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Saturday, January 19, 2008

iPhone sales fall short of O2 target

Sales of Apple's much-hyped iPhone in the UK have fallen just short of the expectations of O2, the mobile operator that is the exclusive network for the handset.

O 2 said shortly before the iPhone's UK launch on November 9 that it expected handset sales of 200,000 in the first two months, but people familiar with the situation said the actual figure for the first eight weeks was about 190,000.

Some analysts, who had regarded the original 200,000 prediction as a conservative estimate, added that Apple may have to cut the iPhone price in the UK if it wants to maintain sales momentum.

The iPhone's headline price is £269 but customers must also take out an 18-month contract starting at £35 per month, which means the minimum outlay is £899.

O 2 declined to comment on iPhone sales figures, but said it was "delighted with the response to the iPhone, which has seen unprecedented levels of customer satisfaction". It also confirmed the iPhone was its fastest-selling handset ever "by a significant margin".

In November, Matthew Key, incoming chief executive of O 2 Europe, said he expected about 200,000 iPhones to be sold in the UK in the first two months. As well as O 2 and Apple, the iPhone is sold by Carphone Warehouse.

However, Gartner, the research firm, said in November that 350,000 to 400,000 iPhones could be sold in the first eight weeks.

Carphone and Apple yesterday declined to comment on iPhone sales figures.

iPhone sales had been strong in the run up to Christmas, but had subsequently tapered off, according to people familiar with the situation.

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