Mobile operator O2 is preparing to unveil Apple’s much anticipated iPhone in the UK tomorrow. But serious questions are being raised in the City about how much ground it has had to give away to Apple in order to clinch the deal.
The UK’s largest mobile operator came from behind at the last minute to seal an agreement with Steve Jobs, Apple’s chief executive, to market the iPhone in the UK, but one other operator described the deal as “madly money-losing”.
O2 is understood to have agreed a margin on the retail price – to be confirmed tomorrow – but will return to Apple as much as 40% of any revenues it makes from customers’ use of the device.
Looks like the rumors it’s O2 in the UK were right. But that looks like a risky deal now as the post says, the iTouch is on it’s way and sharing 40% of all revenue demonstrates Apple’s strength.
I still think it’ll sell by the truck load as it’s the most interesting fashion accessory phone out there right now. But the more savvy buyers may just stay away.
There’s no mention of whether the contract is 24 months as the AT&T contract is in the US. Contracts in the UK tend to be either 12 or 18months.
The post also indicates that the device is Edge;
O2 will also have to spend a considerable amount of money installing the Edge technology which the iPhone needs to operate on its network, in the run-up to the device’s launch this year.
A lot of people where under the impression that it was going to be a 3G device. A pal of mine who’s thinking of getting one stated 3g was a must. This could also impact sales from the more connected users, who would see moving to Edge as a downgrade from 3G and 3.5G handsets such as the N95. [via]
