O2 iPhone numbers - not too fantastic
That is how many O2 reported on the first day of iPhone sales. To put that into perspective, Apple sold 270,000 iPhones in the first weekend in the US. At that point it was an untested product. All of the reviews, mostly positive, have come in and have been taken in by British consumers.
Of course, there are a lot fewer people in the UK than in the US - probably about 1/5th. The weather was also rainy on the day of the opening - which wasn't a help either (not that the UK is known for its great climate).
There are obviously a lot of hacked iPhones that have trickled into Europe over the last 3 months. That may account for some of the "opening day types" who went abroad and brought them back or bought them from ebay or other unauthorized resellers. The US models, which are reportedly the exact same hardware, cost much less before activation than their European counterparts.
Also there are many in the UK who have bought an iPod Touch over the past few months - which could be cannibalizing sales to a degree.
Then there is the 3G issue.
Back to the press. Numerous reports in the British media were saying that the lines at the Apple Stores and Carphone Warehouse's were below anticipation. The Register said that it was a flop.
Incidentally, Tmobile reported 10,000 activations on their first day of sales in Germany. Combined, the 18,000 activations so far tallied in Europe probably aren't cause for celebration or concern yet for Apple.
We are looking forward to see how France does selling the unlocked iPhone later this month.
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Comments (27)
Stop making excuses. It's just not as big of a deal as in the US. Don't get me wrong, I am a huge advocate of Apple and the iPhone, but please don't expect lines down the street on a Friday afternoon launch in the UK. I can't remember what the weather was like but I doubt it made a huge difference to people over here. If they were going to buy the iPhone, they would have done it. However most people I know are more likely to go down the local pub afterwork on a Friday, than to than stand in line at the apple store to buy a phone.
Price wise I think it actually translates pretty farely to UK pounds (prior to the excahnge rate moving even more in a favor over the past couple of weeks). The major downside is the difference in sales tax compared with the US. At 17.5% we are just going to have to have to bite the bullet and buy the ting.
Lastly the phone has been out 6 months, and there is bound to be an upgrade not that far off. People who have been following the iphone are probably more likely to wait for either the 16gig model, or better still an complete upgrade in the form of a 2nd gen model.
Your commentary is vacuous and inane.
O2 reported 8000 activations on Friday night. DT reported 10,000 sales in the first day.
Hello? This is Thursday 15th - 6 days later. How can you say there were just 18,000 activations so far?
Christ, you guys are too much. You should re-name your site "9to5FUD."
we said "reported so far"
Those details weren't reported until this week - we are (as we said) very interested in getting more numbers from Apple.
8000 activations for about 3 hours of trading (less for some of the cpw stores is pretty good, i bet saturdas sailes rocketed past that.
No. AT&T reported 146,000 activations on the first weekend. 8,000 activations on the first DAY in the UK adjusted for population is 8 000 * (300 / 60) = 40,000, and that is only that friday from 6pm on (not the saturday and sunday, like in the US).
Yes, AT&T reported 146,000 activations but they had problems with the activation servers. Apple stated that they sold 270,000 on their earnings report - as we stated.
Yes, AT&T had activation delays; O2 too had delays for people with not-so-good credit. There are many other factors to consider* that go both ways, but if you're comparing numbers, which gives the impression of being more precise, you should compare like with like and try to be fair, however tempting a certain headline might be.
*
-The iPhone is hardly the novelty it was in June
+The price was higher at launch in the US
-Purchasing power is lower in the UK; additionally there are less very rich people proportionally
-There are much less developed Apple distribution channels in the UK
-The data plans are more expensive
-There are cultural issues, and other market differences
...
All great points. The point of the post was that there are a lot of factors. But the 8000 number isn't wowing anyone. Sometimes though, people only want to hear good news it seems
Your site is great, which is why I was surprised to read the FUDish meme of "iPhone UK was a flop" on it. The 8,000 number isn't wowing anyone precisely because sometimes people only want to write bad news about Apple due to emotion or interest (most of the poor "news" and commentary out there--not 9to5Mac). I'll bet you given more time, perspective, and real information, the European launch will seem pretty wow--at least quite a bit wower than it seems now.
the iphone in the US costs $399 before tax (which is probably about 6-10%)
so add in the state tax and you pay about $440
now buy the same phone in the UK for £269 after tax which works out at $550
how is this allowed
of course people wont be rushing to buy something thats already released a while now with a much higher price tag
im from Ireland so no iphone available over here yet (lucky i was on holidays in the US last month then. lol)
i bought a laptop in the US priced at $2599, add the 10% tax about $2800
to buy it in ireland it costs €2499 which is $3658
anyone seeing a pattern here ???
just have a look at any of the Apple european online stoes
and they wonder why people buy these things on ebay
why people hack their phones.
first you want to screw us on the price then lock us into a contract too
and then you want us to pay more to buy songs via the itunes wifi compared to what the US is paying.
im all for Apple products and have long left windoze in the shadows were it belongs but things like this should not be allowed to happen.
There's a combination of factors at work here and to say that this isn't a success is missing the point.
The key issue is price and that's what most of the media has focused on over here, which is what will influence all but the die-hard early adopters.
Firstly, we're used to free or highly subsidised contracts in the UK, so paying £269 for a phone is a big hurdle to get over, possibly the biggest and I'm amazed you've failed to mention it
There will also be a huge number of people like me who have a corporate phone contracts and therefore have no choice what handset they get, or more to the point, can't get access to a phone that's tied to one network. More to the point, they may even be, like me, on an O2 contract but unable to get an iPhone, cos there is no corporate deal for the iPhone!!!! Even though our IT dept. have tested one and checked it works for e-mail etc. and would offer it against a Blackberry Curve (for example).
But I think key is the fact that anyone who has spent any time looking around recently, will have seen loads of people using iPhones over here for some time, so all those people who were actually those diehards gonna queue up and buy one.... guess what, they already went out to the US and bought one, and hacked it, or got it from ebay....and hacked it.
Having said all of that. lets get all this in perspective. The first official announcement we got from the US was AT&T claiming 146,000 activations in "first few days" after launch (TUAW). Now the US has a population of 301 million. The UK is roughly 20% that size at 60 million, so a like for like would be 30,000 activations, in the "first few days". If we take the first few days to mean a reasonable 3 days, that's equivalent to 10,000 a day and O2 is claiming 8,000 from the first day - i.e. about 3 -5 hours trading on a cold Friday night!! No it wasn't raining.
Given all the other considerations, I'd rate that as an extraordinary effort, and given that they're saying 2/3rds of those are conversions, O2 must be ecstatic!
You got that wrong!
Geez, wtf is the matter with you people? 9to5FUD, as the poster above said, is more like it. Apple did NOT report 270,000 activations in the first weekend. Apple SOLD 270k iPhones in the first 30 hours. Total weekend sales were more like 350k. Activations are reported by the carrier, not Apple, and ATT reported only 140,000 in the first 30 hours, also not the weekend.
That O2 reported 8,000 activations in the first few hours of sales is EXCELLENT! We don't know how many iPhones were activated on June 29 but if you divide 140k by 30, that's about 4,700 per hour or about 18,800 for 4 hours. Considering the difference in population, an uptake rate of 4,000 in 4 hours would have been sufficient to equal that in the US but it was DOUBLE!
Get a freaking clue, people! UK sales rate is higher than it was in the US! Also, activations do not equal sales, as we found in the US. The sales rate can be nearly double the activation rate.
Rather than use raw figues, which offer no real substance, if we use percentages and assume the following:
UK population roughly 60 million
USA roughly 320 million
Then 0.01% of the UK population bought an iPhone
in the USA, 0.08%
I've been saying this since day one, the dynamics of UK's phone market is very different from that of USA's .. and Apple have got it wrong.
You can't sell a very ordinary device wrapped in the 'novelty' paper and charge 300% more money for it in UK. I am surprised why O2 even agreed the £35/mo phone plan in the first place, it just doesn't make sense especially when you have to pay some £250+ upfront for the handset!
ridiculously expensive contracts for a pathetically ordinary device ..
Hi there,
I live in Germany and do now own a T-mobile iPhone. I tried to buy it on Friday, but T-mobile was unable to sell it to me. I had an O2 cotract until October 16th, and then switched to T-mobile. I did not get a Phone with my contract, and intended to switch to the iPhone once it was released. Obviously, T-mobile could not imagine that people would want to do so. First they said: You have to wait for three months, until you can change your contract. A few calls later, it was possible to switch. The phone will be sent to you. Will I get it tomorrow? No, we don't ship enterprise customer phones on saturdays.
So I did not get my phone until Monday. My impression is, that T-mobile does not want to sell the iPhones. But they do, as they don not want anyone else to sell it...
One important thing is, that the iPhone carriers in Europe were announced just 2 months before the start. Most of us first saw the iPhone in January. In the US, customers had about 5 months for making plans in order to switch to the iPhone carrier. From the first moment I wanted this phone, but Steve did not tell me where it would be sold. So a lot of European customers did not know to which operator they shoul switch. (Usually you have to cancel a contract 3 months before it expires) That was just possible for the customers of whom the contracts expired in this two month period between announcement and sales start. As contract usually run 24 months in Germany (18 months UK?) that means just 1/12 of possible customers. (UK 1/9?)
So, big things still to come for the iPhone in Europe!
For less than £30 per month (on just a 12 month contract with O2) I can get a free Nokia 5300 with memory card, 400 minutes/500 texts per month AND a free iPod Touch!
Cmon guys ... I love Apple to death and the iPhone is decent, but they've messed up on this deal.
Quick, mostly related question for you Limeys; Now that O2 is offically activating iPhones is it confirmed that you can "offically" activate a Yank purchased phone on with O2. I know, I know, you are going "WTF would I do that"? But I imagine that for a few folks the visual voice mail feature would be worth any extra costs of getting locked in. Good gravy, there are people willing to drop hundreds on clothing for their dog. Surely the convience of random visual access to different voice messages has to be seen as worth a bit of extra cash to somebody. :)
Quit Asking if 8,000 or so phones is a hit or a miss.... how many Nokia N95's were sold in it's first 4-5 hours of sales?
What is the average first days sales for Moto's premium handset?
Who cares?
The iPhone will be a hit with the people who buy it...
The only people who have rubbished it are the people you would expect to rubbish it.
No 3G.... a large % of phones on sale in the UK are 2 / 2.5G NOT 3G
Only 2MP camera.... again thats pretty normal over here NOT all cameras have in excess of 2MP.
Only 8GB of storage.... MY Orange SPV M700 is measured in MB! (GB with expansion card, Max 4GB)
No real keyboard.... again most dont even have virtual keyboard
Living in the UK I know first hand that 3G isn't that huge... 3 as a company aren't exactly selling loads, and 3G plans on other networks are fairly lack-luster. Most handsets are 2 -2.5G look on o2's site and you will see the most heavily promoted phones are not 3G. I know one person to say they are holding off for a 3G iphone and it think is it more to do with lack of information, Due tot the fact that the plan gives you access to 7.500 wi-fi o2 and the cloud hotspots. And wi-fi is still better than 3G, and overall coverage is pretty similar. I live in greater London and the places I most regularly go have hotspots. However I myself didn't get an iPhone for an entirely different reason I have an iPod touch. My reasoning though is not 3G but the camera on the iphone. It needs absolutely NEEDS to record video! my last 3 or 4 phones did, thats over about as many years. The annoying thing is I know apple can do it with software, Do they not realise all phone for the last 5 years or so have recorded video? I am fairly certain I am also their target market. Young male gadget lover, Apple user since a performa, one macbook pro 2 Mac Pro's in the house. An Ipod, a nano and an ipod touch also around the house. We are apple centric and yet I was not won over... so I partly expected it to be a bit of a washout. That being said the advertising campaign didn't seem to hit here until the launch day. (still no ipod touch adverts though)
if you hack your iPhone there is a nifty video camera application. I only tried it briefly as I have a sanyo Zacti but it looked reasonably good
is it that big a deal?
what, for example, was the comparative sales of the XBox or PS3 between the US and UK; or the latest version of Halo? Europe has always tended to be more circumspect with product adoption compared to the US; high prices and taxes playing a part.
p.s. my own ambivalence towards getting an unlocked iPhone is down to capacity. i'll get one to replace my vPod; which would mean I'd require 16+GB, preferably 24 or 32, to consider switching over.
It's worth noting that the first day of sales was 6pm on an Winter Friday, vs a summer release in the US, so it would have already been dark by the time the iPhone went on sale here.
It's also worth noting that the iPhone is a step back in technoogy for many people here - the fact that it has no 3G, no stereo bluetooth, no detachable battery, and a 2 megapixel camera with no flash or other features (now that's five year old technology right there) - is pretty bad. It's like the iPhone has half ground-breaking technology and the rest is all bog-standard stuff that's barely enough to get by.
We're used to better here, and cheaper tarriffs, too. And also, since the iPhone has been out for so long in the US, it already feels a little old here, so I'm sure many people are waiting for the next generation with these things fixed.
Has stereo bluetooth. But the rest you are right.
o2 is the big Mobile Phones network provider in the UK. contract between o2 and apple iphones is great deal for iphone market.
The ability to read e-mail that is received in real-time, anywhere, has made the BlackBerry devices infamously addictive, earning them the nickname "CrackBerry," a reference to the street-drug form of cocaine known as crack.
So are you implying that any BlackBerry users should be admitted in a drug treatment center? Just kidding. Thanks for the fun trivia fact.