Apple's iPhone can only help rivals in Europe

Sep 18, 2007 0 Replies
Apple's iPhone can only help rivals in Europe open original image

Speculation has swirled for months over which European telecom operators will sell the iPhone, which combines the popular iPod music player and a Web browser.



In Germany, a source told Reuters last week it would be sold through Deutsche Telekom's retail outlets at an initial price of 399 euros.



Apple is expected to hand a deal to Spanish Telefonica's O2 UK unit, and France Telecom's Orange unit is expected to win a French deal, analysts say, though the companies have maintained strict silence about any deal.



Apple signed up top U.S. telecoms operator AT&T Inc. in an exclusive deal for at least two years to sell the phone in the United States. But earlier this month, Apple cut the U.S. price for the iPhone to $399 from $599.



Analysts said Apple is likely to benefit from its strong brand and dedicated followers when starting European sales, but a limited offering and signing deals with just one telecom operator per country would put a lid on its sales hopes.



"You need a brand, a product and a distribution to get market share. They got the brand, but the product is limited and distribution is rather limited," said Neil Mawston from Strategy Analytics.



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