Canadian iPhone sales fell by 50%
Apple’s wireless partner in the Great White North, Rogers Communications, says its fourth quarter iPhone sales were only half of those recorded for Q3. The easy explanation is that the recession is really starting to bite, but that’s likely only part of the story.
Quoting quarterly sales data from Canada’s largest wireless carrier, Bloomberg reports that Rogers activated 130,000 iPhones in the fourth quarter—about half as many as it did in the third quarter (255,000)—a fact that the news organization attributes to the recession. Still, of the Apple-branded handset activations in the last three months of 2008, the company says about 40 percent were new subscribers.
“It was a big slowdown,” said Jonathan Allen, an analyst at RBC Capital Markets based in Toronto who rates the company’s shares a “top pick.”.
Another likely reason Rogers’ iPhone sales fell so precipitously is because the notoriously parsimonious wireless carrier stopped offering its most affordable data package at the end of the third quarter.
When Rogers initially announced iPhone plan details in June of 2008, tens of thousands of Canadian consumers were enraged by the carrier’s prices and lack of an unlimited data plan, which is one of the most heavily promoted selling points of Apple’s revolutionary handset in nearly every market where it is available. They responded by signing an online petition—more than 57,000 people—demanding a change in policy.
Within weeks, Canada’s largest wireless carrier relented in part by offering a time-limited $30 data-only add-on (6GB). That “deal” was originally scheduled to end on Aug. 31, but the company extended it until Sept. 30.
From Oct. 1, Rogers’ basic iPhone 512MB data plan has sold for $25 per month.
Although it’s very likely that the recession has had an impact on iPhone sales in Canada, it also seems likely, extremely likely given the timing outlined above, that Rogers pricing policies have also served to drive away customers…
What’s your take?
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January 6th, 2009
That drove me away. I’m happy with the touch and my regular phone.
January 6th, 2009
That’s the main reason I don’t have an iPhone yet. I want one, but not at the monthly fees Rogers/Fido want for the device. If you do the actual math, it works out to a minimum of roughly $2,800 for the three years. Not quite worth it to me.
If there was a truly unlimited data plan for about $40/month no access fees, I would look at it more.
I would also like to see more term options. Two year term like the rest of the world, even a no term option, even if the phone costs $700 would be worth it to me.
But what do I know, I’m just an end-user. Oh well, I’ll keep waiting. Who knows, the “recession” might be a good thing…
January 6th, 2009
The I phone is cool but everyone know that Rogers is the most expensive and that the customer service sucks. I was quite stunned when I was going through the mall one day just a little after the Iphone dropped and the Rogers store had people in it but about 2-3 stores over the Telus store was crowded. I think Telus is the better option and offers the most smartphones in Canada and the Storm is looking better with the upgrades. Bottom line is Roges SUCKS and the Telus and Bell are the better options. I will admit though that Rogers reception is very good even better then Telus but only by margins because Telus reception is very good too. In fact during the Blackout only Telus phones worked and to think that Telus and Bell are going GSM in 1 1/2 years. I personally don’t think GSM is all that reliable in NA as yet unless your in the urban areas.
January 8th, 2009
I was an expat in Asia for 12 years and cellphone pricing was much lower than in Canada. As well, phone services included SMS, caller ID, etc. that Canadian providers charge extra for. When I have complained of the high costs at Rogers outlets, the response is “cell phone towers are expensive”. Absolutely ludicrous excuse. The real reason – Canadians are being gouged. Similarly, I had access to many more phones at lower prices than stocked at any Canadian provider.