O2: 80% of high-value customers want Apple iPhones; 40% on rival networks ready to switch for iPhone

“Spanish-owned O2 UK and Apple plan to launch a multi-million pound joint advertising campaign later this month as they get ready to bring iPhones to Britain,” Reuters reports.

“O2 UK Chief Executive Matthew Key told a journalists on Tuesday it would be the company’s “most significant campaign” in the run-up to the key Christmas trading period,” Reuters reports.

“In remarks embargoed for Tuesday Key said he believed 80 percent of O2 UK’s high-value customers wanted an iPhone, while 40 percent of the higher-spending customers on rival networks would be prepared to switch operators to get the handset,” Reuters reports.

“Analysts speculate O2 was prepared to give away 20 to 30 percent of voice and data revenues in return for clinching an exclusive, ‘multi-year’ contract to sell iPhones, which combine Apple’s popular iPod music player, a video player and Web browser in a slick, touch-screen device,” Reuters reports. “Key said the phones, which will be sold for 269 pounds ($548.80) including tax to customers willing to sign up for an 18-month contract with O2, would ‘absolutely’ secure a profitable deal for O2 UK.”

Full article here.

19 Comments

  1. If the iPhone can sell extremely well to normal customers for the next 2-3 years while adding additional functionality, it will be interesting to see if Apple will open it up to third party developers after all of their “exclusive” contracts are up!

  2. If they are so sure, why the campaign?
    iPhone is a great product, and I will always prefer great products than cheaper ones.
    I would never buy a nissan of yugo or chevy, ford or Chrysler, but I do own my toyotas (Of course, Mercedez Benz and BMW will be great too, but out of my budget), but the iPhone is the Rolls Royce of the phones at the cost of a ford.

  3. I’d like to know what happens after the 18 months to 2 year contract is up – will you have to stay with O2/ATT/etc to be able to get the iPhone updates?

    Will you be punished for unlocking your iPhone when you’re no longer under a contract?

  4. I want one, too, and I live in the US. But what I don’t know is:

    1) Does at&t;suck that bad?

    2) Is iPhone rev B. right around the corner?

    3) I still have Sprint contract for another year +. Is it worth the $200 to get out of?

  5. NeverFade,

    1) As with every carrier, it depends on area. Basically, no.
    2) Nobody knows, obviously. But if anytime, probably MacWorld.
    3) Well, go to an Apple store and see if it’s worth an extra $200 to have now. Whether or not it’s “worth” it is subjective.

  6. Im in New England where the AT&T;network sucks large donkey scrotum. Over the last decade has shown no change in quality what so ever. So by default I have verizon. I wish Apple would partner with Verizon so I could get an iPhone instead of my crappy unintuitive, designed by an egg head Motorola excuse for a phone.

  7. Yimmie, there’s no way AT&T;networks sucks over all of New England, they don’t have 60 million subscribers by having a crappy network, esp over such a high density area.

    Maybe.. *maybe* in the pocket of New England that you live in, it’s bad. Certainly that’s the trouble with cellular service across the US, is it’s inconsistant. But perhaps you’re wrong and it’s better than you think it is. Not having tried an iPhone in your area, how do you even know?

  8. I’m counting down the hours until I get one on morning of 9 November 2007 …

    Even if it is slow old 2.5G and lacks standard mobile phone features such as MMS and ability to record video. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  9. http://fakesteveballmer.blogspot.com

    omo o descontentamento é enorme, as vendas não são nada do esperado, queixas desde as indústrias de hardware até aos consumidores que se sentem enganados com a merda que lhe enfiaram nos PCs novos, passando pelas empresas que se recusam a fazer o downgrade pro Vista aka Me2, a Microsoft vai lançar uma nova versão do Me2.Chamar-se-á SUTU que deriva de “Vista 2X Super Ultra Turbo-Ultimate”. E prometem que esta versão já trará 33% das novidades prometidas no longíquo Longhorn que entretanto foram deixadas cair para lançarem prematuramente as versões actuais do Vista.

    Algumas das novidades:

    * Dynamic Core Desktop Acceleration – DCDA
    * LiveTime Animotron Technology – LtAM
    * Windows Interscope Code Manager – WICM
    * StudioBand – Record up to 4 tracks of music
    * zPicture – Your JPG photo manager
    * zWeb – Create Beautiful text webpages
    * zMelodies – A new skin for Mediaplayer making it a zApp
    * zFilm – Video editing for any WMV file

    Tudo numa caixinha vermelhinha por $699!!

  10. AT&T;also sucks in upstate NY, once you get out ofthe bigger cities and away from the Interstate and other major highway corridors.

    Just look at the coverage map on their website for a VERY ROUGH idea as to how good they will be in your neighborhood.

    Better yet, ask your friends and neighbors what wireless carrier they have, and how is the coverage, service, etc.

  11. I love Apple products. I own an iBook, 12” 1.5 Ghz Powerbook ,15” 2.4Ghz Macbook Pro, Airport Extreme, (New and old) Airport Express and a new wireless keboard and mouse. Oh and a 4G and 5G ipod.

    Ive been an o2, Vodafone and an Orange contract customer here in the UK.

    I’m now on Pay as you go (PASYG) on Vodafone and I use an O2 XDA Orbit for a phone.

    I cannot justify paying £270 for an iPhone and being tied into a £35 a month contract for 18 months to 2 years or how ever long you are tied in.

    My friends have already got iPhones and yes they are extremely good bit of kit to use.

    But my XDA Orbit has GPS Nav built in, it also like most phones in the UK has the abilty to:

    Transfer MP3, Videos and other formats to other phones via Bluetooth.
    Any MP3s I own, I can use as a ring tone, no charge.
    Loads of 3rd party Apps that work on it.

    I would love to get an iPhone but only if you could get it at and reasonable price on PAYG

    All the best

    Anti hero.

  12. I paid $299 for my iPhone on September 14 and an additional $45 to Freeit4less. So with tax my unlocked iPhone cost approximately $360. This is the best multi-purpose device that I have ever made. I use my phone on T-Mobile in Europe. I was a long-time fan/user of Palm/Treo devices. I had an original PalmPilot. I had the first TreoPhone. My last Treo, the 650, was an always-freezing piece of junk. Well, it wasn’t quite that bad, I still appreciated the features, but it froze on me at least once or twice a week. In three weeks, my iPhone has not required a forced restart. One time it took an extra long-time while picking up e-mail, but it did not freeze.

    As for the 1.1.1 update, I’m happily living without it. Yes. It might be nice to purchase stuff directly from iTunes, but I was happy with my iPhone before this added feature came out and I remain happy. Living overseas and using foreign languages on occasion, I suppose I might eventually miss the addition of foreign languages, but again I’m still very satisfied with my iPhone running on 1.0.2. My only fear is that one of these days, I’ll accidentally tap the update button on iTunes and kiss my iPhone good bye.

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