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France Telecom’s CEO Says iPhone Too Expensive for Europeans to Buy

Maura

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Bloomberg reports today on some rather controversial comments from France Telecom CEO Stephane Richard, who has said in an interview at Bloomberg’s New York headquarters that due to the economic climate in Europe, consumers are looking for lower prices from their wireless carriers, with more customers opting to keep their old phone when they switch carriers. Clearly, France Telecom has been badly affected by this trend, and according to Bloomberg, the company has had its profit margins and stock price adversely affected by prices dropping by 25% in the past three years. In order to accommodate the demand for cheaper tariffs, France Telecom’s cheapest payment plan offers unlimited calls and texting, plus 3GB of data, for approx $26 per month, which, Bloomberg points out, is around half the cost of T-Mobile USA’s $50-per-month plan. Richard also said that the $600 cost of an unsubsidised iPhone is basically too expensive for many consumers, and that this could have a knock-on effect when the next iPhone is released.[/FONT]

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[FONT=&quot]“There are fewer early adopters, and probably with the next release of the iPhone this will be evident,” he told Bloomberg. “Selling a phone for $600 is getting more and more difficult.” [/FONT]
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[FONT=&quot]Apple’s spokeswoman, as usual, declined to comment. [/FONT]
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[FONT=&quot]Source:[/FONT] France Telecom CEO Says Frugal Buyers Threaten IPhone Sales - Bloomberg
 
The iPhone is a premium product, sold at a premium price.

Apple is happy to let others sell to the cheap market.

Always have been, with all of their products.

That's not going to change now.
 
The iPhone is a premium product, sold at a premium price.

Apple is happy to let others sell to the cheap market.

Always have been, with all of their products.

That's not going to change now.

Have to agree. Whether it's phones, tablets or computers, Apple is seen as THE quality company. Without the perception that they are something a bit special, there would be no reason to purchase anything from them.

You can buy a Window laptop for the DIFFERENCE in price between the 13" and 15" MBP and 5 or 6 Windows laptops for the total price, yet the Apple offerings keep flying through the door.

I don't think Monsieur "gets" it.
 
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