iPhone's price tag curbs Brits' interest

The cost of the Apple iPhone is a sticking point for U.K. consumers, according to a survey.

The $554 (269 pounds) price tag is putting off swathes of potential buyers, according to a poll by market researcher GFK NOP, which surveyed 500 people across the U.K.

Almost half (46 percent) of consumers polled said they would never buy an iPhone at that price, while a further 26 percent said that, although they like the look of the phone, it's simply too expensive.

Two percent said they are considering adding it to their Christmas list.

The iPhone went on sale in England and Germany earlier this month. U.K. consumers willing to shell out for the hardware must sign up to an 18-month contract with O2, Apple's U.K. iPhone partner. In Germany, mobile operator Vodafone recently won a court injunction forcing Apple and its partner there, T-Mobile, to sell an unlocked version of the phone. In France, Apple is obliged by law to offer unlocked iPhones after six months.

The success of the UK's mobile market has been driven by subsidized handsets, said GFK NOP, which means the high retail price of the iPhone sets it apart from other offerings.

The cost of the handset is also a barrier for businesses: a recent vote by a CIO user panel found that bosses view it as too expensive to use as a corporate mobile.

There is one bit of good news for Apple in the survey: consumer awareness of the iPhone is strong, with 75 percent of respondents saying they have heard of the device. Consumers also strongly associate the device with music and e-mail and Web surfing.

Apple did not reply to a request for comment.

Natasha Lomas of Silicon.com reported from London.

[zuuey]

iPhone uk cost

I'm in the uk and bought the iPhone and I just can't understand
why everyone thinks this phone costs so much more than any
other. The N95 on a comparable t-mobile contract is only £50
cheaper over the contract life. Top of the range phones always
cost a premium when they first come out and most people don't
buy the top of the range model.

[close5828]

Brits are more economical...

Speaking as an American who has actually been to the UK, I can say that the Brits are far more economical than we are.

This does not surprise me.

[orbital_bruiser]

2% of a whole Nation sounds like great sales to me.

Or am I missing something here?

[pbxtreme87]

Its Alot more exspensive

if your a heavy user 600 min plus that will cost 45 on a iphone tarrif, the n95, viewty, or k850i cost 35 and then if you want the unlimited data a further 10 pounds, the phones are free the iphone s 269. so thats 269 more if you dont use the data which most people wont its 449 more to have a iphone thats a fair chunk of change

[doconn7]

Apples got to get real

The price is way to high and the service providers are ripping off
the customers too! Two year contracts are deplorable! Hundreds
of dollars for an I-Phone is ridiculous. Hence the rebate. Top it
off with the lack of useful features and limited accessories, it's
just another shinny penny in the fountain. I'm sure there are
many people out there waiting for a realistic price and terms for
this phone. Like me they wont use ATT and wont be gouged for
the phone either. As a road worrier I need a useful phone!!
Guess I'll just have to drag my Treo kicking and screaming into
the next generation of phones.
Apple products are usually very good but their business and
marketing team is crap.

[Draxon]

Laughable.

Number 1: Did you just imply that treo's are usefull? that is laughable, I have a treo and I hate it, I hate the useless browser, the crappy call quality, its inability to function as a media player, its terrible battery life, there is only one thing a treo does nicely and thats sync with exchange, which is useless for personal use.

But what I find really laughable and honestly made my morning was the fact that you critisized apple's marketing team. You do realize this is the same marketing team that took a company from being basicly belly up in 1997 to top 5 tech company 10 years later. You do realize apple's marketing will be used as examples of HUGE success in marketing for years to come? Maybe you were being sarcastic about their marking being terrible. For your sake I hope you were, and if not I hope you come out of that bubble and visit the real world sometime.

[nihmrat]

wall street disagrees

Business and marketing must be doing something right. In about six years, AAPL has gone from 6-170, which is almost 50% a year on average. Part of that is the image of high end consumer devices. I love my iPhone. Although the phone part of it is only about 10% of how I use it. Which makes the phone cost about $40. I find the majority of the value in having a real web browser with me all the time. I recently went on a road trip and having the maps application was also pretty cool.

[HamishMcvie]

3G

I'd snap one up if it was 3G. I can't see the point in having one at
the moment. EDGE is a bit backward over here.

[wordord]

3G

I would buy one immediately if it a) would have 3G (or, rather,
HSDPA!), b) if it would be unlocked.
Well, in my country it's illegal to sell locked 2G phones, so if Apple
wants to enter our market, they'll either have to introduce a 3G
model or unlock the 2G model.
BTW: the unlocked iPhones you get in Germany don't work with
non-German SIM cards! Shame on you, Apple!