Tuesday, November 13, 2007

iPhone in Europe

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.

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