iPhone 2.0 UK/IRL price "discrepancy"

Padraig Mor

From Sky News today....
"O2, the only company in the UK which supplies the iPhone, said that consumers choosing either £45 [€57] or £75 [€95] per month tariffs will get the new 8GB iPhone 3G for free."
So spend €57 per month in the UK and you get the phone for free.


From the Irish Times today....
"The 8GB iPhone 3G will cost €49 on the €100 monthly iPhone tariff, €99 on the €65 tariff and €169 on the €45 tariff.......All iPhone tariffs include .... a 1GB data bundle. "
So spend €57 per month in Ireland and you'll pay €169 for the same phone! But stump up €100 a month and it'll only cost you €49! If the previous gen iPhone is anything to go by, the UK will also get unlimited data transfer compared to our 1GB.

However, I'm sure there's a good reason for the price difference.
/insert standard justification re minimum wage, transport costs, insurance etc. here

Beano

There is a good reason. The Uk and Irish mobile phone markets are totally different. THe UK market is much larger so benefits from economy of scale. There is also much more competition in the UK market. You're not comparing like with like.

delly

Its not just the iPhone, nearly every phone costs more here and has done for quite a while. Nothing can be done about it tbh.

Creamy Goodness

and not to mention o2 uk and o2 ie are different companies.

dahamsta

Beano wrote: »

There is also much more competition in the UK market. You're not comparing like with like.

You're aware that you're citing a lack of competiton for uncompetitive behaviour, right?

Under Redundant in the dictionary, it says: "See Redundant."

Cremo wrote: »

and not to mention o2 uk and o2 ie are different companies.

Both of which are owned by Telefonica.

adam

Padraig Mor

Beano wrote: »

There is a good reason. The Uk and Irish mobile phone markets are totally different. THe UK market is much larger so benefits from economy of scale. There is also much more competition in the UK market. You're not comparing like with like.

You know you're right......isn't the Irish market the one with the highest spend on calls per capita in Europe? Or is it the world?

craichoe

Well .. its just plain ol TS really, buy it or don't buy it, its up to you.

I couldn't be arsed as its a pure waayyyste of money anyway.

Cas2007

i wonder how much pay as you go iphone will cost in uk?

dahamsta

craichoe wrote: »

I couldn't be arsed as its a pure waayyyste of money anyway.

Precisely. It's a phone for impressionable morons.

Creamy Goodness

dahamsta wrote: »

You're aware that you're citing a lack of competiton for uncompetitive behaviour, right?

Under Redundant in the dictionary, it says: "See Redundant."

Both of which are owned by Telefonica.

adam

true but same could be said for the likes of MacDonald's or any other multi-national.

they don't have the same prices and same level of service in every country they operate in.

dblennon

have you not heard of the big mac index

prettty much proves that the bigmac is technically the same price the world over!!!

Cabaal

If your not happy then don't use O2, if enough people vote with their feet they'll drop the price to attract customers...sorted

Beano

dahamsta wrote: »

You're aware that you're citing a lack of competiton for uncompetitive behaviour, right?

Under Redundant in the dictionary, it says: "See Redundant."

I am aware. And no matter how many times this is pointed out the message still doesnt get through.

Beano

Padraig Mor wrote: »

You know you're right......isn't the Irish market the one with the highest spend on calls per capita in Europe? Or is it the world?

Which supports my point. If the current charges are not affecting usage why should they drop prices?

Padraig Mor

Beano wrote: »

Which supports my point. If the current charges are not affecting usage why should they drop prices?

Believe me I'd do the same in O2's shoes! It doesn't stop it being a blatant ripoff though....

Doctor DooM

Different prices in different markets. Nothing you can do.

Don't buy it if you want to send a message.

jram

Did anyone watch Steve Jobs keynote speech at the WWDC2008. He launched the iphone 3G there and announced the new price of $199(€128/£100) for the 8GB.
This is supposed to be the highest possible price for the 24 launch countries (which he listed and included Ireland). Looks like O2 in the UK is doing what its told but O2 here is going behind Apple's back and jacking up the price.

It was made clear to everyone at the conference that 56% of people who wanted an iphone and didn't buy one, didn't do so because of the price. Thats why they've capped it at $199 for the 8GB and $299 for the 16GB.
It may only be €40 and €36, but better in my pocket than theres.
Rip off Ireland

JohnC.

The US price will probably be before any sales tax. So what's our price compared to the US price including sales tax?

pickarooney

Why do they charge $100 extra for 8GB of memory when it's about 30 dollars for 8GB of SD memory?

Doctor DooM

pickarooney wrote: »

Why do they charge $100 extra for 8GB of memory when it's about 30 dollars for 8GB of SD memory?

Is there absolutely no changes other than the memory between the two iPhones?

pickarooney

Just read a review, apparently these iPhone things don't even have an SD slot, so that explains why they can charge what they like for extra storage. Nasty.

Sighface

has anyone here called o2 or asked in-store if o2 Ireland are going to do a pay as you go option for the iphone or im i going to have to source one from somewhere else.

JohnC.

Good question. The press release only mentions the existing tariffs...

penexpers

Sighface wrote: »

has anyone here called o2 or asked in-store if o2 Ireland are going to do a pay as you go option for the iphone or im i going to have to source one from somewhere else.

Apparently you won't be able to get a new gen iPhone without signing a contract instore.

Hitchhiker's Guide to...

Beano wrote: »

There is also much more competition in the UK market. You're not comparing like with like.

Beano

Roundtower2 wrote: »

you're going to have to explain what you meant by that.

mickoneill30

dblennon wrote: »

have you not heard of the big mac index

prettty much proves that the bigmac is technically the same price the world over!!!

I did a quick google for that as you didn't provide a link.

How does this prove that the BigMac is technically the same price the world over?

http://www.woopidoo.com/reviews/news/big-mac-index.htm

Hitchhiker's Guide to...

Beano wrote: »

you're going to have to explain what you meant by that.

Well your comment was a bit like giving an excuse that a football team didn't win because they played bad.

A lack of competition in the Irish market is not a good excuse for prices being high. In fact it should highlight the need for greater competition in the market. The reason why this forum is called 'consumer issues' is to draw attention to instances where things like lack of competition lead to Irish consumers losing out.

mickoneill30

Roundtower2 wrote: »

A lack of competition in the Irish market is not a good excuse for prices being high. In fact it should highlight the need for greater competition in the market. The reason why this forum is called 'consumer issues' is to draw attention to instances where things like lack of competition lead to Irish consumers losing out.

You're right there but who's going to do it?

To start up a business in Ireland is expensive. Not just for telcos. I was investigating the options before for a business myself and the initial outlay and ongoing costs (rent, insurance, wages, general bills) meant that I'd be in debt for a really long time even if the business was wildly successful.

For a mobile company they can spend a pile of money to compete for 4 million people in the whole country. They can get the same amount of customers in many cities in Europe or further afield.
Which would you go for if you were a telco?

Beano

Roundtower2 wrote: »

Well your comment was a bit like giving an excuse that a football team didn't win because they played bad.

A lack of competition in the Irish market is not a good excuse for prices being high. In fact it should highlight the need for greater competition in the market. The reason why this forum is called 'consumer issues' is to draw attention to instances where things like lack of competition lead to Irish consumers losing out.

I stand over what i said. A lack of competition in the Irish market IS the reason for prices being high. Why can you not see that? I'm not saying this is a good thing i'm just stating a fact. It seems most poeple would rather bellyache than face reality. As it stands now the mobile phone companies will not reduce their charges to english levels. There is no commercial reason for them to do so. Given the significant barriers to entry i cannot see the market here changing any time soon.

here.from.day.1

dahamsta wrote: »

Precisely. It's a phone for impressionable morons.

+1