Apple Won't Admit Drop In UK iPhone Sales

Mon, 14 Jan 2008

Apple has banned retailers in the UK from reporting sales figures for its much-hyped iPhone due to reports of a slump in trading over the Christmas period.

The company’s president Steve Jobs is likely to announce pan-European sales of the device tomorrow at the Macworld Expo in San Francisco, although no breakdown will be given for individual countries, which industry insiders have interpreted as a sign of market problems.

Although the recent Christmas period in the UK saw an increase in the number of mobile phones sold, each unit was individually cheaper than in previous years - highlighting consumers’ preference for simpler handsets for their communication needs.

Customers in the UK are continually being put off the iPhone, due to its high line rental cost and the top-end price tag of the handset, especially as the majority of handsets from rival firms are now being offered on a contract price plan for free.

The slump in UK sales has led to the firm warning network O2 and retailer Carphone Warehouse not to reveal the iPhone’s sales figures to investors, according to industry insiders

A senior industry source said: "The iPhone has not been a huge product for either O2 or Carphone. Particularly in the current market, no one wants to buy an expensive phone with a very expensive 18-month contract ."

In addition, employees at Carphone Warehouse stores are advising customers to stay clear of the iPhone and instead opt for similar but cheaper handsets, such as the Samsung F700 and LG Viewty.

Overall it seems the iPhone’s high price, long contract, and lack of 3G connectivity don't bode well for potential buyers and with a new range of similar handsets being introduced by rival mobile firms at a cheaper price, the iPhone’s steady fall from grace looks set to continue.

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