3G Apple iPhone creates losses on unsold O2 & T-Mobile stock

With the 3G Apple iPhone expected this June we are hearing that the next version of the iPhone is creating losses on unsold O2 and T-Mobile stock, the cell phone companies significantly overestimated how many of the first-gen phones would sell in Europe. Those mobile operators may have had the exclusive contracts but this may also cause a big loss in the pocket if they have really over-ordered on a big scale and the question is will they keep these exclusive contracts on the 3G versions.

The “significant” losses on the early model iPhones may not be as bad according to Kathryn Huberty, an analyst at Morgan Stanley. Huberty said that some of the losses might be recouped from the monthly revenue they get from customers who bought the first devices. Now the phone users who brought the first-gen iPhones like myself will have to have a device that will lack not only in 3G but also many other improvements (better camera, bigger hard drive, faster etc). You would think we would wait for the next-gen and not buy the first device released, but I am one of those that never seem to learn, I did it with the first iPod and again with the iPhone.

The marketing hype around the iPhone made mobile executives in Europe over-excited and this has led to O2 slashing the price of Apple’s iPhone by a third (from £269 to £169), although its been said this is “part of a well thought out strategy of maximising the success of the iPhone in the UK”, I am sure it’s more to clear stock for the upcoming 3G phone. T-Mobile were even more drastic in their price cut, which took the iPhone price from €399 to €99.

Were you smart enough to not buy the iPhone and wait out for the much-improved 3G version?

Source: Read