M1 to offer iPhones to customers later this year
MobileOne (M1) has broken SingTel’s monopoly of the Apple iPhone market in Singapore.
M1 on Tuesday said it has secured a deal with the US computer giant Apple to sell the iPhone in the city. But details on pricing and when the handsets will be released will come later.
If one wants to buy an Apple iPhone now, one can only choose SingTel. But that will change when M1 starts selling its own iPhone handsets.
Analysts said the iPhone could help M1 reduce its customer churn, or the rate at which it loses customers over a specific time period.
Ng Kian Teck, research associate, SIAS Research, said: “M1 is taking on the younger crowd, and the iPhone is something that the crowd is looking forward to. And this will lower its churn rate.
“At least for the last one year, quite a substantial portion of customers are being lost to SingTel because of the lack of the iPhone service.”
He added that M1’s current churn rate is about 1.5, compared to 1.2 for the other two mobile operators.
Meanwhile, some consumers have welcomed the news.
Business development engineer Jaycee Lim, an M1 subscriber, said: “Since there is no more monopoly on the iPhone, the telcos may try to compete on the prices of their mobile phones as well as data plans. I will definitely be considering getting the iPhone when it is available, providing the price is reasonable.”
The question now is how much the M1 iPhone will cost and its data plans.
Analysts said M1 has much to do to catch up to SingTel’s 14-month lead – so this might result in cheaper rates. This will sit well with its mainly youth customer base, who are likely to have limited spending power. M1 is also likely to roll out a range of plans to allow for some flexibility.
When contacted, SingTel said it will continue to collaborate with Apple to introduce the latest products to Singapore.
A SingTel spokesman said: “SingTel is pleased to have been the first operator to bring both the iPhone and iPhone 3GS to Singapore. Coupled with our unrivalled 3G mobile network coverage and our innovative services like Live TV, our customers are enjoying a superior iPhone 3GS experience.
“We will continue to collaborate with Apple in introducing the latest products to Singapore. To date, we have put tens of thousands of iPhone 3GS in the hands of our customers. We review our price plans regularly to ensure that they offer the best value to our customers and remain competitive in the market.”
Both M1 and StarHub have been vying for the rights to sell the iPhone in Singapore. Analysts said the chances of StarHub getting its own deal now appear slim.
Mr Ng said: “The likelihood is not that high – because Apple is looking for a significant proportion of sales. So it is not possible to have too many players selling iPhones together. For example, if you want to sign a contract, you may have had to sell at least 100,000 phones.”
StarHub told Channel NewsAsia that it is still interested in bringing the iPhone to its customers.
“We are interested to bring the iPhone to StarHub customers. After all, we offer the highest mobile data network speeds and the best smart phone plans in town,” said Michael Sim, senior manager, Corporate Communications, StarHub.
Student Peggy Chang, a StarHub subscriber, said: “Of course, I am not happy that StarHub is now the only one who does not sell iPhones. When my contract expires in one year’s time, I will definitely switch providers.
“But the best scenario would be for StarHub to get the rights too, so consumers can compare prices among the telcos. I assume they will each try to offer competitive deals then.”
Some market watchers see M1’s iPhone deal as a double whammy for StarHub, which earlier this month lost its broadcast rights for the English Premier League, from the 2010 season, to SingTel.
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