O2 Refuse Nokia

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Problems occur as Nokia introduce their new handset

O2 have refused Nokia’s new handset the N96, one of the most wanted phones of the year, after their success with N95. The handset is due to be launched in October even though the launch is going down as smoothly as expected, o2 are proving to be difficult to convince.

O2 is believed to have allocated the majority of its subsidy budget to the Apple iPhone 3G (released July 11th) for what is left of the financial year, this leaves them unable to subsidise for Nokia’s also expensive N96 device.

It has been said that Apple set O2 a target of a set amount of sales of the 3G iPhone, and if these targets weren’t met the privilege of selling the handset/brand would be removed. As we know, O2 had exclusivity with Apple as O2 is the only network you can buy the iPhone on.

The NSeries handsets are only be available on 18 & 24 month contracts which has also put o2 off the idea of another new expensive mobile phone.

After some persuasion from Nokia, O2 have said they will have a look into spiralling costs of Nokia’s Nseries handsets in light of the lower average monthly spends on postpay. O2 have said there is no option other than to decline the N96 if it’s minimum line rental offer for a N96 is higher than rivals.

Some staff at O2 have been told the reason for the refusal of the N96 is due to there being little profit margin on Nseries handsets, another point that was made aware was the possibility of a repeat of when the N95 was brought to market and software problems occurred in early batches. It is understandable that such a highly respected company wouldn’t want any more software problems to have a negative impact on them.

Customers are likely to be able to buy the Nokia N96 on O2 at the Carphone Warehouse but not in from O2 direct.