The slower than expected adoption of Apple Inc.'s iPhone amongst UK consumers may be most apparent at the company's local home base in London, where its largest flagship retail store is reportedly still working off initial inventories of the touch-screen handset.
The shipment of several thousand iPhones, received just prior to the November 9th roll-out, has since been moving slowly, at a rate of less than 100 per day, the source said.
Given that the prominent Regent Street shop is the largest of Apple's thirteen UK-based locations — and also the largest Apple retail store worldwide — those sales figures are considered "very poor," the source added.
A recent report suggested that Apple's exclusive UK iPhone carrier O2 activated just 26,500 iPhones during the handset's first two weeks of availability, well below internal expectations rumored in the ballpark of 100,000 units.
So what's to blame for the glacial pace of adoption thus far? According to market research firm GfK Group, it may have a lot to do with the handset's cost of 269 pounds ($554), which it claims is rather steep in the face of UK consumers who are not used to paying in excess of 200 pounds for a phone.
According to the firm's recent survey, 72 percent of respondents said that they would not buy an iPhone solely due to the price. In fact, only 2 percent said they were even considering placing the iPhone on their Christmas lists.
Potentially compounding matters may be early gripes from consumers about the quality of the signal iPhone's are receiving from O2's wireless network in the UK and the fact that the phone can not be used with rival service carriers.
Customers on Apple's discussion forums are blowing off steam, reporting that they are having reception issues, and that it appears to be the iPhone itself causing the problems. Some users are switching from an older handset to the iPhone, and noticing the drop in reception, whereas others are merely wandering around, watching the signal typically fluctuate between zero and three bars.
Curiously, when the iPhone is attached to the charging dock, reception increases to five bars for those users. In general, software restores have helped in some cases, and new phones have reportedly helped in others.
Still, the early adoption woes are noting new for Apple and its iPhone. The U.S. launch of the handset back in June was similarly marred by service related issues when AT&T's activation system left thousands of customers frustrated and unable to properly use their new phones. Initial sales also failed to meet Apple's internal expectations, spurring an unprecedented $200 price cut on the handsets just 8 weeks later, eventually getting the ball rolling.
That price cut and questions of whether UK customers could expect a similar move following the local iPhone launch were some of the topics reporters discussed with Apple chief executive Steve Jobs ahead of this month's UK iPhone launch.
Specifically, Jobs was asked what assurance UK customers have that Apple isn't going to turn around in two months and announce a dramatic iPhone price cut like it did in the U.S.
"I don't think that's going to happen," Jobs said, "but in technology there are no guarantees."
46 Comments
Of course it's not selling - it's way under-spec. There are LOADS of 3G devices to choose from, and many have GPS. Neither are in the iPhone.
And it can't work as a modem for by MacBook Pro, so I have to keep a data contract on my 3G laptop gadget, and couldn't afford a 2nd data contract.
And, O2 are a bag o' shite.
I don't understand the bleating about price though, it's only 70quid more than a same-capacity iPod touch.
I'm surprised by this news, the iPhone is too expensive and lacks important features like 3G and MMS.
Most people I know seem less bothered by battery life worries than by the lack of 3G so it's bizarre that Apple didn't include 3G because of battery life concerns.
I'm not sure it's fully the cost, the iPhone plans are pretty unattractive too.
£35\t200m/200txt
£45\t600m/500txt
£55 1200m/500txt
Yes you get the 'unlimited data' but that's not something people think of when they look at a plan it's voice and texts. You don't have to go far to look at alternative tariffs .. just look at O2.
£15 200m/400txt no phone but no contract
Free SE K850i 5Mp Cybershot phone
- Online 35 - £35 600m/1000txt 18 Month Tariff
- Online 40 - £40 600m/100txt 12 Month Tariff
Just a couple of examples, their are many other permutations.
Lets be honest.
Most consumers are idiots.
They do not realise that it is a iPod you would pay £xx for as well as a phone so don't see it like that.
They see it as £269 for a phone
BUT O2 is rubbish
Orange.. good deals
Vodafone more expensive but best coverage
02 worst of both worlds.
it's no surprise to me. I used to be with 02 and gave up on it when there was no reception in city centre glasgow... and all of us used to 3G data aren't going to take a step back, no matter how good the iphone is otherwise.