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News
Report: Apple & Orange Negotiate for French iPhone Price Cuts
Thursday, April 17th, 2008 at 4:00 PM - by Bryan Chaffin
French iPhone carrier Orange executives have been negotiating with Apple to cut the retail price of the iPhone, as German iPhone carrier T-Mobile and British carrier O2 have already done, according to a report from French newspaper Les Echo. At issue are slow sales of the iPhone in France, with Les Echo saying that Orange has sold just 100,000 units heretofore.
The newspaper reported that Louis-Pierre Wenes, executive director for France, and Alice Holzman, marketing manager for Orange, met with Apple COO Tim Cook in Cupertino. According to that report, the Orange execs wish to change their agreement with Apple to end revenue sharing with Apple, and to allow Orange to sell the iPhone to its customers at heavily subsidized rates, a business model used by every other handset manufacturer in France.
That said, the execs in question publicly denied such efforts to pressure Apple to change the model, saying, "there is no question of changing the economic model of the iPhone" and that "everything is going very well" (translation courtesy of Google).
Earlier this month, T-Mobile cut the price of the iPhone to €99, while O2 cut its price by £100 in the UK market. These price cuts have lead to heavy speculation that new 3G models of the iPhone are on the way, and that the carriers are wanting to clear out existing inventory.
Les Echo did not report a new price point for the iPhone in France.
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