According to the Financial Times, O2 didn’t hit its target of selling 200,000 iPhones in the first 2 months. Experts are expecting a price cut soon in the UK market. I think we will see that price cut only when a new iPhone will be released. O2 is already happy with the iPhone launch because 190,000 iPhones sold means around 90,000 new O2 customers who were with other mobile providers. So it’s definitely a big win for O2 in the current saturate market where the only way to gain customers is to “steal” them from competitors.
Also it provides to O2 new contract customers, because the iPhone comes only with a contract, so it’s a guaranteed revenue for at least 18 months.
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