O2 wins Apple iPhone deal – at a hefty price

O2 wins Apple iPhone deal – at a hefty price | Technology | The Guardian:

Mobile operator O2 is preparing to unveil Apple’s much anticipated iPhone in the UK tomorrow. But serious questions are being raised in the City about how much ground it has had to give away to Apple in order to clinch the deal.

The UK’s largest mobile operator came from behind at the last minute to seal an agreement with Steve Jobs, Apple’s chief executive, to market the iPhone in the UK, but one other operator described the deal as “madly money-losing”.

O2 is understood to have agreed a margin on the retail price – to be confirmed tomorrow – but will return to Apple as much as 40% of any revenues it makes from customers’ use of the device.

Much and all as I love Apple, and as much as I want to see the iPhone over here, if o2 agreed to this they’re idiots. Now, i know you get into choppy water accusing Apple of anything but less than pope like conduct, but this is pure greed, and even though I dislike most of the mobile operators in Ireland, 40% of revenue to a handset maker is just insane. Hopefully this is just someone’s over eager reporting but I doubt it.

The article goes on to say…

As a result, many mobile phone company executives are unimpressed with the way the Californian computer group has conducted businesses this side of the Atlantic, although similar tactics were used in the US.

Do you think?

Ok, cue backlash.

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