World of Apple

O2 has confirmed that it has sold 2 million iPhones in the UK since it began sales in November 2007. Matthew Key, the chief executive of Telefonica Europe, and Ronan Dunne, chief executive of O2 UK had told reporters in embargoed comments.

The executives also spoke about how they are still seeing benefits from the early exclusivity the carrier held over the iPhone. “It will take a long time before that goes away,” Dunne said.

In addition it is rumoured that O2 is in talks with Apple to offer the 3G iPad in the UK. Although it is also said that an exclusive agreement is unlikely despite AT&T currently having the device in the U.S.

The WiFi version of the iPad will debut in the UK in March with the 3G version following in April, according to Apple.

Apple iPad

Rumours of a Verizon attached iPad have been circulating since before the device was even announced. Last week when Apple announced a partnership with AT&T it looked like the rumours were simply untrue but the originator of the rumours Clayton Morris of FOXNews.com has spoken to his Verizon source who claims that Apple and Verizon are continuing to work towards a deal.

According to Clayton, Verizon is “more interested in the lucrative iPhone contracts” but the Apple and the carrier are “very much talking and plan to bring an iPhone and an iPad” to Verizon in 2010. AT&T’s exclusivity over the iPhone is expected to expire in June this year.

The report also adds some insight into the pricing of the data for the iPad stating that, “AT&T was able to outbid every other GSM carrier with a $14.99 or $29.99 plan that gives customers 250MB or unlimited data, respectively.”

Of course Verizon does not operate a GSM network and would require Apple to build compatible hardware to work on Verizon’s CDMA network.

Peter Misek, analyst with Canaccord Adams speculated this week that Apple will announce during its special event on January 27 that the iPhone will be coming to Verizon during the summer.

Alongside this prediction Misek also expects Apple to announce iPhone OS 4.0. In Misek’s note he runs down what he expects to see in iPhone OS 4.0 with his predictions running along the same lines as those rumoured by Boy Genius Report earlier in the week including, multitasking, a simpler user interface, and a new way to sync contacts and calendar apps.

Misek goes onto suggest that although many U.S. carriers will adopt tiered data plans, the iPhone on Verizon will still carry an unlimited data plan according to his “industry sources”.

“Together with our semi-conductor partners, we have ascertained that there is a reasonable chance the Asian supply chain is prepping for mass production of a new iPhone in March, for availability in late Q2, likely June,” Misek said. The new iPhone according to Misek will be capable of running on both CDMA and GSM networks.

Misek also looks forward to 2011 iPhone models speculating that Apple will release an LTE-capable “4GS” iPhone.

Since January 14 when the iPhone went on sale with Vodafone UK the carrier has sold 100,000 iPhone 3G and 3GS units.

“The demand from both consumer and business customers has been phenomenal. They want an outstanding phone on an outstanding network and we’re delivering that,” said Vodafone UKCEO Guy Laurence.

Vodafone UK sold 50,000 units in the just first day.

Vodafone UK began selling the iPhone this morning in the UK and confirmed that it had shipped 50,000 units to pre-registered customers.

The 50,000 units were ordered by customers who signed up ahead of the launch said Vodafone UK chief executive Guy Laurence.

Vodafone UK is offering the 8GB iPhone 3G for £59 on a 24-month contract that features 300 minutes, and unlimited texts and 1GB of data. On a £35 month contract the iPhone 3G is free alongside 600 minutes. iPhone 3GS 16GB is free on a £45 a month, 24-month contract offering 1200 minutes and unlimited texts with 1GB of data.

Mobile network operator O2 in the UK has owned up and apologised to customers who have suffered poor network availability and reliability in London.

In an interview with the Financial Times O2 executive director Ronan Dunne admitted that some customers in London were unable to make or receive calls and the transfer of data was slow and unreliable because of pressure placed on O2’s network from smartphones.

O2 stated that the situation occurred in the second half of the year and has now been rectified with a £30 million investment in the capital during December to help improve network capacity. Detailing the improvements further O2 said that it was working with its infrastructure supplier Nokia Siemens Networks on software modifications, installing 200 additional mobile base stations in London. O2 will also liaise with smartphone manufacturers to become aware of heavy usage applications.

In the article O2 failed to recognise a country wide issue with multiple outages occurring across the country during 2009.

“Where we haven’t met our own high standards, then there’s no question, we apologize to customers for that fact,” said Dunne. “But it would be wrong to say O2 has failed its customers en masse.”

Vodafone has announced today that the iPhone will be available on its network in the UK from January 14, 2010.

“We started preparing our network over a year ago so that iPhone customers will really feel the advantage of being with Vodafone,” said Guy Laurence, CEO, Vodafone UK. “We will offer an outstanding iPhone experience wherever our customers live, work and travel, delivering speed and reliability – something our customers have told us they really value.”

“We’re especially pleased to offer iPhone to business customers from launch, both directly and through a network of 20 dealers across the country – clearly demonstrating that Vodafone is the natural home for small business.”

Vodafone UK pricing for the iPhone remains in line with the likes of Orange and O2 who already sell the iPhone in the UK. The cheapest contract available is a 24-month £30/month with iPhone handset prices at £59, £149 and £239 for the iPhone 3G 8GB, iPhone 3GS 16GB and iPhone 3GS 32GB respectively. The £30 per month tariff offers 300 minutes, unlimited text messages, unlimited WiFi but only 1GB of network data transfer.

China Unicom chairman Chang Xiaobing has confirmed that the official iPhone carrier in China has sold 100,000 iPhones in the first 40 days of sales.

The comment comes after company Wednesday Marbridge Consulting reported that Unicom had sold only 10,000 units. This figure has now been confirmed to have been a typo.

Further on in the interview Xiaobing criticised the media for focussing on the high price of the contract-free 32GB iPhone 3GS which sells for an equivalent value of $1033. The chairman also refers to previous reports that China Unicom purchased 5 million units from Apple which Xiaobing describes as “not entirely accurate”.

Tesco Mobile has confirmed that it will begin selling the iPhone in the UK on December 14. The mobile provider which uses O2’s network has announced a starting tariff of just £20.

Tesco Mobile will offer a £20 a month contract with a duration of 12 months with a iPhone 3G 8GB available for £222. Tesco Mobile also offers a higher contract for £60 a month offering unlimited calls, texts and data although the duration is 24 months.

In a note to investors this week analyst Doug Reid of Thomas Weisel Partners said that despite persistent rumours that Verizon will receive the iPhone in 2010 when AT&T’s exclusive agreement runs out he believes that T-Mobile will instead be the chosen carrier.

Reid’s thoughts come off analysing the carriers different advertising campaigns, “AT&T advertising in the United States has in recent weeks clearly shifted away from iPhone as the carrier likely readies itself to lose exclusivity in the United States (to T-Mobile and not to VZ, we believe) while VZ ads promoting Droid and other anti-iPhone devices appear to have intensified markedly”.

Rumours earlier in 2009 suggested that AT&T was looking to extend its exclusive contract—which expires sometime in 2010—through to 2011 but such suggestions died off around the middle of the year.

Reid added that Verizon could pick up the iPhone in 2011 when its 4G network is more established.

T-Mobile would be an easier target for the iPhone than Verizon as it will already be able to work on T-Mobile’s GSM network but will be unable to access thaw 3G portion of the network as the iPhone is only compatible with 850MHz, 1900MHz and 2100MHz bands where as T-Mobile operates on 1700MHz.