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Mon, Mar 22, 2010 - 10:51 AM EDT  —  AAPL: 223.60 (+1.3501, +0.61%)  |  NASDAQ: 2384.38 (+9.97, +0.42%)

UK carrier O2 offers free Apple iPhone 3G; clearing inventory for next-gen iPhone models?
Friday, March 20, 2009 - 03:20 PM EDT

"O2, Apple's mobile phone partner in the UK, is to offer the iPhone 3G for free as part of a new contract deal available from next month," Nick Spence reports for Macworld UK.

"The move is thought to help encourage new users to sign up and shift stock of 3G phones in preparation for a new iPhone rumoured to be available in the next few months including speculation on a new mid-range ‘nano-style’ device," Spence reports.

"From 3 April, customers who sign up to the 24 month tariff can get the 8GB iPhone 3G for free at £34.26 per month and the 16GB iPhone 3G for free at £44.05 per month," Spence reports. "On the 18 month contract the 8GB iPhone 3G costs £96.89 for the £34.26 per month, 16GB iPhone 3G costs £155.61 for the £34.26 per month, or £57.74 for the £44.05 per month."

"'The iPhone has been hugely popular with over one million units sold in the UK,' said Peter Rampling, Marketing Director at Telefónica O2 UK. 'This new 24 month tariff option will meet the demand of customers who are looking for added value in exchange for committing to a longer contract,'" Spence reports.

Full article here.

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Mar 20, 09 - 03:25 pm Comment from: Gabriel

...so other carriers are giving them away, in preparation for the next iPhone hardware refresh, yet the best AT&T can do is sell no-contract phones for ridiculously high prices. Brilliant thinking.

Mar 20, 09 - 03:49 pm Comment from: cptnkirk

Here goes this stupid speculation about an iPhone 'nano' again. I don't believe Apple will product or sell a less feature-rich device than the current one. They will perhaps make an iPhone with seriously better specs but the current phone will remain on the product list at a reduced price while the new model will launch at the current pricing model. They done this many times. Apple always seems to find a way to give more for the same money. They never cheapen their offerings; they just make better ones.

Mar 20, 09 - 03:51 pm Comment from: Macintosher

It's still ridiculously expensive as a contract. If you think about it, PAYG offers better value for most users as all PAYG iPhones in the UK come with free net and email for a year... or am I mistaken?

Mar 20, 09 - 03:56 pm Comment from: Quitely

i don't think they want to "clear" them out, doesn't sound right. but I think they are coming out with a new iphone per the following specs which were released before the iphone 3.0 software event took place

http://www.derekunderwood.com/general-computer/details-regarding-new-iphone-and-ipod-touch/

Mar 20, 09 - 04:17 pm Comment from: Scheinstein

iPhone = overpriced crap

blaaah...

Mar 20, 09 - 04:30 pm Comment from: mike_in_helsinki

@ Scheinstein

You sound like a cry baby sheep. wahhhh, wahhhh, it cost to much, I cant afford it, wahhhhh.

Carry your ass over and buy a motorola piece of shit.

Mar 20, 09 - 04:39 pm Comment from: Predrag

mike in helsinki:

Thats 'arse'; not 'ass' (presumably, Sheinstein is in the UK, since the article is about iPhone in the UK).

Mar 20, 09 - 05:45 pm Comment from: MBA Nano

whats the going rate for a 1st gen 8gb these days ?

Mar 20, 09 - 06:05 pm Comment from: 2-eyed Apple Supporter

>> Apple always seems to find a way to give more for the same money.

Except when they removed firewire from the Macbook (AND made it a few hundred dollars more expensive in Australia).

Mar 20, 09 - 08:08 pm Comment from: Oxford-England

The Iphone 3G unlike the original Iphone has indeed been very popular in the UK, but even after the new price drops is still quite expensive compared to rivals, the UK consumer unlike the US is used to heavily subsidised phones on usually a 12 month contract, in many cases the phone is actually free. I love the Iphone but I have a Sony Ericsson C905 on the 3 network (carrier) which i got for free and I only pay £20 a month. It was impossible in my case to justify the extra expense in addition I get more free texts and minutes than I would on an 02 Iphone tariff, 02 are relying on the cool factor to sell what are essentially overpriced contracts compared to the rest of the UK market.

I do see this working itself out over time, I would also like to add additional reasons I couldn't justify the Iphone were the poor camera, I am very very happy with the C905 cybershot and use it as my main camera now as a result and the lack of MMS which as a heavy camera user I need and use a lot. Infact cameras on mobiles in Europe generally are heavily used compared to the US but then our market has been ahead for a number of years.

The new Iphone software gives me a lot to think about when I next upgrade (next Nov) as MMS is coming and no doubt the new Iphone will have the camera I desire, as Apple seems to be addressing the obvious oversights that have been criticised. Now only if 02 will sort the pricing!

Mar 20, 09 - 09:29 pm Comment from: Missy Pants

I, too am giving away FREE iPhones!

One free iPhone included with the purchase of every MissyPants nylon iPhone Sleeve.

The MissyPants iPhone Sleeve, is just $4,899.66 (CAD) (plus shipping and handling)

But wait, you'll want to upgrade to the MissyPants iPhone Sleeve, with Apple Logo, at only $5,399.66 (CAD) (plus shipping and handling)

Not available in stores.
Operators standing by.

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