Apple slams UK as iPhone unlock capital

July 3, 2008, 2:00 pm by James Holland

Filed under Apple Tags: 3G, Apple, iPhone, O2

Our inside source at one of the official iPhone 3G retailers says Apple’s got the hump with Britain, as its reputation for cracking the handset reaches new heights.

Word is, less than 15% of iPhones sold after the last price drop appeared on O2’s network, with the majority being hacked for use on rival networks or sold on abroad.

According to our source, the UK will receive a very limited stock of the iPhone 3G as a result, especially in its 16GB guise, which explains O2’s rationing of the next-gen handsets.

We’re also told the white version may not make it to the UK at all, as Apple chooses to send its stock to less risky nations.

And there’s news on pay as you go pricing too, our insider says the 8GB version will hit at £349, a disappointing increase on O2’s leak last week.

Want more iPhone 3G news? Click here.

Out July 11 | From £free | Apple, O2

Tags: 3G, Apple, iPhone, O2

Reader Comments

Faye said in July 3rd, 2008

This was entirely due to the price and the plan/operator. If you leave a possibility of a loophole, and motivate people to find it, then it will be found.

I didn’t buy until the price dropped, because I saw the phone as too slow compared to my Nokia despite the appealing interface, there were no apps for it, and I was on a 3 contract, so couldn’t use the phone with my current sim, even if I unlocked it.

The price dropped, and I was nearing the end of my 3 contract, and in real usage Safari had been shown to be quicker to use than the Nokia browser, so I took a punt. I’m glad I did, because it is a nice phone.

I expect, though, that the price and the contract were just too expensive for some, particularly with the expectation of this very phone being released, so it wasn’t worth tying yourself into 18months of 2.5G.

Fortunately, we’re not tied in.. as long as we upgrade to the new iPhone. I don’t mind extending my contract term by a few months… But with my phone already full of songs, I definitely want the 16gb version… preferably in white, but I’ll live with black. I hear it’s the new black.

James Holland said in July 3rd, 2008

You’re spot on. Brits love a bargain hunt, not to mention a challenge.

However, by rationing iPhones to one per person, and forcing them to be activated in-store, Apple might’ve cracked the problem.

They’ll at least put a dent in the grey market supply, which Steve Jobs even hinted was a major annoyance in his WWDC keynote.

Will Head said in July 3rd, 2008

That’s assuming people actually bought their iPhone in the UK rather than in the Fashion Show Mall in Las Vegas while at an electronics show in January, for instance. Ahem.

drenk1976 said in July 3rd, 2008

I love these “reliably informed” type stories.

Yes, alot of iPhones were unlocked in the UK, mainly due to Apple’s insistance to adopt a pricing model totally alien to the average Brit and o2 desperately having to firesale them.

I’d doubt this story has a huge amount of truth though. Apple identified the UK initially as one of it first four markets for the iPhone and has more stores here than any country other than the US. I suspect that they will be in VERY short supply in the UK, but this is down to a far more convincing price point here and elsewhere, completely new markets etc (i.e a global shortage). There may not be many white ones, but why would apple.com/uk show them if they weren’t coming here at all?

Jim Hill said in July 3rd, 2008

I’m gonna have to jailbreak mine too. I’d rather keep it official, but O2’s network doesn’t reach my basement flat (in London!). I bet Apple has no idea how limited O2’s coverage is. No choice then but to get one flown in from the US of A.

John Doyle said in July 3rd, 2008

Apple has managed to develop a huge following in the UK, even turing long-time PC heads into Mac followers (I’ll refrain from calling them fanatics, just yet).
Withholding products from the UK because the top man is miffed is being stupid. If it’s true, then they’ll piss people off. Is that wise given how hard it’s been to get them on board in the first place?

sarahjayne said in July 4th, 2008

I just had a conversation with Vodafone this week. They reckon that they are ‘bidding for exclusive rights’ for the iphone 3G. Now, we know O2 are geared up for the iphone so the ‘exclusive rights’ bit is not true but I would expect that the iphone would be offered on more then one network soon like it is in Italy. Maybe that is why we see the behaviours we are seeing.

sleepy said in July 4th, 2008

The spin on this piece must be fabricated. Maybe only 15% went on contract, but I seriously doubt Apple cares. In the US people were queueing up to buy the maximum five at a time for export to China, Russia and the rest of the world. Apple did not attempt to stop them. When the baseband was comprehensively cracked, Apple simply dumped the rest of the iPhone 1’s into the market as seed corn for the worldwide launch of the real iPhone (this one). Whether the price reduction was O2 panicking over their large stocks, or Apple giving them a stonking clearance price, I don’t know.

O2 won’t be held responsible by Apple for the nature of UK consumers; what happened was the result of a flaw in the baseband processor that allowed unstoppable unlocking and broke Apple’s apparent business model. Apple won’t punish an entire country for this problem either. Apple’s “contract” is with the individual, and that is the root of its success.

I don’t believe the Vodafone story in sarahjayne’s comments above. Again, customers have signed with O2 in good faith that that is the only choice. Having Apple suddenly switch to a non-exclusive basis undermines the trust on which Apple’s customer loyalty is based. It only takes one breach to destroy trust.