Infinite Path

With the news that O2 are about to lose their exclusivity deal on the lucrative Apple iPhone, does this mean that Apple sales are going to rocket once the other phone companies get their hands on this must-have bit of kit?

Even though it is rumoured that O2 will only lose exclusivity on the older versions of the iphone, this still means that the other mobile operators have another serious offering for their customers. Furthermore, it is quite possible that O2’s competitors may decide to undercut O2 on the price of tariffs, which could be a big issue for the company which has held exclusivity of the iPhone since the UK launch in 2007.

The iPhone has been exceptionally popular with consumers to date. However, buying an iPhone of course meant leaving your existing provider, going through the rigmarole of changing contracts, porting numbers etc. Many people haven’t been prepared to do this even though they would quite like an iPhone. Now that the consumer no longer has to battle against their own laziness to get the handset, will new customers come in their droves to get their hands on the Apple smart phone?

What could this mean for the other mobile phone manufacturers? We know that the iPhone is expensive; and its residuals are pretty good too, but this may not stop the huge numbers of people who have wanted the iPhone since its launch on O2 over two years ago.

Will the lure of the Apple brand start to persuade the people who have been reluctant to move to a ‘smart phone’? If so, this could be a big problem for the other phone manufacturers.