New iPhone pricing policy a bit... unappealing?

Is it me or is the new iPhone pricing policy looking a bit... well.. non-appealing (that's the politest phrase I could think of).

First off, there is the cost. At WWDC the following was announced that in the US;

3G 8GB goes from $199 to $99.
3GS 16GB to be $199 (same as old price for 3G 8GB)
3GS 32GB to be $299 (same as old price for 3G 16GB).
From O2 in the UK we get price rises rather than cuts. For example on PAYG;

3G 8GB stays the same price.
3GS 16GB costs about £50 ($80) more than the old 3G 16GB
3GS 32GB costs about £150 ($240) more than the old 3G 16GB

and on Pay Monthly tariffs where you need to pay for the ‘phone you’re looking at paying an up front cost of around £55 ( $88 ) more for a 3GS 16GB than the 3G 16GB, and £145 ( $235 ) more for a 3GS 32GB than the 3G 16GB was!!!

This price increase is also reflected in the £45 per month tariff where the old 3G 16GB was free, now you have to pay £87.11 ($140) for the phone.

Now looking at Tethering, On pay Monthly tariffs “unlimited UK data and Wifi” is included to be part of the tariff, but if you want to tether your iPhone you have to pay £15 per month extra for a 3GB limit, so if you pay monthly you get unlimited data in your plan, but if you want to tether you suddenly get a 3GB limit, how, exactly does that make sense? (If you wondering Pay As You Go customers can’t tether, O2 just don’t offer it to PAYG customers).

If you compare the price to O2s mobile broadband tethering actually works out worse value for money than the mobile broadband offering. With mobile broadband you pay the same amount for the same data allowance and you get free Wi-Fi, but with the iPhone you’ve already got free Wi-Fi on the monthly contracts, so you’re either paying for WiFi twice or getting 3GB of data for a higher cost than they charge mobile broadband customers, which again just doesn’t make sense.

Come on O2, sort out your pricing policy!!!

(If this gets "moderated" please feel free to reply directly to my blog post at http://alsutton.wordpress.com/2009/06/09/is-the-iphone-3gs-a-rip-off-in-the-uk/)

I agree al.

Not only are the new iPhones more expensive in the UK than the US, but as usual, existing, loyal customers get the worst deal. I'm not happy at the prospect of being unable to upgrade without buying out of my existing contract.

I bought the first and second iPhones on the day they were released. This time, I'm not so enthusiastic. In fact I'm feeling really disappointed and resentful at the whole thing TBH. Sick of being ripped off in the UK.

My cash is staying in my pocket this time.

Er, can I be the only one to notice that 32GB is a new thing for phones and is still quite expensive as a solid state device? That cost is out of Apple's control and cannot be a simple case of double the cost of as 16GB device.
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Sheepdog cocktail: full of Zest and added Blackberry!

In the US:
3GS 32GB to be $299 (same as old price for 3G 16GB)

In the UK:
3GS 32GB costs about £150 ($240) more than the old 3G 16GB

Everyone I've spoken to who has the 3G iPhone will not be upgrading. It's a complete rip off.

Instead of charging extra for tethering, why doesn't O2 restrict the traffic to web browsing / email etc so it is not possible to use file sharing sites - thus eliminating the argument that as soon as you tether your laptop to the iPhone you will be using too much bandwidth?

On a lighter note, I do find it amusing that MMS & Tethering will not be available in the USA for several months.

I think O2 will have some very dissapointing sales with this one....

For the price *difference* between the 16 and 32 GB 3GS models you can buy an *entire* 32GB SSD Hard disk for a PC or Laptop from Amazon.

I know flash isn't cheap, but to me 16GB extra for the price I can buy an equivalent 32GB Hard disk isn't good value for money.

I've been put off getting an Iphone. I was borderline wanting one but then I saw the news the other day that said Apple are dropping the price of the old 8gb 3G to $99 (£61). I though 'If that price drop was passed on here in the UK i'll get one'. O2 have confirmed that the price drop will not be passed on.

That, combined with the usual 'rip-off Britain' prices for all the other models in the range has put me right off getting one. Too much money grabbing going on.

I'm probably going to leave O2 all together really as it seems that money that would normally subsidise all other handset prices is now being spent on the Iphone exclusvity deal. I can get phones that O2 are charging £150 free on other networks on a similar tariff.

I don't think so, it's an Apple product and it's new, it'll sell by the bucket load.

A bit more work shows the iPhone pay monthly tariffs aren't cost effective if you don't use the unlimited Wi-Fi component. Using a O2s own Simplicity tariff in a PAYG iPhone can get you 200 mins a month more talk time, 300 more texts per month ( more if you buy online ), and you still get unlimited web for free, costs £10 less over 18 months, and if apple release another iPhone in 12 months it'll cost you over £125 less to upgrade in a years time.

Details;

£19.58pm simplicity tariff gives you 800 mins, 800 texts (1600 texts if you buy online), and you can add the Unlimited web bolt on for free.
£440.40 - 16 GB iPhone 3G S on PAYG
** Total over 12 months : £440.40 + (£19.58*12) = £675.36 **
** Total over 18 months : £440.40 + (£19.58*18) = £792.84 **

£34.26pm iPhone tariff gives 600 mins, 500 texts, and unlimited web.
£184.98 - 16GB iPhone 3G S on Pay Monthly
** Total over 12 months : £801.66 (assuming paying rest of contract allowed) **
** Total over 18 months : £801.66 *

Unfortunately, I think you may be right... May be UK poor sales would have forced Apple to put a bit of pressure on O2 to pass on the discounts available to US customers.

Never mind - I'll just wait until the next one next year. Who knows, it may even be available on other networks by then.

I can't believe how badly O2 is treating its existing customers.. I would have to spend around £200 to upgrade to the 16GB version on 24 month contract - that's the cost of buying myself out of the contract. And if I wait until January 2010 when I'm out of contract the phone will be six months old and Apple will no doubt be shipping a new version in June/July 2010.

I've set up a blog to register my disgust with O2. Suggest we all do likewise - and complain vociferously.

http://o2iphone.blogspot.com/[/url]
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I am very annoyed with O2 because I can not upgrade my iPhone

No, this time I think they've shot themselves in the foot. Not that many of us bought the 2G iPhone. Last year most of us upgraded to 3G, and heaps of other folks got a 3G as their first iPhone. In the current climate how many of us can afford to buy out our contracts? Most people wanting one already have one, but will not be willing or able to shell out another £240 on top of an already higher price. And we'll be concerned that when the successor to the 3GS comes out (next year?) that they'll sting us again. Time for Apple to open up to other operators. And for O2 to think seriously about their customers.

everyone who has a 3g iphone will have at least 6 months left on there contracts due to the 18months contract they would have taken.

I for one im not willing to buy my self out of the contract then upgrade to the new phone.

If you got your Iphone 3G from carphonewarehouse and took out their top insurance you can cancel your existing contract after 9 months i think? and get the 3GS. you have to return your Iphone 3G and pay a 29.50 excess

I agree with all of the posts in this thread!!

Why on earth would you want to sign up to a 24 month contract when Apple will release a new iPhone every year. I would gladly upgrade now and continue with O2, but as with all existing 3G customers, I have 6 months remaining on my contract. I really do hope that the exclusive agreement that O2 have with Apple comes to an end soon. At least then, we will get some competition in the market instead of having to accept what O2 feel like charging us. 12 quid for tethering, please, I thought that I had already paid for *unlimited data*

The costs of the handsets are also ridiculous