O2 Announces iPhone Contract Overhaul

UK Apple iPhone operator O2 has today announced it is to radically overhaul its tariff structure over the coming few weeks just three months after the product’s UK launch, fuelling speculation of sluggish sales and poor performance nationwide.

The new tariff structure to be introduced by O2 will see a threefold increase in the number of minutes and text messages offered on the basic £35 per month contract, whilst the larger £55 option will be reduced by £10 a month as part of the sweeping revision to the available contract terms.

Additionally O2 are also to introduce a £75 per month option for buyers, which will afford some 500 text messages and 3,000 minutes every month, representing its best value proposition since the launch of the iPhone some three months ago.

The move comes following a similar tactic in the US market, where the price of the iPhone was slashed significantly amidst growing speculation that sales weren’t quite meeting initial forecasts.

Despite the price cuts Apple maintain that they have to date sold 1 million units on top of their own initial forecasts, and the declining prices are designed to provide enhanced value to the consumer.

Customers already tied in to contracts will also benefit from the increased value terms, which will allow themto enjoy the same benefits as new customers opting for the iPhone within the UK phone market.

The iPhone was subject to much controversy with its release given the strong initial purchase price and long contract terms. However if Apple’s reports are to be believed, the iPhone looks set to be even more successful than at present.

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