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Reports from the Guardian suggest that there is confirmation that O2 will be the official UK mobile network for the iPhone. This deal was supposedly arranged last minute by agreeing to give Apple 40% of the iPhone delivered revenues and a percentage of the sale prices. This deal has been reviewed by experts and they have come to the conclusion that they are "madly money-losing." It seems hard to believe that they will actually be able to make a profit from this deal.
Carphone Warehouse is also set to be a sole independent distributor of the iPhone alongside Apple and O2. Vodafone dropped out of the UK bid for the iPhone when they realised they would not be able to make the money by securing a European deal. In Europe the four main networks (T Mobile, Vodafone, Orange and O2) have all been played off against each other to see who gets to sell the iPhone. Germany's network will be T mobile, France will be both Orange and T Mobile, and T Mobile also will sell the iPhone to Austria, Netherlands, Hungary and Croatia.
Staff editor, Electronics Section, September 2007 |