Telstra, SingTel-Optus and Vodafone will be releasing their contract pricing for the new iPhone on September 12, pending approvals from Apple Photo: Bloomberg
Apple's online store appears to have crashed under the weight of demand from eager early adopters hoping to pre-order one of the new iPhone 6 models launched this week.
The company announced it would make pre-orders available from 5pm AEST, but by 5:05pm it had began displaying 'We'll be back' messages in several languages.
It is the second time this week an Apple online effort has crashed under strong demand. On Wednesday, Australian time, the live stream of the launch event was cut off momentarily until service was restored.
Apple chief executive officer Tim Cook launches the iPhone 6 and the iPhone 6 Plus. His keynote speech live stream was interrupted by technical problems.
Those looking to shop around for the best deal on the iPhone 6, coming September 19, may have to do a bit of legwork.
The tech giant has traditionally kept a tight grip on price consistency with its retail partners, and analysts say vendors such as Telstra, Optus and Vodafone are unlikely to discount the cost of buying a handset outright anytime soon.
Instead, retailers are competing on prepaid contracts and on service, as well as offering a range of extras such as free credit towards cancellation fees to lure customers to switch networks.
Choosing the right plan will depend on consumers' individual circumstances, Telsyte managing director Foad Fadaghi said.
'If they're already on a plan or locked into paying a certain amount, they might be looking for some of these break fee options,' Mr Fadaghi said.
'If they're already on prepaid they might look at purchasing a handset outright if they can afford it, or look at different payment plans. Financing might win you over.'
Mr Fadaghi said due to the high upfront cost of the handsets - ranging from $869 for 16GB iPhone 6 to $1249 for the 128GB iPhone 6 Plus - paying off a new phone month by month would be attractive to many consumers.
However he said we were likely to see some of the most expensive plans ever for the iPhone 6 and iPhone 6 Plus.
Data included in plans was likely to be a key consideration for consumers, Mr Fadaghi said.
'One thing we can be certain of, with larger screens there's typically greater usage of visual material, browsing the internet and so on,' he said.
'That all requires more download traffic and gigabytes, so we maybe might see some value plans around a few months of increased limits to help you download all your apps.'
Ahead of announcing their price plans for the iPhone 6, telcos this week launched other incentives for customers to switch providers.
From September 16, Telstra will offer customers an extra 1GB of download data or $1000 in phone calls each month if they sign a 24-month contract worth at least $70 per month.
Both Telstra and Optus are offering $200 in credit towards early exit fees and up to $250 for eligible handset trade-ins for customers looking to switch providers.
Optus has also upped the data cap on its $80-a-month plans to 5GB, and to 8GB on its $100 plans.
The heat is also on when it comes to coverage.
Telstra on Thursday said switching on 700MHz spectrum on January 1 2015 would allow it to deliver super-fast 4G to 90 per cent of Australians by February next year.
IBRS analyst Guy Cranswick said Telstra had done 'extraordinarily well' versus other providers when it came to delivering premium service.
'I can't see this changing very much in the short term,' Mr Cranswick said.
The launch of the Optus 10 satellite on Friday may also entice some early adopters but it was unlikely to be a decision-making factor for the majority of consumers, he said.
'Generally speaking consumer markets operate in fairly similar kinds of circumstances where there's an early cohort that want to get in and experiment and try these things, but not for the vast bulk of people where all the money is made.'
While Samsung has a history of discounting its handsets a few months after launch, Telsyte's Mr Fadaghi said Apple was unlikely to change its tack.
Retailers have traditionally subsidised the costs of handsets with prepaid plans, but with a very high percentage of Australians already owning smartphones and Apple losing its dominance in the space in recent years, retailers were being less aggressive in this area, Mr Fadaghi said.
iPhones were once the most popular handsets in Australia, but Android smartphones - such as those manufactured by Samsung, LG and HTC - have since trumped Apple.
IBRS's Guy Cranswick said it was 'extremely unlikely' vendors would discount iPhone 6 handsets soon after launch.
Online electronics store Kogan has typically sold iPhone handsets at a discounted rate due to different sourcing arrangements, but while the retailer said it 'fully expects to be able to continue this', the new iPhone 6 and iPhone 6 Plus handsets are currently listed at the same price as on Apple's official store.
Preordering for the new iPhone 6 and iPhone 6 Plus handsets via the official Apple website opened on Friday at 5pm AEST in Australia.
Posted by Unknown on Friday, September 12, 2014 - Rating: 4.5
0 comments "iPhone 6 demand crashes Apple online store"
Post a Comment