BEIJING, December 11 (Xinhuanet) -- A leading supermarket in Britain is to offer the popular iPhone on a tariff of only 20 pounds (32.56 U.S. dollars) a month undercutting other rivals. From Monday Tesco will offer shoppers the Apple iPhone at a tariff it describes as "affordable for all".
However customers will be asked to pay 222 pounds (361.50 dollars) up front for the most basic 8GB 3G handset or 320 pounds (521.08 dollars) for the most popular 16GB 3GS model.
Mobile service providers O2 and Orange give the iPhone 8GB 3G away for free on their cheapest 34.26 pound (55.78 dollar) and 29.36 pound (47.80 dollar) 24-month tariffs, and both charge just 87 pounds (141.67 dollars) for the 16GB 3GS model on 34.26 pound (55.78 dollar) tariff.
Some have suggested that while on the face of it the offer may look good, there may be little difference over the long term. Matthew Hatton, analyst at Analysis Mason, said, "Although it's being trumpeted as a much cheaper deal, it's all much of a muchness. These are slight tweaks to pricing and different contract lengths, rather than any substantial changes. All the operators are restricted by Apple from making any substantial changes."
Over a 12-month Tesco contract, the 16GB 3GS iPhone will cost the user 46.67 pounds (75.99 dollars) a month, compared with 37.89 pounds (61.70 dollars) a month over two years with Orange and O2. Tesco point out that its customers' total spend would be 560.04 pounds (911.96 dollars) against 909.36 pounds (1,480.80 dollars) with O2 and Orange. Lance Batchelor, chief executive of Tesco Mobile, said, "The iPhone is now available and affordable for all, with the best deals in the UK market. We're delighted to make the iPhone available to our customers. It shows what a serious player in the mobile market Tesco Mobile has become."
The timing of the announcement could not have come at a better time for Tesco as the first of more than one million of O2's iPhone contracts will begin to expire on Friday. Customers who bought the 3G model on the first day that it went on sale in July last year will find their contracts come up for renewal on Friday. Those who are currently paying 35 pounds (56.99 dollars) a month to O2 will be able to shave 15 pounds (24.41 dollars) a month of their bill by moving to Tesco and will not have to make any upfront payment.
However, since Tesco Mobile is a 50-50 joint venture between O2 and the supermarket chain, it will still collect half of the revenue from any customers it might lose. Tesco will also sell the 8GB model on a pay-as-you-go basis for 324 pounds (527.60 dollars), but this is only 1 pounds (1.62 dollars) cheaper than Orange and O2. Vodafone will become the fourth operator to sell the iPhone in January though their price tariff have yet to be announced.
(Agencies)
