For the third time since its release, the iPhone has had a massive price cut. Following the recent price drops in Germany, today saw O2 and Carphone Warehouse knock £100 off the price of an 8GB iPhone. Plus, if bought through cash-back merchant Quidco with an O2 contract, the price drops to just £69!
Why is Apple’s unsubsidised uberphone suddenly so cheap?
Plainly, this price cut is for a couple of reasons:
(1) Sales haven’t been stellar
(2) The 3G version is going to be launched in June
Apple hasn’t yet followed suit with the price cut. But will they? A comment on TUAW suggests that they are not dropping the price, rather they are offering a £100 credit against an O2 contract.
But where does this leave Apple’s iPod line? Why would anyone now buy an 8GB iPod Touch at £199? Buying an iPhone gets you more for less, and anyone with a little technical nouse can overcome the iTunes registration process. However, I think there is some confusion over what buying an iPhone commits the customer to. When we spoke earlier tonight, even my local mobile guru – Steve Litchfield – was unaware that you don’t have to sign up for a contract with O2 when you buy an iPhone. You just walk out of the store with your device, and contract sign-up happens through iTunes. What hope has the average user?!
Apple has probably stuffed their retail partners in the UK and other countries with current iPhones, while keeping their own supplies slim (there are reports of shortages in the US). This is surely in anticipation of a new 3G iPhone being launched in June – all the rumours seem to be pointing towards that happening. Bring it on!