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Pricing the new iPhone

Geoff Riley

2nd June 2008

“Apple’s next-generation iPhone could be available in Britain for about £100 next month, as the computer company adjusts its strategy to boost sales.”

The new iPhone offering 3G internet connection and much faster download speeds is probably only a couple of months away from hitting the UK retail market. Today’s Times carries a super short article on the increased flexbility that is likely to be given to mobile phone operators when deciding how much to charge for the handset. It looks like a classic case of the mobile service providers being willing to part-subsidise the price in a bid to lock-in customers to lengthy contracts. As always, what matters is the size of the installed base from which extra revenues can flow in the months and years ahead. This piece is well worth reading.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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