14 DAY TRIAL // Even during that initial weekend of the UK iPhone launch, there were reports of the device not selling as well as some might have expected it to. As such, it is not really surprising when now, two weeks later, we start seeing the same type of report.
Although no official statement has been made regarding the actual number of iPhones sold, there will always be sources and insiders, which can shed some light on the situation. Although the exact number of units sold will vary from report to report, it does not go any lower than 25,000. Now, considering that this was the actual number of iPhones that was speculated would be sold during the first weekend, it is no surprise that we are seeing doomsday headlines and hearing analysts gnashing their teeth while weeping that Apple just doesn't get the European market.
The truth of the matter is that these numbers were not given out by Apple, or O2, or even Carphone Warehouse. It was analysts themselves who expected the UK launch to be on par with the US one, and now it is them again who are working off of more unconfirmed numbers, calling the entire thing a failure. The fact that the expectations of analysts were not met is no shocker, the same happened with the US launch, but the actual numbers make for more than just a passing difference. Even if the actual number of units sold is double the 25,000 figure that is being tossed around, that would still make for a quarter per-capita sales compared to the US at the same point in the availability cycle.
Now everyone seems to be pointing at the price tag of the iPhone and going "Hah, there's your culprit!" and while this is undoubtedly part of the reason, it is not the only determining factor. Sure, compared to the $399 that people in the US pay, the ?269 that people in the UK pay is a little steep, but if all you had to pay was this sum, people would be buying them all over. Unfortunately, the iPhone also comes with an O2 contract, and that is where things really start to stink.
The cheapest O2 service plan for the iPhone is ?35, and offers 200 voice minutes and 200 text messages. The cheapest plan from AT&T was not only cheaper, at $59.99, but it also offered 450 voice minutes, more than twice as much as O2. Of course, people will point out that you can't compare service plans across continents like that, so we'll just look at what else you can get from O2. For the same ?35 a month, one can get a 600 minute, 500 text message plan, and a free LG KU990 Viewty, the only thing that is not there is sort-of-unlimited internet access. If you change carriers and look at Orange, you'll see a ?35 a month contract with 500 minutes, unlimited text messages, a free Nokia 6300 and even a free Nintendo Wii thrown in to boot. No matter which way you cut it, it is obvious that it is not just the price of the iPhone, but the relatively poor service plans that customers have to deal with.