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France's Orange comments on iPhone sales goal, unlocking costs

France Telecom mobile arm Orange said it expects to sell nearly 100,000 of Apple Inc.'s iPhones by the end of year and has also vowed to move the unlocked version of the touch-screen handset at costs well below its German counterpart, T-Mobile.

Didier Lombard, chief executive of Orange, made the comments Tuesday during an interview with Europe 1 radio. He said his firm's sales target "is a little under 100,000" units sold between Wednesday evening — when the Apple handset will make its debut in France — and December 31st.

With just over 30 days to reach the self-imposed milestone, Orange will need to move a bit more than 3,000 iPhones per day through a combination of sales from its online and direct retail stores.

During the interview Tuesday, Lombard also said Orange would offer an unlocked iPhone in France at a price "significantly lower" than the 999 euros ($1,485) proposed by Deutsche Telekom's T-Mobile in Germany, but failed to elaborate further.

French law is clear in that it requires cellphone operators to make available phones that are unlocked, and thus Orange and Apple have stated that they will comply with the mandate by offering a version of the handset to French consumers that will not be tied to Orange's network.

Less clear, however, is German law regarding the same matter. Therefore, Apple and T-Mobile launched the iPhone in the region earlier this month without plans for an unlocked version. Local T-Mobile rival Vodafone immediately challenged the terms of the German iPhone deal, winning a temporary injunction last week that has since forced sales of unlocked iPhones. However, Apple and T-Mobile set a steep price of 999 euros on that option ahead of an appeal, more than twice the cost of the standard version.

Full service plan details for Orange's 399 euro iPhone offerings will be published on Wednesday morning, though Lombard on Tuesday offered some early hints at those rates. He said that a 24-month contract would start at 49 euros a month and include two hours of communications and 50 SMS text messages.

Customers who opt for the minimum 12-month contract, however, will pay about 4.50 euros more per month for the same service.



18 Comments

solipsism 18 Years · 25701 comments

US customers seem to be the only benefiting from reduced rates and additional services offered by the iPhone tied to a carrier.

It makes me wonder if Apple can be this clueless or if the release in Europe was to merely meet a self imposed deadline, secure carriers and sell some 1st gen iPhones to early adopters before offering a 3G model with enhanced software features--like MMS and multi-contact SMS--in 2008 alongside the Asian release.

sedicivalvole 17 Years · 231 comments

Good point solipsism.

Somehow I think you may be slightly correct, however in the Uk it is not a bad deal due to the unlimited data, though this has not made its way to Germany so I see not much of advantage their

They will clean up with a European friendly iPhone with the second one. However Apple's main market is the US and for the US this phone is more than suitable, just lacks slightly in some area's for Europe.

Also think you are correct that this is a "creaming" excersise, by making as much money from people who need/desire something that does this. As it is pretty much unique in its abilities makes sense to capitalise on that.

hattig 19 Years · 860 comments

"He said that a 24-month contract would start at 49 euros a month and include two hours of communications and 50 SMS text messages"

I trust this also includes unlimited data, and maybe free WiFi access with a nationwide wifi provider! Otherwise that's appalling, it's the worst offering I've seen on a mobile package. 120 minutes and FIFTY texts for £36 a month... I might not have any data but I'm paying £10 a month for 500 minutes and 100 texts (no phone, but hey the iPhone is full price isn't it!).

FIFTY texts. IN EUROPE. Oh dear. 100,000? 100 more like.

rols 17 Years · 68 comments

Quote:
Originally Posted by Hattig

"He said that a 24-month contract would start at 49 euros a month and include two hours of communications and 50 SMS text messages"

I trust this also includes unlimited data, and maybe free WiFi access with a nationwide wifi provider! Otherwise that's appalling, it's the worst offering I've seen on a mobile package. 120 minutes and FIFTY texts for £36 a month... I might not have any data but I'm paying £10 a month for 500 minutes and 100 texts (no phone, but hey the iPhone is full price isn't it!).

FIFTY texts. IN EUROPE. Oh dear. 100,000? 100 more like.

well if that's the kind of money they need to make after selling a full-price phone, they're going to have fun out here in Asia. I just signed up for 2 years at £8 a month equivalent, 100 outgoing, free incoming, 500 SMS in/out a month and the phone (sony E 810, not a totally terrible phone) was free. And I got a £40 rebate off a cable TV sports subscription I already had.

People here may well buy an iPhone even if it costs, but they're going to want to put it on their £8 a month plan.

solipsism 18 Years · 25701 comments

Quote:
Originally Posted by rols

well if that's the kind of money they need to make after selling a full-price phone, they're going to have fun out here in Asia. I just signed up for 2 years at £8 a month equivalent, 100 outgoing, free incoming, 500 SMS in/out a month and the phone (sony E 810, not a totally terrible phone) was free. And I got a £40 rebate off a cable TV sports subscription I already had.

People here may well buy an iPhone even if it costs, but they're going to want to put it on their £8 a month plan.

Your plan makes no mention of internet access. How much more is that?