AppleInsider StaffThe move will see the localized version of the 8GB iPhone sell for just $333, or considerably less than the current US$399 fetching price within the United States, according to Mobile Today.
The overseas trade publication, which did not name sources, said an announcement is expected Wednesday and that the 16GB model would not see a similar reduction, remaining at £329.
Apple recently instated a similar price cut in conjunction with T-Mobile Germany that saw the local version of the 8GB iPhone fall from €399 to €99.
As was the case following the reductions in Germany, speculation is that the UK promotion is the latest precursor to a new model that will operate on third-generation (3G) wireless networks.
In a report issued earlier this month, Piper Jaffray analyst Gene Munster said steep price cuts on the touch-screen handset are a sign Apple is looking to drain existing inventories ahead of 3G iPhone launch no later than June.
The analyst noted that the electronics maker has been able to maintain tight control of iPhone inventory at its own stores, which have been running extremely lean of stock in recent weeks.
"This type of channel control is typical of Apple ahead of new products," Munster wrote. "In Europe, the opposite story seems to point to the same conclusion. Apple's carrier partners are a completely separate channel from its own retail stores, and the carrier partners appear to be overstocked with iPhones."
"Therefore," he added, "it seems as if this has led to Apple trickling iPhones into its U.S. retails stores, while T-Mobile and other carrier partners seek to drain their stock of iPhones ahead of a new model."
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21 Comments
Must really be something good coming in June.
Woah, this would be extremely tempting if i wasn't holding out for whats coming in June and need more storage than 8GB *Must stay strong, resist temptation, you've made it this far*.
This is still the middle of April. Is it really going to take a month and a half to get rid of their stock of iPhones or will Apple release the new iPhone sooner than June.
I think that's the big question. Has the purge started so soon that it indicates a pre WWDC launch, or do they have enough stock to trickle the supplies down through until early June?
With Apple's aggressive sales targets for the iPhone this year. A multi-month lag is something I don't think they can afford...
Following this article, I have two things to bring up:
1.) Considering that only the 8GB version is having a price reduction and not the 16GB, could this be an indication that Apple is planning to drop the 8GB version all together?
Obviously, there are multiple scenarios that could unfold once Apple makes a new iPhone announcement, but could it be possible that there will be a 2.5G 16GB (with a possible addition of a 32GB) even as a 3G iPhone is released?
2.) I think, based on reports that I have read over the past few months, that iPhone sales are indeed rather low in Europe due to the steep price of the phone as well as the less than competitive subscription offers (in my opinion), compared to subscriptions on other phones and operators.