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O2 Paying Out The Wazoo For UK iPhone Deal

We’re expecting a formal announcement tomorrow wherein O2 of the UK will proclaim that they scored the exclusive deal to carry the iPhone, but what they won’t tell you is how much this deal is costing them. According to the Guardian, the mobile operator is ponying up quite the pretty penny.

With every iPhone sold, O2 will have to fork over as much as 40% of the cell phone service revenue to the team in Cupertino. Apple loves that residual income. What’s more, while O2 will be the exclusive operator of the iPhone in the UK, they’ll have to share device commission and revenue with Carphone Warehouse, the latter of which is a 3rd party handset retailer. This is because Carphone Warehouse will be the exclusive brick and mortar retailer of the iPhone.

So, in the end, how much is O2 really profiting from all of this? Also consider that the iPhone is now readily unlocked too.

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About Michael Kwan

A freelance writer and tech geek from Vancouver. Find me at michaelkwan.com and follow me on Twitter @michaelkwan.

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