Expected to register £500,000,000 in revenues from selling the iPhone

Nov 26, 2009 14:42 GMT  ·  By

Cupertino-based company Apple has recently enabled a wider range of carriers in the UK to deliver to the market its highly popular iPhone device, and Orange UK is among them. Moreover, the carrier has made the iPhone available for its users the very next day after the exclusivity deal Apple and O2 have had on the iPhone distribution has ended, and already announced that it has seen great demand for the device.

According to data analysts Mediacells, Orange's subscribers will be greatly attracted towards the iPhone, and the carrier is expected to sell a number of more than 1 million Apple devices by the end of 2010. While the numbers include both existing Orange customers and net additions, the revenues registered by the carrier from these iPhone users are predicted to rise to around £750,000,000.

Mediacells also says that Orange's iPhone ARPU is to be of £58.11, marking an 11 percent increase over the current average contract ARPU. However, it seems that the revenues predictions do not take into consideration the cost of purchasing the iPhone from Apple. Even so, in case the carrier purchases the device for £250 per unit, it is still expected to see more than £500,000,000 of revenue due to the selling of the iconic handset in the UK.

"Selling the iPhone remains the best way for operators to get customers to part with more cash, even in a recession,” Mediacells chief executive Brad Rees said, according to mobile news. “The fact that Orange has not undercut O2's tariffs with its own iPhone offering just goes to demonstrate Orange's confidence that it can generate new customers and reduce churn through selling the iPhone.” Mediacells is also reported to have stated that it planned on releasing the prevision regarding Vodafone UK's selling of the iPhone as soon as the carrier announced the price plans for the device.