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Apple's Negotiations and the iPhone in Europe

The Guardian reports on more confirmation that O2 will be the exclusive carrier of the iPhone in the UK. They also claim that T-Mobile for Germany and Orange in France will be announced on Wednesday and Thursday respectively.

Of interest, they describe that Apple pursued a "divide and conquer" strategy in partnering the iPhone in Europe, pitting carriers against each other. In the end, O2 won the deal, but at a high price:

...at the 11th hour O2 snatched the UK deal with an offer that gave such a high proportion of revenues to Apple that none of its competitors could see any way of making any return on the phone, even over three years. They believed that even if it was treated as purely a loss-leading marketing product, a better return could be had by spending the money elsewhere.


Apple is hosting a media event in London at 10am local time on Tuesday September 18th, 2007. While Apple is widely expected to launch the UK iPhone at that time, there are conflicting reports on the details.

ThinkSecret believes the iPhone will ship in the UK during the week of November 12th, and expect another media event around September 24th for France. Meanwhile, Gizmodo expects the UK iPhone to ship by the end of October.

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58 months ago
This is good news for all of the Europeans who need an iPhone fix. However, I don't think the iPhone will do so hot if it doesn't have 3G. And I don't think Europe will get 3G before America...
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58 months ago
that's pretty retarded... with the unlock coming around the corner, why would somebody bid that high?
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58 months ago

And I don't think Europe will get 3G before America...


Actually, a simultaneous rollout is more likely. Europe is a more demanding phone market. Apple won't be able to drag its feet with a feature if the population over there feels its necessary.

On a side note, it's interesting that the UK carrier is not going to make much money off of the deal in terms of iPhone plan sales; I'm guessing they're banking on other products and services being able to make up the shortfall?
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58 months ago
This is wonderful for our European based iPhone fans but what about us here in Canada?
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58 months ago
It seems to me that if you squeeze the carriers so hard there will not be incentive for them to push apple phone sales as hard.
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58 months ago
O2 just care about their customer base. they'd give anything to beat Vodafone in the 'most popular' or 'most talked on' network. They've been underdogs for some time now and i reckon they'll do anything to get more subscribers on O2.

my $0.02
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58 months ago
The iPhone's success in Europe depends on 3G.
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58 months ago

This is wonderful for our European based iPhone fans but what about us here in Canada?


Thats what i've been thinking, maybe they're not trying as hard to sell it to us because we dont' have the same kind of population as europe, but how does that make me feel! :(
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58 months ago

The iPhone's success in Europe depends on 3G.


Yes and no, If 02 offer a good EDGE service, people will unlikely not care so long as they can access web/e-mail on the move at reasonable speeds they will be happy......3g is on its was but I am pretty sure we won't see it in the UK in the first iPhone release. The hardware will most likely be the same as what is offered in the US.

ShadoW
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58 months ago
Man Apple sure knows how to pull people's strings... but I mean it's the iPhone... Everyone saw how it carried AT&T to the next level, it can't be that much different for the UK... Then again the whole iPhone unlocking does add a twist to the story... I guess we'll find out soon!
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