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iPhone 3G set for worldwide debut starting July 11
Territories covered
Western Europe
Austria,
Belgium,
Denmark,
Finland,
France,
Germany,
Ireland,
Italy,
Netherlands,
Norway,
Portugal,
Spain,
Sweden,
Switzerland,
UK,
North America
Canada,
USA,
South and Central America
Mexico,
Asia-Pacific
Australia,
Hong Kong,
Japan,
New Zealand,
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Published:
17-Jun-08
On June 9 Apple introduced the iPhone 3G along with its application store and a new distribution roadmap. The new iPhone 3G will replace the current model and add GPS location capabilities on top of the improved network speed. The iPhone will also be complemented with Microsoft Exchange ActiveSync support for corporate features. Finally, Apple is launching an application store on iTunes enabling access, through sideloading or over the air, to free and paid-for third party applications for the iPhone and the iPod Touch. First generation iPhones will also be offered the updated OS as a free software upgrade.
To ensure the widest commercial footprint before the end of the year, Apple has inked new deals with mobile operators . The roll-out will start on July 11 in 22 countries (Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the US) and spread to over 70 territories before 2009. The launch of the 3G model also marked a shift towards more traditional, non exclusive carrier agreements and handset subsidies. In many countries the iPhone will be sold by more than one operator. All of them will be able to offer subsidies on the handset, making the device as affordable as free when tied to the most expensive subscription plans.
Our take...
The 3G upgrade is not surprising given the competitive landscape in territories where the iPhone is about to debut (Europe, Japan). The introduction of carrier subsidies will undoubtedly propel Apple past its 10m global iPhone sales target by the end of the year, but it risks affecting the perceived value of the iPod range, specifically everything from the Nano upwards which will look expensive in comparison to the iPhone. The turnaround towards traditional carrier subsidies also ends the original agreements under which operators shared with Apple some subscriber revenues over the length of the contract. Additionally, Apple will offer the device on competing carriers in Austria, Italy, Portugal, Switzerland and Australia thereby largely increasing its customer reach.
Operators are expected to start offering the device to prepaid customers (e.g. UK, Italy and Portugal), in which case the price should be similar to the previous unsubsidised model, between €500 and €600. Prepaid devices are still expected to be locked to an operator.
Finally, the push for third party development is another piece of the strategy shift. Apple intends to create a successful software and content delivery platform for mobile and portable devices. However, in order for the iPhone OS to become an attractive platform for developers, it must have reach. In the last three reported quarters, Apple sold 5.4m iPhones (in six official territories) and 43m iPods worldwide.
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Analyst intelligence & notices
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