iPhone sales slow in UK, help grow Swisscom
updated 09:35 am EST, Wed November 5, 2008
UK, Swiss iPhone sales
UK sales of the iPhone have diminished in recent weeks, sources claim. Regional carrier O2 is said to be selling between 18,000 and 20,000 phones per week, down from recently-quoted levels of about 27,000, and an early high of 50,000. The reason for the decline is uncertain, but is said to be attributable to the Android-based T-Mobile G1, and Research in Motion's BlackBerry Storm, both of which have been highly anticipated and are due to release soon in the UK.
Despite this, the sources have dismissed rumors that O2 wants to boost prepaid iPhone sales through a price cut. It had been suggested that a cut could take effect before Christmas, dropping the minimum cost of an iPhone by £50 to £299.
Switzerland's Swisscom has meanwhile announced that the iPhone produced a 44 percent growth in new subscribers during its most recent quarter, as compared to results from the prior two quarters in its financial year. As with other iPhone carriers in Canada, the US and elsewhere, however, this came at the expense of profits; core profits fell 3.6 percent to 1.19 billion Swiss francs, or $1.03 billion. The drop has been blamed on subsidy payments and dealer commissions.
Swisscom claims, however, that it sold approximately 100,000 iPhones in two and a half months, and that this has not only increased revenues, but contributed to an "investment in the future." The company has not elaborated, but many cellular carriers make the bulk of their profit from monthly fees rather than device sales.
perhaps....
11/05, 10:22am (2 replies) reply
...just perhaps, the state of the global economy has a bit to do with the slowdown in sales of all non-essential items. Just a thought.
psdenno
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Joined: May 2003
In other news...
11/05, 10:23am reply
...apparently there's a recession about and people are purchasing less of everything. These figures are meaningless unless expressed in the context of total sales over the same period.
Guest
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Joined: Nov 1999
Early sales peak
11/05, 11:34am reply
Personally I think it's a case of an early sales peak, relatively expensive call plans, and a market that doesn't quite 'get' the product / marketing that doesn't quite place it well.
Android/G1 - no ones really heard of it outside of IT circles. I might have passed an advert for it this morning but I'm not sure.
However, people do know about the new Blackberry, and a lot of people I know think it's the same as the iPhone, in the same way they don't really think there's much difference between Windows and OS X.
The emphasis on touch with the iPhone is allowing competitors to match that 'feature' is the tick-box mentality, rather than the actual differentiation which is 'user interface'.
JulesLt
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Joined: Jul 2005
recession?
11/05, 12:58pm reply
What are you talking about? A couple of weeks ago it was stated equivocally on these boards that Apple is recession proof!
testudo
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Joined: Aug 2001
Could it be...
11/05, 05:25pm reply
... because O2's 3G service is c***?
And MobileSafari crashes all the time?
Guest
Fresh-Faced Recruit
Joined: Nov 1999
Re: 3G service
11/05, 07:32pm reply
It's more likely to be the price of the tariff, lack of MMS and the shoddy 2MP camera without a flash which is putting people off.
Regarding the price, I've been on O2 for 10 years (back when it was still BT Cellnet) and they always give me a loyalty discount on any handset and tariff, but aren't allowed to apply any discounts to the iPhone. There isn't a snowball's chance in h*** I'm about to pay for a handset with fewer features than I currently have and increase my monthly tariff by 15 quid!
Geobunny
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Joined: Oct 2000