The problem for Apple and the iPhone in Ireland
14/03/07 15:09
The choice of network in Ireland...
One of the most important decisions Apple will have to make will be to choose a network when they launch the iPhone in Europe towards the end of this year. There have been a number of recent rumours about their choice of network provider, and this is all the more relevant in the Irish market.
To date, O2 have embraced Apple products in Ireland, including them in their 02 Experience stores. The 02 Experience store on Grafton St in Dublin stocks a number of Apple laptops and desktop machines, along with a selection of accessories and software. It is unclear what would happen if Vodafone won the iPhone contract. The Irish mobile market could see a very unusual set of circumstances, with O2 stocking Macs and Vodafone stocking the iPhone.
In the US, Apple will launch the iPhone, through the already announced deal with Cingular. Both Apple and Cingular retail stores will stock the new iPhone and this model looks likely to be adopted in other markets. This business model points to Apple agreeing a deal with a single service provider, to leverage their technologies and to prevent the iPhone from losing some of its branding value and exclusivity. It is extremely unlikely that Apple will launch the iPhone in Europe and provide it to multiple networks. It also appears that no networks outside of O2 and Vodafone are in the running for the iPhone contract. This is mainly due to their pan-European position, something that Apple are likely to embrace, instead of negotiating individual country by country deals.
In the last few years O2 have developed this relationship with Apple Ireland, to the point that the O2 experience store on Grafton St is one of the primary outlets in Dublin. This may not be true in terms of turnover (we have no knowledge of the financials involved), but in the mind of the consumer, they see the 02 Experience store as an Apple store. Apple's lack of a retail presence in Dublin or any city in Ireland means that the only visual presence is that offered by 02, Spectra, 3G, and other third-party retailers.
In the end the decision will be a European one and it may not even take into account the Irish position. However the worst position for the Irish consumer would be if Apple decided not to include Ireland in the launch of the iPhone. If Apple choose Vodafone as its European provider, they could either launch the iPhone in Ireland, risking the established relationship with O2, or they could launch the iPhone throughout Europe, excluding Ireland, in an attempt to protect local existing agreement. We note that the current 3G brochure lists the iPhone as a coming soon product, seemingly jumping into a little early.
No announcement has been made yet around any such deal, but we watch the Irish situation with great interest.
Simon Spence/2007
One of the most important decisions Apple will have to make will be to choose a network when they launch the iPhone in Europe towards the end of this year. There have been a number of recent rumours about their choice of network provider, and this is all the more relevant in the Irish market.
To date, O2 have embraced Apple products in Ireland, including them in their 02 Experience stores. The 02 Experience store on Grafton St in Dublin stocks a number of Apple laptops and desktop machines, along with a selection of accessories and software. It is unclear what would happen if Vodafone won the iPhone contract. The Irish mobile market could see a very unusual set of circumstances, with O2 stocking Macs and Vodafone stocking the iPhone.
In the US, Apple will launch the iPhone, through the already announced deal with Cingular. Both Apple and Cingular retail stores will stock the new iPhone and this model looks likely to be adopted in other markets. This business model points to Apple agreeing a deal with a single service provider, to leverage their technologies and to prevent the iPhone from losing some of its branding value and exclusivity. It is extremely unlikely that Apple will launch the iPhone in Europe and provide it to multiple networks. It also appears that no networks outside of O2 and Vodafone are in the running for the iPhone contract. This is mainly due to their pan-European position, something that Apple are likely to embrace, instead of negotiating individual country by country deals.
In the last few years O2 have developed this relationship with Apple Ireland, to the point that the O2 experience store on Grafton St is one of the primary outlets in Dublin. This may not be true in terms of turnover (we have no knowledge of the financials involved), but in the mind of the consumer, they see the 02 Experience store as an Apple store. Apple's lack of a retail presence in Dublin or any city in Ireland means that the only visual presence is that offered by 02, Spectra, 3G, and other third-party retailers.
In the end the decision will be a European one and it may not even take into account the Irish position. However the worst position for the Irish consumer would be if Apple decided not to include Ireland in the launch of the iPhone. If Apple choose Vodafone as its European provider, they could either launch the iPhone in Ireland, risking the established relationship with O2, or they could launch the iPhone throughout Europe, excluding Ireland, in an attempt to protect local existing agreement. We note that the current 3G brochure lists the iPhone as a coming soon product, seemingly jumping into a little early.
No announcement has been made yet around any such deal, but we watch the Irish situation with great interest.
Simon Spence/2007
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