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Could the iPhone be too expensive for the UK?

on 30-11-2007

We always said that the price tag of the iPhone was set very high, especially given how many people already have an iPod of some sort. Retailing at £269 for a locked iPhone coming together with an 18-month O2 contract in the UK, it seems that British customers are thinking twice about buying an iPhone - even in the run-up to Christmas.

GfK NOP, a market research company, polled 500 people across the UK to ask them what they thought of the iPhone at the current price. OK we agree, 500 people doesn't sound like a large amount and may be statistically not very representative. All the same, nearly half (46%) of people responded by saying that they would never buy an iPhone. On top of this, 26% said that although the look of the iPhone is nice, the price tag is too high. Only 2% said that they might buy one in time for Christmas. The good news is that three quarters (75%) of people asked knew about the iPhone, so that marketing campaign seems to be doing the trick!

The iPhone comes with O2 contract in the UK

We think that the fact that you can't yet buy an unlocked iPhone in the UK probably plays a part in people's assessment about whether to buy one or not. It seems to us that whilst people love the iPhone in principle, it's just too pricey. That suggests that iPhone competitions will remain popular in the UK, as long as the price stays where it is.

You can read the full article on the BusinessWeek website.

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