Orange France promo to cut iPhone 3G price to 99 euros

[AppleInsider]

In an aggressive move to spur iPhone sales heading into the holidays, Orange appears to be on the verge of cutting prices for Apple's handset well below existing costs.

A dealer flyer sent AppleInsider shows the 8GB model's price dropping from 149 euros to 99 when bought with a service plan -- the equivalent of just $126 US -- though it's unclear from the flyer layout whether it requires a 45 euro, two-year contract for the discount to take effect.

What pricing affects the 16GB iPhone isn't mentioned in the document, though a separate report points to the 8GB cut and the 16GB edition's price dropping from 199 euros ($253) to just 129. That's the equivalent of $164, or less than the going rate for an 8GB model in most countries.

It also carries unusual timing. The promo, dubbed the "Christmas Origami star," lasts from November 13th -- the end of an earlier promotional cycle for Orange -- until January 14th, or well after Christmas.

Such promos harken a return to discount practices earlier this year, when multiple European carriers slashed prices on the original iPhone in a move to clear stock ahead of what was ultimately the launch of iPhone 3G in July. Price trimming helped trigger sudden sales rushes in Britain and Germany when the carriers dropped their official pricing.



Without other providers in other countries following suit at this time, though, it's hard to say that the price cut is part of any broader effort driven by Apple. Economic conditions are known to weigh heavily on most carriers as Nokia, Sony Ericsson and other carriers have warned of lower average phone sales prices as some buyers shift towards lower-cost devices.

[ View this article at AppleInsider.com ]

[SpamSandwich]

"Orange" you glad you have an iPhone?

Bizarre timing on that promo.

[samsheyn]

Originally Posted by AppleInsider

In an aggressive move to spur iPhone sales heading into the holidays, Orange appears to be on the verge of cutting prices for Apple's handset well below existing costs.

In The Netherlands the iPhone 3G 8GB model has cost Euro 1 in combination with a 2 yr contract @ Euro 45, or Euro 80 for the 16 GB model @ Euro 45 per month, and has been priced so ever since it was introduced on July 11th.

France is hardly the cheapest place to buy an iPhone 3G.

[silverpraxis]

MacWorld is Jan 5-9, 2009, and the promo is until Jan 14... I don't know. I think if they release a new iPhone at MacWorld, it won't be 3.0, more like 2.5 with just a memory bump (32GB and 16GB) at the same prices of today's models.

[Charel]

Originally Posted by samsheyn

In The Netherlands the iPhone 3G 8GB model has cost Euro 1 in combination with a 2 yr contract @ Euro 45, or Euro 80 for the 16 GB model @ Euro 45 per month, and has been priced so ever since it was introduced on July 11th.

France is hardly the cheapest place to buy an iPhone 3G.

Actually, the two year contract starts at € 29.95 per month with the € 80 iPhone 8 GB model. The 16GB can be had for €80 with the € 45 contract.

T-Mobile has reported that they made a loss on the iPhone at these prices.

[GregAlexander]

Originally Posted by Charel

T-Mobile has reported that they made a loss on the iPhone at these prices.

With contracts etc, it is really hard to say what "making a loss" is, and the real cost of the iPhones.

My best calculations indicate that in Australia, roughly half of what you pay on a contract goes towards paying off the phone. So if you're on Optus's A$59/mth contract for 2 years, that's A$708 towards the iPhone.

So I guess Optus could say that charging A$160 for the 16GB iPhone has them making a loss... but it's not really. Even more so for the 8GB phone - they charged $48 for the phone (on the $59 contract), and they let you pay that off over 2 years too.

[Feynman]

Originally Posted by silverpraxis

MacWorld is Jan 5-9, 2009, and the promo is until Jan 14... I don't know. I think if they release a new iPhone at MacWorld, it won't be 3.0, more like 2.5 with just a memory bump (32GB and 16GB) at the same prices of today's models.

I could live with that. My plan is due for a new phone in January!

[themoonisdown09]

Originally Posted by Feynman

I could live with that. My plan is due for a new phone in January!

I still have over a year left on my current phone contract, so I won't be in the market for an iPhone until the spring of 2010.

[samsheyn]

@Charel: I'm not sure what you're getting at, but my point was that in combination with a contract, an iPhone 3G can be had for Euro 1, way cheaper than the Euro 99 stunt of Orange while not paying a penny more in monthly costs.

For the complete list of Dutch T-Mobile phone plans (Google Translated):
http://translate.google.com/translat...-8&sl=nl&tl=en

[anantksundaram]

Originally Posted by samsheyn

In The Netherlands the iPhone 3G 8GB model has cost Euro 1 in combination with a 2 yr contract @ Euro 45, or Euro 80 for the 16 GB model @ Euro 45 per month, and has been priced so ever since it was introduced on July 11th.

France is hardly the cheapest place to buy an iPhone 3G.

Wow. These deals are so much better than ATT in the US......

[anantksundaram]

Although promotions like these run the risk of RAZR-izing the iPhone, upon reflection, it is not such a bad move: (i) As long as AAPL continues to get its share and it's the service providers that are swallowing the cost, it does not matter that much; (ii) It puts added pricing (and hence margin) pressure on RIM, Nokia, etc for the new touchscreen models that they will be introducing.

[zunx]

NO WAY!

What is needed is a UNLOCKED iPhone with NO contract at a DECENT price. At least as an option on ALL countries. Until then, NO PURCHASE! Why is Apple so blind?

[heretique]

Not only compared to Netherlands, this offer is nothing extraordinary.

Orange Poland offers iPhone for approx. 13 euro with 48 euro/month plan, or even 1 Polish Zloty (about 0,26 euro by current exchange rate) with 65 euro plan.

[GregAlexander]

Originally Posted by zunx

NO WAY!

What is needed is a UNLOCKED iPhone with NO contract at a DECENT price. At least as an option on ALL countries. Until then, NO PURCHASE! Why is Apple so blind?

I think that makes sense. The iPhone currently works out to be around:
1) 8GB for US$600
2) 16GB for US$700
So they would be the natural price points for Apple to make the same profit. These prices are better value than Nokia smart phones.

I personally would always buy on contract, since the industry is geared towards that being the best deal (for now, in Australia). But many Aussies were trying to buy the iPhone outright so they could use existing plans or avoid a contract. Besides, what's Apple's downside of letting Apple resellers or any regular iPod seller sell the iPhone for full price without contract?

[samsheyn]

Originally Posted by GregAlexander

What's Apple's downside of letting Apple resellers or any regular iPod seller sell the iPhone for full price without contract?

Well, the Mac philosophy has always been that by limiting the choice of different hardware components it becomes easier to support the systems and optimize for those components that Apple chooses to build in.

This is true for the iPhone as well. It comes in two configurations, and is only available on one or two telcos per country who have to adhere to Apple's standards. This makes it easier for developers to make software, since they know what to expect. It also protects the iPhone brand, since the experience is very similar wherever you happen to be.

If you choose to use your iPhone with a telco that doesn't have an agreement with Apple, you won't be able to use Visual Voicemail and you probably won't get a good deal on your data bundle.

In The Netherlands, one can buy a prepaid version of the iPhone from T-Mobile voor Euro 700, including Euro 100 of call time, but tariffs will be steep and there's no Visual Voicemail. For me, the data bundle on the regular iPhone plan justifies its cost: true 2MBits HSDPA with good coverage and true unlimited use. But ofcourse, whether pricing is fair all depends on how you use your phone.

[GregAlexander]

Originally Posted by samsheyn

This is true for the iPhone as well. It comes in two configurations, and is only available on one or two telcos per country who have to adhere to Apple's standards. This makes it easier for developers to make software, since they know what to expect. It also protects the iPhone brand, since the experience is very similar wherever you happen to be.

Well the phone would be identical, just the data deals that could vary (or might not exist at all on some phones).

However... the data deals in foreign countries are all different anyway. Telstra sells iPhones without data plans. Several countries already sell upfront for prepaid. And iPod touches don't have 3G access anyway, so if you've disabled your iPhone from 3G data it becomes a virtual iPod Touch (+ phone).

Originally Posted by samsheyn

If you choose to use your iPhone with a telco that doesn't have an agreement with Apple, you won't be able to use Visual Voicemail and you probably won't get a good deal on your data bundle.

Telstra, Optus, Vodafone - all of them are official sellers but don't offer visual voicemail in Australia. Three (our 4th 3G network) can't sell the iPhone but offers the best data bundle for iPhone plans. (If we jump through a few strange hoops, and pay an unlocking fee, we can own an iPhone outright here).

I'm not sure that your reasons are good enough not to offer a simple full-price unlocked iPhone.

Of course, Apple may benefit more from an exclusive agreement with providers, and even the exclusive agreement with AT&T may prevent Apple selling the iPhone unlocked in other countries, since Americans might bring back a phone purchased overseas.

[a-maze]

Originally Posted by GregAlexander

... even the exclusive agreement with AT&T may prevent Apple selling the iPhone unlocked in other countries, since Americans might bring back a phone purchased overseas.

Just adding that in Belgium Mobistar (orange affiliate) sells the iPhone unlocked and officially guaranteed from Apple since launch.