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Apple's iPhone to be sold by largest U.K. retailer, Tesco

post #1 of 45
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Tesco, the largest chain of stores in the U.K., announced Wednesday it will soon sell Apple's iPhone 3G and iPhone 3GS for use through the O2 network.

Tesco Mobile, the retailer's mobile virtual network operator, will "shortly introduce" the iPhone at Tesco Phone Shops in the U.K. The handset will also be available online through Tesco Direct.

Tesco Mobile is a joint venture between the retail giant and wireless carrier O2. Though products are branded Tesco Mobile, they rely on the O2 network. The service is pay-as-you-go.

The company plans to have more than 100 Tesco Phone Shops open in the U.K. by the end of 2009.

In terms of scope, the deal could be similar to Apple's introduction of the iPhone at Walmart, the largest global retailer. Britain's Tesco comes in third. Tesco Mobile products are available in regular Tesco stores, though the company's press release only makes specific mention of iPhone availability in its phone shops and online.

In the U.S., Apple began selling the iPhone at Walmart in 2008 just after Christmas. That was 18 months after the handset first debuted, and after another major retailer, Best Buy, was given access.

But Apple and Walmart have expanded their relationship this year. Some stores began adding an Apple-dedicated section in their revamped electronics sections. Some have speculated that move could be a precursor to Mac sales at the world's largest retailer.

In the U.K., O2 served as the iPhone's exclusive provider until its contract with Apple expired. That paved the way for competitors Vodafone and Orange to sell the smartphone.
post #2 of 45
About time! I was only wandering through the store yesterday thinking "I wonder when they will start selling them at Tesco" and by jove the date is nigh.
post #3 of 45
am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?
post #4 of 45
Quote:
Originally Posted by macmondo View Post

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

It's called 'covering both ends of the market.'
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post #5 of 45
Quote:
Originally Posted by macmondo View Post

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

It's called distribution. The more and better, the merrier. It also implies that these other entities are indeed INTERESTED in carrying the product. Shelf space has to be wisely spent, after all.

Your tacit criticism of Apple's own strategy for "trendy design in posh areas", makes you sound rather ambiguous. Are you waffling? Just what are you being critical of?

Anyone with any perception can realize that the product will sell itself, once it is in the hands of the consumer. Those who appreciate the attributes of the product might just venture further into the Apple World in some form or fashion--perhaps ultimately into the bright lights of a posh Apple Store!! (gasp!)

Daniel Swanson

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post #6 of 45
Quote:
Originally Posted by macmondo View Post

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

I agree mate, but the iPhone isn't a premium product like Macs, it's quite competitive. It's strange how the iPhone is really exclusive in the US (i.e. still tied to AT&T) yet Apple have taken a totally different route overseas for the most part.

While not LIDL, they could have chosen somewhere a little more upmarket
post #7 of 45
- milk
- bread
- iphone

Many of the most important software concepts were invented in the 70s and forgotten in the 80s.

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Many of the most important software concepts were invented in the 70s and forgotten in the 80s.

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post #8 of 45
Nooooo!

I was once a king, with an unlocked and activated phone from the USA before they ever came out here in the UK, people would literally gasp as I took it out of my pocket in packed restaurants and other such attention seeking places!

Then it was launched here and my throne felt less special, but still a little bit exclusive with it only being on o2 and quite costly..

Then it was opened up to other networks and I felt even less special.

Now every burberry wearing Chav with a local Tesco's will be sporting the God Phone I once wielded with such majesty

I can't help but feel like the king in Cold Play's Vida la Vida song...
post #9 of 45
Sounds entirely like sound practice to me. Make it an exclusive product, sell it appropriately. Get people interested in it, widen the market slightly, wait until most people in the market for a phone have heard of it, then start selling it from any shelve that will take it. Profit.
post #10 of 45
wot you talking about, tesco's dead posh in my area!
post #11 of 45
You cannot claim any exclusivity and sell a product in a (rather low brow) supermarket. Surely Sainsbury's would have added that much needed touch of finesse. It's not all about profit - brand image counts too. Would you buy an Armani jacket from ASDA?
post #12 of 45
This is really weird, but it's great - it seems the iPhone market will be getting very competitive now in the UK, which can only be good for the pricing.
post #13 of 45
Tesco mobile is not only PAYG.
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post #14 of 45
Quote:
Originally Posted by addybgrilla View Post

Nooooo!

I was once a king, with an unlocked and activated phone from the USA before they ever came out here in the UK, people would literally gasp as I took it out of my pocket in packed restaurants and other such attention seeking places!

Then it was launched here and my throne felt less special, but still a little bit exclusive with it only being on o2 and quite costly..

Then it was opened up to other networks and I felt even less special.

Now every burberry wearing Chav with a local Tesco's will be sporting the God Phone I once wielded with such majesty

I can't help but feel like the king in Cold Play's Vida la Vida song...

hahhaa nice first post!
post #15 of 45
Quote:
Originally Posted by Scaramanga89 View Post

You cannot claim any exclusivity and sell a product in a (rather low brow) supermarket. Surely Sainsbury's would have added that much needed touch of finesse. It's not all about profit - brand image counts too. Would you buy an Armani jacket from ASDA?

I don't know about that, 2 points though...

1) It only started as exclusive (1 network, and 3 stores), which helped with the press and the general gadget envy and social word of mouth. Once that's helped to build the reputation of the device, who cares if it can be bought from Asda (Walmart in the UK), which it surely will be available from in the not too distant.

2) If I was in the market for an Armani jacket, I possibly would buy one from Walmart should they stock it. I know I bought a pair of 501s from Tesco many years ago when they managed to get a boatload of them from somewhere. I don't care where I get my product from, so long as it's the product I want. That doesn't mean that people like Apple/Levi/Armani don't care about *their* image and who they let stock their products tho. Unlike fashion retailers tho, for the iPhone it's all about getting it in as many retailers as possible now, as it's the natural successor to the iPod which is already available everywhere from Argos to Zavvi.
post #16 of 45
No doubt there will be a Tesco's Finest iPhone, a standard version and a Value range option.
post #17 of 45
Quote:
Originally Posted by Scaramanga89 View Post

Would you buy an Armani jacket from ASDA?

If my head was up my arse, then no.
post #18 of 45
Quote:
Originally Posted by macmondo View Post

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

Apple sell stuff at Walmart. Have you been to one? Nuff said. They make Tesco look like Waitrose...
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post #19 of 45
Quote:
Originally Posted by macmondo View Post

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

You speak as if this is the first ever Apple product to be sold at Tesco. Apple used Tesco to distribute their second generation iMacs and they sold plenty.

I'm struggling with the concept that Apple should only sell in the "trendy places" - the problem is they are selling primarily to users that never considered Apple before so why should they not place their product in the larger retailers? I think it would come across to the general public that Apple are now more mainstream. Why are you buying in to the snobbery that Apple users are so often accused of?
post #20 of 45
Cheap trash should not be allowed to purchase Apple products. It dilutes the brand
post #21 of 45
Quote:
Originally Posted by domdn View Post

Cheap trash should not be allowed to purchase Apple products. It dilutes the brand

What horrible snobbery. Do you think Apple would be where they are today without appealing to the widest possible market?
post #22 of 45
Quote:
Originally Posted by jonnyb View Post

What horrible snobbery. Do you think Apple would be where they are today without appealing to the widest possible market?

Its pricing policy on almost all its hardware since the company's inception has excluded the widest possible market only until recent times.
It was one single product, the iPod, that changed the company's fortunes, and by the device's size and nature it was always more accessible than anything the company had produced before. Apple is STILL not a mass market technology manufacturer if you encompass the company's entire product portfolio. It wouldn't continue to collect the crumbs of total market share that it has compared to Windows PCs if the corporation was truly able to appeal to the widest market possible market to which you refer.
PS: If you'd like me to say something nice about Tesco then their Finest range's Christmas Pudding is consistently excellent year after year. I highly recommend it.
post #23 of 45
Quote:
Originally Posted by domdn View Post

PS: If you'd like me to say something nice about Tesco then their Finest range's Christmas Pudding is consistently excellent year after year. I highly recommend it.

Is that $240 worth of pudding?
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post #24 of 45
Pointless!! Unless of course we're going to see more competitive pricing amongst the carriers. One would like to think Tesco will bring some supermarket power and leverage better pricing but if their in bed with O2 then that theory is out of the window.

And with Orange announcing the same pricing as O2 i can see Vodaphone and T-Mobile following the same party line.

My iPhone's contract with O2 is up for renewal in January but i'm not entertaining any of them until i see some healthy competition on pricing. I won't hold my breath.

It'll help sell more iPhone's of course which is what it's all about i guess.
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post #25 of 45
Quote:
Originally Posted by Robodude View Post

I agree mate, but the iPhone isn't a premium product like Macs, it's quite competitive.

Excuse me? Have you actually seen the unsubsidised price for the iPhone?
post #26 of 45
Quote:
Originally Posted by jfanning View Post

Excuse me? Have you actually seen the unsubsidised price for the iPhone?

They are competitive with the unsubsidized price for high end Nokia N-series phones.
post #27 of 45
Quote:
Originally Posted by domdn View Post

Its pricing policy on almost all its hardware since the company's inception has excluded the widest possible market only until recent times.
It was one single product, the iPod, that changed the company's fortunes, and by the device's size and nature it was always more accessible than anything the company had produced before. Apple is STILL not a mass market technology manufacturer if you encompass the company's entire product portfolio. It wouldn't continue to collect the crumbs of total market share that it has compared to Windows PCs if the corporation was truly able to appeal to the widest market possible market to which you refer.
PS: If you'd like me to say something nice about Tesco then their Finest range's Christmas Pudding is consistently excellent year after year. I highly recommend it.

It was the iPod's break into the mass market I was referring to. Apple wouldn't be where they are today without it and I think that's a good thing.
post #28 of 45
Quote:
Originally Posted by jonnyb View Post

It was the iPod's break into the mass market I was referring to. Apple wouldn't be where they are today without it and I think that's a good thing.

For shareholder like me who bought the stock $56, yes, you're absolutely spot on.
post #29 of 45
Quote:
Originally Posted by samab View Post

They are competitive with the unsubsidized price for high end Nokia N-series phones.

They didn't list any product to compare it to, that leaves things wide open
post #30 of 45
Quote:
Originally Posted by monstrosity View Post

hahhaa nice first post!

Haha, agreed, that was dead funny. :-)
post #31 of 45
Quote:
Originally Posted by jfanning View Post

They didn't list any product to compare it to, that leaves things wide open

"Competitive" generally means "compared to similar products", I would think. Did you mean the unsubsidized price of the iPhone isn't competitive compared to sandwiches, or marbles, or mice? Are we going to have another long discussion about what "competitive", "compared" and "price" mean? Because let's not.
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post #32 of 45
Quote:
Originally Posted by addybgrilla View Post

Nooooo!

I was once a king, with an unlocked and activated phone from the USA before they ever came out here in the UK, people would literally gasp as I took it out of my pocket in packed restaurants and other such attention seeking places!

Then it was launched here and my throne felt less special, but still a little bit exclusive with it only being on o2 and quite costly..

Then it was opened up to other networks and I felt even less special.

Now every burberry wearing Chav with a local Tesco's will be sporting the God Phone I once wielded with such majesty

I can't help but feel like the king in Cold Play's Vida la Vida song...

With you!

"Now the old King is dead! Long live the King!"
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post #33 of 45
Quote:
Originally Posted by addabox View Post

"Competitive" generally means "compared to similar products", I would think. Did you mean the unsubsidized price of the iPhone isn't competitive compared to sandwiches, or marbles, or mice? Are we going to have another long discussion about what "competitive", "compared" and "price" mean? Because let's not.

That is one definition, another is

"having or displaying a strong desire to be more successful than others"
post #34 of 45
Quote:
Originally Posted by stuffe View Post

I don't know about that, 2 points though...

1) It only started as exclusive (1 network, and 3 stores), which helped with the press and the general gadget envy and social word of mouth. Once that's helped to build the reputation of the device, who cares if it can be bought from Asda (Walmart in the UK), which it surely will be available from in the not too distant.

2) If I was in the market for an Armani jacket, I possibly would buy one from Walmart should they stock it. I know I bought a pair of 501s from Tesco many years ago when they managed to get a boatload of them from somewhere. I don't care where I get my product from, so long as it's the product I want. That doesn't mean that people like Apple/Levi/Armani don't care about *their* image and who they let stock their products tho. Unlike fashion retailers tho, for the iPhone it's all about getting it in as many retailers as possible now, as it's the natural successor to the iPod which is already available everywhere from Argos to Zavvi.


I care - if I part with £500 for a phone I want to think that there is some degree of exclusivity to it - the same reason I would buy an Armani suit and not a nice shiny £30 Tesco one - I want to feel that I have worked hard for a nice product that I am now treating myself to. Not queuing up with a bunch of Spides/Chavs in a bloody Tesco to buy the "Must have" gadget. The iphone is already too ubiquitous - this will make it even more so.
And before anyone gets on their high horse - 2 points. There is no way in hell you would buy your jacket there - and Apple would be dead in the water without people with the same attitude as me. In the water.
post #35 of 45
Quote:
Originally Posted by jfanning View Post

That is one definition, another is

"having or displaying a strong desire to be more successful than others"

They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #36 of 45
Like 7.4 million iPhones vs 4.6 million Nokia N-Series phones sold last quarter.

So now we've got the more successful part out of the way, how much does an unsubsidised N97 or N86 go for?

Quote:
Originally Posted by jfanning View Post

That is one definition, another is

"having or displaying a strong desire to be more successful than others"
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post #37 of 45
Quote:
Originally Posted by hill60 View Post

Like 7.4 million iPhones vs 4.6 million Nokia N-Series phones sold last quarter.

What about the E series phones, or the number of other models of smart phones Nokia sells, are you excluding these for any reason in particular?

http://www.eurasiascout.org/nokia-do...s-handset.html

Quote:
Originally Posted by hill60 View Post

So now we've got the more successful part out of the way, how much does an unsubsidised N97 or N86 go for?

So now we've got your mistake out of the way, why are you comparing the two most expensive Nokia phones, when they have plently of other models that are easily classed as smartphones
post #38 of 45
I'm glad you want to class the iPhone as a Business phone like the E-Series not a multimedia phone like the N-Series...

7.4 million iPhones vs 4.4 million Nokia E-Series sold in the last Quarter.

Source:-

http://www.nokia.com/press/press-rel...newsid=1347757

btw I made a slight error before it was only 4.5 million Nokia N-Series phones sold last quarter.

Quote:
Originally Posted by jfanning View Post

What about the E series phones, or the number of other models of smart phones Nokia sells, are you excluding these for any reason in particular?

http://www.eurasiascout.org/nokia-do...s-handset.html



So now we've got your mistake out of the way, why are you comparing the two most expensive Nokia phones, when they have plently of other models that are easily classed as smartphones
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post #39 of 45
Quote:
Originally Posted by DanielSW View Post


Your tacit criticism of Apple's own strategy for "trendy design in posh areas", makes you sound rather ambiguous. Are you waffling? Just what are you being critical of?

You're criticizing him for being ambiguous?

Quote:
Anyone with any perception

So everyone then, given that perception is ubiquitous.


Quote:
can realize that

Clearly you meant "will realize that" or possibly "could" or "would [realize that]"

Quote:
the product will sell itself, once it is in the hands of the consumer.

This isn't waffle, is it?


Quote:
Those who appreciate the attributes of the product might just

"might just?" How ambiguous do you want to get here?

Quote:
venture further into the Apple World in some form or fashion

"Some form or fashion?" Don't over commit, will you?

Quote:
--perhaps ultimately into the bright lights of a posh Apple Store!! (gasp!)

Perhaps yes, but nice double punctuation there nevertheless, twice.

Now perhaps next time you might just want to restrain yourself a little with your word usage... there is nothing worse than a word snob, who ain't so bright...

... although obviously, your ambiguous waffle was just an exercise in irony, which I'm quite sure you'll claim I missed.

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Do not overrate what you have received, nor envy others.
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post #40 of 45
Quote:
Originally Posted by hill60 View Post

I'm glad you want to class the iPhone as a Business phone like the E-Series not a multimedia phone like the N-Series...

Are you saying that the iPhone is not in competition with the e series phones? You are aware that it is not just business people that purchase the e-series phones?
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