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Thursday, 20 August 2009

iPhone set to spread it's wings...

With the 2 year exclusivity deal with O2 set to come to an end next month, the iPhone is set to yet again spread it's far stretching wings and expand upon it's already fruitful market. With the rights of the iPhone 3G being opened up to both Orange and T-Mobile, the Apple iPhone is set to further it's stronghold within the UK mobile phone market. Already holding a dominant position within the market, the new opportunity for the iPhone to expand and reach even more is one Apple will most definitely be relishing.

The new opportunities for Apple do not merely lie in the consumer markets, with Orange having a stronghold in the corporate side of communications too. This will undoubtedly be a key factor in the continued drive for growth and success for Apple and it's grip on the mobile communications market. In essence this is the second wave of attack from Apple in the UK market. Opening up the exclusivity of the iPhone now increases their relative target market as well as it's presence on the shop floor. By firstly gaining a larger presence in the high street the product is set to interact with more consumers, and benefit from more retail space. Secondly, it will now become a viable and competitive option for network loyal customers, who did not want to move from their respective network providers over to O2.

In addition to this, the new competitiveness within the market will help create new offerings and better value for money for the consumer, which should therefore help reduce the price and costing of the iPhone. This in-turn will make the iPhone gain a larger target market again, with it's lower price attracting more consumers, and therefore the iPhone tapping into more than just the top end of the market.

However, what must be stated, and considered is the fact that it's only the iPhone 3G that is being opened up to Orange and T-Mobile. O2 still remains the sole provider of the iPhone 3GS, the newer, more refined iPhone. This is a very important factor to both O2 and Apple, as this still keeps O2 at the forefront of the iPhone market, and most importantly, the exclusivity of the 3GS allows O2 to maintain it's own pricing strategy, with relatively low concerns in regards to Orange and T-Mobile.

So, after the dust has settled, and the iPhone becomes more freely available, and consumers see prices dropping, and network providers get a more level playing field, there's only one true beneficiary of this, yes, you got it...Apple.

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