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French iPhone discount war heading for the UK?

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French iPhone discount war heading for the UK?

In the run up to Christmas the availability of the iPhone on multiple networks has inspired some competition in France to discount the phone as much as possible and many are speculating that a similar situation could soon occur in the UK.

A court ruling forced the ending of Apple's exclusivity deal with Orange in the French mobile market, allowing competitors SFR and Bouygues to start selling the popular smartphone. Orange consequently cut £81 from the cost of the iPhone 3G 16GB in order to compete.

Compared to the current UK prices the French networks are all underselling one another and our own domestic networks. These prices are of course in addition to the mandatory fixed term contract of around £35, but that is to be expected in any region.

In the New Year Orange, Vodafone, Tesco and O2 will all be offering the iPhone to UK customers and many expect the pricing strategies of these networks to fall in line with their French contemporaries as they all try and court new customers with offers of the cheapest iPhone deals around.

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