Nov 15, 2007

Reports Mixed on iPhone's European Launch

By Barry Levine
The initial reports on the launch of Apple's iPhone in the UK and Germany this weekend suggest that the frenzy of the earlier U.S. launch has not been repeated, although there are some signs of healthy sales.

As in the U.S., there was preparation for a great turnout when the device went on sale early Friday evening. In the UK, for instance, independent retailer Carphone Warehouse kept stores open until 11:00 p.m. to accommodate expected crowds, and exclusive carrier O2 added 1,400 more staff.

There were some crowds. Ad Age, for instance, reported on Monday that hundreds lined up -- or "queued up," as they say in England -- outside Apple's flagship store in London on Friday.

Fastest-Selling Device

The Times Online reported that O2 is calling the iPhone "the fastest-selling device we have ever seen," with tens of thousands having been sold since it went on sale Friday. Peter Erskine, head of O2's mobile group, added that two-thirds of the iPhone's customers were new to the network. No exact sales figures, however, were released.

The Times Online also noted that there were reports of slower-than-expected sales in Newcastle, Manchester, and Birmingham. The Manchester Evening News reported "small but determined bands of diehards" outside stores in its area.

The Register's Andrew Orlowski was considerably more emphatic that the launch was a dud. He wrote Sunday that "journalists and PR minders outnumbered buyers on Friday night as interest in Apple's iPhone miserably failed to live up to the prelaunch hype in the UK." As an example, he said that readers reported a lack of crowds at the Carphone and O2 stores in upscale Brent Cross.

As to why it's not "the savior of the UK's mobile industry," Orlowski noted that Britons are used to paying for the phone or the contract, but not both. With the 18-month contract, the total commitment is the equivalent of about $1,800.

He also noted recently released competing devices, such as Nokia's N95. But he said the "wonderful user interface" could translate into Britons buying the iPhone and keeping their regular phone.

Fails To Grip Germany

Ad Age noted other complaints among Britons, including awkward text entry, no picture messaging , and no high-speed 3G Internet access. When Wi-Fi access is not available, the device uses the slower EDGE network, which is currently available in only 30 percent of the UK.

In Germany, Deutsche Telecom's T-Mobile reported that 10,000 iPhones were sold on Friday alone, through more than 700 stores. But Bloomberg reported that "the frenzy in the U.S." wasn't repeated in Germany, and Reuters ran an unambiguous headline over its story: "iPhone fails to grip Germany."

In spite of some negative news reports, Jupiter Research's Michael Gartenberg said that "you can't view this launch as anything but a success," citing "encouraging" sales numbers from both countries. It's hard to compare it to the U.S. launch, he said, "because that was a bigger launch, there was more noise," and the device was brand new.

The third announced European market is France, where France Telecom's Orange will launch the device on November 29.
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