O2 just announced the tarrifs for the Apple iPhone and it is pretty stunning – £99 for the 8GB version on a £30/month tarrif, free on the £45/month one. It is on an 18 month contract BUT people who are already on an 18 month contract with the old iPhone CAN upgrade – it looks like you just extend the contract by a further 18 months. That means that unlike other 18 month contracts on mobile networks, the 18 months only ties you to the provider – you will still be able to upgrade to the latest and greatest Apple phone.

With Microsoft’s phones looking dated already and updated versions that are just glossy front ends (the backend OS is not due to be upgraded till next year) – Apple look to be wanting to take market share away from Microsoft and possibly gain a strong foothold in the business arena (the new phone supports Exchange email which is used by a large number of companies). This of course could then in turn lead to even greater uptake in Apple Macs. Right now the markets dont think so (shares were down 4% at one point yesterday) but I think this is an interesting move by Apple.