BREAKING NEWS: Apple just released a statement saying the iPhone now comes in a new 16GB model for £329 (inc VAT), joining the 8GB model for £269 (inc VAT). The iPod touch now comes in a 32GB model for £329 (inc VAT), joining the 16GB model for £269 (inc VAT) and the 8GB model for £199 (inc VAT). My take on this is that this is not the move which will convince more UK consumers, who are used to cheaper subsidised handsets, to get the iPhone. O2 already markets the 8GB Nokia N95 for free with a contract, and that includes GPS. However, it does position Apple for a price-cut on the 8GB iPhone - just not soon enough for some.

(Posted Earlier): Will a 16GB iPhone launch in the UK today? That’s the view of gadget blog Engadget which has a tip-off that O2 staff in the UK have been warned that the 16GB iPhone will launch today at 1:30pm UK time. Price: £329 (likely to be $599 in the US like the original 8GB iPhone). The 16GB iPod Touch is certainly small enough to suggest that a 16GB iPhone would be perfectly possible. I’ve put in a call to 02 but we’ll see after 1.30pm I guess. But will it be enough to stem problems over sales of the high-priced mobile? I doubt it - it seems UK customers just don’t like paying through the nose for a mobile, even if it has more memory.





So where’s the 160Gb iPhone and iTouch?
To give sales a boost, they’d be better launching the 16GB model at £269 and reducing the 8GB model to under £200. That’ll happen in time but it’d be nice to happen right away!
Also note the addition of the 32gig iPod Touch
http://www.apple.com/ipodtouch/
Apple will sell through the 8GB and move the 16GB down to the price point of £269. I’d say within 3 months. Apple always does this.
Jamiroquai - Sure, I know, but 269 is still a big wack for a mobile, no?
329 is a big wack for a 32Gb music player, isn’t it? Now if it had a mic, an SDK, Skype, bluetooth A2DP, GPS then perhaps.
Mike, the iPhone is selling reasonably well. I can see a £199 price point in time. But the whole point is that it is perceived to be the luxury device within the market.
Imagine at Xmas with a £199 price point, 32GB of memory, 3G, the SDK in full swing and a 5-7mpx camera. All of sudden you have an incredibly compelling device. How does Nokia compete against that package? Keep ramming more features onto the already shoddy framework that is s.60 and its N-series devices complete with clusterfuck of a UI?
Jamiroquai - Er, I think you have a point! :-). Although ideally apple should add a front-facing camera, GPS, a camera Flash, and decent Bluetooth. But Nokia’s biggest issue is it’s UI which just can’t cope now I think.
@Mike - right. Adding camera flash, better bluetooth profiles etc is the really easy stuff. Nokia has to really rethink the UI and OS of its top of the line phones. A much more significant undertaking.
What’s really annoying is that I have an iPhone I brought with me from the US, and there is no way to just sign up for a contract through O2 and use my current hardware - even though it roams just fine here…and of course, since Experian and others don’t link credit histories they have from the US into the UK system, even to get a contract I’ll have to plonk down a large deposit because according to any of the companies I’ve talked to -I have no credit history.
Sean - Welcome to Britain!
@Mike - and despite all this I’m really happy to be here