O2 to lose iPhone Exclusivity in October
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Apple cut contract with O2 to boost market penetration.
Mobile network O2 has just nine weeks left on its exclusivity contract with Apple to sell the ludicrously popular iPhone in the UK.
Speculation about a possible fracture in the relationship between O2 and Apple has been brewing for months, but Mobile Entertainment confirmed yesterday that it had been privy to official documentation sealing the end of the exclusive partnership.
Although the iPhone is the gadget to have, reports in January showed that O2 failed to meet its own sales target of 200,000 units in its opening two months on sale in the UK. Apple have reportedly been dissatisfied with O2′s performance and are now regretting the decision to narrow their market options to one network distributor.
According the documentation seen by Mobile Entertainment, Apple will cease their exclusivity deal with O2 on 9 October 2009, paving the way for other networks to sell the iPhone. Both Orange and T-Mobile, who won the rights to sell Apple’s mobile in other European countries, are expected to move quickly to make up for lost time in the UK market.
T-Mobile, which has the exclusive right to supply the German market with the iPhone, has already been buying unlocked iPhone units and offering them to their premium customers as a sweetener to keep their contract with T-Mobile.
Vodafone has also expressed an interest in supplying the iPhone to the UK market. The company already supplies 11 European countries and would relish the chance to secure additional UK sales. Vodafone’s CFO Andy Halford told The Guardian: “It’s a good product and we would love to have it in the portfolio in more countries”.
O2 are expected to retain exclusivity for the latest iPhone 3G S, but losing the rights to other iPhone devices will be a big blow for the company, unlikely to be stemmed by the exclusive addition of the Palm Pre to its arsenal.
