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  5. Free iPhone deals 'stymied by long contracts'

Free iPhone deals 'stymied by long contracts'

O2’s decision to offer iPhones for free with selected contract deals has failed to prompt a spike in sales, it has been claimed.

Last weekend, the company, which has exclusive rights to sell the iPhone in the UK, unveiled new tariffs whereby the iPhone was available for free on £35 and £45 per month contract.

However, according to a report from mobile today, staff at O2 have intimated that the offer failed to attract the level of custom that had been expected.

The company’s workers blamed the slow take-up on the lengthy contract terms which are putting off cost-conscious customers.

An O2 employee said: “24 months is not an attractive [enough] offer, people have not been interested.”

O2’s decision to offer the iPhone for free was rumoured to have been taken to allow the company to get rid of its stockholding of the smartphones ahead of the launch of newer, rival devices.

A third version of the iPhone is due later this year, as are new high-end Android-powered phones such as the HTC Magic.

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