Following the recent merger in the UK of T-Mobile and Orange, it was announced last week that the new mobile behemoth would be stocking the iPhone by Christmas. Today, it has also unofficially emerged that Vodafone will be joining in on the Apple bobbing. This is obviously great news for the UK consumer; prices will inevitably decrease as a price war between the operators develops. Although Vodafone in the UK is famed for it’s excellent network, T-Mobile/Orange actually have better coverage. Although you would assume that, from a business perspective, Vodafone and Orange would be jumping for joy at their distribution deals, it would appear that Apple comes out on top. By keeping the iPhone exclusively on O2, it has benefited from a huge marketing drive on behalf of O2, who have been keen to ‘tout their wares’. Following the new deals, there is no denying that both Orange and Vodafone will follow suit, pouring millions into advertising their boxfresh iPhones. However, a recent report has set out to bust many myths surrounding Apples golden handset, contesting the idea that it is the Holy Grail of the mobile world. It concluded;
- The iPhone doesn’t a big market share.
- The majority of apps do not make much money.
- The iPhone puts a huge strain on an operators data network – opportunities for profit are thus compromised.
Apple has shown great insight in the way they have managed to strategically align themselves in the UK and how they have offset their marketing costs by letting the operators do their work for them.