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Christmas shopping list – turkey, crackers, wine, iPhone… December 11, 2009

Posted by kewroad in mobile, O2.
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Tesco has ignited a price war in the iPhones market over Christmas after announcing it will the launch the handset for £20-a-month on Monday.

Customers will have to fork out £222 on top of the contract for the standard 8GB model and £320 for the more popular 3GS 16GB version (think of the clubcard points).

Bargain hunters have already calculated the total cost to be £462 to own a standard phone, or £560 for the 3GS. With an “operator traditional” 18-month contract working out at £582 or £680 depending on the handset, significantly less than rival operator offerings.

This low price point combined with the retail power of Tesco both at home and abroad may propel the iPhone handset from a niche to mass market handset. Hints of this tipping point are already starting to show, with the announcement that Gumley House Convent School in Isleworth is trialling the use of the Apple phones as a teaching aid.

With developers becoming frustrated with the Apple App Store certification and categorization, could sheer numbers of users be a way for Apple to entice them back?

Zoe Worner

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