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iPhone 3G S launch on O2: Demand poor says analysts

Apparently analysts are saying that demand for the new iPhone 3G S will be subdued compared to that of the iPhone 3G launch when iPhone 3G S becomes available today says a report on the telegraph.

This is believed to be due to the pricing of the iPhone 3G S for upgraders whereby O2 customers in the UK, who wish to upgrade to the iPhone 3G S will have to pay off their current contract.

General Manager of devices at O2, Steve Alder has said contract and upgrade terms for the iPhone are the same as any other O2 device, and they cannot justify invalidating a contract to subsidise a 2nd device.

CCS Insight analyst, Ben Wood believes the iPhone 3G S upgrade pricing argument could impact on iPhone 3G S initial sales.

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