iPhone, therefore I am

It seems that the much-hyped Apple iPhone is failing in the UK - or at least not doing as well as expected, as reported in the FT today (here).

O2 declined to comment on the sales figures but said it was “delighted with the response to the iPhone, which has seen unprecedented levels of customer satisfaction”. The mobile operator also confirmed the iPhone was its fastest-selling handset “by a significant margin”.

It all sounds a bit desperate to me, especially when it was reported that iPhone partners O2 and Carphone Warehouse have been gagged by Apple, preventing them from reporting sales figures. Now the FT is reporting that un-gagged sources in O2 have confirmed a UK sales shortfall.

The main problem for Apple, according to the FT, is that the UK mobile market, like the US, is subsidised by the network operators. Consumers on monthly contracts often pay nothing for their handset. But the iPhone currently sells for £269, and that's not including the price of the contract.

I do really want one, despite the size (joke...), but will no doubt have to wait for the costs to come down. Steve Jobs has already said they will in time for the release of version 2 this year, a move which has angered everyone who bought the phone for its current extravagant price.

Gagging your network partners? Not great PR.

Most PR practitioners will agree that it was a mistake, but by admitting that sales have been falling short of expectation is a smarter move. I wonder what the iPhone story will unfold next? As with the matter of buying myself an iPhone, I think this one is a waiting game.