moneysupermarket.com: launch of the iPhone

Commenting on the launch of the iPhone, Rob Barnes, head of mobiles and broadband at moneysupermarket.com said: “In terms of timing, the launch of the iPhone is perfect for the pre-Christmas market. However, while UK customers will not have to pay as much as their US counterparts for the phone, the price point is still quite high.

“The iPhone with O2 comes in three packages, costing £35, £45 or £55 a month, with a minimum contract length of 18 months. These tariffs, specific to iPhone, are inclusive of mobile internet access, which is worth an extra £10 to £15 per month to the customer. However, with the handset costing £269, people will pay nearly £1000 during the first year and a half even on the cheapest tariff. In addition, they are locked into O2 and may run up higher costs calling cross network.

“With this in mind, unless mobile users are going to use all the functionality available – itunes, photos, web browser, e-mail and wifi – I would advise them to consider the array of hi-tech handsets available at present, some of which offer better value. For example, the N95 which is available free on most £30 contracts across all networks, it is also 3G enabled, which the iPhone isn't, and has a 5 mega pixel camera compared to the iPhone’s 2 mega pixel camera.

“The iPhone will help O2 gain a large slice of the mobile market share, placing additional focus on the brand, and no doubt increase profits, but I think there are other more viable alternatives people could be asking for in their stockings this Christmas.”