Apple will launch unlocked iPhone 4 in Canada but who would buy

In an unexpected move, Apple announced that it is going to release unlocked Apple iPhone 4 in Canada on July 30, 2010. Industry experts think that this would put a high value on the Apple iPhone 4 in Canada.

The 16GB and 32GB versions of the unlocked Apple iPhone 4 will become available in Canada via retail outlets of top three Canadian network operators- Rogers, Bell and Telus as well as Apple retail outlets in Canada and online store.

The 16GB version would cost $659 while the 32-GB version will cost $779. Buyers would also have to pay $10 for the SIM card. The Apple iPhone 4 would support networks of all the three carriers which means compared to the U.S. customers who can only use AT&T for Apple iPhone, Canadian buyers would have more choices.

Apple is currently selling the unlocked 8GB iPhone 3GS in its stores for $549.

Canadian customers would also be able to switch network providers and use it in other countries via SIM cards of local carriers allowing the user to avoid roaming charges from Canadian networks.

Now, the big question is- Who would buy the unlocked iPhone 4 with such a high price? According to Johanne Lemay of Lemay-Yates Associates, unlocked iPhone has huge potential in Canada but it is very expensive. In Canada, phones are sold at subsidized price to the customers in exchange for a long term contract.

Recently, Canadian people have started to pay full price for low-end phones but the $600/$700 price tag is too much for them. Amit Kaminer, Analyst, SeaBoard Group telecommunications consultancy said that most consumers prefer $199 price point plus a multi-year contract.