It long been known that Apple would like to deal directly with customers who want to buy a new iPhone.
Buyers would get their devices from Apple Shops, and would then activate a built-in SIM card to use on whatever mobile network they choose.
At the moment, the majority of iPhones are bought from the networks, who offer a cut-price, subsidised, device as long as you sign up to a fairly lengthy contract. The cost of the contract is designed to pay back the subsidy to the networks over the duration of the deal.
Basically, Apple wants to get rid of the middle-man. But the Daily Telegraph is reporting that the networks in the UK issued a strong warning to Apple that they would simply stop subsiding the iPhone they sell. And Apple know if that happened sales of iPhones would plummet.
Buyers would get their devices from Apple Shops, and would then activate a built-in SIM card to use on whatever mobile network they choose.
At the moment, the majority of iPhones are bought from the networks, who offer a cut-price, subsidised, device as long as you sign up to a fairly lengthy contract. The cost of the contract is designed to pay back the subsidy to the networks over the duration of the deal.
Basically, Apple wants to get rid of the middle-man. But the Daily Telegraph is reporting that the networks in the UK issued a strong warning to Apple that they would simply stop subsiding the iPhone they sell. And Apple know if that happened sales of iPhones would plummet.
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