Dave Thorp's Blog

As we all know the Apple iPhone 3GS launches in just 5 days. And in my opinion it has already flopped before a single unit has been sold.

The reason being that the phone has been available for pre-orders on at Carphone Warehouse for 3 days now. When the iPhone 3G went on sale for pre order on both CPW and O2′s websites it sold out in a matter of hours. However 3 days on CPW are showing no signs of running out of stock.

Now of course that could simply down to Apple making much more stock available to cover the demand. However I think it’s more likely that the device simply isn’t selling. O2 have over priced it to new customers and alienated their existing customer base by failing to provide a reasonably priced upgrade path. The only people likely to be pre ordering a device which is basically the same as the 3G but a tad faster and with an extremely useful built in compass are the most die hard of Apple fanatics who must have the latest hardware as soon as its released.

Most normal people will simply have realised that it isn’t worth the price tag O2 have placed on it and it certainly isn’t worth locking yourself into a 2 year contract which in all likliness will result in you missing the next iPhone release from Apple which in all likliness will be a much bigger step up in spec than the 3GS is

Carphone warehouse are now taking pre orders for the iPhone 3GS. Due to O2′s stupid upgrade strategy only new customers or people taking additional contracts (which I have to say I am considering) will be able to pre order.

LINKY

Update 12/06/09 11:29 – CPW are still taking pre-orders and just e-mailed me to inform me they were (I already knew of course). Oddly pre-ordering has been open for a day now. The iPhone 3G sold out on pre-orders on CPW and O2 online in hours. Can’t imagine why this new model isn’t having the same impact

Well O2 can’t even handle constructive criticism. O2 forums have been buzzing since the iPhone 3GS saga started and I made a post which included the following paragraph.

What bothers me more is that O2 seem to be doing everything they can to quell sales. Ok fair enough there is a very valid argument for not allowing existing customers but O2s pricing for new customers is frankly stupid compared to the 3Gs original pricing and isn't going to attract huge sales (who wants a phone on a £75 tariff or on a 24 month contract... a few people will but not many)

This morning I get a PM from O2′s moderators saying they have removed that passage. The reasons quoted are

This is because the comment you have made contained general criticism of O2’s products or services. You are more than welcome to share your experiences with O2, whether they’re positive or negative. Doing so may allow other users to provide support as well as providing us with insight to areas that are going wrong.

What we cannot accept are widespread, malicious or gratuitous criticisms of O2 as a company or a brand.

Now I can’t see anything malicious or gratuitous in that section rather than a widely accepted fact that O2s sales are going to suffer not just because of the upgrade policy for existing iPhone owners but also because the pricing for new customers is ludicrous compared with the pricing last year. Not only that but who will want to lock themselves into a 18 month or 24 month contract knowing full well that they wont be able to upgrade onto the next model which will be out in 2010. No one that’s who.

Still if O2 can’t handle the truth then perhaps they need to review their pricing and upgrade policy before their sales take too much of a hit and Apple consider offering the phone to other networks. I’m sure Apple are watching all the negative press on twitter and in the UKs media with interest!