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September 10th

Speculation Ensues Around European iPhone

posted in Apple (AAPL), iPhone |

Rumors have been all over the blogosphere in recent months about the possibility of Apple’s (AAPL) iPhone going over seas to Europe. Various wireless carriers have been implicated as it seems as though Apple’s demanding requests towards carriers have caused some to shy away. This very issue was at the heart of Verizon’s refusal to sell the iPhone, as Apple would require continual payments from subscribers through Verizon, even after the phone was sold. AT&T was simply the second carrier asked, and by that point, AT&T actually realized the magnitude of such a device.

Unfortunately, the iPhone was not created with 3G technology and that is a direct fault of the network in the United States, or more specifically, AT&T’s network. When it comes to European phones and networks, 3G isn’t just standard, it’s the data transfer technology. It’s one of the most popular and fastest ways to deliver and receive content over the wireless pathways.

Two things then surround the current possibility that the iPhone will be in Europe. The very issue of carrier is the most important step in moving the iPhone to Europe. Rumors surrounding a number of different carriers have come to surface, but the most likely will be T-Mobile. T-Mobile has an incredible presence in Europe and will be able to handle the demanding processes associated with the iPhone. Also, T-Mobile runs a highly reliable 3G network. A possible brochure has also been made apparent. Below is a picture of a German T-Mobile ad for the iPhone, however it is unclear whether or not the picture is a fake.

iphone_release_ger1.jpg

The second part of the move to Europe is less about rumors, and more about the international expansion goals that Apple has. In one of the initial media events that Apple held, which dealt with the iPhone and its basic details, Jobs outlined a plan for growth. His outline included a path towards gaining a 1% market share around the world. While 1 percent may not necessarily sound like much, the goal was more than just ambitious, it was astronomical. Where did they come up with that number? They’re always so cautious when it comes to earnings estimates, why would they go so far? How would they get 10 million units sold by 2008?

apple_iphone_01_0.jpg

There’s only one way. Steve Jobs knew from the very beginning, the iPhone was destined to be shipped to Europe and possibly even Asia as the popularity in America sparked international demand. With this in mind, it would be fair to say that the 10 million iPhone estimate is based upon FY 2007 and 2008 sales, and wouldn’t be seen in the beginning or middle of 2008. Apple is most likely attempting to secure a European wireless carrier by the end of 2007, in order to capture the full year of earnings in 2008.

Disclosure: Long Apple Inc. (AAPL)

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