so easy to do with the touchscreen keyboard, there is simply no portable device out there that is anywhere near this, I can browse the Internet beautifully and watch youtube and BBC iplayer on it, simply breathtaking.

  • 117.
  • At 11:13 PM on 15 Apr 2008,
  • Steve Mulcahy wrote:

Looks like Paul hasn't used a Jailbroken iPhone.

With Jailbreak (and hopefully the upcoming SDK, and then 3G versions) you get everything you need in a phone/PDA.

So you watch films on your N series Nokia? I've watched on iPhone and an N95 and I know which one I'd prefer to be watching. Oh yeah, what about a little bit of a BBC show through iPlayer? Ha sorry, iPod/iPT only at the moment....

Safari is the best mobile web browser too. I've been using an iPod Touch with all the apps of an iPhone (without txt and phone) and some more apps, and have found it a really useful tool when in a WIFI area. I carry my laptop with me everywhere, but if its just a quick google or email check or check the rugby scores, I'll pick up my iPod instead of opening up the laptop. I can even SSH to my home server through it. I also play old MegaDrive games on it too.

I know you can get features like this on Nokias and Windows Mobile, but as the song says 'It's not what you do, It's the way that you do it'. They just don't do their things elegantly enough for me.

As for GPS, how about you explore and get yourself lost every once in a while. Its more fun than listening to a robotic woman barking orders at you.

iPhone may not be a perfect device, but one thing it is, is a revolutionary device.

I also carry an SLR with me most of the time, and my last phone was a Sony Ericsson M600i which doesn't have a camera on it.

When a 3G iPhone comes out, I'll buy one and 'pwn' it straight away. No question about it.

  • 118.
  • At 11:14 PM on 15 Apr 2008,
  • Michael wrote:

Apple make the most incredible products ever made, im writing this message from my ipod touch and its so easy to do with the touchscreen keyboard, there is simply no portable device out there that is anywhere near this, I can browse the Internet beautifully and watch youtube and BBC iplayer on it, simply breathtaking.

  • 119.
  • At 11:17 PM on 15 Apr 2008,
  • Derek Clarke wrote:

Is a £100 cut on the phone price really going to offset the minimum £630 for the 18 month contract?

It might seem tempting to buy an iPhone now, but they're not fooling me.

Yes, the price has been slashed from £269 down to £169, but the mandatory 18 month contract at £35 a month still remains; so it's still a very expensive phone.

The total cost of an iPhone will now set you back over the course of a year and a half: £799. That's still more than a Nokia 8800, which is at least £500, it's still over £300 more than the LG Viewty, and it's a whopping £450 more than the phone I'd recommend for touch screen capabilities, the HTC Touch Cruise/O2 XDA Orbit II. You can get one of these, sim-free for about £350, and compared with the iPhone, it's an absolute bargain.

  • 121.
  • At 11:22 PM on 15 Apr 2008,
  • Chris wrote:

over priced gimmick? anyone who says that does not own an iPhone. i personally would not do without mine. it is miles better then any mobile on the market, if you want a good camera buy a camera. for me and many others its convient to have a phone and ipod in one rather then carrying both round.

as for a new model? great news if its true, Edge is not that bad but it can be a pain when your not in an edge area, makes looking at websites rather slow :)

  • 122.
  • At 11:28 PM on 15 Apr 2008,
  • Joseph Thomson wrote:

Not much to say for the O2 move itself - as others have said, they're shifting stock before a new model which is looking more and more likely (notable is that the offer is only until June 1st - new iPhones COULD be announced alongside the release of the next software promised in June).

One comment struck me: "Give me a Nokia N82 or Nokia N95 8GB any day, as they're 3G and have 5 megapixel cameras"

I admit the iPhone is not for you (yet!) if you're looking for these two things (although I'd caution yourself on choosing any sort of digital camera purely on the mpixel specs). But personally, give me the iPhone any day, as it has Internet which is actually USEFUL! (however slow it is for some intensive sites on EDGE).

  • 123.
  • At 11:29 PM on 15 Apr 2008,
  • Joshua Burge wrote:

With reading all the above said, i can't say this move isn't much of a surprise.

O2 is doing what i would be doing after year 1 of trading, increasing its potential range of customers and preparing for a new model it makes sense to make the move now.

Prepare for iPhone mach 2.

  • 124.
  • At 11:29 PM on 15 Apr 2008,
  • Gary wrote:

I agree with #5 (Paul) above, the iPhone is simply a gimmick, it has nowhere near the potential of the Nokia N95 8GB or N82. I even think the web browser on the N95 8GB is on a par with the iPhone, which begs the question - what does the iPhone offer you - that the Nokia N95 8GB/N82 doesn't?

  • 125.
  • At 11:30 PM on 15 Apr 2008,
  • DT wrote:

Edge is poor, 3G is better but still not something you want to live with- bye bye battery life. A lot of people have moaned about the camera- if you know anything about photography then clearly a phone just won't live up to your expectations- small sensors, non-aspherical lenses and more pixels means more noise. My first digital camera only had 2M pixels and i can guarantee that the images are better than any phone. I have a ipod touch and it is fantastic and the limited wi-fi is a bonus for checking the odd email and keeping your calendar sorted without lugging a laptop around. Like many Apple products there are some great features that others will copy but never get right. Let's face it- it is just a phone- the punishing contract and the crap 02 reception where I live puts me off. The price cut is good and will hook a lot of people who will be very happy. Remember that computers would not be what they are without the original vision of Xerox and then Apple.

  • 126.
  • At 11:31 PM on 15 Apr 2008,
  • Ryan Hasett wrote:

There's no doubt about what this means.
The 3G iPhone is coming in June.
It does not mean that O2 is trying to capitalize on those who feel it is just slightly out of reach or are having trouble selling the phones.
It means that they need to clear their inventory for the next big thing.

Paul Freeman-Powell

Feature wise, you are right that the current iphone can't beat some other phones.

However, have you ever picked one up and used it? It's got a brilliant user interface and the OS is outstanding.

It's much quicker and more intuitive than either Nokia or SE can be.

People knock the iphone as it isn't feature rich. In that sense it's a typical Apple product, but as a recent convert to a Mac, I know what I'd rather have. Windows may have more applications available, but there isn't any way I'd go back to windows now I've switched. I'm just annoyed I didn't do it sooner, just to stop me from going mad!

Anyway, if the iphone isn't for you then fine, but you cannot say it's rubbish. Just not right for you.

And for anyone else, just go to an Apple store or where ever and pick one up and use it, it truly is a much better user experience all round.

  • 128.
  • At 11:31 PM on 15 Apr 2008,
  • Gary wrote:

I agree with #5 (Paul) above, the iPhone is simply a gimmick, it has nowhere near the potential of the Nokia N95 8GB or N82. I even think the web browser on the N95 8GB is on a par with the iPhone, which begs the question - what does the iPhone offer you - that the Nokia N95 8GB/N82 doesn't?

  • 129.
  • At 11:31 PM on 15 Apr 2008,
  • Marcus Dreyden wrote:

Ultimately, maybe people are realising the real world is more exciting than the virtual one and that little plastic thing in their pocket?

  • 130.
  • At 11:33 PM on 15 Apr 2008,
  • Duncan Armstrong wrote:

"Give me a Nokia N82 or Nokia N95 8GB any day"

Have you used any of the recent Nokias for a significant length of time? I work with mobile phones every day and I can reassure you that the last few generation of Nokias have been terrible for reliability - slow and flaky with frequent crashes and reboots.

iPhones by contrast are reasonably solid - they just tend to work. They can crash of course, but not nearly as frequently or disastrously as most other feature-rich phones I've used.

And then there's usability... Nobody comes within a million miles of the iPhone for usability. Apple's UI is second to none and the touch interface is breathtakingly slick and intuitive. Somebody at Apple clearly spent a *lot* of time and effort making it usable, unlike the vast majority of other manufacturers, who seem to view it as an afterthought.

People grumbling about how rubbish the iPhone is are just contrarians looking to bash whatever's popular. I understand the instinct, and generally share it, and I'm very much an Apple sceptic. But having worked (and struggled) with cutting edge mobile phones for years, the iPhone simply blew me (and all of its competition) away.

If you absolutely need the top-end specs - 5 megapixel camera (though to my mind the number of pixels is completely irrelevant when the optics are tiny and rubbish), 3G, whatever - then iPhone probably isn't for you. In my opinion the two biggest flaws are the lack of 3G and the lack of 3rd party application support, and if you must have these, then again the iPhone probably isn't for you. But for me, everything else about it is so much better than the competition, that they seem like minor sacrifices.

Dunc

  • 131.
  • At 11:33 PM on 15 Apr 2008,
  • Gary wrote:

I agree with #5 (Paul) above, the iPhone is simply a gimmick, it has nowhere near the potential of the Nokia N95 8GB or N82. I even think the web browser on the N95 8GB is on a par with the iPhone, which begs the question - what does the iPhone offer you - that the Nokia N95 8GB/N82 doesn't?

  • 132.
  • At 11:36 PM on 15 Apr 2008,
  • SamS wrote:

This may be a cry for attention from Apple as so many other phone companies are coming up with iPhone lookalikes, for example the Samsung F700 which can be bought on Vodafone for free with a £25 monthly contract with 500 mins and unlimited texts...I haven't looked into it but I highly doubt that O2 can offer the same as that, added to the fact that nationwide Vodafone coverage is higher and better than O2's anyway. Apple is just struggling to shift these babies I think - the best thing about the iPhone in comparison to the others is the song in the TV ads...

  • 133.
  • At 11:39 PM on 15 Apr 2008,
  • SamS wrote:

This may be a cry for attention from Apple as so many other phone companies are coming up with iPhone lookalikes, for example the Samsung F700 which can be bought on Vodafone for free with a £25 monthly contract with 500 mins and unlimited texts...I haven't looked into it but I highly doubt that O2 can offer the same as that, added to the fact that nationwide Vodafone coverage is higher and better than O2's anyway. Apple is just struggling to shift these babies I think - the best thing about the iPhone in comparison to the others is the song in the TV ads...

  • 134.
  • At 11:40 PM on 15 Apr 2008,
  • ken wrote:

iPhone what a joke, just look at the spec of the phone, camera poor quality, and 2G..lol. if you want a flashy looking phone buy a iPhone with touch screen WOW , Want a really working phone N95 and soon to come N96 that's what you call a proper phone

iPhone thousands of stock pile handsets sitting with B2B dealers all over the world, if the operators want stock to move sell it @£99.99 plus 18months contract

  • 135.
  • At 11:40 PM on 15 Apr 2008,
  • John wrote:

5. At 05:41 PM on 15 Apr 2008, Paul Freeman-Powell wrote:
The iPhone is still a rubbish phone, by today's standards. Give me a Nokia N82 or Nokia N95 8GB any day, as they're 3G and have 5 megapixel cameras with, in the case of the N82, a proper Xenon flash. And both take breath-taking video recordings.
Until the iPhone has all that, I'll still think it's an overpriced gimmick.

---
Paul, you're missing the point of the iphone in that case. In the keynote speech, the camera got all of a few seconds of mention. This phone majors on voice/email/web/ipod & user interface. No other phone can touch it on that.

Iphone users aren't necessarily looking for the ultimate convergence device with the best camera or video functionality. I'm looking for a decent phone with email/web/ipod and a great ui the camera is a bonus. I'm not looking for a 5mp digital camera with a phone built in.

  • 136.
  • At 11:42 PM on 15 Apr 2008,
  • John wrote:

Paul, you're missing the point of the iphone in that case. In the keynote speech, the camera got all of a few seconds of mention. This phone majors on voice/email/web/ipod & user interface. No other phone can touch it on that.

Iphone users aren't necessarily looking for the ultimate convergence device with the best camera or video functionality. I'm looking for a decent phone with email/web/ipod and a great ui the camera is a bonus. I'm not looking for a 5mp digital camera with a phone built in.

  • 137.
  • At 11:46 PM on 15 Apr 2008,
  • Trevor Arrowsmith wrote:

We should be resistant to Apple's decision to supply the iPhone to only one UK mobile provider. This is ultimately bad for the customer and , ironically bad for Apple as the mobile market is reaching saturation and the profit margins depend on mass appeal rather than flashy, expensive marketing to a rich niche. O2 will not persuade me to buy the reduced price iPhone as I don't need an 18 month lock in contract at £35 minimum, irrespective of the imminent arrival of a 3G handset. As stated by a previous contributor, there are other more powerful phones out there. Even my £50 Samsung E250 on PaYG with Virgin has all the iPhone features barr the touch-screen. Just say 'No' to O2's exploitative marketing of this over-hyped handset.

  • 138.
  • At 11:46 PM on 15 Apr 2008,
  • Jason wrote:

@Peter


3. Walt Mossberg (of the Wall St Journal, and pretty close to Apple) said at the start of the month that the 3G would arrive in 60 days, which ties in with (2) above.

Walt has since recanted, saying that he made it up. "If I knew when this date was, why would I announce it in the middle of a sentence at the Finnish embassy, rather than report it in The Wall Street Journal?" - Mossberg

Additionally, and here's the kicker. To introduce a new model in the US, they will need FCC approval. The FCC has a PUBLIC approvals process, with all devices being announced on the web site as they arrive. There are web sites who spend their whole lives watching that web site. A 3G iPhone hasn't appeared. Can you imagine the hit to Apple's stock price if they announced a device that wasn't available in the US? Ouch.

With the first phone, there was a 6 month lead from the announcement at MacWorld to the release in June. I expect similar lead times on a 3G phone, since it will have a new antenna and radio.

It is probably coming. However, I doubt that it will be available anytime in the next 6 months.

There are much simpler explanations for the price drops and stock issues.

1) The current phone firmware is hacked, therefore parallel importers for Asian countries are buying them in bulk to supply their customers. With a new firmware announced for release in June, the hack will stop working then. They are building up their stock for a 3+ month wait for the phone to be hacked again.
2) Apple is releasing 32GB version of the phone, and retiring the 8GB model like they did with the 4GB one. That wouldn't seem to require FCC approval.

  • 139.
  • At 11:48 PM on 15 Apr 2008,
  • Mike S wrote:

My O2 XDA Orbit does virtually everything the iPhone will do. I got it as a free upgrade on a pretty low tariff (I am a loyal customer). Why would I throw money away on an iPhone I know is always going to be slightly ahead of the XDA equivalent but massively more expensive to own?

I've had XDAs since the first generation and they are great. If you want a smartphone there are also lots of great phones around.

The iPhone will have to get a lot cheaper and the tie-in deal a lot looser before I am tempted.

I bought my iPhone 2 months ago. So I could have saved £100 if I'd waited.. However even with the benefit of hindsight I'm happy to have paid the higher price in return for having the use of what has become my favourite mobile of all time in the interim.

  • 141.
  • At 12:07 AM on 16 Apr 2008,
  • Calvin Graham wrote:

I love Apple products but think the iPhone at its current pricing makes no sense, other than for those who want to flaunt money. It would sell far better if they increased the price and reduced the contract rate. Sorry, but an 18 month lock-in for a product that is obsolete as soon as you open the box is unforgivable in todays climate. Until you can get a SIM only deal, I'll stay elsewhere.

"So why is O2 giving away what must be all of its profit margin?" -- they haven't. They make their profit on the contract.

The 3G iPhone is almost certainly due for release, or at least announcement at WWDC in June.

I have doubts that Apple will discontinue the current iPhone entirely, however, as it is still a superior product on the market. Despite its 2 megapixel camera, and mere EDGE data connection, the power of the device itself outclasses even Sony's PSP.

I reckon Apple will introduce a new 3G model, marketing it more as a Pro version, while lowering the price of the current iPhone model and making it more teenage targeted (perhaps we'll see new colours in addition to the gloss black we currently have?)

The current iPhone is by no means a "rubbish phone".

Am still eager to see if Apple will ever try to penetrate the Japanese market. If so, they will need more than simply a 3G phone and an ad campaign in the newspapers.

When the iPhone was released in the States, people in Japan were asking what the big deal is, releasing a phone with technology from 5 years ago. Leaps and bounds are going to have to be made if it is to capture any of the Japanese market (assuming it is actually released here).

  • 145.
  • At 12:52 AM on 16 Apr 2008,
  • will wrote:

it's all very well cutting the handset price, but until the contract price is less than 35 pounds a month i won't be getting one.

  • 146.
  • At 12:54 AM on 16 Apr 2008,
  • brian h wrote:

The reason there are so many unsold iphones is because...

(1) you can only buy one with a credit card, as o2 or apple do not exept cash for this product.

(2) You can only use it on an o2 network.

If these two simple things were changed im sure they will be struggling to cope with the demand.

  • 147.
  • At 12:56 AM on 16 Apr 2008,
  • Phil wrote:

I wont touch an iphone until they become available for other networks.Its kind of short sighted of Apple to only let one network carry it.Its a great phone Im sure but until I can use my own preffered network I wont even bother.

  • 148.
  • At 02:45 AM on 16 Apr 2008,
  • Stuart wrote:

Paul Freeman-Powell,
You sound like a Nokia salesman.
Stay on topic, we're not talking about if the iPhone is better than any other phone. We are talking about the price drop and if this shows that the iPhone has weak sales or if it is for some other reason.

  • 149.
  • At 03:35 AM on 16 Apr 2008,
  • Ali wrote:

Isn't iPhone yesterday's news yet? I haven't met anyone that bought an iPhone lately.

  • 150.
  • At 06:15 AM on 16 Apr 2008,
  • Laurie wrote:

Not a comment on the story itself so much as why are the BBC giving this company free advertising of their latest offer? Is this appropriate? Pricing isn't really a technology story is it?

  • 151.
  • At 07:00 AM on 16 Apr 2008,
  • joppie wrote:

If you want a camera, buy a camera!

  • 152.
  • At 07:35 AM on 16 Apr 2008,
  • andrew wrote:

My daughter has one and its rubbish, suffers from absorbing water, and the actual features are naff.

  • 153.
  • At 07:49 AM on 16 Apr 2008,
  • David wrote:

The reduction in price is not going to make me buy my first iPhone. Its far too expensive for what it is. Shiny and beautiful it may be but its functionality I want, in all repsects! Once its a 3g phone with a decent camera, I'll think about it!

What's really holding the iPhone back in the UK is the fact that it's only offered by O2 who have among the worst roaming rates to Europe. By contrast, with a company like Vodafone, after paying a fairly low roaming connection cost per call, you get the same rates as you have in your home country. They've additionally offered a similar plan for data roaming. T-Mobile has similar offers.

With discount airlines, there is a great deal of travel within Europe. Also, the iPhone's target market is very likely to be big travelers as well.

I'm a big fan of Apple, but more than once they've made the mistake of misunderstanding the nature of foreign markets.

  • 155.
  • At 08:19 AM on 16 Apr 2008,
  • Simon Stewart wrote:

The i-phone is simply a hndset for ry in order to make their decisions. There are so many better handsets available that you can get on cheaper contracts, and pay nothing for the handset itself. Look no further than the Flaship Blackberry and Nokia handsets to see examples of phones that trounce the i-phone in terms of overall function.

And now they are going to release a 3G version of the handset! Welcome to 3 years ago apple. 3.5G is the front end now with a next gen of wireless broadband on it's way! Now all the i-phone will need is a decent stills camera, video camera, a flash, open music support, multiple attatchments, work on different networks... Oh, and not cost £300 just for the handset.

  • 156.
  • At 08:57 AM on 16 Apr 2008,
  • Chris Pegg wrote:

The Nokia N82 or Nokia N95 8GB are rubbish cameras, by today's standards...

The iPhone is the best piece of kit I have ever bought... without a doubt

  • 157.
  • At 09:03 AM on 16 Apr 2008,
  • Riki Baker wrote:

Paull Freeman-Powell, please do yourselve a favour and buy a camera.

Phones in the UK are judged by how many MP the camera has, its sad. Buy a camera!

The iPhone is the future and the way phones are going.

Buy one > use it > be amazed > agree with me > say thanks.

  • 158.
  • At 09:15 AM on 16 Apr 2008,
  • Henry Banks wrote:

I believe that it suggests O2 wants to get as many iPhone customers as possible so that when the iPhone 2 and other versions do rear their head, more people will be at O2 to upgrade. From this, an educated guess is that other carriers, such as Vodafone will adopt the iPhone which would be more suitable for 3G.

Also, the comments on its lack of 3G and a five megapixel camera are fairly unjustified as it was launched nearly two years ago. Against the latest touchscreen phones from LG etc. it still has the best interface by far.

  • 159.
  • At 09:31 AM on 16 Apr 2008,
  • Nick Bowman wrote:

Look at the bigger picture and see the price cut in the context of the mobile phone market as a whole. Price cuts are rife and now the iphone is six months old a price cut is almost inevitable as is a new version of the phone - no matter how good (or bad depending on you perspective) sales are generated by new models. The real profit comes from the monthly charge. And in Germany the equivalent is just £99.

  • 160.
  • At 09:36 AM on 16 Apr 2008,
  • Sam J wrote:

It's a little sensationalist to say that the iPhone is rubbish. In my opinion, it's simply different. Nokia's Nseries devices are certainly the most feature-packed on the market, with things like GPS, WiFi, 3.2+ megapixel cameras and all the rest of it, in addition to the Series 60 OS which is rather more advanced than the software on most other handsets.

I own a Nokia N73, which I bought (well, got given under contract) for the camera and the smartphone OS as a replacement for an ageing Palm Treo 650. The 650's camera is a VGA one without a flash, and the quality of the N73's 3.2 megapixel camera blew me away. I can (or rather, should be able to) do much more with the Series 60 system than I could with Palm OS, and I was eager to properly use Java applications like Widsets (which doesn't run at all on the Treo's IBM Java) and Opera Mini (which does, and quite well, if a little slowly). Given my experience with the Treo and the range of native applications available for it, I couldn't have coped with a dumbphone.

However, compared to the user experience I had with the 650, the N73 is, to put it mildly, "rubbish." On the software side, really simple, basic, essential things like navigating through menus is generally slow and punctuated by unexplained pauses. Opening the Applications folder takes far longer than it should, even with only about 30 things in there, starting the camera app takes ages and be prepared to put 10 minutes aside if you want to edit the permissions of a Java app because the App Manager takes about 5 minutes to load its list, and worse reloads it when you save the settings. I can open things like Settings and Messaging in a reasonable amount of time, but after a few seconds the app will pause for what feels like an age - it's probably around 5 seconds but shouldn't happen at all. I abandoned Shozu because I'd put the phone away, or was framing another shot before it prompted me to upload the photo. It was taking a long time to show a contact's details, but I tracked that down to a Nokia Labs app called Conversations - which I installed to try to make up for the horrid SMS experience which makes no sense at all when the handset is capable of storing hundreds of messages and you're used to the threaded view of the Treo and iPhone.

The hardware isn't perfect either, by any means. After only a few months the slider for the camera stopped responding reliably - sometimes failing to open the camera app or closing it suddenly because it thought I'd closed the cover. Given the amount of time the camera app takes to start up anyway, it's most annoying. The whole tapping in a text with number keys thing is *really, really* stupid when you're used to qwerty, and recently the joystick/nipple/thingy has been acting up by randomly registering double presses a lot of the time.

In short, I've been really disappointed with my N73. I've seen other Nseries handsets and they're not much better. I thought I was upgrading to a more featureful handset, when in reality I was severely downgrading my user experience - which I've found is much more important.

I bought an iPod touch soon after they came out in the UK, which is why I am so excited about the 3G iPhone, and can't wait until my contract with 3 has finished. The people who claim the iPhone is "rubbish" compared to handsets like the N95 completely miss that the most important thing about the iPhone is the user experience. The synergy between hardware, software and user is what Apple *do* - it's why the iPod is so popular, why there's so much interest around the iPhone, why Mac notebook sales are growing three times faster than the industry as a whole. Apple hardware is great - the MacBooks make great Windows Vista notebooks because of the attention Apple gives to the hardware, but their software really makes the whole thing work.

Apple's drive to always use the most appropriate hardware, and their attention to detail with software really shows if you compare an iPhone/iPod touch and LG Viewty. The Viewty isn't half bad, but things like the iPhone's capacitive touchscreen (which responds to the lightest stroke) compared to the Viewty's resistive touchscreen (which needs some pressure applied to it) only really become apparent when using the devices. For example, both the iPhone and the Viewty have a flick gesture for scrolling lists, but the pressure required with the Viewty to get a positive response, along with the resulting friction, feels like dragging your finger across sandpaper compared to the same gesture on the iPod touch.

Cutting the price of a handset is the done thing when a new model is about to come along, and is even more important in the case of the iPhone. The iPhone is definitely a hard sell, the minimum contract is £35/month for 18 months and we hardly ever pay for a phone in the UK at that price point. I don't think it's indicative of any major weakness in the iPhone's sales though, at least not from Apple's point of view. For there to still be so much interest in it here, considering its price, can only be very healthy going forward.

Sam

  • 161.
  • At 09:39 AM on 16 Apr 2008,
  • Gareth wrote:

I do have issues with the iPhone that I don't think warrant its £170 or its expensive contracts.

1. Its not 3G

2. Its tied to 1 network which doesn't help drive competition, or prices. O2 can pretty much charge whatever they want. People will still buy it.

3. No MMS support

4. Despite what people say cameras are as important to people who buy phones as any other feature, and compared to other high end phones on the market the iPhone's camera is poor

5. Its lacking other features now becomming common to high end mobiles such as GPS support.

Its an odd phone really. Its gt the looks and teh feel of a high end, feature laden mobile, without actually bieng a high end, feature laden mobile.

I think when its on multiple networks, and we can start to see a bit of competition in prices then that will do the world of good. Anything that ties you down to using 1 companies service is never a good thing.

  • 162.
  • At 09:50 AM on 16 Apr 2008,
  • Dei wrote:

It's not just O2. iPhones around the world are dropping the price. Everybody's clearing stock for the next version of the iPhone in June.

  • 163.
  • At 09:50 AM on 16 Apr 2008,
  • Chris Pegg wrote:

If you think you are limited to O2 with your iPhone, think again... you don't HAVE to use it on an O2 contract at all.

We all know that the only reason they've slashed the price is to shift as many as they can before the 3G ones come out.

  • 164.
  • At 10:05 AM on 16 Apr 2008,
  • rob wrote:

when are these kids gonna learn there's more to a phone than how many MPs the camera is or how fast the data connection is, 3g would be nice, but for the moment I can handle waiting a few more seconds for a page to load, since I know its going to look right at the end of it!! Wow so your n95 is 3g, shame the browser is a joke then, have fun scrolling through those drop down boxes ( every single one of them )
S60 is a mess, all nokia phones I've owned have claimed all the functionality in the world and delivered barely any of it, on the other hand I use the web, email music and video on my iPhone all the time, and yes you have to jailbreak it to get the other stuff but when you do it blows any other phone out the water, the people who say its rubbish are the ones who have no experience of really using one, how anyone could think s60 is better than OSX on the iPhone is bewildering , and thats from someone who used s60 phones for the past few years

  • 165.
  • At 10:08 AM on 16 Apr 2008,
  • mushie wrote:

Get a life - it's just a phone!!!

  • 166.
  • At 10:22 AM on 16 Apr 2008,
  • Emma wrote:

In business, people talk about loss-leaders, where a copmpany makes a loss on one product because it knows it can make up more of the cost through the sale of add-ons (you buy a games machine for £100, when it cost £110 t make, but then spend £200 on games which cost £100 to make-profit to the company of £90). It seems a bit like this, to buy an i-phone, you need to also take out an expensive 18 month O2 contract, surely they will be making money back this way-Apple haven't cut their prices because they don't get any extras like this through i-phones sold.

That's my opinion at least...

  • 167.
  • At 10:34 AM on 16 Apr 2008,
  • Graham Moore wrote:

It was bound to happen at some point, esp. considering most Iphones are unlocked anyway in the UK, and are beiing sold cheaper then the O2 contract price now, I get Unlocked 8gb Iphone for $410 that £205 excl. shipping and i can use any sim, and the 16gb Unlocked is $560 which is £265, alot better alternative rather then getting tied down to a contract if you ask me

  • 168.
  • At 10:35 AM on 16 Apr 2008,
  • Matt Smith wrote:

I for one am still waiting for my bananaphone. Remember the ad everyone? It goes...

On a serious note, Riki Baker says we don't need cameras in our phones, but we do. Very few people pat their pockets in the morning to make sure they have a camera handy. It's keys and phone - then run for the bus. It's the camera in the phone which offers that small measure of security against crime which modern city-dwellers feel.

  • 169.
  • At 10:55 AM on 16 Apr 2008,
  • Del wrote:

My my, lots of obsessing iSheep here. Do get a life, won't you? It's just a PHONE.

  • 170.
  • At 10:58 AM on 16 Apr 2008,
  • Thomas wrote:

What always amuses me about all these people who say that there are all these other phones that do more than the iPhone is that everyone I know, without exception, makes limited use of their phones at best. My brother even got me to clear all the icons on the home screen because he wasn't going to use any of them because they were a pain to use. People bang on about needing 3G, but if the browsing experience is rubbish - which is is for pretty much all phones - then who cares? Fast rubbish is still rubbish.

  • 171.
  • At 11:18 AM on 16 Apr 2008,
  • Matthew Townsend wrote:

Why pay for a phone on contract. When you can get phones that are just as good if not better for free.

  • 172.
  • At 11:34 AM on 16 Apr 2008,
  • Damian wrote:

I think the price droop on the I-Phone 8GB model is a non-event. Sales have bee far below expectation and Apple, O2 and CPW are now gearing themselves up for the timely arrival of the much more usable 3G model.

Look at other well specced handset's, the Nokia N95 8GB was £90 at the £35 per month price pooint when it launched, after 2 months that was slashed and now you get it for free at £35 per month. No one made a big fuss over this!.

In case you hadn't gueesed I work for one of the previously mentioned organisations and we have found that people who come in to enquire about the I-Phone generally leave with either a Nokia N95 8GB or an LG Viewty. Both of this handsets are far better specced than the I-Phone and bring a grin as opposed to a cringe to the customers face.

The 3G I-Phone is going to be the first viable mobile phone from Apple, generation 1 was for the posers and that was evident from the key features Apple chose to leave out (3G, MMS, 3mp + Camera, Flash etc etc)

Thats my opinion and I think it is valid!

  • 173.
  • At 11:40 AM on 16 Apr 2008,
  • Richard wrote:

Whingers...the lot of you.

...If you cant afford one accept it and move on!

Its like buying the top model fiesta and the basic model BMW,the fiesta might have more features and be cheaper but it doesnt mean its a better car.

  • 174.
  • At 11:56 AM on 16 Apr 2008,
  • Chris M wrote:

I really tried to like the iPhone. It looked nice in a bland sort of way (apple style doesnt do anything for me). However i dont like the interface, and its limited features really bugged me. I decided to get an N95 8G. Vastly superior device!! Movies look great on it, its sound is better, its got real GPS, a fully programable OS, and its a solidly built. Its never gone wrong (none of the 7 symbians ive owned have). My friends iPhone has been repaired twice and replaced completely once, the new one is still not working right.

Saying the N95s 5MP camera is just winning the MP numbers game is wishful thinking from the iPhone fans. Its better in every way imaginable than the terrible (even for 2MP) iPhone cam.

'Carphonewarehouse guy' said none of the guys there have N series phones, well thats recommendation if ever there was one!! The carphonewarehouse has its own little section on Howardsforums about complaints. They know nothing about phones, better off going to the post office for phone advice frankly.

Its simple really. The iPhone is just an iPod touch with a terrible phone and cam built in. For that you end up paying many hundreds of pounds. For less money, even after the price drop, you can have an iPod touch AND an N95 8Gb, its a no brainer really.

  • 175.
  • At 12:07 PM on 16 Apr 2008,
  • Ian Parkinson wrote:

Sean,

You need to do your research before saying that the iPhone runs up hugh bills for surfing! The iPhone comes with unlimited data on all the tarrifs and therefore you do not pay a penny regardless of how much surfing you do.

  • 176.
  • At 12:30 PM on 16 Apr 2008,
  • James wrote:

why does everyone rant on about the N95, I have had 4 of them (all faulty) and because i had just got mine i bought an ipod touch... i Really regret not getting an iphone cause at the end of the day they do everything that an N95 does... ok cam aint fantastic but lets face it anyone serious about photography aint gonna be using a mobie phone as a camera.

Not exactly newsworthy since we were all pretty much expecting significant price cuts ahead of the 3G I-Phone release. This strategy is entirely consistent with the rest of the mobile phone industry.

  • 178.
  • At 12:44 PM on 16 Apr 2008,
  • Jeff Simmons wrote:

And who bought one just over two weeks ago. Guess I won't be getting the £100 back then!

  • 179.
  • At 12:47 PM on 16 Apr 2008,
  • Dan wrote:

Chris Pegg #156, Do you know anything about cameras? Nokia N82 and Nokia N95 8GB both have FIVE megapixel cameras.. not TWO like the iphone does. Not to mention the Nokia N82 has the added flash feature which I own myself. Absolutely brilliant phone. Iphone is an absolute rip off and I would never recommend this to anyone.

  • 180.
  • At 12:49 PM on 16 Apr 2008,
  • Dan wrote:

Chris Pegg #156, Do you know anything about cameras? Nokia N82 and Nokia N95 8GB both have FIVE megapixel cameras.. not TWO like the iphone does. Not to mention the Nokia N82 has the added flash feature which I own myself. Absolutely brilliant phone. Iphone is an absolute rip off and I would never recommend this to anyone.

  • 181.
  • At 12:57 PM on 16 Apr 2008,
  • Javed wrote:

I'm big fan of Apple, but iPhone is still not worth at the cost of £799 (8gb over 18mths as per 169 handset price). 2 MP camera, no 3G, Locked to 02, no third party s/ware and worst roaming charges across Europe as compare to other networks, O2 Weak signals in some areas.

Compare it with nokia's upcoming N96, feel the difference.

  • 182.
  • At 12:58 PM on 16 Apr 2008,
  • Shaun Madill wrote:

I hate knocking reporters, but you really didn't research this well did you?
It's common knowledge that the 3g version comes out soon, so they're no doubt trying to get rid of their stocks.

  • 183.
  • At 12:58 PM on 16 Apr 2008,
  • Javed wrote:

I'm big fan of Apple, but iPhone is still not worth at the cost of £799 (8gb over 18mths as per 169 handset price). 2 MP camera, no 3G, Locked to 02, no third party s/ware and worst roaming charges across Europe as compare to other networks, O2 Weak signals in some areas.

Compare it with nokia's upcoming N96, feel the difference.

  • 184.
  • At 01:06 PM on 16 Apr 2008,
  • Paul wrote:

I bought my 16GB iphone a few weeks ago and love it.

My number transfered from Vodafone to O2 (always been a Voda customer) without any problems and when I called O2 about something they were really helpful on the phone.

I also paid to leave my vodafone contract. I've had no probs with coverage either. My last phone had 3G and I never used it.

Most importantly, who wants a phone that every other person has? I like my phone to be unique and am prepared to pay for it. It's all down to what you choose to spend your money on. The day everyone has an iphone will be the day I want to get rid of it.

  • 185.
  • At 01:07 PM on 16 Apr 2008,
  • Neil Ruston wrote:

This reduced price coupled with the option to modify the Iphone to accept any SIM / provider means the product becomes that much more attractive and affordable.

  • 186.
  • At 01:11 PM on 16 Apr 2008,
  • henry wrote:

I am the other side of the world and I am still filling you in on technology news...this story may be of interest to you. This iPod is the best thing I have EVER brought

  • 187.
  • At 01:11 PM on 16 Apr 2008,
  • Mikeeo2 wrote:

I would say the iPhone is a good PHONE. When you press the numbers in sequence and hit the green button, you sometimes get to speak to someone!

All phones make calls, what sets them aside are the reasons why we as consumers fork out for them.

Some users want a phone that makes calls, but can double up as a camera, some want a phone that can also double up as an mp3 player.

There are many features that we would all "want" on a phone, but i can't see that there'll ever be one that everyone is truly satisfied with as technology evolves so quickly, byt eh time we've bought something, it's already somewhat obsolete.

It's a phone, it's an mp3 player, its camera is a bit crap.. but why not try one for yourself (i personally don't own one, as i needed a phone that has a good camera on it.. see.. choice based on need..)

  • 188.
  • At 01:35 PM on 16 Apr 2008,
  • ricky wrote:

I bought my iPhone 2 weeks ago from an Apple store. £269 is a shed load of money for what it is, granted, but I wouldn't swap it for any other handset on the market right now.

The price cut will get many more customers hooked on Apple's products, and that's what they're afer in the long run.

  • 189.
  • At 01:35 PM on 16 Apr 2008,
  • Henry wrote:

TO all the pople who commented about the poor quality of the iphone camara... go and buy a real camara. it is a phone, use it as such, call people, search the web etc. it is clearly the best phone on the market purely coz of useability.

  • 190.
  • At 01:45 PM on 16 Apr 2008,
  • Stephen Crocker wrote:

136 John,

Have you ever looked at a Windows Mobile phone (say the XDA MINI s or the XDA Orbit) their resposnisve in the last 18 months mine hasn't crashed once and they all have better camera's and more features at less than half the price.

Can your iPhone connect through your works VPN? Can your iPhone make skype calls? Can your iPhone download any type of web email? Can your iPhone download email from MS Exchange? Is using windows media player that bad? Sure I agree that pocket internet explorer isn't as good as the iPhones Safari.

The iPhone isn't revoluntionary it lacks features when compared to a £30 nokia phone. It doesn't excel as a media player (after playing with a few sony ericssons, nokia and a HTC I found the sony erricsons far better), email receiever (a windows mobile is far better for email), from blog reports its reception quality is poor compared to other phones (hurting voice) the only thing it does well is have a pretty interface and be able to display webpages correctly. How many times do use the internet on your phone and how much does it cost?

Revolutionary is used to describe Apple products far to much. What is it about the phone that is revolutionary? There are hundreds of phones which already match it feature for feature (bar the web viewing) is having a different interface and a improved browser revolutionary? Or is it just a progression on current phones?

As I type this I'm listening to my 8GB music playing, msn using, hotmail downloading free on contract mobile. I wish the BBC and media would stop hyping the iPhone and everything Apple does.

  • 191.
  • At 01:45 PM on 16 Apr 2008,
  • rob medlock wrote:

These comments are so ill informed it's staggering, no voip? er whats fring then? have to reset to get more coverage? nonsense, i get signal far quicker than I have with any other phone after coming out of tunnels etc (since the 1.1.4 update anyway, have you tried updating the firmware?) yeah so edge is a bit slow, but I'd rather wait an extra few seconds and have the page properly formatted and easy to navigate than the utter mess I had to endure with every S60 nokia I've had. Over the past couple of years between me and my girlfriend we've had loads of phones, N73, N93, N95, they're the phones that claim to do everything and yet manage to do very little, the iphone does everything it claims to, email is great, the internet, the proper internet (as an example, look at the bbc page on anything other than an Iphone, i doubt it gets the tables right let alone the ticker along the top, all of which the iphone manages effortlessly) is a joy to use,

As for 'i bought one for my kid and its rubbish because it attracts water' well, need i actually comment on that?

  • 192.
  • At 01:54 PM on 16 Apr 2008,
  • UnBiased wrote:

£169 for a phone when it should be free.
Stuck to the worst telephone network provider in the UK.
They still aren't going to see many iPhones go off the shelf.

Apple blew it by using O2 instead of opening the phone up to all operators. They blew it by charging you on top for the hardware. This should of been included in an 18 month £25 a month contract. Maybe £50 extra but no more.

Not £269 on top. Not £169 on top.

The iPhone is a flop in the UK and until its heavily deducted by the contract and is available on all operators it will remian as the iFlop.

Look around there are hardly any on the streets of the UK.

Why because its an iFlop

  • 193.
  • At 01:59 PM on 16 Apr 2008,
  • Anonymous @ O2 wrote:

O2 has only secured a 1 year deal with apple - i work in head office for O2 - We have been forced to try and sell around 50,000 Iphones by June 1st or the contract will be open to the next biggest bidder (Vodafone or T-Mobile). I can confirm after June 1st and the release of the new Iphone it will be FREE on an 18month contract for the 8gb or 99.99 for the 16gb, the new Iphone is set to feature a 30gb memory and enhanced Camera - think it's only 3.2 with Flash, Also may come with a bonus pack from apple allowing £30 of free Itunes downloads.

  • 194.
  • At 02:10 PM on 16 Apr 2008,
  • Steven wrote:

I have an iPhone, Nokia N95 8GB and a Sony Ericsson K850i. Having used them all extensively, there is no doubt they all have their advantages and are stronger in certain areas. However, in the following areas, the iPhone is head and shoulders above the rest:

Interface;
Music Management;
Email; and
Calendar.

However, I still wouldn't put the other 2 phones down. They are both great and excel in other areas. My main gripe with this forum is that people who haven't used the iPhone have slated it, this is both pointless and ignorant.

As Riki says, use it and be amazed. If you don't, keep quiet and allow others to make informed decisions.

  • 195.
  • At 02:13 PM on 16 Apr 2008,
  • Chris M wrote:

The iPhone is just an iPod touch with a cheap camera phone built in. Its terrible value. Its not a rival to the N95 8GB or any Nokia for that matter, it simply has no chance. Its has its strengths, but its not an alternative product. The N series are more serious devices. Very reliable (despite what some might say), totally customisable, and very versatile, all things the iPhone isnt. The fact that 'none of the carphonewarehouse staff has an N series' is the biggest recommendation to get an N series i can think of!

  • 196.
  • At 02:18 PM on 16 Apr 2008,
  • Charles wrote:

Apple products are nothing more than glorified machines that look nice but in fact do what existing devices can do but with nice graphics and a touchscreen.
Sure the I-Phone does have nice touches but it is so under-spec'd compared to other top-end phones available.
Sure the touch screen is intuative and has other nice features but my Nokia 6300 Classic is far better to use.
I wouldn't even get an I-Phone even if it were free.

  • 197.
  • At 02:21 PM on 16 Apr 2008,
  • Mark wrote:

Interesting thread. There are three types of people in here:

1) Apple fanboys who nothing about the actual sales figures in Europe compared to competing models.
2) As above but replace 'fanboy' with 'hater'.
3) People who actually know what they're talking about. I have to say that Rory falls partly into camps 1 and 3.

Firstly, the iPhone can't be described as a "sparkling success" on launch - it just about met expectations, nothing more. Sales dropped rapidly thereafter. 02 may say it's their best selling phone ever but given that it's tied to their network that's a pretty meaningless statement.

Secondly, given that O2 had to increase tariffs to stimulate sales in February, coupled with T-mobile's decision to cut initial prices in March it's clear that the appetite for the device is limited. This is confirmed by Orange France who posted sales figures of 90,000 of about three months of which 70,000 were sold in the first month.

In other words, once the early adopters were out the way the revenue stream started to dry up.

This is a commercial gesture to try and cut losses. It is undoubtedly true that a v2.0 iPhone will be released this year, however unless Apple add more current features - and the SDK is a welcome if limited step in the right direction here - and address the issues of carrier lock in and price I cannot see it competing with the smartphones provided by other manufacturers which are subsidised and have little if any carrier lock in.

  • 198.
  • At 02:30 PM on 16 Apr 2008,
  • Chris Pegg wrote:

Dan, learn to read before you post.

I stated that they were rubbish 'cameras' (i.e. not 'rubbish phones'), considering that, if you are buying a phone for its camera, why not get a proper camera (I believe 12mpixels is standard nowadays?)

The comment was made that 'The iPhone is rubbish because it has a 2 megapixel camera'... well if you want a decent camera, buy a decent camera, not a phone.

I hardly ever use the camera functionality on a phone, but 2 megapixels is more than enough for most people.

For me, the iPhone is an revolutionary innovation, which is why people are buying them, not because of its camera.


I think the iPhone is a brilliant piece of kit apart from the camera which is rubbish. It's a real shame they could not get this right.

Everything else is good and when we start seeing 3rd party apps in June we should get some real treats

  • 200.
  • At 02:54 PM on 16 Apr 2008,
  • Dom Hill wrote:

The iPhone was a terrible missed opportunity by Apple. Even people who I know who work for O2 (not sales guys but pretty senior folk) agree the same.

The sales have been disappointing and, other than people who love Apple to the point of distraction, almost everyone agrees that Nokia stole the march on them with the N95 etc.

I've read posts about if being technically more advance than the N95 and too cheap at £169. Please don't make me laugh. The sooner you stop believing the hype the better it will be for you, believe me!!!

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