Orange to make £750,000,000 revenues from the iPhone

Leading fact-based market insight company Mediacells forecasts:

•More than 1 million iPhone users on Orange UK by the end of 2010
•Increase ARPU of more than £10 per user per month compared to typical Orange contract customers

9th November 2009

Orange is set to make £795,065,695.77 in revenues from iPhone customers in the UK, according to a Mediacells forecast from its 2010 Yearbook, available November 21.

The huge revenue figure does not take into consideration the carefully guarded cost of purchasing iPhones from Apple, but even if at £250 per unit, this still generates more than £500,000,000 of revenue for Orange from selling the iPhone on its network in the UK.

The average revenue per user (ARPU) for an iPhone customer on Orange will be £58.11, per month, an incredible 29% higher than Orange’s reported average contract ARPU.

Brad Rees, CEO of Mediacells, said: “Selling the iPhone remains the best way for operators to get customers to part with more cash, even in a recession.”

“The fact that Orange has not undercut O2’s tariffs with their own iPhone offering just goes to demonstrate Orange’s confidence that they can generate new customers and reduce churn through selling the iPhone.”

The Mediacells forecasts are based on its accurate, fact-based, Tariff Tracker insights, which take the key performance indicators from officially announced O2 KPIs over the last 24 months and apply these to Orange’s tariff offers.

Orange announced 250,000 pre-subscriptions for the Orange iPhone range, which is set to launch in the UK tomorrow (November 10th). If Orange converts these into sales in the first 48 hours of availability, this will make the launch second only to the original, globally hyped launch, in June 2007, when 270,000 iPhones were sold within the first 48 hours.

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