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Carphone head dashes hopes of iPhone 3G S price war

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Carphone head dashes hopes of iPhone 3G S price war

UK consumers looking forward to an iPhone 3G S price war are likely to be disappointed, the head of Carphone Warehouse has warned.

Last week, it emerged that Orange and Vodafone are soon to join O2 in selling iPhones, having hitherto been prohibited from doing so by O2’s UK exclusivity arrangement with Apple.

The news had raised hopes that increased competition among providers would drive down prices for the handsets in time for Christmas.

However, Andrew Harrison, Chief Executive of Carphone Warehouse, has predicted that the need to safeguard profit margins means that networks will not cut prices as much as is being hoped.

He told the Times: “I am not convinced there will be a price war. That is a game that only leads in one direction and that is all of them losing. This battle will be fought on other fronts.”

Orange is set to begin selling iPhones in December, with Vodafone due to follow early next year.

Since Orange made its announcement regarding the handsets, it has signed up 125,000 people for iPhone email updates ahead of its appearance on the network.

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