o2 isn't bothering with the Nokia N96

I was surprised to read (via Mobiletoday) that o2 isn’t bothering with the Nokia N96. Apparently they have allocated the majority of their subsidy budget to the Apple iPhone.

O2’s management team is looking to rein in the spiralling cost of Nokia’s Nseries handsets in light of the lower average monthly spends on postpay. The operator believes there is no merit in stocking the N96 if its minimum line rental offer for a free N96 is higher than rivals’.

Fascinating.

As we’ve already seen a few times here on Mobile Industry Review, the N96 is lacking the graphics capabilities of the N95 8GB. James did a side-by-side comparison a while ago showing how woeful the experience was.

That shouldn’t interfere with your day to day calling on the N96 – but for a high end phone, it’s a little disappointing. One expects the incremented model number to mean it’s better.

I think o2 are right. If you can make more profits with Apple, stick with Apple. There is, I suspect, a lot more people willing to pay a premium for an Apple vs a Nokia.