NEWS
With continuing speculation around which UK operator will secure the iPhone, analysts are split over what the benefits of winning the deal are.
Orange, T-Mobile, Vodafone and most recently O2, have all been linked with the deal to bring the iPhone to Europe, keen to be associated with this year's must-have gadget.
Jonathan Arber, analyst at Ovum, told silicon.com: "The key benefit is that you have the Apple name next to your brand. From that point of view, it's absolutely massive."
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And Thomas Husson, mobile analyst at JupiterResearch said: "The iPhone has a huge consumer demand. Users are ready to pay a premium to get it. It's a way [for the operators] to differentiate - a way to say 'hey, we have the iPhone'," he said.
But other analysts are less convinced. Paul Skeldon, senior analyst at Juniper Research, said the winning operator wouldn't gain much other than the "the kudos of it", and added: "What they will gain is the halo effect of having the iPhone. I don't think it's something they're [operators] really battling and haggling to do. It's not going to be a mass market tool."
Skeldon said: "It'll be Apple calling the tune. Who ever does get the iPhone will have to accept their music service will be iTunes."
Some mobile network operators may have issues with running Apple content when they have spent considerable time developing their own, said Ovum's Arber, although he added operators with less homegrown content would have less of a problem taking on iTunes and other Apple content.
Arber said: "For them it's not quite as damaging - in fact it could be a positive thing because it allows them to focus on their core areas, while other players focus on content."
He cited O2 which used technology from an external partner - Japan's NTTDoCoMo - in its i-mode service. "There's a precedent there," Arber said.
"Even for those operators who are interested in building a brand, it may be that it's worth it just to have that Apple and iPhone brand associated with you. It might just be worth almost cannibalising your own content services because in return you can take a huge chunk of the market," he added.
Arber said that even though the iPhone may not offer 3G capability when it comes to Europe it would not represent a huge problem. "People don't necessarily care too much if it's 2G or 3G," he said.
Juniper's Skeldon doesn't feel an overarching European operator deal - which Vodafone would offer - is on the cards. He said Apple may prefer to go to individual operators in different countries on an ad hoc basis.
He also suggested big operators such as Vodafone would be less desirable from Apple's point of view as they could leverage greater commercial influence to get a deal more to their liking.
Jupiter's Husson added that due to the European market being much more fragmented than the US it would make sense for Apple to do deals with major operators in each country to maximise coverage.
Apple said it would not comment on rumours or speculation. An O2 spokeswoman told silicon.com any stories linking the company to the iPhone are "entirely rumours".
Comments
There are 7 comments. Join the discussion
1. anonymous
i-stilldontwantone
i-amveryboredwiththehype
i-hopeitisaflop
i-willstickwithmyp910i
i-willmovefrom02iftheygetit
2. anonymous
i-reallyreallyreallyreallywantone
3. anonymous
I can't imagine why everyones getting hyped up over something thats over-priced, over-sized, lacking technology etc.
Its just a gadget / fad with apple hoping it will be the next iPod for them. I hope everyones built in un-removeable battery fails rendering the whole unit useless (just like the MAC...if you break a component you might as well replace the entire device).
I think I hate apple...why can't other people see why I hate a company which in a world trying to promote open standards will only ever release expensive devices which tie you into proprietory everything.
Apple are so worried someone will take their profit away they even remove functionality from their devices just in case a criminal takes advantage even though it might be a function genuine crime free customers would hugely benefit from. That to me is kind of like carpet bombing an entire country because there's a few criminals out there! It works but creates more honest casualites then criminals it stops!
My advice is:-
Buy a PC / Laptop
Buy a Smart Phone with Windows mobile 6.
If you need an MP3 player then buy Creative Labs!
Forget Apple ever existed!
The above is all you'll ever need for both personal and business.
4. Rob
"People don't necessarily care too much if it's 2G or 3G," - in short, bollocks!
I'm no Apple fanboy, but the device is a good leap on user interface, if the technology matched it or at least had the same as my Windows Mobile I might have considered it a purchase option when the price decreased and it was fully unlocked.
A large chunk of the audience that will buy it will be technophiles, are you seriously suggesting a technophile won't be bothered by the fact that it has 2.5G data speeds? I will never go back to 2 or 2.5G data speeds, just like a broadband user won't go back to dial-up, you can't show off a phone to people and then have one of those people pull out a smartphone that's on 3G speeds, full web browser or not 2.5 just don't cut grain.
5. anonymous
Why is this expensive piece of toot being hyped so much?
My HP IPAQ 6515 does everything the iPhone does, some of it better, and includes proper GPS. It's not tied to an expensive network nor must it get it's music files from iTunes.
Finally when will the world get over Apple.
6. Paul Varley
It looks like O2 have pipped Vodaphone to the post on the deal with Apple and there iPhone, which has sent shares in Vodaphone tumbling and shares in O2 soaring!
Looks like the 3 brand will also have a fight on it's hand trying to make there brand stand out while piggy backing on the bandwith which O2 provides (Divided Loyalties!)
With the 3 brand trying to make a dint in the market with it's "In- store" music downloads, not to mention HMV, I think they will have a problem because you can bet O2 will be doing the same thing but with 5 million downloadable tunes at there disposal.
O2 have hit the jackpot and I' sure will be singing a merry iTune all the way to the bank!
7. anonymous
I totally agree with IT manager from Yorkshire - although most smartphones will have MP3 capabilities so no need to get a separate MP3 player.
There is nothing new or revolutionary in the iphone, and as for the interface - touch screen has been avaliable for years.
Go away (only to be polite) Apple and never return!!