Orange Punish O2 by Landing New Apple iPhone Deal
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Slack unit sales from O2 have lost the company exclusive iPhone rights in the UK.
UK mobile distributors Orange have signed a deal with Apple which will allow the network to sell iPhone 3G and 3G S phones later this year.
Orange, which has the largest 3G network in the UK, secured the deal earlier today to supply Apple’s coveted iPhone, ending the exclusivity deal between Apple and O2 earlier than expected.
A quote from the Orange newsroom said that the company, “will sell iPhone in all Orange direct channels including Orange shops, the Orange webshop and Orange telesales channels, as well as selected high street partners.” A fuller press release is expected later today.
In early August, there were official confirmations that Apple would not extend its exclusivity contract with O2 after the company were dissatisfied with O2′s lack of sales. Despite the extraordinary popularity and power of the iPhone in the mobile market, O2 couldn’t meet a 200,000 sales target when the phone was first released.
At the time, rumours were circulating that Apple were talking to both Orange and T-Mobile, and with the news that the tow mobile networks are due to form a single entity, it wouldn’t be a huge surprise if T-Mobile also announced a deal with Apple to distribute the iPhone in the near future.
Whilst O2 will now have to share iPhone prospects with Orange, the company has still made a huge success of its headstart in the iPhone market. Apple has pushed more than 20 million units worldwide to date, of which over one million have been down to O2. The question is now, whether O2 will continue to push the iPhone as its prized possession, or more emphasis will be given to rival smartphone the Palm Pre, which O2 currently holds the exclusivity deal for.
