O2 returns subsidies to high end handsets
O2 concedes to market pressure and makes handsets free on lower tariffs
O2 has put subsidies back on high end handsets across the board after removing them in August last year.
A range of high end phones such as the LG Renoir and the Sony Ericsson C905, which were previously £100, are now free on £35 per month contracts. The changes were implemented in stores in the crucial last week of Christmas sales.
O2 said the move was part of a regular review of pricing to put it in line with the market. A spokeswoman said: ‘We continually review our product portfolio and revaluate our pricing to ensure we are meeting the demands of our customers in line with the market.’
The operator attempted to remove subsidies on high end phones last year, when it gave away free phones on £75 per month contracts. The plan buckled when other operators and retailers did not follow its lead, and the operator was forced to put subsidies back on a handful of handsets to compete in the market. The latest move sees subsidies put back on the majority of high end handsets.
It was previously thought that subsidies were removed in order to concentrate sales on O2’s exclusive handset, the iPhone. However, the latest move from O2 means that the Apple handset is now more expensive than most of its other high end devices.