Vodafone to introduce iPhone on 11 July
10 June 2008
Following a very low key preliminary announcement in May 2008, when it secured distribution rights to Apple’s iPhone across ten markets, Vodafone became more typically ebullient in June when it confirmed it will offer the second-generation 3G model from 11 July.
The launch will take place first in four developed markets — Australia, Italy, New Zealand and Portugal — and subsequently in the Czech Republic, Egypt, Greece, India, South Africa (Vodacom) and Turkey. Some of these markets do not currently offer 3G services, including India and Turkey.
Apple has set the pricing benchmark at $199 for the 8GB iPhone 3G and $299 for the 16GB version — considerably cheaper the earlier model.
For Apple-watchers, interesting details include Italy in the first phase (there had been reports of initial exclusivity for Telecom Italia) and confirmation of availability to both prepaid and postpaid customers (Apple previously excluded prepay). Apple also confirmed that it will no longer receive ongoing royalties from operators.
An oddity of the announcement is the iPhone 3G is described as just “twice as fast” as its 2G (EDGE) predecessor, suggesting that the new device does not support HSPA, although the comparison appears relate to webpage download times.
As expected, the iPhone 3G is an incremental, rather than radical, upgrade, with other new features including GPS, and new applications and services, some of which are aimed at attracting business users and challenging Research In Motion’s BlackBerry. Apple is also introducing the $99-a-year MobileMe subscription service, which resembles a consumer-oriented challenger to device-computer converged BlackBerry and Microsoft Exchange Server services.
No mention of Apple’s previous exclusivity arrangements was forthcoming, suggesting that none have been agreed, with availability at rivals already confirmed for Australia (Optus), India (Bharti Airtel, in which Vodafone has a stake), and Italy (Telecom Italia Mobile). Apple also recently signed other multi-territory deals with América Móvil, Orange and Singapore Telecom (including Airtel and Optus).
Previously, Apple signed exclusive national iPhone agreements with rivals of Vodafone and its joint ventures — France (Orange), Germany (T-Mobile), UK (O2), and USA (AT&T), and an expected but belatedly confirmed one for Spain (Telefónica).
Although Vodafone was originally tipped as a pan-European partner for Apple’s first iPhone, the Group is thought to have rejected Apple’s initial business model that combined exclusivity with an abandonment of subsidies and hefty ongoing commission.
While the first 2G iPhone may not entirely have lived up to Apple’s shipment expectations — and with Europe identified as the weakness — the device has created a huge amount of interest, both for the iPhone and other high-end mobile devices.
[Vodafone Group, 6 May 2008; Telegraph, 10 May 2008; The Register, 8 May 2008; Bloomberg, Fortune, PC Magazine and Vodafone Group, 9 June 2008.]
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