O2 to lose its hold on the iPhone

O2, currently the only UK mobile provider to offer the iPhone will lose its exclusive deal in September, when its current 2 year agreement with Apple comes to an end. After which both T-Mobile and Orange will stock the iPhone 3G in the UK, but O2 will keep exclusive rights to Apple’s new flagship phone the iPhone 3GS.

This can only be good news for people who want to purchase an iPhone; the competition in the market should bring down the prices of the currently very long, expensive contracts and handset costs to a more acceptable level. Many people agree that O2′s monopoly on what is a very desirable product, held back its market share which from September should grow quickly. We can expect good deals from Orange and T-Mobile once they are able to sell the iPhone, as they try and attract new customers.

This will however be familiar territory to T-Mobile and Orange, both offering the iPhone elsewhere with Orange being the first network to stock the iPhone around Europe while T-Mobile has delivered the must have phone to other European countries which Orange didn’t reach.

It is of course clear why Apple allowed this to happen, more competition means lower prices, but it also means more sales as the prices fall within reach customers who couldn’t justify the current outlay. It also means that with two new huge companies selling their product Apple’s phone will have more marketing and push than ever before. We just hope that Apple is prepared for the obvious surge in uptake on their already very popular product. We only have to cast our minds back to when the iPhone was released, to recall a time where demand outstripped supply and Apple struggled to make them fast enough. Hopefully they have learned their lesson!