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O2 Offered iPhone Contract in UK
davidmcg writes "There has been speculation on who will provide the service for iPhone in the UK. Now, the answer has been provided. It seems that O2 has been offered the contract to provide telephony services in the UK for the iPhone. It seems that the iPhone should be available in the UK in time for Christmas. O2 have refused to confirm or deny these reports, so is it yet another unconfirmed iPhone rumor or is it fact? We can only wait to find out."
I would have to imagine there are two reasons.
Like you said, the visual email thing requires a good deal of vendor support. And I imagine a vendor is only going to put forth the effort required if they see a substantial return on that investment.
Likewise, there's a very good possibility that AT&T has paid Apple for exclusive rights to the launch (a two year term). That contract, which could be worth a lot of money, is probably worth more to Apple than any kind of "good will" that might change the market or the sales they missed because of it.
All that being said, in two years they will likely make it "open" and you'll be able to get your iPhone from any vendor. We'll see though.
-David
If someone is willing to fork out $500 on a phone, they are much more likely to also want top of the line features (ie 3G). Even Apple can't compete *solely* on their brand name. They actually do have to be competitive on the features they offer, especially in the higher end of the market.