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France Telecom's CEO: Apple iPhone's price could be scaring away buyers in Europe

Posted: , by Alan F.

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France Telecom's CEO: Apple iPhone's price could be scaring away buyers in Europe
According to France Telecom CEO Stephane Richard, the high price of the Apple iPhone is scaring away potential buyers of the device in Europe. Richard says that European consumers are no longer looking to buy the latest and greatest handsetS and instead are looking to save money on cheaper data plans. The executive says that we are in a period of changing customer behavior and Richard's own company has cut rates by 25% over the last three years. The cheapest plan it offers now runs the equivalent of about $26 USD a month and offers free texting and talk and includes 3GB of data. That is about half the price of T-Mobile's $50 plan which gives customers unlimited talk, text and 500MB of data.

The Apple iPhone is too expensive for many European phone buyers

The Apple iPhone is too expensive for many European phone buyers

Without a subsidy from a carrier, the Apple iPhone runs about the equivalent of $600 USD in Europe, making the phone too expensive in the region. Richard says that this will become apparent when the seventh iteration of the Apple iPhone launches later this summer, as expected. "There are fewer early adopters, and probably with the next release of the iPhone this will be evident," Richard said. "Selling a phone for $600 is getting more and more difficult."

Richard is making changes to his own company changing the name to Orange, a more popular brand that France Telecom acquired in 2000. Mobile service plans were cut in price by 10% last year at France Telecom with an additional 10% to 12% expected this year. France Telecom also added its own low priced service called Sosh. With this service, customers bring their own phone, agree to receive limited customer service, and get a 40% lower rate for the comparable service from Orange.

source: Bloomberg

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posted on 06 Apr 2013, 03:27 8

1. Timmehor (Posts: 599; Member since: 09 Mar 2013)


Oh really?! Who knew?! (sarcasm intended)

posted on 06 Apr 2013, 07:50 6

21. TheLibertine (Posts: 484; Member since: 15 Jan 2012)


If you think it's something obvious, i have to disagree with Stephane Richard and you.

Honestly - there is not that much price difference between the latest HTC/Samsung/Sony flagship and an iPhone. The free retail price for an Samsung Galaxy S4 in Germany is listed at 629 €, while 609 € gets you the iPhone 5 16 GB.

So bury that "Android is cheaper" myth, it applies to midrangers only. If people prefer Android flagships, that's because they find them better.

posted on 06 Apr 2013, 08:00 10

22. vangeodee (Posts: 10; Member since: 13 Jan 2013)


Galaxy S4? The S4 hasn't even been released yet and also note that the S4 will be a true HIGH-END/LATEST device. the iPhone 5 is months old already and it's price is still mingling with the price of the upcoming Smartphone of the year.

So yeah, I can see why Europeans find the iPhone expensive, so little for so much. heh

posted on 06 Apr 2013, 08:17 2

26. TheLibertine (Posts: 484; Member since: 15 Jan 2012)


The iPhone retail price started at 679 € when it came out. 629 and 679 is about 8% difference.

posted on 06 Apr 2013, 11:23 7

33. vangeodee (Posts: 10; Member since: 13 Jan 2013)


compare specs, features, screen size, battery size and the inclusion of an sd-card slot. that 8% is only a difference in number, if you compare the difference in the device itself, you will definitely see why Android is cheaper.

posted on 06 Apr 2013, 11:49 7

34. tedkord (Posts: 4305; Member since: 17 Jun 2009)


There isn't a difference in price between the iPhone and flagship Android phones - but there is a sizeable difference in what they offer, and people are starting to realize that.

They're seeing that the iPhone has basically been static, while Android has been evolving and adding features at a frantic pace, and has zoomed past iOS.

People who can afford either are more and more choosing Android, because they're willing to pay more to get more, but why pay more to be limited and get less?

posted on 06 Apr 2013, 13:18

43. TheLibertine (Posts: 484; Member since: 15 Jan 2012)


That's basically what i said in the last sentence of #26.

posted on 06 Apr 2013, 14:54

48. Aeires (unregistered)


Shhhh, Ardent might hear you say that.

I believe it's not so much about overall pricing, it's about getting the most bang for the buck. A lot of the flagship Android handsets offer more than the iPhone does. "It just works" doesn't work any longer as a catch phrase because Google has done wonders in making Android fast and smooth.

posted on 06 Apr 2013, 16:25

51. tedkord (Posts: 4305; Member since: 17 Jun 2009)


And Apple has stumbled quite a bit on the just works front.

posted on 06 Apr 2013, 18:41 1

55. Timmehor (Posts: 599; Member since: 09 Mar 2013)


So true, the S3 is still more in Australia than the Lumia 920. The Galaxy's are pretty expensive phones, I would put an iPhone first because of it premium build/design. But design is just a preference ;)

posted on 06 Apr 2013, 03:29 4

2. Droid_X_Doug (Posts: 5542; Member since: 22 Dec 2010)


Europe is facing another recession. It is only natural that consumers become frugal.

posted on 06 Apr 2013, 06:08 4

12. doejon (Posts: 317; Member since: 31 Jul 2012)


not realy. the other companies have much more to ofer for a lower prise than the rotten fruitcamp

and dont tell me ohhh the price is the same - yeah its the same on the first
rls date but a month later u can see..

posted on 06 Apr 2013, 03:44 5

3. jsdechavez (Posts: 700; Member since: 20 Jul 2012)


Even the carriers are feeling the effects of selling overpriced iPhones. It's not bringing back the promised profits of buying expensive phones. Could be the reason why US carriers are pulling out of the free phone plans. No prob in many countries where almost every phone is sold unlocked, yep, no subsidies.

posted on 06 Apr 2013, 04:05 15

4. TechBizJP08 (Posts: 494; Member since: 25 Mar 2013)


If iPhones sells their product at higher price. Bring something amazing then people will buy the stuff. But lately they are being overshadowed by Android, giving more goodies than iOS with lesser price. They changed their mind. Going Android might be the best choice. The thing is, Apple's Magic is not there anymore. Less Innovation and more price? Who will buy the stuff. Don't hate me, its just my opinion. ;)

posted on 06 Apr 2013, 07:27 8

17. therealestmc (Posts: 129; Member since: 23 Jul 2012)


That's BS. How is the iphone anymore expensive tha, say, the galaxy note 2, which costs $970 in Germany? That's how much I paid for mine from Deuchtelekom. Smartphones are just too expensive, period. Not just iphones.

posted on 06 Apr 2013, 08:04 6

23. vangeodee (Posts: 10; Member since: 13 Jan 2013)


I thumbed you up because of the "Smartphones are just too expensive" line

but replying to your Galaxy Note 2 - iPhone comparison, the price of the GNote 2 justifies the features and things that come with it. I dont know how much the iPhone 5 is in Germany but let's say $850 or so, would you pay that much dough for a phone that doesn't even have bluetooth, micro USB, SD card slot, removable battery and a 4" screen?

posted on 07 Apr 2013, 00:58

58. Timmehor (Posts: 599; Member since: 09 Mar 2013)


Apple have lost their magical mojo. They give nothing back for their prices.

posted on 06 Apr 2013, 04:17

5. xperiaDROID (limited) (Posts: 5075; Member since: 08 Mar 2013)


Of course, Euro is scary, just compare Indian Rupees with Euro.

posted on 06 Apr 2013, 05:46 10

10. sorcio46 (Posts: 394; Member since: 27 Jul 2011)


India has too many poors (hundreds of millions) and people that are even worse condition...

The problem here in Europe has nothing to do with our money, just at how much is stupid Apple to start selling the 16Gb iPhone 5 at over 700€ !

posted on 06 Apr 2013, 09:44

29. xperiaDROID (limited) (Posts: 5075; Member since: 08 Mar 2013)


Please read my reply to Nikolas.Oliver (Comment #28).

posted on 06 Apr 2013, 11:51 2

35. tedkord (Posts: 4305; Member since: 17 Jun 2009)


India is in Asia, not Europe.

posted on 06 Apr 2013, 07:35 3

18. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


europeans are MOSTLY RICH, except those in the south-east area (Greece, Albania, Israel) just look at their capita, mostly the scandinavia area (Norway, Sweden, Finland, Denmark) it's not because europeans can't afford it, they can, but they think they don't have to shell out $600 for an iPhone, THAT SAID, iPhone holds it value longer than another phones, an used iPhone 4 still costs roughly $300-$400 on ebay, that's such a good price for a 3 years old Phone

posted on 06 Apr 2013, 09:42

28. xperiaDROID (limited) (Posts: 5075; Member since: 08 Mar 2013)


I know I don't usually ask this, but, who thumbed me down?

I'm just saying that (€) Euro is scary, everything is expensive there, I'm comparing Indian Rupees (र) and Euro (€) is because in India, everything is cheap compared to most currencies out there including Euro (€).
1€ = $1.30
1र = $0.02
Can you see the difference?

posted on 06 Apr 2013, 10:07 1

30. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


One does not simply, Comparing Euro with Indian Rupees

posted on 06 Apr 2013, 11:52 4

36. sorcio46 (Posts: 394; Member since: 27 Jul 2011)


"everything is expensive there"

Cause the cost of life is higher here compared to to countries of the second and third world?

Look at the salaries in Europe and India, in india is way lower and many people there are at the limit of the starvation.

posted on 06 Apr 2013, 12:01 4

38. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


it is expensive due to the Value Added Tax which can up to 25%, so that the government can build their country, In india, why do we have to pay tax when the road is a complete mess ?

why is the cost of life higher in first world countries? if the cost of life in the first world is as low as it is in third world, well then, there would be lots of inflation since the amount of money that is circulating is higher than the amount of items available,

That said, gadgets (smartphones, tablets, pcs, etc) are generally more expensive in third world, why? because the government doesn't want their country to be bombarded with imported products

posted on 06 Apr 2013, 12:19

41. xperiaDROID (limited) (Posts: 5075; Member since: 08 Mar 2013)


Urghhhh............don't talk about tax, especially government tax. In my country, taxes are getting higher and higher, like fast food restaurants, shopping centres. Even buying a smartphone includes government tax, I just hate it when I look at the recipt.

In India, you don't even need to afraid about taxes...........

posted on 06 Apr 2013, 16:48

52. sorcio46 (Posts: 394; Member since: 27 Jul 2011)


Where I live taxes on EVERYTHING you can purchase are 22% and by December they will be the 23%

posted on 06 Apr 2013, 23:30

56. xperiaDROID (limited) (Posts: 5075; Member since: 08 Mar 2013)


Geez........that's scary, taxes are everywhere!

posted on 06 Apr 2013, 12:03

39. xperiaDROID (limited) (Posts: 5075; Member since: 08 Mar 2013)


True! I agree with you!

posted on 06 Apr 2013, 12:08 1

40. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


the states is an exception, some third world countries has much higher cost of life then in the states, in my country, foods, especially the dairy ones, costs much much higher then in the states, 2 pounds of onion cost $8 here,

posted on 06 Apr 2013, 12:25

42. xperiaDROID (limited) (Posts: 5075; Member since: 08 Mar 2013)


Lets talk about smartphones, the Xperia Z which I've bought, costs $719.21 when converted from my country currency. Oh, and don't forget about government taxes, OH MY GOD!!!

posted on 06 Apr 2013, 05:03 6

6. boosook (Posts: 913; Member since: 19 Nov 2012)


$600? It costs much more! The Apple store in Italy sells the iPhone from €729 (16gb) to € 949 (64gb), this means from $946 to $1232. It's true that we have more taxes, but since a Galaxy S3 sells for €400 on Amazon.it, one wonders why pay almost twice the price for a smartphone that does more or less the same things in the same way (an has a smaller screen).
So it's true we're in the middle of a recession here, but it's also true that maybe we're not so stupid! ;-)

posted on 06 Apr 2013, 05:48 2

11. sorcio46 (Posts: 394; Member since: 27 Jul 2011)


Exactly, with the Nexus 4 sold @ 349€ in France, Germany and Spain. An the new GS4 @ 699€ same as the new HTC One compared to the 700+€ for the 16GB iPhone 5...

posted on 06 Apr 2013, 06:54 2

13. CanYouSeeTheLight (Posts: 735; Member since: 05 Jul 2012)


In my country iPhones cost 689€ carrier locked which is about 890$ and 849€ unlocked which is about 1100$ not to mention the 32gb version which cost 999€ and about 1290$, now figure out why people don't buy iPhones, in my country they are indeed overpriced.

posted on 06 Apr 2013, 07:37

19. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


the iPhone is usually more expensive in the third world, in brazil, iPhone 4 16gb costs a hefty $800, let alone iPhone 5

posted on 06 Apr 2013, 07:39 2

20. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


keep in mind though, apple products generally hold its value longer than another phones,

posted on 06 Apr 2013, 08:08 4

24. vangeodee (Posts: 10; Member since: 13 Jan 2013)


because there isn't a lot of successors to the iPhone. Since 2007, how many iPhones has Apple released? Compare that number with the number of devices Samsung has released since the original Galaxy S.

you also said that the iPhone 4 fetches $300-$400 on ebay, that's because people either want to get back as much money as possible from their original purchase or they're smoking weed.

posted on 07 Apr 2013, 00:02

57. iushnt (Posts: 604; Member since: 06 Feb 2013)


I need good features
. If I need valuable product to backup myself then I'll buy some gold.. However, I don't think iPhone will be much valuable in future..

posted on 06 Apr 2013, 05:05 1

7. rusticguy (Posts: 2820; Member since: 11 Aug 2012)


Chinese Phones will make things more and more difficult for everyone in coming years ... not just apple. How is Nokia any different. 48% Gross margin on a phone from Samsung? That's ridiculous.

posted on 06 Apr 2013, 05:18 3

8. StreetNerd (Posts: 700; Member since: 08 Dec 2010)


i have friends who pay 70,- EUR/month on a 2yr contract just to get a iphone 5 lol'

while I pay 25,-EUR/month on a 2yr contract for the Lumia 920 :')

200 minutes/month + unlimited data

posted on 06 Apr 2013, 05:33 2

9. TheMan (Posts: 373; Member since: 21 Sep 2012)


Nothing has changed. The value of iPhone (as in performance for the price) is lower than that of comparable smartphones, the iPhone brand isn't as strong outside the US (while Nokia and others are stronger), and there's greater downward pressure on service costs in Europed (which is why it's always been so much lower than in North Am, the highest on Planet Earth).

In short, this is old news (except for the complaint itself).

posted on 06 Apr 2013, 06:54 3

14. Kreft (Posts: 82; Member since: 27 Dec 2012)


Good. Give it a bit. iOS will continue to drop, android and wp will continue to go up.

posted on 06 Apr 2013, 07:26 2

16. jbreault (Posts: 25; Member since: 04 Mar 2012)


apple is on its way out and when that happens you'll see the prices fall fast they are losing market share to android faster and faster. and apple fan-boys will tell me i am wrong but look at year to year market share

posted on 06 Apr 2013, 08:10 1

25. InspectorGadget80 (Posts: 6148; Member since: 26 Mar 2011)


Because apple are a greedy company plus the euro makes it more expensive. Just get the htc one xperia z &the or the gs iv people of europe.

posted on 06 Apr 2013, 09:03 6

27. darkkjedii (Posts: 10134; Member since: 05 Feb 2011)


Drop your prices apple and make your device more appealing. As consumer behavior changes so must merchant behavior, or risk becoming undesirable.

posted on 06 Apr 2013, 10:56 5

32. lyndon420 (Posts: 1688; Member since: 11 Jul 2012)


Well said dark.

posted on 06 Apr 2013, 14:03 3

46. darkkjedii (Posts: 10134; Member since: 05 Feb 2011)


Thanx Lyndon

posted on 06 Apr 2013, 11:56 3

37. tedkord (Posts: 4305; Member since: 17 Jun 2009)


That's not Apple's MO, though. Since the dawn of the PC, they have simply relied on the rabid fans who delusionally insist that the platform is faster and better, despite the evidence.

posted on 06 Apr 2013, 14:02 1

45. darkkjedii (Posts: 10134; Member since: 05 Feb 2011)


Time to change their MO

posted on 06 Apr 2013, 15:31 1

50. lyndon420 (Posts: 1688; Member since: 11 Jul 2012)


"Apple's way or 'your' way"? ®©

(Come on Google I want to see this in some aggressive ad campaigns for Android)

posted on 07 Apr 2013, 08:31

59. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Hey Lyndon I see you using my ™®© symbols™ ©°°L

posted on 06 Apr 2013, 10:23 3

31. lyndon420 (Posts: 1688; Member since: 11 Jul 2012)


Could be the products offered. The iphone isn't all the hype it used to be anymore. It has to be more than just price alone.

posted on 06 Apr 2013, 13:35

44. mariosraptor (Posts: 108; Member since: 15 Mar 2012)


600 dollars is cheap. in Greece it costs 739 euro for the 16gb. lol

posted on 06 Apr 2013, 15:22

49. lyndon420 (Posts: 1688; Member since: 11 Jul 2012)


Orange is gonna have apples. Ain't that a peach. Or is it lemon?

posted on 07 Apr 2013, 15:08

60. darkkjedii (Posts: 10134; Member since: 05 Feb 2011)


Peamon or a leach

posted on 06 Apr 2013, 16:56

53. das22 (Posts: 1; Member since: 06 Apr 2013)


I've just registered to comment on this.
That article is utter s**t, almost everything about these infos are untrue. Oh yeah, and i'm french so i think know better.
Actually the provider (france telecom) has NOT cuts the rates by 25%. More like increasing everything by 25% time-to-time since the last 10 years
"Without a subsidy from a carrier, the Apple iPhone runs about the equivalent of $600 USD in Europe"
what does that even mean ?
the iphone 5 price is 739 EUROS (at france telecom probably more like 800), apple likes converting dollars in euros and then in dollars and finally in gold, not a news there thats how they operate their convertings rates since they became a Bank.
Orange wasn't "acquired" by francetelecom, it was created by it to be his own subsidiary...
The ONLY reason of the cut prices is because a fourth player came on the market and litteraly BROKE all their f**king trusts (they even get comdemned by justice for that before) .
when i look at the plans prices tags in usa i'm like whaaaaaat
they charge you 70-90 $ for a simple plan lol , but i guess since it's national they have to provide calls from los angeles to new york and texas so that may be the reason.

posted on 06 Apr 2013, 16:57

54. NE_BE (Posts: 19; Member since: 21 Mar 2013)


Sure.. the entire north of france, with the exception of Paris, is plagued by poverty.. Sadly they are growing in numbers.. so yh, they're becoming the bigger market share..

But offcourse france telecom wants to sell as much as possible, so they need something cheap and amazing. A cheap iphone is a great way to get people to reach for their wallet.

Note, i'm not saying the iphone is all that special. but if youve never been able to buy an apple product because of it's price. Suddenly having a cheap version, would sell like crazy. Smart and cunning that's what they are, they don't care about the iphone's price, they just want to sell more... :/

As for taxes... they've always been here, apple or no apple. Think of all the things taxes pay, you'd be lost without most of it. (except maybe when they use your taxes to provide free housing for immigrants, wheres my free house dammit!)

posted on 08 Apr 2013, 06:30

61. iluvsmartphonexpdx (Posts: 48; Member since: 26 Mar 2013)


Yup, its the price...

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