Summary
How can Orange gain competitor advantage over the other mobile operators by selling the iPhone?
This analysis looks at the areas where Orange can differentiate.
Analysis
- Product: controlled by Apple, and so far only 2 devices to sell, with older versions being phased out as new ones are launched and become popular
- Channel: Orange will sell the iPhone in "all Orange direct channels, the Orange internet shop and orange telesales channels, as well as selected high street partners", said an Orange spokesman, rather similar to what O2 has done.
- Price: Pay monthly and Pay as you go pricing are very similar to O2. Either Apple has controlled over the pricing, or the mobile operators, quite wisely, do not want to enter into a price war.
- Coverage: Orange has an advantage there, with the best coverage in the UK. In the USA, many would-be iPhone users are still waiting to become one, as they do not want to sign up to the AT&T poor 3G network, and would switch immediately if the device was available on Verizon.
- Consumers: Orange stated that 250,000 of its users would like to sign up to the iPhone, but many of these people will be locked up in a contract already, and therefore will not switch immediately to a new contract and upgrade with the iPhone.
- Business customers: Orange Business Solutions offers fixed-mobile convergence solution among a range of business offers, and as the latest iPhone has better features for enterprises, this can be a platform for differentiation.
While there is a little room for Orange, what is there for Vodafone?
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
