28 September 2009 | Author: D. Warburton Search Copywriter

Orange to sell iPhones in the UK

It seems that a new agreement with Orange has ended O2's exclusive deal with Apple as the UK's sole provider of the iPhone.

Orange has told its network subscribers that they will be able to buy their iPhone offering at an unspecified date "later this year," according to BBC News. Principle analyst of Informa Telecoms and Media, Dave McQueen stated that "pricing will be key" to determining Orange's success.

In February, O2 reported that it had sold more than a million iPhones in the UK since 2007 through its exclusive deal with Apple, but the figure is expected to have increased significantly following the launch of the latest iPhone 3GS in June, which caused many suppliers to run out of stock. The popularity of the iPhone has seen O2 acquire subscribers from other networks eager to embrace the smartphone technology, but the introduction of the Orange iPhone is expected to provide some tough competition.

Orange currently offers the iPhone in 28 countries and territories, and recently announced plans to merge its UK network with T-Mobile, operated by Deutsche Telekom. If the merge goes ahead, it will see Orange become the UK's largest mobile phone provider, holding approximately 37 per cent of the market share.

However, O2 is more than prepared to stand its ground against the new competitor. The network will continue to supply iPhones in the UK, in addition to its own arsenal of iPhone rivals. These include the Palm Pre, which will be available exclusively to O2 subscribers from 16 October and has been described as an "iPhone killer."