Old news in an hour, but iPhone will be free on 02
by Mike Butcher
on June 9, 2008


I just got it confirmed from an O2 source (hat tip to Will Harris at ChannelFlip – you know why), that the UK 3G iPhone will be free on an 18 month contract to new O2 customers, but £100 for existing customers. Although announced today by Steve Jobs at the WWDC (see TechCrunch’s live coverage), the iPhone will ship to customers in the UK on July 11.

The news is pretty astounding. From going from a device which costs over £300 to virtually free at POS will supercharge iPhone sales in the UK and make it a real contender for mobile web startups as a platform. It will also suck out early adopters from other networks.

The news means O2 must be very confident of its 3G network. Its Edge network previously creaked under the strain of its 100k+ 2G iPhone users. iPhone customers use up to 50 times more data because of the power of the device and its data applications.

UPDATE: I now just heard that new iPhone customers will have to register on the O2 web site and iPhones will be sent out as O2 get them from Apple. They must expecting huge demand for this to be the case.

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  • http://middledigit.net Jonathan

    sweet. it shall at last be mine.

  • http://jasoncartwright.com Jason

    Whoa. Hope they’ll have enough stock…

  • http://www.thatcanadiangirl.co.uk Vero Pepperrell

    “They must expecting huge demand for this to be the case.”

    What, you mean like last time around where in the main Cambridge store, there were 3 of us queuing? ;)

    While I do think it’s going to be pretty awesome, I don’t think the take up will be SO HUGE that they need to manage it via online order.

  • http://davepress.net Dave Briggs

    I wonder how upgrades will work? I just got a cheap 8gb iPhone, but really fancy one of these new ones…

  • http://www.lyricalmedia.com/ John

    I think existing iPhone users should get a free upgrade personally!

  • http://blog.nsyght.com Geoffrey McCaleb

    @ Dave: Same as me, Ebay? But who will want a 2G iphone once the 3G ones come out? :)

  • http://davepress.net Dave Briggs

    @ Geoffrey – yeah hopefully it won’t come to that… other than the 3g bit, what’s the actual hardware difference between the old and new models?

  • http://www.noworkday.com Peter @ noworkday.com

    What about the current iphones?

    Will they get a lot cheaper?

  • http://www.retaggr.com/card/ivailo Ivailo

    Definitely getting one!
    Bye bye Blackberry – Hello 3G iPhone!

  • http://twitter.com/mikebutcher Mike Butcher

    Hardware differences are a 3G chip (obviously), slimmer form factor and GPS. Yes, not a lot hardware wise (though we don’t yet know if it’s running a faster chip – though it probably is).

  • http://www.thestarfighterpilot.com MartinSFP

    I’m guessing free on a £75 per month contract. More to buy on lower contracts, surely? I’ll be reserving mine for sure, anyway!

  • http://www.egosurf.org Jason Hyland

    I’m surprised O2 and CPW haven’t got some details on thier site yet – guess this is apple paranoia! Still, would be nice to get in the queue….

  • http://twitter.com/mikebutcher Mike Butcher
  • http://ooyes.net web design company

    At last, no more British people being ripped off… well until they realize what they’ve done

  • Joe Arson

    I’m almost certainly giving up my BlackBerry and paying that £100/- for a 3G iPhone. This is going to send iPhone sales soaring through the roof both in the UK and abroad…

  • Jamie

    Free on the £45 a month contract. Here are the tariffs.

    http://farm4.static.flickr.com/3100/2566151732_66994eb8f7.jpg?v=0

    This is a breakthrough.

  • http://v2.blakeburn.me.uk/?p=16 v2|blakeburn − iPhone 3G

    [...] New iPhone customers can get the handset for free! This entry was posted on Tuesday, June 10th, 2008 at 11:38 am and is filed under Apple. You can [...]

  • http://www.techfruit.com Tim-TechFruit

    That’s it, I am going to get one now.
    I thought the 2G iPhone at £300 was ridiculously expensive for a phone that really didn’t offer me more (as a phone) than my SE W880i and is much bigger. Yes the internet part is cool, but you can get a laptop for £300.

    I am happy to pay £100 for the internet functions and UI which is really what sets it apart from alternatives. Well done Apple and O2 for sorting out the product at the right price.

  • http://uk.techcrunch.com/2008/06/10/o2-confirms-free-iphone-deal-and-more/ TechCrunch UK » Blog Archive » O2 confirms free iPhone deal and more

    [...] of time today – covering the Being Digital conference – so here’s the release which confirms my story of last night: O2 to Launch iPhone 3G in the UK on July 11 O2 today announced that the innovative iPhone 3G will [...]

  • http://www.crunchgear.com/2008/06/10/new-iphone-free-for-certain-o2-customers-in-the-uk/ CrunchGear » Archive » New iPhone free for certain O2 customers in the UK

    [...] of £45 and up. The required contract is only 18 months, too, instead of two years. Mike Butcher of our TechCrunch UK site says… The news is pretty astounding. From going from a device which costs over £300 to virtually free [...]

  • William

    I have to hold up my hands – this time last year, and throughout the year – i have railed against the iPhone to my friends and family, for it’s price and lack of 3G, as a mere fashion icon phone. The same is true about many of thier products. But, last night changed my tune drastically. Apple produced form and function. O2 arent giving us a huge present for nothing; the contract remains relatively expensive, but it’s really not too bad. I was expecting a £150-£199 price bracket with the contract. As far as Apple is concerned I don’t really give a stuff about the camera quality, nor have I ever felt the drastic urge to send MMS (esp when data for email is included), so this really is a great phone for me. But i think, more than anything, there is now a sizeable community of developers, from my bank to online services. Perhaps it’s wrong, but there hasnt really been this widespread commitment. I just hope it lasts and the ‘fad’ doesn’t fade too quickly. Now all i need to do is say byebye to Vodafone

  • http://www.thecareermole.com Oliver

    …Any idea how long this will be exclusive to O2?

  • http://dooyt.com Personal Projects

    “iPhone customers use up to 50 times more data because of the power of the device and its data applications” – Mind-blowing
    -Deepa (dooyt.com)

  • Bob

    I heard from an O2 insider that the struggle with data is not on the radio interface, but actually on the microwave links they use to link many of the cell sites back to base. allowed them to quickly and cheaply deploy backhaul to sites, but is now haunting them

  • http://jonmulholland.com/2008/06/09/iphone-3g-second-coming-or-morning-glory/ iPhone 3G; ‘Second Coming’ or ‘Morning Glory’? | Jon Mulholland

    [...] the UK and rest of the world. We’re going to have to wait until tomorrow morning to find out, but if the rumours are true, and the new 3G iPhone costs the equivalent of $200 or even less for new contracts in the UK and elsewhere then it’s going to go absolutely supernova! [...]

  • http://www.besthandbags2011.com/Louis-Vuitton-Handbags-9414-c-5.html louis vuitton handbags online

    I am happy to pay £100 for the internet functions and UI which is really what sets it apart from alternatives. Well done Apple and O2 for sorting out the product at the right price.

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