Price is high for new iPhone

08 November 2007
Apple's new iPhone is being launched by mobile network O2 at a price that one expert has described as being "quite high".

Rob Barnes, head of mobiles and broadband at moneysupermarket.com, said that because the handset costs £269, people are likely to pay approximately £1,000 during their first year and a half on the operator's cheapest tariff.

"With this in mind, unless mobile users are going to use all the functionality available […] I would advise them to consider the array of hi-tech handsets available at present, some of which offer better value," Mr Barnes commented.

The new handset is expected to give O2 a significant share of the mobile market in the UK and increase its profits, but there may be other "more viable" options for people shopping around for a new phone, he added.

Carolina Milanesi, research director at Gartner, recently said that the launch of the iPhone represents a "new approach" because the phone is not being subsidised by the network operator, the Independent reports.

Ms Milanesi said that unlike consumers in other European countries, customers in the UK are "very spoilt" because they tend to get an inexpensive phone when they sign up to a contract.

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