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November 27, 2007 5:49 AM PST
iPhone's price tag curbs Brits' interest
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The $554 (269 pounds) price tag is putting off swathes of potential buyers, according to a poll by market researcher GFK NOP, which surveyed 500 people across the U.K.
Almost half (46 percent) of consumers polled said they would never buy an iPhone at that price, while a further 26 percent said that, although they like the look of the phone, it's simply too expensive.
Two percent said they are considering adding it to their Christmas list.
The iPhone went on sale in England and Germany earlier this month. U.K. consumers willing to shell out for the hardware must sign up to an 18-month contract with O2, Apple's U.K. iPhone partner. In Germany, mobile operator Vodafone recently won a court injunction forcing Apple and its partner there, T-Mobile, to sell an unlocked version of the phone. In France, Apple is obliged by law to offer unlocked iPhones after six months.
The success of the UK's mobile market has been driven by subsidized handsets, said GFK NOP, which means the high retail price of the iPhone sets it apart from other offerings.
The cost of the handset is also a barrier for businesses: a recent vote by a CIO user panel found that bosses view it as too expensive to use as a corporate mobile.
There is one bit of good news for Apple in the survey: consumer awareness of the iPhone is strong, with 75 percent of respondents saying they have heard of the device. Consumers also strongly associate the device with music and e-mail and Web surfing.
Apple did not reply to a request for comment.
Natasha Lomas of Silicon.com reported from London.
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why everyone thinks this phone costs so much more than any
other. The N95 on a comparable t-mobile contract is only £50
cheaper over the contract life. Top of the range phones always
cost a premium when they first come out and most people don't
buy the top of the range model.
This does not surprise me.
the customers too! Two year contracts are deplorable! Hundreds
of dollars for an I-Phone is ridiculous. Hence the rebate. Top it
off with the lack of useful features and limited accessories, it's
just another shinny penny in the fountain. I'm sure there are
many people out there waiting for a realistic price and terms for
this phone. Like me they wont use ATT and wont be gouged for
the phone either. As a road worrier I need a useful phone!!
Guess I'll just have to drag my Treo kicking and screaming into
the next generation of phones.
Apple products are usually very good but their business and
marketing team is crap.
the moment. EDGE is a bit backward over here.