Apple to sell unlocked iPhone in Canada for $779

OTTAWA – Apple Inc. has announced it will sell an unlocked version of its new iPhone 4 when it goes on sale in Canada on Friday.

The unlocked version of the phone, which will be sold by Apple directly on its website and through its Apple Stores, will allow consumers to pick which cell company they want to sign up with and negotiate a monthly plan that suits them.

The unlocked phones will be sold in addition to iPhone 4s that are tied to specific wireless carriers, such as Rogers and Bell.

The unlocked versions of the iPhone 4 will sell for $659 and $779 for the 16-gigabyte and 32-GB versions, respectively,

It is expected that the models that are tied to a carrier will be cheaper then the unlocked versions, as they will be subsidized by the carriers and require longer-term contracts.

Typically, signing a long-term contract with a carrier gets consumers a bargain on the handset. Those willing to sign a three-year term with Rogers or Bell can buy the older iPhone 3Gs, with eight gigabytes of internal memory, for $99. That’s a $450 saving over its non-subsidized price.

Tony Olvet, a telecommunications analyst with IDC Canada, said the costly unlocked version of the phone will appeal only to a small segment of the market in Canada. He said the price makes it one of the three most expensive phones available to Canadian consumers.

"Canadians have become very used to having a portion of their phone subsidized," he said.

"History has shown that Canadians are willing to give up some freedom by signing a contract in order to get something in return, and that is a highly subsidized phone."

Olvet expects the new iPhone to meet fierce competition. Google’s Android operating system continues to make inroads on various cellular phones, and Research In Motion Ltd.’s BlackBerry devices are still selling well.

As well, he said, technical issues with the phone may temper some of the enthusiasm and force consumers to ask more questions before opting to buy the device.

A day after it launched in the United States, buyers started complaining that the phone drops calls when held a certain way.

Apple has acknowledged that the phone has antenna issues and is giving away free rubber cases that the company claims will improve reception.

"Consumers will think twice and ask a few more questions. It was a major headline," said Olvet. "That will make Canadians, who are typically more conservative, take further steps to qualify the purchase."

Despite the reception problems, more than 3.5 million iPhone 4s have been sold in the U.S. since the launch of the latest model on June 24.

Canada is among 17 countries that gets the iPhone 4 on Friday.

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Dialing for dollars; what you’ll spend for an unlocked (no contract) phone, and what you get:

$779

iPhone 4

Manufacturer: Apple

Features: 32-gigabyte memory. 4G network capability. Five-mega-pixel camera, plus second camera facing the user for video calling over a Wi-Fi connection. Capable of capturing HD video. Wi-Fi Internet access with Safari browser, video playback, music player.

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$479-$699

BlackBerry 9700 Bold 2

Manufacturer: Research in Motion

Features: 3G network capability. Wi-Fi, full qwerty keyboard, GPS, three-mega-pixel camera, video playback, music player.

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$49

Nokia 1208

Manufacturer: Nokia

Features: Basic GSM phone. No camera, no keyboard. Has three embedded games.

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$296

Mobile GT540 Optimus

Manufacturer: LG

Features: Android operating system, touch screen, three-mega-pixel camera, ‘enhanced multimedia’.

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$10,342 *

1983 DynaTAC 8000

Manufacturer: Motorola

Features: First consumer cellphone was 25 centimetres high, weighed 793 grams, had red LED display and operated up to 60 minutes before needing recharge.

*in 2010 dollars (1983: $3,995 U.S.)