iPhone Comments in Europe
The iPhone launch in Europe was not as successful as in the U.S.
O2 reportedly activated 8,000 iPhones on the launch day, and T-Mobile claims it sold 10,000 by the afternoon on the launch day. Germany and the UK have a combined population of approximately 143 million, meaning 0.01% of people bought an iPhone on the opening day, a percentage significantly lower than that in the U.S. Some of the reasons for the lackluster performance include the following:
High price tag: iPhone prices have been slashed by 1/3 since launch in the U.S. whereas it’s still sold at more than $500 in Europe.
Lack of 3G support
A more competitive handset market
Lower iPod market share in the MP3 market
In the long term, we expect iPhone’s sales in Europe to continuously under-perform that in the U.S.
