p2pnet - rss feed: iPhone Europe sales ’sluggish’
p2pnet news | Mobiles:- Apple’s iPhone hype and US successes had European mobile operators believing they could make a killing.
But it hasn’t happened and companies with exclusive contracts to sell iPhones are, “bracing themselves for significant losses on unsold stock as they clear the shelves to make way for a new, faster version expected this summer,” says Times Online.
“O2, which sells the phone in the UK, and T-Mobile, the German distributor, are said to have significantly overestimated the number of first version iPhones that would sell in Europe,” says the story.’
O2 is cutting the price of Apple’s 8GB unit by more than a third to £169 (about $337), says an earlier Times story, going on:
“The £100 ($ about $199) reduction is part of a limited offer until June 1 and comes after T-Mobile’s decision to reduce the price of the handset from £315 (about $628.50) to £78 (about $156) in Germany.
“The price cuts and reports that iPhone stock is running low and not being replenished in the United States, France and Britain and have boosted industry speculation that the 3G version of the device could be released later this quarter.”
When Apple’s iPhone first went on sale in Europe six months ago, “hopes were high that the device would be just as big a hit there as it had been in the U.S,” says BusinessWeek, continuing:
“But analysts are now raising concerns that the iPhone may not translate as well overseas, with sales sluggish in Europe because of the device’s high price and strong competition from Nokia (NOK) and others. ‘Our research indicates that European shipments to date have been far below [expectations],’ says analyst Richard Windsor of Nomura Securities (NMR).”
Apple’s European experience, “raises questions about the iPhone’s prospects around the world,” says the story, adding:
” The company has said it wants to sell 10 million units by the end of 2008. But Apple may need to change its business model to reach that target, perhaps by moving to nonexclusive contracts or giving up its cut of service revenues. The company may make less money off each iPhone, but it could sell many more. “If they really want to be successful in this market, they had better [change],” says Shiv K. Bakhshi, director of mobile research and devices at research firm IDC (IDC).”
Times Online - iPhone sellers braced for hit on unsold handsets, April 18, 2008
Times - O2 slashes price of Apple’s iPhone by a third, April 16, 2008
BusinessWeek - The iPhone in Europe: Lost in Translation, April 16, 2008
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