iPhone Not On UK Xmas Lists

British consumers view the handset as too expensive.

The iPhone might have had a spectacular launch in Britain recently, but a survey by GfK NOP indicates that it might not have a lot of legs following the initialrush.   Only 2% of respondents said they were likely to add an iPhone to their Christmas lists, while 46% felt the price of the phone – around $400 – was too high. However, peoplewere definitely aware of the handset, with 78% associating it with music, and 65% with e-mail and web surfing.   Part of the problem is that UK mobile operators traditional provide free handsetsfor contract customers, while O2, which has the franchise for Britain, doesn’t do that with the iPhone.   GfK NOP’s Richard Jameson said,   "Apple’s history provesthat it has the magic touch when it comes to product development and marketing, however the iPhone has yet to capture the imagination of the UK public. iPhone hype is in full-force, but our datashows that it is very much a considered purchase, with its high price turning many consumers off…This is a highly competitive market and the mobile phone manufacturers have very strong brandloyalty.  Apple needs more than cutting–edge design to penetrate this market and will have to work much harder in the UK than it did in the US to make iPhone a mass-marketproposition.”