French Carrier Executive Claims Frugal Customers Hurting iPhone Sales

iphone_5_lteStephane Richard, CEO of France Telecom, said in an interview with Bloomberg that customer behavior is changing and price-conscious consumers are driving demand for lower priced smartphones, threatening sales of comparatively expensive phones like the iPhone and Samsung's Galaxy S line.

The shift has been especially severe in Europe, where more customers are keeping the same phone when they switch carriers. Amid a slumping economy and mounting competition, France Telecom has seen prices drop 25 percent over the past three years, squeezing profit margins and its stock price. Its cheapest plan now provides unlimited calls and texting and 3 gigabytes of data for about 20 euros ($26) a month -- about half the price of T- Mobile USA Inc.’s $50 plan, which is touted as a U.S. bargain.

Richard believes there will be fewer early adopters purchasing the latest and greatest devices going forward, though it's unclear if the slowdown would be restricted to Europe or if it could pressure iPhone sales in the U.S. as well. Regardless, many recent rumors suggest Apple is working on a cheaper iPhone to address some of these concerns.

Top Rated Comments

HishamAkhtar Avatar
106 months ago
European plans tend to be a lot better than US plans anyway. You guys are bent over and screwed repeatedly everyday.
Score: 39 Votes (Like | Disagree)
wesk702 Avatar
106 months ago
People would rather spend less money. Next in news, it's raining in Seattle.
Score: 22 Votes (Like | Disagree)
Dwalls90 Avatar
106 months ago
Wait, unlimited calls, texts and 3GB of data for $30?! That's like $100 in the states.
Score: 19 Votes (Like | Disagree)
Serelus Avatar
106 months ago
No, you guys just want to keep selling these phones with ridiculously expensive subscriptions, and then when nobody is buying your phone because it's all to expensive you suddenly claim it's "hurting sales" try making things cheaper, you greedy douche.
Score: 19 Votes (Like | Disagree)
claus1225 Avatar
106 months ago
yeah right

I always get a big kick when it comes to US smart phones market.

The "price" of an iPhone is around $200 with a two-year contract (has been that way for a few years now) and the "frugal" customer is expected to pay about $100 per month (for average usage plans).

The supposed price of iPhone is less than 10% of total cost of your phone bill in those contract bound two years.

Would you really care about the $200 that you paid?

People need to realize that you are really buying a $2400 phone instead of $200 phone.

The cellphone is the biggest rip-off here. The landline and home internet costs have come down but mobile phone cost is still way up there. The data plan alone for cellphone is like $40 and voice is like $45. Do you think this is really a fair price?

If you look at other countries, most consumers would not pay $100 per month for cellphone usage.
Score: 9 Votes (Like | Disagree)
Furifo Avatar
106 months ago
Wait, unlimited calls, texts and 3GB of data for $30?! That's like $100 in the states.

I feel for you guys in the states, your plans are ridiculously expensive. You can pick up a sim only plan with 2000 minutes, unlimited texts and unlimited data (truly unlimited) with tethering included for around $37/month.
Score: 9 Votes (Like | Disagree)

Top Stories

apple music change forever

Apple Music Teaser: 'Get Ready – Music is About to Change Forever'

Sunday May 16, 2021 2:39 pm PDT by
The Browse tab in the Music app across Apple's platforms has started displaying a prominent teaser hinting at an upcoming major announcement for Apple Music. Under the heading "Coming soon," the headline says "Get ready – music is about to change forever." An accompanying "Tune-In Video" simply shows an animated Apple Music logo. Rumors have indicated that Apple is preparing to launch a...
m1 ipad pro early customer

M1 iPad Pro Arrives Early for Lucky Customer

Saturday May 15, 2021 11:57 pm PDT by
Days ahead of their expected launch and seemingly before official review embargoes lift, one lucky customer has already gotten their hands on the brand new 12.9-inch M1 iPad Pro. Reddit User PeterDragon50 Posted on Reddit, u/PeterDragon50 has already received their 12.9-inch iPad Pro through retailer Nebraska Furniture Mart. The Reddit user says they placed their order when pre-orders...
2021 mbp hdmi slot 3d

2021 MacBook Pro Leaks Confirm Returning MagSafe and Ports

Friday May 14, 2021 3:06 am PDT by
Apple's upcoming MacBook Pro models are expected to feature a number of major changes such as larger display options and powerful new Apple silicon chips. Among the more surprising updates to this year's MacBook Pro models is the return of three ports that have been missing from the machines for over five years. Expected to come in 14- and 16-inch sizes, the 2021 MacBook Pro models are...
Twitter Feature

Twitter's 'Blue' Subscription Service May Cost $2.99, Will Offer Undo Tweet Option

Saturday May 15, 2021 11:08 am PDT by
Twitter has been working on some kind of subscription service since last summer, and Jane Manchun Wong, who often digs into new features coming in apps, has shared details on just what Twitter is exploring. Twitter's subscription service could be called Twitter Blue, and at the current time, it's priced at $2.99 per month. There will be a "Collections" section that allows users to save and...
AirPods Lineup Not Lossless Feature

AirPods, AirPods Max and AirPods Pro Don't Support Apple Music Lossless Audio

Monday May 17, 2021 10:44 am PDT by
Apple today announced that starting in June, Apple Music songs will be available to stream in Lossless and Hi-Resolution Lossless formats, but lossless audio won't be supported on the AirPods, AirPods Max, or AirPods Pro. Apple's Lossless Audio is encoded as Apple Lossless Audio Codec files, with lossless quality ranging from 16-bit 44.1 kHz playback to 24-bit 48 kHz playback and Hi-Res...
Top Stories 60 Feature

Top Stories: M1 iMac Benchmarks, iPhone Battery Life Tips, Colorful MacBook Air?

Saturday May 15, 2021 6:00 am PDT by
Anticipation is building for the new iMac and iPad Pro models, which have started shipping out ahead of a launch around May 21. Benchmarks for the new machines are starting to come in, and the M1 chips inside of them are registering at around the same figures seen with other M1-based Macs, making for significant upgrades over previous-generation models. This week also saw some rumors about...
apple music spatial audio

Apple Music Launching Spatial Audio With Dolby Atmos and Lossless Audio in June at No Extra Cost

Monday May 17, 2021 6:06 am PDT by
Apple today announced that Apple Music will be gaining support for Spatial Audio with Dolby Atmos at no additional cost starting in June. At launch, Apple Music subscribers will have access to thousands of songs in Spatial Audio from artists like J Balvin, Gustavo Dudamel, Ariana Grande, Maroon 5, Kacey Musgraves, The Weeknd, and many others. Apple says this feature will provide a...
General Music and AirPod 3 Feature

Rumor: Apple to Announce Third-Generation AirPods and HiFi Apple Music Tier on May 18

Thursday May 13, 2021 10:32 pm PDT by
A new rumor suggests that Apple will announce the third-generation AirPods and the recently rumored HiFi, or high-fidelity Apple Music tier, on Tuesday, May 18, via a press release on its website. The new rumor comes from Apple YouTuber Luke Miani who shared the alleged exclusive news with the AppleTrack website. According to the YouTuber, Apple plans to release the next-generation AirPods...
apple music logo

Apple Music Teaser References 'Hi-Res Lossless' and 'Dolby Atmos'

Sunday May 16, 2021 4:04 pm PDT by
Earlier today, Apple Music began teasing a special announcement with the tagline "Get Ready – Music is About to Change Forever." This teaser comes amid a rumor that Apple is preparing to announce the third-generation AirPods alongside a HiFi, or lossless audio streaming tier for Apple Music on Tuesday, May 18. Now, references to "Apple Lossless," "Free Lossless," "Hi-Res Lossless," and...
tile amazon sidewalk integration

Apple Says Tile Trackers Sold Poorly in Apple Stores

Friday May 14, 2021 4:53 am PDT by
Earlier last month, Spotify, Tile, and Match (owner of Tinder), testified at an app store antitrust hearing spearheaded by the U.S. Senate. During the hearing, Spotify called Apple's App Store "an abusive power grab," while Tile said Apple uses its platform to "unfairly limit competition for its products." Now, in response to their testimonies, Apple's vice president and chief compliance...