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iPhone's £1,250 price tag could open the door to hackers
Last updated at 09:22am on 19.09.07
Countdown: Apple's iPhone goes on sale in the UK on November 9
Apple and O2 have come under fire today as it emerged UK customers buying the eagerly anticipated iPhone could pay more than £1,250 over 18 months for it.
O2 will offer the phone from 9 November on tariffs of £35, £45 or £55 per month. Consumers will also have to buy the phone itself at a cost of £269, and will be forced to sign up for an 18-month contract.
"For customers it's an 18-month deal, and there's a fair usage policy on the unlimited internet access," said Matthew Key, the chief executive of O2 in the UK.
Today, experts warned the high pricing could lead to customers simply importing from the US - where they are on the market for $599 (£300) - and "unlocking" them to work in the UK.
Hackers have made free software available online to unlock the phone, allowing it to be used on any UK network, rather than just O2, which has signed an exclusive deal with Apple.
Will Findlater of gadget magazine Stuff said: "These software unlocks do work - we have done it, in fact, and the phone works perfectly.
"However, there is a risk that Apple will close the loophole leaving people with a phone that does not work.
"The pricing is high, so buying a US phone and keeping your existing tariff will certainly appeal to a lot of people. But you are getting what is effectively the ultimate gadget."
Apple chief executive Steve Jobs also said that unlocked iPhones will become a problem in the UK.
"I think we are playing a game of cat and mouse with these hackers - as they find a 'workaround', we will close it," he said.
He also admitted the phone was more expensive in the UK.
"We are adding on sales tax. And doing business here - in terms of transport and other costs - is also more expensive," he said.
Experts also warned that many customers would be forced to buy extra voice minutes for the contracts.
"One small niggle is that many users will have to accept fewer voice minutes," said Martin Garner of market research company Ovum.
"It is slightly more expensive than in the US, but some of this is because the UK price includes VAT where the US price does not."
Reader views (12)
Although I like Apple products it must be said that the company regards Britain as an easy target and apparently always charges customers more here than in any other market. Both iTunes and the Mac mail service are charged at the same number in pounds as in US Dollars. It is disgraceful and I will not buy the expensive iPhone for this reason.
- Ian Griffiths, Barnet
They've already cut the price by a third here in the U.S. since its launch, so you'd be wise to wait.
- Andrew, Philadelphia
Honestly have used one, it is good but not that good. Just buy an ipod touch and keep your current phone!
- Stuart, UK
Rip off Britain is alive and well. Bring on all those lovely green taxes, I can't wait!
- Steve, Hereford
I think I'll wait until they cut the price!
- Matthew, London
Sounds like exactly what I'm looking for!
- Danny, London
Love it - can't wait to have one
- Noel, London
That's 40% dearer calls then...
- Jay, London, UK
You'd have to be off your head to get it - it sounds completely over-rated and over-priced. I just don't understand why some people just HAVE to have the latest technology - especially when they probably can't even afford it.
- Diana, Edinburgh
Why would anyone want it? My phone has a 5 Megapixel camera, full WAN connectivity, GPS mapping, a suite of office applications and full speed GPRS, none of which the iPhone has, plus the iPhone costs twice the price, but I guess it's trendy because it's an Apple. There's one born every minute.
- Terry Roll, London
Having seen, and played with an imported, and unlocked, one, I must admit, it is a gorgeous machine.
However, like all things, it would be fun to play for, for a week or so, and then the novelty wears off and it just becomes 'your mobile' and nothing more.
I wouldn't mind if someone gave me one, but I don't think I would commit myself to the best part of a thousand quid to own a thief magnet. But good luck to those who really covet one.
- Trevor, Telford
It may be beautiful and have a pretty face but in many respects it is already underspecified and hugely overpriced. Only 8GB of RAM is not enough. A 2MP camera - not good enough. Closed environment - I want to use third party software. ound quality = nano? Not good enough.
I can get all the functionality of the iPhone with the new and excellent Sony Ericsson P1i.
- Paul, Harrow, UK
