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April 9, 2013

France Telecoms CEO — Europeans can’t afford expensive iPhone!

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Over the last fews months there’s been a lot of talk about how Apple needs to make a budget iPhone for the emerging markets of China and India, now though Stephane Richard, France Telecoms CEO, has suggested that Apple needs a low-cost iPhone for the European market.

Stephane Richard told Bloomberg:

“Except for a few hundred thousand people who will buy the latest iPhone – except for that category of people – the majority of the market will be difficult, more focused on price, ¬†European customers are and noted that this is the reason why more Android phones are sold in Europe.”

He suggested that fewer shoppers are looking to buy the latest and greatest gadget; instead more consumers are seeking lower prices.

According to Richard, alongside the desire to spend less, many consumers are choosing to hold onto their old devices for longer periods of time, sometimes switching carriers while still hanging onto their old phone.

Richard told Bloomberg:

“There are fewer early adopters, and probably with the next release of the iPhone this will be evident. Selling a phone for $600 is getting more and more difficult.”

France Telecom is part of Orange (EE) and is one of Europe’s largest mobile carriers.

Weak economic activity in Europe extended into the early part of this year and a gradual recovery is projected for the second half of this year. However, just last week, the European Central Bank president Mario Draghi signaled the ECB is ready to cut interest rates if Europe’s economy deteriorates further.

Personally I think telecom companies are going to find it harder to sell big ticket items and will have to lower their profit margin, as reducing features would harm sales much more.

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Via: Bloomberg

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Dave Thornton

Senior Editor

Senior Editor
Been involved in technology for many years, more than I care to remember. Live in Dundee, Scotland. I like Android, Windows Phone OS, BlackBerry OS and iOS, and love writing about all things techie. Currently have a Honor 6+, Elephone P6000, Nexus 5, Chrombook C720, HTC One M7, Nokia Lumina 625, Microsoft Lumia 435, Blackberry Q10, HTC Hero and iPad mini