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Vodafone follows Orange in iPhone gold rush

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Vodafone follows Orange in iPhone gold rush

Vodafone has become the third UK mobile phone network to secure the rights to sell the iPhone 3G S and iPhone 3G, thus setting the scene for a price war in the run up to Christmas.

According to a report from the Telegraph, the mobile telephony and mobile broadband provider signed a deal with Apple last night and are due to formally announce that they have won the rights to sell iPhones at a press conference today.

The news follows yesterday’s announcement from Orange that it will begin offering Apple mobile phones for sale later this year, thus breaking O2’s two-year exclusivity agreement.

Industry experts predict that the presence of three operators offering iPhones will drive significant price drops, with some pundits forecasting that price points could fall by as much as £100.

Steven Hartley, an analyst at research company Ovum, commented: "There will be a price war. Research shows that in every country where there is more than one operator selling it, it is cheaper.

"It could be very disruptive, but it depends how Orange play it. If they get really aggressive O2 will have to respond and a full-on price war could start."

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