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O2 offers iPhone for free with select contracts

11 June 2008 3:35 by Rich "vurbal" Fiscus | 1 comment

If Monday's announcement of the iPhone 3G's drastically reduced price was cause for celebration among consumers, the news from UK provider O2 should be equally exciting for potential customers. Rather than sticking to a price of �99 for the 8GB model or �159 for 16GB, which is what customers with either a �30 or �35 per month contract will pay, customers who sign up for more expensive plans will be able to get both at even lower prices or even free.

The deal is intended for those who choose service contracts costing either �45 or �75 each month. The �45 plans will be eligible for a free 8GB iPhone 3G or �59 for its 16GB sibling. With a �75 plan even the 16GB iPhone 3G can be had for free. All of O2's iPhone plans have a term of 18 months and feature unlimited data on their 3G network.

"With this new pricing, iPhone 3G becomes an unbeatable proposition," said Ronan Dunne, the chief executive of O2.

During his introduction of the new iPhone, Apple Chief Executive Steve Jobs admitted that a high price was "the No 1 reason people didn't buy iPhones." That's been particularly true in the UK and Germany where prices had already been cut in an attempt to overcome disappointing sales.

The rest of this year should be an interesting test for Apple's phones as they face increased competition from the smartphone market's leaders. Although lacking the high profile of the iPhone, smartphones from companies like RIM and Nokia continue to dominate the market. Other companies, including Samsung, are also hoping to cash in on the increased demand generated by Apple's aggressive marketing.

Permalink to this article | Topics: Gadgets Phones

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Analyst suggests shipments of 18 million iPhones this year (11 June 2008)

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Apple drops revenue sharing for most new iPhone 3G carriers (10 June 2008)

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Steve Jobs unveils $199 iPhone 3G at WWDC (10 June 2008)

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Sales of smartphones double in the North America (8 June 2008)

iPhone market share shrinks (1 June 2008)

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Discuss this article!
gdawe5 (Newbie) 18 June 2008 3:38
To be paying 45-75 pounds a month, seriously that's a whole wad of cash for a product which value will depreciate after the contract finishes. [ + quote]