Pricing the new iPhone

“Apple’s next-generation iPhone could be available in Britain for about £100 next month, as the computer company adjusts its strategy to boost sales.”

The new iPhone offering 3G internet connection and much faster download speeds is probably only a couple of months away from hitting the UK retail market. Today’s Times carries a super short article on the increased flexbility that is likely to be given to mobile phone operators when deciding how much to charge for the handset. It looks like a classic case of the mobile service providers being willing to part-subsidise the price in a bid to lock-in customers to lengthy contracts. As always, what matters is the size of the installed base from which extra revenues can flow in the months and years ahead. This piece is well worth reading.

BMW - Bavarian Monopolist at Work [24 May 2012]
Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Oxbridge Economics: Introduction to Game Theory [21 May 2012]
Unit 3 Micro: Game Theory and Business Economics [21 May 2012]
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A2 Micro: Price Discrimination [19 May 2011]
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