iPhone have-nots’ sour grapes make bitter whine; O2 insists UK iPhone deal with Apple is profitable

“O2 has insisted that it has a profitable deal with Apple, under which the UK mobile phone operator will be the exclusive network for the much hyped iPhone,” Andrew Parker and Paul Taylor report for The Financial Times.

“However, O2 has been accused by rivals of agreeing to give Apple more than 25% of the revenue customers will pay to the operator for using the device,” Parker and Taylor report. “Those terms are also thought to be better than Apple’s deal with AT&T, which… is believed to be giving Apple up to 15% of the monthly fees paid by the mobile operator’s iPhone customers.”

“Matthew Key, chief executive of O2 ’s UK business, declined to comment on its deal with Apple, but insisted it was profitable business [and] accused O2 ’s rivals of ‘sour grapes,'” Parker and Taylor report. “Steve Jobs, Apple’s chief executive, acknowledged it had upset some of O2 ’s rivals in September by likening them to jilted girlfriends.”

Full article here.


  1. What I don’t get is why the other carriers have to whine and cry like Al Gore. The manly thing to do is accept the fact that you’ve failed or lost, see what you can learn from it, and do better next time. Are these folks running businesses or trying to throw pity parties? Man up guys.

  2. “…O2 has been accused by rivals of agreeing to give Apple more than 25% of the revenue …”

    “ACCUSED”, as if there is something evil, bad, or wrong in structuring a business deal in which all parties profit. O2’s sin is breaking with the cabal of telco giants in there typical pricing/billing schemes.

  3. Given the large proportion of sales through the Apple stores, plus Apple’s full support of these devices, ATT, O2, et al must save a fortune in retail space, returns handling and support staff that would account for some of Apple’s shared revenue.

    Do you call Nokia when your old phone broke or ATT/O2? Most probably ATT. ATT covers the service, Apple covers the product.

  4. Verizon et al, probably laughed at Apple when they knocked on the door. AT&T;let them in.

    Now look who is sitting out in the cold while Apple & AT&T;toast their success by the fire.
    Now other providers are joining the party and those that did not play by Apples rules or dismissed them, or tried to bully them get left out.

    I’ve never seen so many men whining in all my days. Man up and go join another party since you screwed up your invite to this one, but I guarantee that Apple’s party is the best one in town.

    Sucks to be yall. You’ll know better next time when Apple comes a’callin.

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