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Mon, 21 Jan 2008 UK iPhone sales 'disappoint'?

Doubt and uncertainty generate fresh slow sales for iPhone rumours

Jonny Evans

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Apple's UK iPhone sales may be slightly under target, according to the Financial Times.

Apple's UK mobile network partner O2 had expected to achieve 200,000 iPhone sales in the first two months of sale, but has apparently fallen short on the target by 10,000 units, the FT claimed citing "people familiar with the situation".

O2 wouldn't comment on the report. The company says it is "delighted with the response to the iPhone, which has seen unprecedented levels of customer satisfaction”. The mobile operator also said the iPhone is its fastest-selling handset “by a significant margin”.

Price could be the problem. In the UK the device costs £269, but customers also need to sign-up for an 18-month contract at a minimum £35 per month. In the UK market, such extensive commitments to a network and such a high price for the mobile itself are unheard of, forcing many potentially interested customers to opt for an alternative to iPhone.

Reacting to the report, JupiterResearch analyst Ian Fogg remarked: "If Apple and its partners persist in not reporting UK sales results, especially after one of Apple's partners has named a specific target sales figure for the first two months of 200,000, then it's only natural that observers such as the FT will assume the worst."

Apple last week revealed four million iPhones have been sold so far. prompting Fogg to add: "The iPhone family has to be more than a one hit wonder over a couple of months for iPhone to meet everyone's expectations, including those of Apple and its operator partners."

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