Vodafone follows Orange in UK iPhone deal
Vodafone has announced that it will join Orange and 02 in selling iPhones in the UK.
On Monday Orange, announced it will sell iPhone 3G and 3G S models across its distribution network, effectively ending O2's tenure as the market’s exclusive iPhone carrier.
Vodafone announced yesterday that it would launch both models in the UK and Ireland in early 2010.
Both operators already offer the iPhone through affiliates in international markets, with Orange offering the handsets in 28 countries and territories, and Vodafone offering them through 13 of its subsidiaries. But they have never had the rights to sell iPhones in the UK.
Ovum senior analyst Steven Hartley said the development was sure to spark a price war between the three operators. As they will be unable to compete on handset prices due to Apple's sales terms, they will instead compete based on tariffs.
“For O2, the lapse signifies the end of the party,” Hartley said, but added that O2 still has two key advantages.
“Firstly, it has 100% UK iPhone market share,” he said. “Anyone desperate to get the iPhone will already have one and be locked into a contract. Secondly, this was always inevitable so O2 has had time to plan a response.”
O2 told the UK Press Association that it had always known the exclusive deal was for a limited time, and said it would continue to sell and support iPhones in the future.