Europe is Waiting for the iPhone

Although very few details are known regarding the launch of the iPhone in Europe, analysts are saying that Apple could be forced to take a different strategy when commercializing the product in Europe than the one that they took in the United States, even to make some technical modifications to the device.

The discussions that took place regarding the iPhone and Europe intensified following a report published in Financial Times, claiming a deal between Apple and the mobile service providers from three European markets.

T-Mobile Deutschland GmbH(Germany), Orange SA (France) and O2 (United Kingdom) signed exclusive deals with Apple, in order to market the product on the markets that they are present, the issue is to become public next week.

As part of the deal, the mobile service providers have agreed to offer Apple, 10% of the total earnings generated from merchandising the iPhone, is mentioned in the report.

All three have refused to comment on this subject, leaving place for speculation from the media. Other potential partners, including Telefonica SA (Spain), and Telecom Italia are also suspected of signing secret deal with Apple regarding the product.

Vodafone Group PLC, the biggest phone company in Europe, said simply that "We do not have much to say. This is a question for Apple."

Apple did not offer any details regarding the iPhone strategy which will be taken for Europe, only the fact that it will launch the new phone this year. The analysts are saying that we will not see only a single deal, but many deals with several mobile service providers across Europe, and the terms of these deals will vary from market to market, depending on the demand for the device on them.

Because no mobile phone service provider is not covering the entire continent, Apple will be forced to cooperate with more than one, and sign different agreements in order to make the device accessible on all European markets.

Analysts are also saying that the European companies will have to accept the conditions imposed by Apple regarding the profit cut they are willing to take in order to sign exclusive deals. This will be the price that will be paid by European users in order to be able to market such a product.

In order to win the United States contract, AT&T had to make numerous concessions regarding the price and the functions, also changes to its mobile network, and introduced visual voice mail support.

Apple needs to take total control over the prices, the marketing and the distribution of the iPhone, which, besides the mobile phone function, allows users to surf the Internet, take pictures, or listen to music. This could affect negatively other products, such as the iPod music player, which is now in direct competition with the iPhone.

Source: Engadget.com