Posted by: Arik Hesseldahl on November 21
Ya gotta love those European courts. T-Mobile said today it will sell the iPhone in Germany without a contract in order to comply with an injunction issued by a court hearing a lawsuit brought by rival Vodafone. If you want it without a contract, you can have it for 999 Euros, or more about $1,477 given today’s exchange rate. With a contract it will go for 399 Euro, or about $590.
The issue is exclusivity. Vodahone is challenging the right of T-Mobile and Apple to offer the phone on an exclusive basis, which sounds a lot like the one big complaint that consumers in the U.S. had when the iPhone first hit the market: They didn’t like that it worked only on AT&T. Funny how you don’t hear that complaint all that much of late. Additionally. Vodafone is challenging T-Mobiles practice of selling the phone with a so-called SIM lock that prevents SIM cards from other networks from working in the phone.
It seems to me the easy way to answer the problem might be to allow basic phone features — voice calling and text messaging — to work when another SIM is used, but to not offer support for specialized features, when the non-preferred SIM is sued. Visual voice mail is one that comes to mind.
Either way, most German consumers who want an iPhone will probably vote with their wallets and take the T-Mobile contract, while the courts hem and haw for months until its too late for any final resolution of the complaint to matter. By that time, we’ll be talking about a third-generation iPhone and recalling how quaint the first one was.
The order to sell the iPhone without a contract will likely be affirmed. The challenge for the competitors will be to offer something to iPhone buyers that makes double or triple the contract price worthwhile. I cannot think of anything Tmobile could offer me here in the U.S. that would have led me pay, say, $1500, for a contractless iPhone to use on Tmobile. Their lower rates are not enough to offset paying Apple so much for the phone.
You should also check to see if the iPhone is being offered prepaid. That allows users wary of a contract to not have one for slightly higher fees without leaving the designated service provider.
The company is Vodafone (LON:VOD), not Vodaphone or indeed Vodahone as your article suggests. Its only the second largest telo by subscriber on this fair planet and one of the largest brands in the world with a small market cap of around 100bn.
Surely Businessweek has at least heard of it..
Ryan
'most German consumers who want an iPhone will probably vote with their wallets and take the T-Mobile contract'
If they buy the iPhone at 399 euro with a mandatory 24 month contract at 49 euro a month, they will end up having spent close to 1.600 euro at the end of the second year. If they buy the 999 euro version with a cheaper subscription they could end up having a better deal in the long run.
that is false abit because I live in osnabruck, and the T1 shop in the town centre next hm still sells them locked to T1 only, is this against the law and how do I get a iphone from them unlocked!
lee thompson
MOD
This is the same thing! screw this phone its not 999 Euro good especially without Visual voice mail so there is nothing exclusive about a phone that others can get for 300 Euro.
Its called price gouging people & it’s illegal in most countries. The governments of Europe need to set an example with Apple & T-Mobile and forbid them to sell the I-Phone at over 250 Euro effective immediately! I’m from America and I know where this is leading. Their going to rape Europians by making the entire cell phone experience nothing more than than a portable shopping mall in your pocket. spam & spyware have hit the airwaves but this time the spammers are the likes of T-mobile.
HA HA had friend gotten Iphone and it was nice to look at but when doing multitask it crashed many times he just returned and gotten a Windows Mobile 6 Smartphone and never had anymore Crash when doing many multitask, Now that is one Smart move. Iphone Not worth getting it has this is a new device in the market and it is not like the Smartphones which been out in the market for quite more years than Iphone.
Great about the Smartphone is it's thousands of Software you can install and resonable price compare to Iphone price. People loves the Iphone just for the look of it. I asked my friend why did you get the Iphone and he said I loved the design and look of the Iphone. But my friend did not relize of how well it can do the multitask. This iphone is I think is for the personal users not for us professional business users. Another part I do not like the Iphone is that it does not have many of Smartphone features like GPS, Changeable Battery which the Iphone batter is welded in not good at all. Who knows when you might need a emergency battery backup when traveling and do not have any power outlet to plug your Iphone to charge the battery. Also most important is the internet connection on the Iphone which is another thumbs down which the Iphone not capaable of 3G or Fast Evdo connection. Most all Smartphones are already capable of this broadband connection. I prefer fast internet connection rather than a slow connection.
Sorry! Iphone I prefer the smartphone which is more entails to the personal and business users and yes my Smartphone can do multitask with no problem of Crashing which is what Iphone does when it can not do too many multitask. Iphone just has too many bugs and the Iphone is not a very secure phone. If anyone hacker can break the code on Iphone has who knows when they can start to grab your contacts info. Interesting never heard any hacker break the code for smartphones yet? maybe it shows who is more reliable and secure :-)-
If you want to know why Iphone is not worth the money and why I prefer Smartphones goto here
http://www.who-sucks.com/tech/15-reasons-why-apples-iphone-sucks
Indeed, Vodafone's complain "sounds a lot like the one big complaint that consumers in the U.S. had when the iPhone first hit the market". But just sounds, because customers wanted freedom to choose the carrier but Vodafone is revenging for not getting the exclusivity in all Europe as they wanted to.
i was just wondering how big the i-phone that is coming to New Zealand in 2008. Me and my friend were lookig atthem and there was one that looked about the size of 2 of my hands.
Please email me
thanks
xXOoxXOo
I wonder how this is going to help Vodafone, whose EDGE network in Germany is in its infancy at best with no commitment from Vodafone whatsoever how fast and how much they are going to build it out.
Sounds like a PR stunt to me. Well done, Mr. Joussen.
Just a quick typo: It's 'Vodafone' not 'Vodaphone" :-)
Firstly, Vodafone is spelt with an "f", not a "ph". ...but the key point missed is that because the phone is unlocked, you can sign-up to a "normal" phone contract, at more regular usage rates. This means that over the life of the phone (or the life of the T-mobile contract) - 2 years - you will save upwards of $500... Sweet.
What’s really going to be interesting to observe in the next few years is the Gphone makes all media more ubiquitous, and how that ubiquity will impact company profits. That can benefit both consumers and investors. The NewsVisual article on Google’s Open Handset Alliance http://www.newsvisual.com/newsvisual/2007/11/google-and-moto.html implies that it’s really personal connections among business leaders that determine future success in the competitive marketplace. But consumers can also benefit from the new products those alliances spawn.
It's amazing that iPhone is able to create so much value out of nothing when it's shipped to foreign countries with some strange laws.
Or you could come to France ... Next Thursday is the big day for us. But I think I'll wait. Although I'm an absolute addict when it comes to Apple and their products, but I'd like more memory, at least 3G connection and a lower price! And although I'm already a customer of Orange in France, I certainly wish Apple would open it up. Last thing we need is Orange messing around with Apple's products. I certainly hope Apple keeps a firm hand on it because Orange has all the skill required to ruin a perfectly good product. C'mon Apple, I bet the telcos will play your game now. Take a little less % and open up the market... but insist on keeping control on the product, look and feel of use etc
Want an original iPhone for $200.00? Go to Budapest/Hungary. Available at Asia Center (www.asiacenter.hu) for $200
NICAYAL GARDNER is soo cool im her friend and we were just wondering when the i-phone was coming to NZ.
thanx....
unlocked iphone? how much money?
is it this: http://www.cumburlop.com/yeni-iphone-3g-s-modeli.html
?
A blog on the daily doings of Apple and the many companies in its orbit, with insight and analysis by two longtime Apple-watchers BusinessWeek Senior Writer Peter Burrows and BusinessWeek.com Senior Technology Writer Arik Hesseldahl.
Leave us a voice message. Learn more.