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Is Europe Forcing Apple To Rethink Its iPhone Strategy?

By James Quintana Pearce - Wed 23 Apr 2008 02:34 PM PST

The iPhone vs Europe battle royale has gotten a piece in the International Herald Tribune, which links the rumors of a possible change in iPhone business strategy in Italy with a report that Apple (NSDQ: AAPL) was pressuring Orange to lower its €399 (US$630) price for the iPhone to suggest that Europe is influencing Apple more than Apple is influencing Europe. In other words, the gadget company may need to change its strategy for the iPhone to succeed in the EU. Part of it may be bad timing, with softening demand for high-end phones in Europe. Another issue is that individual countries within Europe have different mobile phone habits..."In Germany and France, for example, consumers are conditioned to pay heavily discounted prices for new cellphones in exchange for one- to two-year service commitments...But in Italy, where the iPhone has yet to be sold, many cellphones are not subsidized and more than 90 percent of mobile phone users pay for their service as prepaid clients, refusing to sign binding multiyear contracts.”

It should also be noted that there have been rumors that the iPhone will be offered without a contract in Australia, and available through two carriers and Apple resellers.

Posted in: Companies, Apple, Countries, Europe, Gadgets

Tags: iphone

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1 Response:
  • From Keshav Dahiya Mon 28 Apr 2008 03:11 AM

    Apple shud reconsider its strategy to market iPhone...esp the 3G version to be charging the market in June.....what they need is to target the Developing nations like India, Brazil, Middle West Asia and of course Eastern Europe....europe being a risky buziness rite now....but a few nations with/without contract will do gud.......after all they just need to sell a phone....and rest all is consumer.....
    It takes not even a minute to unlock the iPhone even in USA...and even if your phone crashes....Apple always supports you and prompts you to get back to factory setup....to restore and crack it again....only you are unlucky to screw it again....but that 
g;e is hardly 5%....on the contrary dev nations like India and Brazil have a massive customer base who thrive on there mobiles and can restore the losses.....if any.
    Mr Jobs need to think out of box for a while if he really wants to take a lead.....

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