In an aggressive move to spur iPhone sales heading into the holidays, Orange appears to be on the verge of cutting prices for Apple's handset well below existing costs.
What pricing affects the 16GB iPhone isn't mentioned in the document, though a separate report points to the 8GB cut and the 16GB edition's price dropping from 199 euros ($253) to just 129. That's the equivalent of $164, or less than the going rate for an 8GB model in most countries.
It also carries unusual timing. The promo, dubbed the "Christmas Origami star," lasts from November 13th — the end of an earlier promotional cycle for Orange — until January 14th, or well after Christmas.
Such promos harken a return to discount practices earlier this year, when multiple European carriers slashed prices on the original iPhone in a move to clear stock ahead of what was ultimately the launch of iPhone 3G in July. Price trimming helped trigger sudden sales rushes in Britain and Germany when the carriers dropped their official pricing.
Without other providers in other countries following suit at this time, though, it's hard to say that the price cut is part of any broader effort driven by Apple. Economic conditions are known to weigh heavily on most carriers as Nokia, Sony Ericsson and other carriers have warned of lower average phone sales prices as some buyers shift towards lower-cost devices.
16 Comments
"Orange" you glad you have an iPhone?
Bizarre timing on that promo.
In an aggressive move to spur iPhone sales heading into the holidays, Orange appears to be on the verge of cutting prices for Apple's handset well below existing costs.
In The Netherlands the iPhone 3G 8GB model has cost Euro 1 in combination with a 2 yr contract @ Euro 45, or Euro 80 for the 16 GB model @ Euro 45 per month, and has been priced so ever since it was introduced on July 11th.
France is hardly the cheapest place to buy an iPhone 3G.
MacWorld is Jan 5-9, 2009, and the promo is until Jan 14... I don't know. I think if they release a new iPhone at MacWorld, it won't be 3.0, more like 2.5 with just a memory bump (32GB and 16GB) at the same prices of today's models.
In The Netherlands the iPhone 3G 8GB model has cost Euro 1 in combination with a 2 yr contract @ Euro 45, or Euro 80 for the 16 GB model @ Euro 45 per month, and has been priced so ever since it was introduced on July 11th.
France is hardly the cheapest place to buy an iPhone 3G.
Actually, the two year contract starts at ? 29.95 per month with the ? 80 iPhone 8 GB model. The 16GB can be had for ?80 with the ? 45 contract.
T-Mobile has reported that they made a loss on the iPhone at these prices.
T-Mobile has reported that they made a loss on the iPhone at these prices.
With contracts etc, it is really hard to say what "making a loss" is, and the real cost of the iPhones.
My best calculations indicate that in Australia, roughly half of what you pay on a contract goes towards paying off the phone. So if you're on Optus's A$59/mth contract for 2 years, that's A$708 towards the iPhone.
So I guess Optus could say that charging A$160 for the 16GB iPhone has them making a loss... but it's not really. Even more so for the 8GB phone - they charged $48 for the phone (on the $59 contract), and they let you pay that off over 2 years too.