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Brisk iPhone sales despite early snag

Retailers reported brisk trade at the launch of the Apple iPhone 3G this morning, with early adopters not being put off by the perceived high price and an administrative snag in the contracts.

Sales staff at Cape Town-based Apple retailers Project 3 and Digicape reported strong interest since opening their doors at 8am today. They have experienced a steady stream of customers coming in to buy the phone. Vodacom outlets contacted at a number of shopping centres also reported good sales and turnover.

“I don't know how many people have come through our doors, but it has been really busy,” a salesperson for one of the Vodacom stores says.

Although none of the stores reported queues of early adopters waiting outside before opening time, they all said they opened shop early, mostly at around 8am, and customers were soon arriving to query and buy the phone.

Digicape director Robin Olivier says an administration hiccup in changing contracts did create a snag initially, but that has now been resolved.

Pricing release

“Vodacom only released to us the contracts and pricing at about 10pm last night. What happened this morning is that people with Vodacom Talk500 contracts are not going through an upgrade process to the Talk500 iPhone package; rather it is classified as an upgrade and this caused some confusion,” he says.

Olivier says a Vodacom representative arrived at his store during the morning and the issue has since been resolved.

A salesperson at one of the other stores says the high price has not deterred early adopters.

“For the people buying the phones now, pricing is not an issue,” he says.

The price

For R6 389, one can purchase an Apple iPhone 3G with 8Gb of storage or get the 16Gb version for R7 569. The various contracts offered by Vodacom also affect the cash buy-in of potential customers.

“It is great that Vodacom has allowed the phone to be bought on a cash-only basis, as this has allowed people to stay with the other networks,” a salesperson at Project 3 says.

Vodacom managing executive for sales Chris Ross says SA, unlike many other countries, does not allow networks to lock a phone to their network, so people can buy the phone and use it on another operator's network.

Potter's phone

Ross says 30 000 units have been brought into the country and this should meet the demand from the potential 30 000 customers who pre-ordered their phones.

Vodacom group executive for corporate affairs Dot Field says this is the biggest product launch for a phone the network operator has done.

As part of the launch festivities, Vodacom hosted a Harry Potter-themed party at its Vodaworld campus last night that was attended by over 1 000 people.

Arthur Goldstuck, head of research company World Wide Worx, says the response to the iPhone is as he expected.

“What we are seeing is the fulfillment of immediate expectations of consumers for the product. The question is, how long will it last for, as there are other products that are as equal to, if not better than, the iPhone,” he says.

                   
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 Comments (16)

Rusty said:

Yawn
What a thoroughly boring "story".
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September 30, 2008 Votes: +0

al said:

The best phone ever
got my I-phone on day one from the apple store and it is my choice to buy it or not. I love my I-phone no more Nokias
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September 29, 2008 Votes: +0

Interloper said:

LOL
How did you know I am gay?
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September 29, 2008 Votes: +0

V said:

iPhone Price Gouging
Hi
I agree i really do not understand the strategy of doubling the price when in the US it is about US$250 for a 16GB iPhone. No justification at all for this price! What a hinderance for customers who would have bought the phone. Even on the Vodacom contract the prices are still ridiculous!!
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September 29, 2008 Votes: +0

Omnia said:

Or an Omnia
Even better - get an Omnia which is free on many contracts, has the cool touchscreen, GPS, HSDPA and actually can send and recieve MMS - I think this is much better value that the iPhone, even if Apple didnt make it ;)
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September 29, 2008 Votes: +0

ByeBye iPhone said:

iPhone Price Gouging - uck
This has become to be expected in SA. they will rip th epublic off and Vodacom will justify it one way or another. With only half the phones functionality enabled, i would what they would of asked for full functionality, R14K :). Was eager to get an iPhone, but now HTC or Samsung, look ver inviting.
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September 29, 2008 Votes: +0

The Phone Guru said:

Rather wait for the New Nokia
I purchased my 16Gig 3G iPhone in Hong Kong, it cost me R6100.00 including the turbo sim which masks the IMSI code and allows the phone to work with all its functionality on the MTN network. The only bad thing about the 3G iPhone is the battery life that really sucks if its using 3G, it does not even last a day, I suggest you wait for the new Nokia touch phone due in December. The iPhone sells for $199.00 with an AT&T contract which then requires a $150.00 subscription for voice and 50MB of data.
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September 29, 2008 Votes: +0

BoB said:

Do some research before making comments..
You might want to spend some time to understand the 199$ price tag before making stupid comments...
The 3G iphone costs 199$ - it can only be purchased with a 24 month contract- the cell provider pays Apple another 200$ after you have subscribed to their network.

They dont seel the new iphone straight our without a contract unless you go to ebay and purchase one for anything ranging from 700 - 1400$.

Go price the new Omnia or Touch phone at the VC or MTN stores and compare that to the iphone price. Then decide is 6-7k a rip off or not.
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September 29, 2008 Votes: +0

Irate iPhone Fan said:

iPhone Price Gouging
I just wanted to know why, in a developing economy, but one with an ’ad;vanced’ cellphone market, the iPhone, released this week in South Africa, costs almost $1,000 (one thousand US dollars)in an Apple iStore nogal!!!If my memory serves me well, Steve Jobs announced a suggested retail price of $400.00 just a short while ago. Factoring in shipping and other taxes will still not make the phone more than twice as expensive as announced just a few months ago.

And the unit is not even provided with full functionality!!!

Sies, Vodacom and Apple!!!

I’ll get my unit thru my friends in NYC. I suggest South African consumers should vote with their money and do the right thing!!

Ciao!

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September 27, 2008 Votes: +0

MacFly said:

Rand R30 to the US$ at Vodacom.
So what Vodacom is saying is that the Rand should be R30 per Dollar. Sounds great, Could I pay with US$ I think I could get $200 rather that pay R6K.

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September 27, 2008 Votes: +0

Disenfranchised Consumer said:

Typical South African Style...
In true ZA fashion, the most eagerly awaited launch of a phone in recent history went down a proper snore...
One would think that, with Vodacom's considerable budget they would at least do some advertising to hype the impending launch. But no. Not even a whisper.
To top it all, they went and quadrupled the price of the unit! (Even the so called "promotion" contract deals are a joke!) $199 = R6389??? How can this be justified?
The age old tradition of doing the ZA consumer in is indeed still very alive and kicking.

Thank you Vodacom for disappointing us yet again.
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September 27, 2008 Votes: +0

sc00bs said:

...
Half of the functionality of the iPhone is restricted in sa, we don't have an iTunes store in SA that u can buy anything from so how do you buy any apps for the phone?

The phone is locked down so you can't load apps any other way unless you jailbreak it.
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September 26, 2008 Votes: +0

Marketing maniac said:

Marketing? what marketing!
I would think that with all the IT technology that Vodacom has at its disposal they would have created a multimedia marketing campaign to manage and keep the prospective pre-registered clients informed for the launch of the iPhone? Maybe they are not interested in looking after their customers and believe that they will sell all the 30,000 iPhones without too much marketing effort?
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September 26, 2008 Votes: +0

vodagone said:

Vodacom launch is disappointing
Dito on Interloper. Registered (actually registered x2 and have not received and info on the arrival except for a sms message late yesterday which was unreadable. Having waited months for something to arrive I eventually bough the HTC touch diamond - so Vodacom, your 30,000 units - 1 customer who eventually got tired waiting for the iphone.
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September 26, 2008 Votes: +0

Interloper said:

Pre-order BS
So you would imagine if youa re one of the 30000 that pre-ordered the phone, you would actually get some communication from them that they actually launched the phone - but no!!! You have to read it in the news. LOL so Vodacom what is the point? Getting people to display interest by being added to you so-called VIP list, only to ignore them when it actually arrives? Good marketing! Loves it.
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September 26, 2008 Votes: +0

9mmP said:

Get an E90 with an 8 gig micro SD
Only reason they did a preorder was to lower their own risk with regards to their own order (to esure they didn`t end up with 1000`s of paperweights), not to give their customers service - that would be a travesty to normal SA business principles. Anyway, this gayboy`s dream can`t even send or receive MMS - how are all their male users going to send pics of the guys they picked up in the club last nite to their friends??? Get an E90 with an 8 gig micro SD, OS a little slow and not so cool for making love to but actually works using 3G and you don`t need to extend your bond...
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September 26, 2008 Votes: +0

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