iPhone sales began in Israel at midnight yesterday amid much fanfare and media hype, but the launch failed to attract the masses. It is not possible to obtain sales figures, because the mobile operators declined to disclose this information to "Globes". However, no more than a few hundred people were seen at the points of sale set up by Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Apple franchisee iDigital Ltd. at Dizengoff Center in Tel Aviv, or at the Pelephone Communications Ltd. counter at the Ayalon Mall in Ramat Gan.
The mobile operators tried to tempt consumers with gifts for buying an Apple iPhone. They also tried various gimmicks to drive the buzz. For example, Cellcom CEO Amos Shapira personally bought the first iPhone, and then delivered it to another customer.
Fear of launch failure caused Cellcom to send a letter to employees calling on them to show up at Dizengoff Center.
There are several reasons for the failure to attract many iPhone buyers to the midnight points of sale. Israelis are not normally midnight shoppers, especially for a product that was launched in many countries around the world more than six months ago.
In addition, with the exception of Pelephone, the mobile operators had a policy of ambiguity about iPhone prices, apparently to prevent potential customers from making price comparisons ahead of the midnight launch.
Although Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) did not participate in the midnight launch, it is not clear why it waited until 10 pm yesterday to publish its iPhone prices, since Pelephone had preempted it at noon.
Potential iPhone customers will discover that the mobile operators succeeded, as usual, in confusing them with complicated tables, plans, and rates, which require close study to understand. In its press release, Partner said that its rates plans had no fine print or appendices. Yet a quick check found that the company is offering eight different plans with three different charge tables.
Published by Globes [online], Israel business news - www.globes-online.com - on December 10, 2009
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